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HomeMy WebLinkAbout100907 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 OCTOBER 9, 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 City Attorney pursuant to Government Code Section 54956.9(b) with respect to one matter of potential litigation. With respect to such matter, the City Attorney has determined that a point has been reached where there is a significant exposure to litigation involving the City and City related entities based on existing facts and circumstances. With respect to such matter, the City Council will also meet pursuant to Government Code Section 54956.9(c) to decide whether to initiate litigation. 2. Conference with City Attorney pursuant to Government Code Section 54956.9(a) with respect to one matter of pending litigation to which the City and Temecula Public Financing Authority are defendants. The title of the litigation is R.J. Noble Co. v. Ashby USA et aI., Riverside County Superior Court Case No. RIC 480922 and the stop-notice claim of Riverside Construction Co. with respect to the Roripaugh Ranch Project. 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: 07-14 Resolution: 07-82 CALL TO ORDER: Mayor Chuck Washington Prelude Music: Temecula Chorus Invocation: Pastor Leon Franklin of Living Word Church Flag Salute: Council Member Edwards ROLL CALL: Comerchero, Edwards, Naggar, Roberts, Washington PRESENTA TIONS/PROCLAMA TIONS National Phvsical Therapv Month Week of Praver for Interfaith Understandinq True North-Citizen Opinion Survev results PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Council on items that appear within the Consent Calendar or ones that are not listed on the agenda. Speakers are limited to two (2) minutes each. If you desire to speak to the Council on an item which is listed on the Consent Calendar or a matter not listed on the agenda, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk prior to the Council addressing that item. There is a five minute (5) time limit for individual speakers CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 List of Demands RECOMMENDATION: 2 2.1 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 3 Citv Treasurer's Report as of Auqust 31. 2007 RECOMMENDATION: 3.1 Approve and file the City Treasurer's Report as of August 31, 2007 4 Southwest California Economic Alliance 2007-08 Operatinq Aqreement RECOMMENDATION: 4.1 Approve the Southwest California Economic Alliance 2007-08 Operating Agreement in the amount of $60,000. 5 Authorize Temporarv Partial Street Closures for the "Race for the Cure" Event October 21. 2007. in the Promenade Mall Area (Marqarita Road. Overland Drive. Ynez Road. and Solana Wav) RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING PARTIAL STREET CLOSURES FOR THE INLAND EMPIRE "RACE FOR THE CURE" EVENT ON OCTOBER 21,2007, AND AUTHORIZING THE CITY ENGINEER TO ISSUE PERMITS FOR THIS SPECIFIC SPECIAL EVENT 6 Authorization to Solicit and Neqotiate a Proposal from RBF Consultinq to Desiqn the Interstate-15/Hiqhwav 79 South Ultimate Interchanqe. Proiect No. PW04-08 RECOMMENDATION: 6.1 Authorize the Department of Public Works to solicit and negotiate a proposal from RBF Consulting to design the Interstate-15/Highway 79 South Ultimate Interchange, Project No. PW04-08. 7 Holidav Schedule for Citv Council Meetinqs RECOMMENDATION: 3 7.1 Direct the City Clerk to reschedule the regularly scheduled meeting of November 13,2007 to November 6,2007, and cancel the regularly scheduled meeting of December 25, 2007; and to perform the appropriate postings and noticing requirements of the Government Code. 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. 9 Purchase of four Citv Vehicles RECOMMENDATION: 9.1 Approve the purchase of the following vehicles from Rancho Ford: Two (2) - 2008, 2WD, 1-Ton Utility Truck each One (1) - 2008, 4WD, Y:;-Ton F-150 Extended Cab Pickup Truck One (1) - 2008, 4WD Mid-Size Extended Cab Pickup Truck $28,626.07 $23,044.62 $21,135.29 9.2 Approve an additional capital asset allocation in the vehicle internal service fund for $10,000 to complete this vehicle purchase and provide funding for all after market safety equipment. 10 Amendment to Professional Services Aqreement for Special Tax Administration Services RECOMMENDATION: 10.1 Approve the Third Amendment with NBS for special tax administration services in the amount of $9,270 for FY 2007/08 for consultant costs related to the removal (stripping) of special tax levies from the county roll on all delinquent parcels within CFD 03-2 Roripaugh Ranch. This is a required process in order to proceed with foreclosure proceedings. 11 Second Readinq of Ordinance No. 07-12 RECOMMENDATION: 11.1 Adopt an Ordinance entitled: ORDINANCE NO. 07-12 4 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 12 Second Readinq of Ordinance No. 07-13 RECOMMENDATION: 12.1 Adopt an Ordinance Entitled: ORDINANCE NO. 07-13 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 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 13 Minutes RECOMMENDATION: 13.1 Approve the minutes of September 25, 2007. 14 TCSD Proposed Election for Service Level C Rates and Charqes RECOMMENDATION: 5 14.1 Adopt a resolution entitled: RESOLUTION NO. CSD 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT INITIATING PROCEEDINGS TO INCREASE THE RATES AND CHARGES FOR SERVICE LEVEL C COMMENCING FISCAL YEAR 2008-2009, TO PROVIDE AN ANNUAL ADJUSTMENT THERETO AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING IN CONNECTION THEREWITH 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 15 Minutes RECOMMENDATION: 15.1 Approve the minutes of September 25, 2007. RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS 6 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 16 Planninq Application PA07-0252. Winchester Hills Development Aqreement Amendment RECOMMENDATION: 16.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN the CITY OF TEMECULA AND WINCHESTER HILLS I, LLC 16.2 Adopt a Resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED FEE CREDIT AGREEMENT BY AND BETWEEN THE CITY OF TEMECULA AND JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next regular meeting: City Council Regular, Tuesday, October 23, 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. 7 PROCLAMA TIONS AND PRESENTATIONS The City of Temecula PROCLAMATION WHEREAS, Rancho Physical Therapy of Temecula encourages options for an active and healthy lifestyle; and WHEREAS, Rancho Physical Therapy speaks for the best interests of the public in recommending physical therapy by a licensed physical therapist to achieve physical fitness; and WHEREAS, through a National effort, Rancho Physical Therapy and community members are encouraged to join together to raise awareness of the importance of preventive health during the month of October 2007; and WHEREAS, this effort will bring awareness to our commllllity and arolllld the COlllltry of healthier and more active lifestyles; and NOW, THEREFORE, I, Chuck Washington, on behalf of the City COllllcil of the City of Temecula, hereby proclaim October 2007, to be "National Physical Therapy Month" and urge all citizens to join in a National effort to raise health and fitness awareness. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal ofthe City of Temecula to be affixed this 9th day of October, 2007. Chuck Washington, Mayor Susan W. Jones, MMC, City Clerk ~ ~~ ~~ ~~ ~ ~~ otJ uC ~~ ~ l ~"~" oj <B -B u1^ ' OJ"dn :€ ~ ~ S ~ .9 C'j rn" ~ ~ ~".S <..., "" 0 "d ~ 13sB ~ "d .;B ~ 0 Ul (l) 8 :....g .;::< ~ [> -B w bOoj"d o oj..q@ ] .8 ~ ~ ~ .~ w"dO goBS Ul g 0 (l) 0 (l) (l).....s "d>.";j ~;no ~.......o 0] OJ ~ ~ .;:j ~ ~"d~ -;:Joj ;j~o <Bs.... o ~ .~ Ul cO (l) ....... C) H 0 E-B[ 00..... C'j ....... ....... ~ () .~ o ,(OJ 0 ;:J ~ ;j ~ .~ 0 ..q - "'d [) ~ rn .t:: .0 (l)1:1[ ~<.S@ O'""'Ul bOojO ....... !-. C) ~ ...c: Ul <B:~ .~..... U .~ :> _.~ -B bO [>.8 1] ~ .~ .8 ~ c;:1 ~ I@ ~ ]~~ "d2~ ..... <..., 0 i?;o <B '""' ~OU - >. 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(l) ..q >. .D Ul ~ o .~ ";j - (l) .... -B .~ <.s .... E .8 S o ..q bJ) :-;::::: g ~ iJ 0 1:1 u (l) C ] U .~ C) "a -B S <..., o 0 o <..., OUl- ]~~ w<B (l) ~ "d"d0 .~ 8 "(l) .... w ~.D ~ Ul" $ 0 o (l) bO..... ",;j~ " :;:; bO'''' t'-- ~ 0 ~ 0 C) ~ C'j 0 ~;:C;~": 0.. rn" ~ ........ o ........ () N ........ ....... ;:j !-. (l)g..q2 ~;jUo ;;l"d 0 "'0 ~ 0 U '""' 0 oj .......q " ."(l).....~..q Ul :> .~ "'" ~ .~ <.s ..... ~ ~tl[>Oo 1) (l)1:1f.:liJ ~ ~.::;~M r/lOr/1oj~- ~S~giIi[> ~S~-E-i.D ~ 8~'O .$ ~""~~~8 ~g~~os ~ ..q ~ ~ .~ bO (l) oj g -B Q .E S< ::: ..... "" 0. oj" ;3 o (l) S (l) E--< <..., o C .~ U .s <..., o Ul (l) .~ .~ S S o o S o .8 (l) o oj (l) 0. "d - ..8 5- ] gp .~ "d B Ul .... (l) ] --- --- ~ ...... ~ =: S ~ ~ S -S ...... ~ ~ ~ ;... ~ ;... ~ So ( ~ ~ ~ ~ ~ ;>'0 S - oj '1)= 00 " o " - S sO.). "I-<l'- ,-<,,-,0 ] 0 ~ 0.) .0 l-;~ ;> .,..; 0.) ojU.o .0 " 0 -.J::::t: "- 0 ~~-.... 0_0 ~ oj ;>, 0: " oj ~CIl." "" ".0 ,.,.0_ > - " " ." 'S rJJ ~ 00 '" ;::l:E ~ i3- z:.,,'" ~ = ~ - ~ tEl ~"'oj " '7 oj " ~.o.o '-< o i;' ::;s ,," o i :E 00 oj ~ .:< " .E u 1.:< '-< " o b tJ u" ~ 00" " " o ..., ~ " oj 00 ;::l CIl CONSENT CALENDAR ITEM NO.1 ITEM NO.2 Approvals City Attorney Director of Finance City Manager MII.f/ :1 CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: October 9, 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 $3,281,625.56. 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 9th day of October, 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 9th day of October, 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 09/20/2007 TOTAL CHECK RUN: $ 1,489,585.92 09/27/2007 TOTAL CHECK RUN: 1,305,183.76 09/20/2007 TOTAL PAYROLL RUN: 486,855.88 TOTAL LIST OF DEMANDS FOR 10/09/2007 COUNCIL MEETING: $ 3,281,625.56 DISBURSEMENTS BY FUND: CHECKS: 001 GENERAL FUND $ 1,147,403.19 165 RDA LOWiMOD - 20% SET ASIDE 8,846.51 190 TEMECULA COMMUNITY SERVICES DISTRICT 342,577.33 192 TCSD SERVICE LEVEL B 116.81 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 120,328.24 194 TCSD SERVICE LEVEL D 848.81 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 13,542.92 197 TEMECULA LIBRARY F1JND 4,862.98 210 CAPITAL IMPROVEMENT PROJECTS FUND 998,170.46 280 REDEVELOPMENT AGENCY - CIP PROJECT 21,710.96 300 INSURANCE FUND 4,045.56 320 INFORMATION SYSTEMS 52,272.99 330 SUPPORT SERVICES 8,008.90 340 FACILITIES 13,632.05 460 CFD 88-12 DEBT SERVICE FUND 70.50 472 CFD 01-2 HARVEST ON A&B DEBT SERVICE 21,807.42 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 36,524.05 $ 2,794,769.68 001 GENERAL FUND $ 323,166.61 165 RDA LOWiMOD - 20% SET ASIDE 5,556.05 190 TEMECULA COMMUNITY SERVICES DISTRICT 106,975.03 192 TCSD SERVICE LEVEL B 118.34 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 5,583.23 194 TCSD SERVICE LEVEL D 872.20 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 510.26 197 TEMECULA LIBRARY FUND 342.51 280 REDEVELOPMENT AGENCY - CIP PROJECT 3,246.74 300 INSURANCE FUND 1,291.46 320 INFORMATION SYSTEMS 28,099.18 330 SUPPORT SERVICES 3,834.46 340 FACILITIES 7,259.81 486,855.88 TOTAL BY FUND: $ 3,281,625.56 apChkLst Final Check List Page: 1 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 932 09/19/2007 005460 U S BANK transfer admin/special tax fund 21,807.42 21,807.42 933 09/19/2007 005460 U S BANK transfer admin/special tax fund 36,524.05 36,524.05 934 09/20/2007 000444 INSTATAX (EDD) State Disability Ins Payment 21,600.90 21,600.90 935 09/20/2007 000283 INSTATAX (IRS) Federal Income Taxes Payment 86,709.83 86,709.83 936 09/20/2007 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment 21,942.75 21,942.75 SOLUTION 937 09/20/2007 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 123,017.73 123,017.73 RETIREMENT) 938 09/20/2007 000389 U S C M WEST (OBRA), OBRA - Project Retirement Payment 4,069.54 4,069.54 NATIONWIDE RETIREMENT 118612 09/18/2007 001590 CALIF REDEVELOPMENT ASSN submittal fee: 08 Awards of Excellence 150.00 150.00 118613 09/20/2007 011385 AMAYA, JOSE Refund: CRC rental 11/24 1,031.00 1,031.00 118614 09/20/2007 008595 AMERICAN INTL GROUP INC Workers' Camp Sept '07 36,615.00 36,615.00 118615 09/20/2007 008279 AMERICOMP IN FOSYSTEMS INC Symantec backup: Info Sys 1,190.00 hard drive westem digital: Info Sys 835.06 2,025.06 118616 09/20/2007 002187 ANIMAL FRIENDS OF THE Jul-Aug animal control services 26,000.00 26,000.00 VALLEYS 118617 09/20/2007 000101 APPLE ON E INC temp help ppe 8/11 Sillin, Ang 57.33 57.33 118618 09/20/2007 004623 AQUA TECH ENTERPRISES maint supplies: tes pool 841.15 841.15 118619 09/20/2007 003376 ARTS COUNCIL, THE "Arts in the Country" grant fy 07/08 20,000.00 Showtime at the Merc:8129,9/5,9/12 94.00 20,094.00 118620 09/20/2007 002648 AUTO CLUB OF SOUTHERN Membership: Oldham, Jay 47.00 CALIF Membership: Armstrong, Doug 47.00 Membership: Castillo, Ryan 47.00 Membership: Beardshear, Jeff 47.00 188.00 Page:1 apChkLst Final Check List Page: 2 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118621 09/20/2007 000475 B N I PUBLICATIONS INC Publications: B&S 2,452.29 2,452.29 118622 09/20/2007 002541 BECKER CONSTRUCTION SRVS channel repairs: pw maint 8,360.00 8,360.00 INC 118623 09/20/2007 008911 BEERS, BRUCE Reimb:Wstm Arts Alliance Cf:8/28-31 207.25 207.25 118624 09/20/2007 002377 BEST BUY COMPANY INC TV for Fac Oper Ctr conf room 8,570.73 8,570.73 118625 09/20/2007 005475 BOYD, KATHLEEN refund:30881 Del Rey Rd grading dep 995.00 995.00 118626 09/20/2007 003138 CAL MAT PW patch truck materials 501.04 PW patch truck materials 377.13 PW patch truck materials 342.92 PW patch truck materials 289.80 1,510.89 118627 09/20/2007 010349 CALIF DEPT OF CHILD SUPPORT Support Payment Case # DF099118 25.00 25.00 118628 09/20/2007 004248 CALIF DEPT OF JUSTICE- Drug & Alcohol Analysis: Police 1,715.00 1,715.00 ACCTING 118629 09/20/2007 000502 CALIF MUNI STATISTICS RDA Debt Statement CAFR 425.00 425.00 118630 09/20/2007 002266 CARRIAGE MOTORS COMPANY replace van transmission: tcsd 4,351.50 4,351.50 118631 09/20/2007 009640 CERTIFION CORPORATION Aug investigative dbase:Police 176.85 176.85 118632 09/20/2007 009849 CLOWDUS, LAURA Refund: Madison-Adv Jazz 70.00 70.00 118633 09/20/2007 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 107.05 107.05 118634 09/20/2007 004414 COMMUNITY WORKS DESIGN Jul design svc:Pechanga Rd Impr II 10,562.44 10,562.44 GROUP 118635 09/20/2007 001923 CONVERSE CONSULTANTS Jul design:R. Calif Rd \l\lidening 180.00 180.00 118636 09/20/2007 001264 COSTCO WHOLESALE misc supplies: Theater hospitality 393.50 393.50 118637 09/20/2007 010650 CRAFTSMEN PLUMBING & HVAC plumbing repair: Stn 73 785.00 785.00 INC Page2 apChkLst Final Check List Page: 3 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118638 09/20/2007 008533 DAMKO, CHRISTINE Reimb:FBCI Certif.Prgm:9/9-11/07 489.82 489.82 118639 09/20/2007 002990 DAVID TURCH & ASSOCIATES Jul federal lobbyist svc: CM 3,350.00 3,350.00 118640 09/20/2007 003945 DIAMOND ENVIRONMENTAL portable restroom:Redhawk Park 57.98 SRVCS portable restroom:Riverton Park 57.98 portable restroom:Vail Rch Park 57.98 portable restroom:Long Cyn Park 57.98 portable restroom:Veterans Park 57.98 289.90 118641 09/20/2007 001669 DUNN EDWARDS CORPORATION painting supplies: Theater 223.37 223.37 118642 09/20/2007 011202 EM H SPORTS & FITNESS TCSO instructor earnings 227.50 227.50 118643 09/20/2007 002528 EAGLE GRAPHIC CREATIONS recognition mugs: HR 17.46 17.46 INC 118644 09/20/2007 000395 ECONOMIC DEVELOPMENT qtrly lunch Edwards/Carlisle 9/27 80.00 80.00 CORP 118645 09/20/2007 003223 EDAW INC Jul biological svc:Long Canyon Basin 3,273.22 3,273.22 118646 09/20/2007 005880 EDGE DEVELOPMENT INC. HVAC system repair: Library 379.10 379.10 118647 09/20/2007 001056 EXCEL LANDSCAPE Aug Idscp maint: sports parks 44,371.22 Aug Idscp maint: slope areas 43,066.22 Aug Idscp maint: slope areas 29,372.80 Aug Idscp maint: medians 14,070.19 Aug Idscp maint: comm facilities 9,542.19 140,422.62 118648 09/20/2007 011388 EXCELSIOR Registr:Mailcom cf/Las Vegas 10/8-10 FC 975.00 975.00 118649 09/20/2007 005954 FAIRMONT HOTEL SAN JOSE CCAPA Cnf San Jose 9/30-10/3 MP 557.10 557.10 118650 09/20/2007 005954 FAIRMONT HOTEL SAN JOSE CCAPA Cnf San Jose 9/30-10/3 OW 557.10 557.10 118651 09/20/2007 005954 FAIRMONT HOTEL SAN JOSE CCAPA Cnf San Jose 9/30-10/3 EJ 557.10 557.10 118652 09/20/2007 000478 FAST SIGNS Exhibit Signage: Museum 53.89 53.89 Page:3 apChklst Final Check List Page: 4 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118653 09/20/2007 003347 FIRST BANKCARD CENTER SKILLPATH INC TT Regist:Master MS Prjt:11/5-6:Becerra 1,497.00 RIVIERA HOTEL SJ Hotel:MailCom Conf:Carranza:10/B-10 476.91 TEMECULA TROPHY COMPANY SJ Hotel:SIRE Roundtable:GF 352.13 FCC CONFERENCECALLSVC RJ Conference calls svcs 351.20 TEMECULA TROPHY COMPANY SJ City Clerks Assoc award trophies 292.06 DEEP SURPLUS CABLES TT Misc computer cables 288.73 HOLIDAY INN SN Hotel::lCC Annl Conf:Sacr :9/5-6 206.41 SOUTHWEST AIRLINES AA Airiare:CPUC Mtg:9/11 201.30 SKILLPATH INC TT Regist:1st Time Mgr:Krueger:10/10 199.00 MILANOS SJ Refreshments:Council Closed Session 160.00 PAT & OSCARS RESTAURANT SJ Refreshments:Council Closed Session 138.99 FRANKLIN QUEST COMPANY INC SJ Mgrs Day timer supplies 133.63 AMAZON.COM,INC TT book for IS references 86.86 PAT & OSCARS RESTAURANT RJ Refreshments:Commissioners Mtg 72.50 ALL RESORT EXPRESS SJ Shuttle:SIRE Roundtable:Flores 67.00 VINEYARD ROSE RESTAURANT AA Refreshments:\l\line Exec.Mtg 62.88 HUNGRY HUNTER AA Refreshments:Tem. Productions 48.51 ADMIRAL BAKER CLUBHOUSE TT RefreshmentsView GPA system 45.75 FAT CITY BAR & GRILL SN Meal:lCC Annl Conf:Sacr.:9/5-6 39.78 PA YPAL TT Veri sign Payflow Pro Transaction 39.20 CAL STATE SAN MARCO TT Regist:\l\lireless Summit:9/5:Thorson 30.00 FOUNDATION MIMI'S CAFE JM Refreshments:RDA Chair Mtg 25.00 TEMECULA, CITY OF TT Bank card set-up @ Theater 0.40 4,815.24 118654 09/20/2007 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00 118655 09/20/2007 010326 G E 10NICS INC Aug osmosis washer maint:Stn 73 50.00 Aug washer equip rent: Stn 73 21.55 71.55 118656 09/20/2007 007279 GAIL MATERIALS INC pro gold infield mix: PBSP 806.85 806.85 Page:4 apChkLst Final Check List Page: 5 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118657 09/20/2007 011123 GENERAL COATINGS plaster/paint finish CO#1: Library 3,000.00 3,000.00 CORPORATION 118658 09/20/2007 003815 GFB FRIEDRICH & ASSOCIATES Jul design:DePortola Rd Pvmt 2,475.00 2,475.00 INC 118659 09/20/2007 000177 GLENNIES OFFICE PRODUCTS 60" Round Table: Planning 1,345.80 INC Office supplies: PW 660.82 Office Supplies: B&S 458.00 Office Supplies: Planning 347.91 Office Supplies: Theater 268.21 Office Supplies: Fire 227.63 Office Supplies: CRC 133.66 Office Supplies: TCC 112.90 Office Supplies: MPSC 82.38 Office Supplies: Museum 16.80 Office Supplies: City Clerk 7.26 3,661.37 118660 09/20/2007 005947 GOLDEN STATE OVERNIGHT 8/21-31 express mail svc:Fire Prey 44.05 44.05 118661 09/20/2007 003792 GRAINGER misc stage supplies: Theater 99.27 misc stage supplies: Theater 40.99 140.26 118662 09/20/2007 002174 GROUP 1 PRODUCTIONS Video taping: Town Hall mtg 8/9 1,000.00 1,000.00 118663 09/20/2007 005311 H20 CERTIFIED POOL WATER Aug maint svc: CRCfTES pools 900.00 900.00 SPCL. 118664 09/20/2007 000186 HANKS HARDWARE INC Hardware supplies: Fire 1,272.17 Hardware supplies: CRC 54.48 Hardware supplies: Museum 16.94 1,343.59 118665 09/20/2007 005748 HODSON, CHERYL A Support Payment 6.64 6.64 118666 09/20/2007 001517 HORIZON HEALTH Sept employee assist pgm: HR 888.80 888.80 118667 09/20/2007 000194 I C M A RETIREMENT-PLAN I C M A Retirement Trust 457 Payment 14,174.15 14,174.15 303355 118668 09/20/2007 005579 INLAND EMPIRE PROPERTY Aug-Sept weed abatement svcs 10,572.75 10,572.75 118669 09/20/2007 010119 IRS-OIC Sup Pmt Offer # 1000497587 452379267 140.11 140.11 118670 09/20/2007 002531 KA TY FM RADIO Jul Broadcasting svcs: RDA 1,400.00 1,400.00 PageS apChkLst Final Check List Page: 6 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118671 09/20/2007 003046 K FRO G 95.1 FM RADIO broadcasting: Hot Summer Nights 575.00 575.00 118672 09/20/2007 002424 KELLEY DISPLAY INC car show banner chg:eco dev 3,355.49 Banner purch & maint:eco dev 1,618.04 4,973.53 118673 09/20/2007 001091 KEYSER MARSTON ASSOCIATES Aug real estate svcs: RDA 9,463.40 INC Aug consulting svcs: RDA 2,423.40 11,886.80 118674 09/20/2007 008680 LA-Z-BOY Furniture: Stn 92 5,425.02 5,425.02 118675 09/20/2007 002519 LAB SAFETY SUPPLY INC misc supplies: pw maint div 751.58 751.58 118676 09/20/2007 011321 LABOR LAW CENTER INC labor law posters: Fire 174.31 174.31 118677 09/20/2007 006744 LAMAR CORPORATION, THE Sept billboard advertising: RDA 3,380.00 Sept billboard advertising: RDA 300.00 3,680.00 118678 09/20/2007 010088 LEA ASSOCIATES Aug review svc:Pechanga Pkwy 5,400.00 5,400.00 118679 09/20/2007 009285 LEISURE MORE CORP sanitary pet waste bags: Parks 523.66 523.66 118680 09/20/2007 003726 LIFE ASSIST INC Medical supplies: Paramedics 1,453.10 1,453.10 118681 09/20/2007 011287 LINDY OFFICE PRODUCTS ergonomic furniture: Planning 553.97 553.97 118682 09/20/2007 004087 LOWES INC Misc supplies: Theater 6.91 6.91 118683 09/20/2007 002784 MAILBOX, THE annual subscr:Tiny Tots Prgm 29.95 29.95 118684 09/20/2007 003782 MAIN STREET SIGNS street name/misc signs:pw maint 700.38 700.38 118685 09/20/2007 004141 MAINTEX INC Custodial Supplies: City Hall 1,019.17 1,019.17 118686 09/20/2007 011378 MARC ION E PRODUCTIONS 5 Star Revue Production 9/8107 2,516.36 2,516.36 118687 09/20/2007 002666 MASON & MASON REAL ESTATE Aug appraisal svc:Pech.Pkwy easements 300.00 300.00 118688 09/20/2007 000944 MCCAIN TRAFFIC SUPPLY INC technical support S1Vcs:PWTraffic 1,600.00 1,600.00 Page:6 apChklst Final Check List Page: 7 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118689 09/20/2007 007210 MIDORI GARDENS Aug Idscp maint: parks 68,969.46 68,969.46 118690 09/20/2007 008091 MILLMORE'S WAA CREW City vehicles detailing svcs:PW Depts 100.00 100.00 118691 09/20/2007 009835 MIRACLE PLAYGROUND SALES water slide safety warning signs: crc 291.73 291.73 INC 118692 09/20/2007 010103 MIRAN ENTERPRISES INC Glass top for conference tbl: Library 514.65 514.65 118693 09/20/2007 001892 MOBILE MODULAR 8/7-9/5/07 modular bldg rental:Stn 92 832.40 7/8-816/07 modular bldg rental:stn 92 832.40 1,664.80 118694 09/20/2007 004771 MOORE ELECTRICAL traffic sgnl svcs:R.C.Rd/Bus.Pk Dr West 8,100.00 8,100.00 CONTRACTING 118695 09/20/2007 004238 MURRIETA, CITY OF Murrieta State of the City:A. Adams 10/4 30.00 30.00 118696 09/20/2007 004508 NAGGAR, MICHAEL S. Reimb:lCC Mayor's1Council Cf:7125-28 48.49 48.49 118697 09/20/2007 000727 NATIONAL FIRE PROTECTION Fire Code Book updates:Fire Prev 859.28 ASSN annual mbrshp dues:E.\l\ligle #3941584X 150.00 1,009.28 118698 09/20/2007 010504 NEXTEL COMMUNICATIONS Jul 26-Aug 25 cellular usage/equip 1,575.36 1,575.36 118699 09/20/2007 008528 NICHOLS, MELBURG & ROSETTO Jul prof srvs:Civic Center ph II 93,144.51 May prof srvs:Civic Center 89,795.96 182,940.47 118700 09/20/2007 010273 NIXON PEABODY LLP Jul '07 legal services 4,755.50 4,755.50 118701 09/20/2007 002139 NORTH COUNTY TIMES Aug ads: Aglow in the Park/F.I.T. Finale 800.16 800.16 118702 09/20/2007 002100 OBJECT RADIANCE INC TCSD Instructor Earnings 105.00 105.00 Page:? apChkLst Final Check List Page: 8 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118703 09/20/2007 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 597.26 City Vehicle Repair/Maint SVcs 476.07 City Vehicle Repair/Maint SVcs 270.51 City Vehicle Repair/Maint SVcs 258.58 City Vehicle Repair/Maint SVcs 236.15 City Vehicle Repair/Maint SVcs 230.56 City Vehicle Repair/Maint SVcs 205.39 City Vehicle Repair/Maint SVcs 195.40 City Vehicle Repair/Maint SVcs 169.79 City Vehicle Repair/Maint SVcs 159.73 City Vehicle Repair/Maint SVcs 144.87 City Vehicle Repair/Maint SVcs 77.37 City Vehicle Repair/Maint SVcs 61.20 City Vehicle Repair/Maint SVcs 61.08 City Vehicle Repair/Maint SVcs 46.55 City Vehicle Repair/Maint SVcs 37.50 City Vehicle Repair/Maint SVcs 34.27 City Vehicle Repair/Maint SVcs 34.27 3,296.55 118704 09/20/2007 001171 ORIENTAL TRADING COMPANY mise supplies:High Hopes anniv. 29.90 INC merchandise certificate -10.00 19.90 118705 09/20/2007 006552 PAINTED EARTH mise supplies:aglow in park event 646.50 646.50 118706 09/20/2007 001958 PERS LONG TERM CARE PERS Long Term Care Payment 300.92 300.92 PROGRAM 118707 09/20/2007 002498 PETRA GEOTECHNICAL INC May geotech srvcs:Diaz Rd realign 3,187.50 Jul geotech srvcs:Diaz Rd realign 1,125.00 4,312.50 118708 09/20/2007 000249 PETTY CASH Petty Cash Reimbursement 741.55 741.55 118709 09/20/2007 008748 PHONETICS IMS-4000 Node:Field Oper. Cntr 1,384.75 1,384.75 118710 09/20/2007 000253 POSTMASTER Express Mail & Postal Svcs 68.35 68.35 118711 09/20/2007 000254 PRESS ENTERPRISE COMPANY Aug recruitment ads:human resources 3,495.05 INC Aug ads:Hot Smr Nites/F.I.T.lAglow-Park 1,914.12 5,409.17 118712 09/20/2007 003697 PROJECT DESIGN photogrammectric eng srvcs:Wnchstr Rd 11,693.23 11,693.23 CONSULTANTS 118713 09/20/2007 005075 PRUDENTIAL OVERALL SUPPLY Aug uniforms/fir matltvvi rentals:City 1,248.60 credit:chrg not per agreement -8.00 1,240.60 Page:8 apChkLst Final Check List Page: 9 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118714 09/20/2007 010707 PUL TE CORP refund:MSHCP fees/tract #23992 93,179.60 93,179.60 118715 09/20/2007 010281 RAINBOW RACING SYSTEM INC Runners Bibs for F.I.T. 5K/10K 220.50 220.50 118716 09/20/2007 000728 RAMSEY BACKFLOW & backflow test/repair: medians & parks 66.00 PLUMBING backflow test/repair: medians & parks 22.00 88.00 118717 09/20/2007 000262 RANCHO CALIF WATER DISTRICT Various TCSD Water Meters 45,742.41 Various TCSD Water Meters 26,844.94 Aug 01-02-02000-0 CRC 1,466.81 Various PWWater Meters 1,254.86 Various Fire Water Meters 539.51 Aug 01-02-02001-0 Rancho Vista Rd 408.85 Various PWWater Meters 339.77 Various RDA Water Meters 74.77 Various RDA Water Meters 68.95 76,740.87 118718 09/20/2007 002654 RANCHO FORD LINCOLN City veh repair & maintCode Enforce 31.53 31.53 MERCURY 118719 09/20/2007 004584 REGENCY LIGHTING Aug electrical supplies: City facilities 772.00 772.00 118720 09/20/2007 003742 REHAB FINANCIAL Nov '06 RDA loan collection SIYCS 8.00 8.00 CORPORATION 118721 09/20/2007 002110 RENTAL SERVICE Equip rental:PW Maint 42.12 42.12 CORPORATION 118722 09/20/2007 002412 RICHARDS WATSON & GERSHON July 2007 legal services 128,339.33 128,339.33 118723 09/20/2007 000352 RIVERSIDE CO ASSESSOR Aug assessor maps:B&S dept 36.00 36.00 118724 09/20/2007 000418 RIVERSIDE CO CLERK & Res ImplY Prgm: Thurmond, J. & J. 11.00 11.00 RECORDER 118725 09/20/2007 000418 RIVERSIDE CO CLERK & Res ImplY Prgm: Bidwell, D. & B. 11.00 11.00 RECORDER 118726 09/20/2007 000418 RIVERSIDE CO CLERK & Res ImplY Prgm: Cano, B. & F. 11.00 11.00 RECORDER 118727 09/20/2007 000418 RIVERSIDE CO CLERK & Res ImplY Prgm: Eckhardt, B. & E. 11.00 11.00 RECORDER Page:9 apChkLst Final Check List Page: 10 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118728 09/20/2007 000418 RIVERSIDE CO CLERK & Res Imprv Prgm: Gilkey, O. & S. 11.00 11.00 RECORDER 118729 09/20/2007 000418 RIVERSIDE CO CLERK & Res Imprv Prgm: Karr, M. 11.00 11.00 RECORDER 118730 09/20/2007 000418 RIVERSIDE CO CLERK & Res Imprv Prgm: Stromberg, P. 11.00 11.00 RECORDER 118731 09/20/2007 003587 RIZZO CONSTRUCTION INC Purch & install:fence@ library 7,500.00 7,500.00 118732 09/20/2007 003750 ROYAL MATTRESS COMPANY 7-XL twin mattress/box sprg:stn 12 2,858.61 2,858.61 118733 09/20/2007 009196 SACRAMENTO THEATRICAL Stage lighting supplies:Theater 163.19 163.19 LIGHTING 118734 09/20/2007 011387 SALAZAR, LYNN Reimb:CCPOA Conf:9/4-7:SanDiego 107.10 107.10 118735 09/20/2007 000278 SAN DIEGO UNION TRIBUNE Aug recruitment ads:Human Resources 1,067.24 1,067.24 118736 09/20/2007 006815 SAN DIEGO, COUNTY OF Support Payment Acct # 581 095025 12.50 12.50 118737 09/20/2007 010089 SECURITAS SECURITY SRVCS Jul security srvcs:Harveston Lake Park 2,997.91 USA 7/6-12/07 security srvcs:Fire Stn 95 1,452.10 8/17-23/07 security srvcs:Fire Stn 95 1,357.96 8/10-16/07 security srvcs:Fire Stn 95 1,357.96 8/3-9/07 security srvcs:Rre stn 95 1,357.96 7/27-8/2107 security srvcs:Fire Stn 95 1,357.96 7/20-26/07 security srvcs:Fire Stn 95 1,357.96 7/13-19/07 security srvcs:Fire Stn 95 1,357.96 8/24-30/07 security srvcs:Fire Stn 95 1,357.96 6/29-7/5/07 security srvcs:Fire Stn 95 1,169.74 15,125.47 118738 09/20/2007 011386 SHABEC, RUDY reimb:camera/PW NPDES Div 315.00 315.00 118739 09/20/2007 008529 SHERIFF'S CIVIL DIV - CENTRAL Sup Pmt LO File#2007053052 $339.70 339.70 339.70 118740 09/20/2007 008529 SHERIFF'S CIVIL DIV - CENTRAL Sup Pmt LO File#2oo7052618 $100.00 100.00 100.00 118741 09/20/2007 009746 SIGNS BY TOMORROW reclaimed water signs: parks 526.70 526.70 Page:10 apChkLst Final Check List Page: 11 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118742 09/20/2007 000645 SMART & FINAL INC misc rec supplies:MPSC 203.94 recreation supplies: SMART prgm 192.12 Rfrshmnts:9/11 Remembrance '07 185.89 F.IT Finale supplies 140.17 722.12 118743 09/20/2007 000537 SO CALIF EDISON Sept 2-29-224-0173 Fire Stn 3,309.83 Sept 2-27-560-0625 Deerhollow Way 2,289.38 Sept 2-26-887-0789 various mtrs 2,036.94 Sept 2-25-393-4681 TES Pool 826.22 Sept 2-29-657-2563 Various TCSD 352.96 Sept 2-28-331-4847 Pauba Rd 89.56 Aug 2-29-657-2332 Redwood Rd PED 29.85 Sept 2-28-397-1315 Redhawk Pkwy 16.38 8,951.12 118744 09/20/2007 001212 SO CALIF GAS COMPANY Sept 055-475-6169-5 PBSP 87.32 87.32 118745 09/20/2007 011380 SOMSAKUL, ANNA refund:"Blue Crush" library materials 18.95 18.95 118746 09/20/2007 002503 SOUTH COAST AIR QUALITY permit eval fee:Field Oper Ctr pw03-06 53.19 53.19 118747 09/20/2007 000519 SOUTH COUNTY PEST CONTROL Aug pest control services: City Facs 541.00 INC Aug pest control services: Parks 351.00 Sep pest control services: FS 84 80.00 972.00 118748 09/20/2007 007851 SOUTH COAST HEATING & AIR hvac prey maint: City facilities 6,110.00 Aug hvac repair & maint:FS 73,84,92 405.00 6,515.00 118749 09/20/2007 008023 STATER BROTHERS MARKETS rirshmnts:event dinner w/fire fighters 114.46 rirshmnts:event dinner wffire fighters 29.99 144.45 118750 09/20/2007 002366 STEAM SUPERIOR CARPET carpet cleaning services:C.H.M1.W. 3,200.00 3,200.00 CLEANING 118751 09/20/2007 009061 STURDIVANT, ANGELA P. Etiquette/SWing Dance:Family Fun Night 100.00 100.00 118752 09/20/2007 008929 T & B SALES INC City vehicle maint & repairs:PW Maint 2,450.00 2,450.00 118753 09/20/2007 000305 TARGET BANK BUS CARD SRVCS misc. office supplies:PW depts 208.04 misc. supplies:9/11 Remembrance 135.26 hospitality supplies Theater 96.94 440.24 118754 09/20/2007 009500 TEMEC ELECTRONICS, INC misc tools & equip:PWTraffic 319.79 319.79 118755 09/20/2007 008292 TEMECULA DIESEL AUTO & City veh maint & repair:PWMaint 1,303.65 1,303.65 TRUCK Page:11 apChkLst Final Check List Page: 12 0912012007 9:16:36AM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118756 09/20/2007 010046 TEMECULA VALLEY promotional activity advertising:Eco Dev 120,000.00 120,000.00 CONVENTION & 118757 09/20/2007 007340 TEMECULA VALLEY FIRE EQUIP. City veh fire extinguishers: B&S dept 51.00 CO annual fire extinguisher maint:Code Enf 42.50 93.50 118758 09/20/2007 004274 TEMECULA VALLEY SECURITY locksmith services: Harveston Park 109.94 109.94 CENTR 118759 09/20/2007 008379 THEATRE FOUNDATION, THE Blood, Sweat & Tears production 9/1/07 2,478.86 2,478.86 118760 09/20/2007 008894 TIDWELL, RODNEY reimb:camera/equip-PW Maint 998.93 998.93 118761 09/20/2007 003031 TRAFFIC CONTROL SERVICE INC Traf cntrl safety devices/uniforms:PW 202.79 202.79 118762 09/20/2007 004132 TRUCK HYDRAULIC EQUIPMENT City veh repair & maintPWtraffic 713.42 713.42 118763 09/20/2007 011232 TURNER ELECTRIC electrical repair: stn 92 2,053.95 install electrical outlet: City Hall 455.26 install emerg shutoff/pool equip rm:crc 219.30 2,728.51 118764 09/20/2007 009912 U R S CORPORATION PE 8/10/07 svcs:Western Bypass ph I 7,830.69 7,830.69 118765 09/20/2007 007118 US TELEPACIFIC CORPORATION Sept Internet IP Addresses Block 1,566.11 1,566.11 118766 09/20/2007 000325 UNITED WAY United Way Charities Payment 73.00 73.00 118767 09/20/2007 004261 VERIZON Sept xxx-5072 general usage 4,707.71 Sept xxx-1341 Theater 402.94 Sept xxx-6812 General usage 89.75 Sept xxx-1941 PTA CD TTACSD 65.48 Sept xxx-3910 1st St Irrigation 35.62 Sept xxx-7562 irrigation controller 34.58 Sept xxx-2372 Wlf Crk Irrg Cntrl 32.53 5,368.61 118768 09/20/2007 009663 VERNON LIBRARY SUPPLIES INC Book drop return equip:Library 35,501.62 Diverter for Library Book Sorter 650.00 credit:original book drop returns/carts -26,973.00 9,178.62 118769 09/20/2007 004624 VOLVO ROAD MACHINERY INC asphalt roller equip parts: pw maint 213.54 credit:items returned/pw maint -183.35 30.19 Page:12 apChkLst 0912012007 9:16:36AM Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor 118770 09/20/2007 010283 W B PRODUCTIONS 118771 09/20/2007 001342 WAXIESANITARYSUPPLYINC 118772 09/20/2007 003434 Z E P MANUFACTURING COMPANY 118773 09/20/2007 003776 ZOLL MEDICAL CORPORATION Final Check List CITY OF TEMECULA (Continued) Description Amount Paid Page: 13 Check Total FIT 5K/1 OK finale-registr/timing srvcs 1,999.75 1,999.75 761.64 123.38 281.23 1,489,585.92 custodial supplies:CRCMlest \l\lingfThtr ada comply baby change tble: theater 506.78 254.86 misc. supplies:PWMaint Div 123.38 Misc medical supplies:Paramedics 281.23 Grand total for UNION BANK OF CALIFORNIA: Page:13 apChkLst 0912012007 9:16:36AM Final Check List CITY OF TEMECULA Page: 14 169 checks in this report. Grand Total All Checks: 1,489,585.92 Page:14 apChkLst Final Check List Page: 1 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 118774 09/27/2007 000733 ABBEY PARTY RENTS equip rental:Hot Summer Nights 775.00 equip rental:Hot Summer Nights 757.00 equip rental:Hot Summer Nights 223.00 1,755.00 118775 09/27/2007 004765 ACTIVE NETWORK INC, THE Safari cash drawers: Library 1,293.00 1,293.00 118776 09/27/2007 008552 ADKINS DESIGN CONSULTING graphic design svcs: Theater 2,998.32 2,998.32 118777 09/27/2007 011173 ADVANCETEC INDUSTRIES INC phone cradles: Fire vehicles 284.62 284.62 118778 09/27/2007 011343 AERO THERMIC SHIELDS vandal shield: Crowne Hill Park 1,100.56 1,100.56 118779 09/27/2007 001916 ALBERT A WEBB ASSOCIATES Aug Ceqa Svcs:Eir Santa Marg Eco 14,808.00 Aug Ceqa Svcs:Eir Santa Marg Eco 52.67 14,860.67 118780 09/27/2007 004446 AMERICAN SOCIETY OF CIVIL mb: ASCE 07/08 Butler, Greg 245.00 245.00 118781 09/27/2007 001323 ARROWHEAD WATER INC Bottled wtr svcs: Smart Program 225.20 Bottled wtr svcs: Chaparral Aquatics 61.78 Bottled wtr svcs: PBSP 46.39 Bottled wtr svcs: Chaparral Aquatics 42.93 Bottled wtr svcs: TES pool 20.70 Bottled wtr svcs: PBSP 8.61 Bottled wtr svcs: TES Pool 4.30 409.91 118782 09/27/2007 003203 ARTISTIC EMBROIDERY Uniform Shirts: Tcsd Staff 2,511.65 t-shirts: FIT 51<11 OK event 1,802.12 Uniform Shirts: Tcsd Staff 746.17 Uniform Shirts: Tcsd Staff 727.31 uniforms: PW Maint 94.28 5,881.53 118783 09/27/2007 006594 B B K PERFORMANCE INC Refund: MSHCP acreage calculation 330.11 330.11 118784 09/27/2007 004855 BABER, GABRIELE Drawing from Nature 9/15: Museum 250.00 250.00 118785 09/27/2007 003814 BALLREICH, MICHAELA 07 CC Law/Election cnf 12/5 Monterey 425.00 425.00 118786 09/27/2007 003466 BASKETS & BALLOONS TOO! Balloons/Decorations:Ecdv Events 175.63 175.63 118787 09/27/2007 010973 BATTERIES PLUS battery supplies: PWTraffic 471.95 471.95 Page:1 apChkLst Final Check List Page: 2 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118788 09/27/2007 002541 BECKER CONSTRUCTION SRVS retention pond const: PW Maint 5,645.00 5,645.00 INC 118789 09/27/2007 010328 BEST IMPRESSIONS promotional items: health fair 363.59 363.59 118790 09/27/2007 004176 BROADWING Long distance & internet svcs 750.46 750.46 TELECOMMUNICATIONS 118791 09/27/2007 005103 BUCKLEY, TIM repair supplies: Overland Admin Ctr 95.90 95.90 118792 09/27/2007 002208 BUSINESS PRESS, THE newspaper subsc 9/07-9/08:EcDv 59.00 59.00 118793 09/27/2007 003138 CAL MAT PW patch truck materials 757.72 PW patch truck materials 434.79 1,192.51 118794 09/27/2007 001054 CALIF BUILDING OFFICIALS mb: 07/08 CALBO Harold, Mark 215.00 mb: 07/08 CALBO Johnston, Rich 35.00 250.00 118795 09/27/2007 006684 CALIF BUSINESS CONDOS refund:42225 Remington Ave grading dep 995.00 995.00 118796 09/27/2007 000638 CALIF DEPT OF CONSERVATION 2002 2nd qtr correction:strong motion 2,751.14 2,751.14 118797 09/27/2007 000638 CALIF DEPT OF CONSERVATION 2002 1st qtr correction:strong motion 2,543.96 2,543.96 118798 09/27/2007 000638 CALIF DEPT OF CONSERVATION 2002 3rd qtr correction:strong motion 2,462.25 2,462.25 118799 09/27/2007 004971 CANON FINANCIAL SERVICES, Oct Copier Lease: Citywide 4,744.84 4,744.84 INC 118800 09/27/2007 011395 CARE RITE VOCATIONAL SVC refund:security dep Amphitheater 9/4 150.00 150.00 INC 118801 09/27/2007 000387 CAREER TRACK SEMINARS outstanding reception 10/24 Riverside 79.00 79.00 118802 09/27/2007 006114 CASEY, MARGIE monitor replacement: traffic division 525.19 525.19 118803 09/27/2007 011398 CAYANAN, MABEL refund: security deposit CRC 9/8 150.00 150.00 118804 09/27/2007 003775 CHAPARRAL HIGH SCHOOL 07/08 Community Svc Grant Pgm 1,000.00 1,000.00 Page2 apChklst Final Check List Page: 3 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118805 09/27/2007 009539 CHARLES ABBOTT ASSOCIATES Aug plan ck svcs: Fire Prevention 3,005.60 3,005.60 INC 118806 09/27/2007 011394 CHIOFALO, VINCENT performance: opening act 10/4/07 500.00 500.00 ALEXANDER 118807 09/27/2007 005417 CINTAS FIRST AID & SAFETY First aid supplies: PW Maint 418.76 First aid supplies: City Hall 100.92 519.68 118808 09/27/2007 001264 COSTCO WHOLESALE folding chairs: TCC 296.99 refreshments:RR Day/stn92 229.09 526.08 118809 09/27/2007 002631 COUNTS UNLIMITED INC traffic count svcs: PW Traffic Div 16,770.00 16,770.00 118810 09/27/2007 008758 CROSSROADS SOFTWARE INC Otter Box Cases: Police 7,500.00 7,500.00 118811 09/27/2007 008810 CROSSTOWN ELECTRICAL & rel.retention:traffic monitor sys 12,844.30 12,844.30 DATA 118812 09/27/2007 004408 CUB SCOUT PACK refund: security deposit CRC 2/5/07 150.00 150.00 118813 09/27/2007 001393 DATA TICKET INC Aug parking citation svcs: Police 3,284.92 3,284.92 118814 09/27/2007 011402 DE LA ROSA, GEORGE Reimb:Pool OperTrng:9/12-13:San Diego 70.48 70.48 118815 09/27/2007 011027 DEL RIO ENTERPRISE INC. concrete repairs: Citywide 135,825.70 135,825.70 118816 09/27/2007 011396 DIERKING, RICHARD refund: Library room rental 11/B 72.00 72. 00 118817 09/27/2007 002701 DIVERSIFIED RISK Aug special events premiums 1,034.50 1,034.50 118818 09/27/2007 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: TCSD 1,549.56 INC Fuel for City vehicles: PW Maint 1,519.52 Fuel for City vehicles: B&S 529.99 Fuel for City vehicles: Code Enforcement 407.76 Fuel for City vehicles: PW lnd Dv 367.48 Fuel for City vehicles: PWCIP 128.48 Fuel for City vehicles: Police 18.03 4,520.82 118819 09/27/2007 000523 EASTERN MUNICIPAL WATER Sept 190304-02 Seraphina Rd 473.74 DIST Sept 95366-02 Diego Dr Ldscp 233.08 706.82 118820 09/27/2007 000164 ESGIL CORPORATION Jul plan ck svcs: B&S 26,109.67 Aug plan ck svcs: B&S 12,189.61 38,299.28 Page:3 apChkLst Final Check List Page: 4 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118821 09/27/2007 003665 EXCEL TELECOMMUNICATIONS Sept long distance phone svcs 54.51 54.51 118822 09/27/2007 000165 FEDERAL EXPRESS INC 8/17-9/11 express mail svcs 538.42 538.42 118823 09/27/2007 007659 FIRST AMERICAN TrTLE title report: 28674 Mercedes St 1,500.00 INSURANCE title reports: 41910-53 Main St 1,500.00 title report: pw06-07(1a) 500.00 3,500.00 118824 09/27/2007 007008 FISHER SCIENTIFIC COMPANY road cleaning supplies: PI/V Maint 1,361.79 1,361.79 118825 09/27/2007 009549 FISK, STUART Reimb:Formed Based Trng:9/9-11 :Phx Az 172.88 172.88 118826 09/27/2007 007866 G C S SUPPLIES INC printer toner supplies: Citywide 1,523.21 printer toner supplies: Citywide 818.77 2,341.98 118827 09/27/2007 010326 G E 10NICS INC Aug equip maint svc: stn 73 107.75 107.75 118828 09/27/2007 011204 GERMAN, JUANITA M. TCSD Instructor Earnings 247.80 TCSD Instructor Earnings 213.50 TCSD Instructor Earnings 63.00 TCSD Instructor Earnings 50.40 574.70 118829 09/27/2007 000177 GLENNIES OFFICE PRODUCTS Office Supplies: TCSD & PW 1,262.38 INC Office Supplies: Finance 812.17 Office Supplies: CM & Council 423.51 2,498.06 118830 09/27/2007 000175 GOVERNMENT FINANCE mb: Graciano, Rudy Revenue Mgr 215.00 215.00 OFFICERS 118831 09/27/2007 010443 GRABOW, AMIE Refund: Parent & Me Creative Movements 46.25 46.25 118832 09/27/2007 010279 GRIFFITH AIR TOOL INC misc supplies: PWMaint Div 722.57 722.57 118833 09/27/2007 011401 GROUNDS FOR HIRE concessionaire gift certificates:Library 75.00 75.00 118834 09/27/2007 000186 HANKS HARDWARE INC Hardware supplies: TCSD Parks 1,492.50 Hardware supplies: PI/V Maint 1,077.53 2,570.03 118835 09/27/2007 001135 HEALTH POINTE MEDICAL pre-employment physicals: HR 125.00 125.00 GROUP INC 118836 09/27/2007 010210 HOME DEPOT SUPPLY INC, THE Hardware supplies: TCSD 28.19 28.19 Page:4 apChkLst Final Check List Page: 5 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118837 09/27/2007 004217 HYDRO TEK COMPANY misc supplies: PW Maint Div 1,978.45 1,978.45 118838 09/27/2007 006914 INNOVATIVE DOCUMENT Sept copier maintlusage:Library 781.69 781.69 SOLUTIONS 118839 09/27/2007 006713 INTEGRATED MEDIA SYSTEMS Shure Transmitter: Info Sys 428.37 428.37 118840 09/27/2007 003266 IRON MOUNTAIN OFFSITE Aug records storage:IS back-up 418.67 418.67 118841 09/27/2007 004908 JIFFY LUBE 1878 vehicle repair/maint: B&S 41.47 vehicle repair/maint: B&S 36.38 77.85 118842 09/27/2007 002424 KELLEY DISPLAY INC banner cleaning/storage: RDA 215.85 banner cleaning/storage: RDA 175.82 391.67 118843 09/27/2007 011400 KIM, SUNYOUNG Refund: Chelsea-Teen Art Club 75.00 75.00 118844 09/27/2007 004481 KIMLEY HORN & ASSOCIATES Aug consult svcs:murr creek trail 7,680.00 7,680.00 INC 118845 09/27/2007 001282 KNORR SYSTEMS INC repair filter controller: tes pool 310.20 310.20 118846 09/27/2007 008715 KRAMER FIRM INC Aug/Sept telecom consult svc:Pln 8,000.00 8,000.00 118847 09/27/2007 011022 LATITUDE GEOGRAPHICS Jul-Aug website design: GIS 856.40 856.40 GROUP L TO 118848 09/27/2007 005639 LEMAY, DIRIKI M. FY 02103 cfd 88-12 reimbursement 192.48 192.48 118849 09/27/2007 004905 LIEBERT, CASSIDY & WHITMORE Aug HR legal svcs for TE060-01 291.00 291.00 118850 09/27/2007 004087 LOWES INC Hardware supplies: Stn 92 198.99 198.99 118851 09/27/2007 011332 MAC NEIL AUTOMOTIVE City veh floor mats:Fire Prevention 116.63 116.63 PRODUCTS 118852 09/27/2007 003782 MAIN STREET SIGNS Street sign w/hardware:Tem Prkwy 533.36 533.36 118853 09/27/2007 004141 MAINTEX INC Custodial supplies: CRC 719.41 Custodial Supplies: West Wing 643.68 1,363.09 118854 09/27/2007 000217 MARGARITA OFFICIALS ASSN Aug Officiating Srvcs:TCSD Sports Prgm 4,200.00 4,200.00 PageS apChkLst Final Check List Page: 6 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118855 09/27/2007 007210 MIDORI GARDENS irrigation repairs: Linear Park N. 7/18 855.59 irrigation repairs: Serena Park 7/23 716.04 irrigation repairs: Vail Ranch Park 8/15 284.00 irrigation repairs: PBSP 7/13 129.39 1,985.02 118856 09/27/2007 001384 MINUTEMAN PRESS business cards: T.WilliamsfT.Buckley 176.75 business cards: K.Kodani/S.Brown 160.33 stationery printing srvcs:tcsd 113.18 450.26 118857 09/27/2007 010990 MOORE IACOFANO GOLTSMAN Aug consulting srvcsYouth Master Plan 7,365.05 7,365.05 INC 118858 09/27/2007 006077 NTH GENERATION COMPUTING SAN ann'l maint & support:IS 11,340.00 11,340.00 INC 118859 09/27/2007 002925 NAPA AUTO PARTS misc supplies:pw maint div 1.39 1.39 118860 09/27/2007 000727 NATIONAL FIRE PROTECTION fire safety education supplies:Fire Prev 498.87 498.87 ASSN 118861 09/27/2007 008528 NICHOLS, MELBURG & ROSETTO Jul dsgn srvcs:old town infrastructure 125,736.90 Jun prof svcs:Civic Ctr ph II 90,037.71 215,774.61 118862 09/27/2007 003964 OFFICE DEPOT BUSINESS SVS Misc office supplies: Rre 133.54 DIV Misc office supplies: Police 85.05 218.59 118863 09/27/2007 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 34.27 City Vehicle Repair/Maint SVcs 34.27 City Vehicle Repair/Maint SVcs 34.27 City Vehicle Repair/Maint SVcs 475.33 City Vehicle Repair/Maint SVcs 378.05 City Vehicle Repair/Maint SVcs 118.36 City Vehicle Repair/Maint SVcs 77.37 1,151.92 118864 09/27/2007 001171 ORIENTAL TRADING COMPANY Special Event Supplies:Harvest Camival 1,520.25 INC Special Event Supplies:Harvest Carnival 367.29 Special Event Supplies:Harvest Carnival 43.80 Special Event Supplies:Harvest Carnival 23.85 1,955.19 118865 09/27/2007 011391 PAUL TAYLOR DANCE periormances:Theater 10/5-6/07 13,000.00 13,000.00 FOUNDATION 118866 09/27/2007 000249 PETTY CASH Petty Cash Reimbursement 229.61 229.61 118867 09/27/2007 007484 PHILIPS MEDICAL SYSTEMS INC Aed's: Paramedics 5,116.08 credit:items returned/Paramedics -2,936.30 2,179.78 Page:6 apChklst Final Check List Page: 7 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118868 09/27/2007 010288 PIANO MUSIC CENTER piano rental:Theater annual event 10/5 450.00 450.00 118869 09/27/2007 010338 POOL & ELECTRICAL PRODUCTS pool supplies & chemicals: aquatics 175.48 175.48 INC 118870 09/27/2007 008039 PORTOLA PLAZA HOTEL Htl:law/election sem:S.J./I'v1.B. 1215-7 752.44 752.44 118871 09/27/2007 002185 POSTMASTER Sep '07 City newsletters postage 5,189.27 5,189.27 118872 09/27/2007 010652 QUALITY CODE PUBLISHING Adopted City Ord. Codification Srvcs 1,787.40 1,787.40 118873 09/27/2007 000262 RANCHO CALIF WATER DISTRICT Various TCSD Water Meters 33,928.11 Sept 01-04-47210-0 T.E.S. Pool 1,465.24 01-23-01075-1 Crovvne Hill Dr. 1,137.19 Various Fire Water Meters 497.74 Sept 01-04-10033-2 Margarita Rd 52.61 37,080.89 118874 09/27/2007 002654 RANCHO FORD LINCOLN City veh repair & maintCode Enforce 56.13 56.13 MERCURY 118875 09/27/2007 002110 RENTAL SERVICE equip rental:PWMntc 232.49 CORPORATION equip rental:PW Mntc 38.84 equip rental:PW Mntc 18.22 289.55 118876 09/27/2007 004498 REPUBLIC INTELLIGENT Aug traffic sgnl repair & maint:PW 3,149.13 Aug traffic sgnl repair & maint:PW 529.34 3,678.47 118877 09/27/2007 000353 RIVERSIDE CO AUDITOR June 07 parking citation assessment 8,009.06 8,009.06 118878 09/27/2007 001592 RIVERSIDE CO INFO Aug radio rental & maint: Police 1,658.28 1,658.28 TECHNOLOGY 118879 09/27/2007 000873 ROBERTS, RONALD H. Reimb:NlC TIS:9/6-9:Arlington TX 64.51 64.51 118880 09/27/2007 009196 SACRAMENTO THEATRICAL Install and Test ETC Emphasis Server 1,400.00 1,400.00 LIGHTING 118881 09/27/2007 005329 SAFE ALTERNATIVE FOR Council Community Srvc Funding Prgm 1,162.00 1,162.00 EVERYONE 118882 09/27/2007 008404 SAFE CHECKS Check Stock:Finance 658.53 658.53 118883 09/27/2007 007345 SAN DIEGO STATE U Cecilia String Quartet performance 2,500.00 2,500.00 FOUNDATION Page:? apChkLst Final Check List Page: 8 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118884 09/27/2007 006176 SANTA ANA COLLEGE Prey 1A & 1 B:Lisa Bahr 10/1-5 Pala,Ca 140.00 140.00 118885 09/27/2007 004814 SIMON WONG ENGINEERING INC Mar-Aug '07 SIYcs:Main Street Bridge 770.00 770.00 118886 09/27/2007 000645 SMART & FINAL INC misc supplies:theater 235.45 kitchen supplies-stn 92 184.58 misc rec supplies: high hopes 152.85 572.88 118887 09/27/2007 000537 SO CALIF EDISON Sept 2-29-224-0173 Fire Stn 4,595.51 Sept 2-29-223-8607 Old Twn PED 1,879.74 Sept 2-20-817-9929 Police OT. Stn 330.34 Sept 2-28-904-7706 Overland Trail 141.84 Sept 2-21-981-4720 Hwy 79S 62.64 Sept 2-14-204-1615 Front St Rdio 46.60 Sept 2-27-371-8494 Offsite Storage 23.25 7,079.92 118888 09/27/2007 001212 SO CALIF GAS COMPANY Sept 07 Facilities gas meters 875.44 Sept 015 575 0195 2 Wolf Valley Stn 391.93 Sept 095-167-7907-2 Fire Stn 84 124.04 1,391.41 118889 09/27/2007 000293 STADIUM PIZZA INC rirshmnts:Smr Day Camp 8/17 150.89 rirshmnts/stafftrng:tcsd 9/13 95.93 rirshmnts:Robot Convention/C.Mus. 9/15 61.59 rirshmnts/staff trng: Skate Park 44.83 rfrshmnts/stafftrng: C. Museum 9/6 43.59 396.83 118890 09/27/2007 000465 STRADLEY, MARY KATHLEEN TCSD Instructor Earnings 705.60 705.60 118891 09/27/2007 000305 TARGET BANK BUS CARD SRVCS recreation supplies: C. Museum 82.28 82.28 118892 09/27/2007 011333 TEMECULA CARPETS INC. Carpet Replacement: OacfTcc 1,084.00 1,084.00 118893 09/27/2007 000168 TEMECULA FLOWER CORRAL sunshine fund 203.49 203.49 118894 09/27/2007 006305 TEMECULA SISTER CITY ASSN FY 07108 Sponsorship 7,500.00 7,500.00 118895 09/27/2007 000307 TEMECULA TROPHY COMPANY recognition plaques:tcsd 9/11/07 371.09 recognition plaques:tcsd 277.81 648.90 118896 09/27/2007 010046 TEMECULA VALLEY Jul '07 Bus. ImplY District Asmnts 54,214.14 54,214.14 CONVENTION & 118897 09/27/2007 007340 TEMECULA VALLEY FIRE EQUIP. City veh fire extinguishers: b&s dept 247.55 247.55 CO Page:8 apChkLst Final Check List Page: 9 09/2712007 12:54:40PM CITY OF TEMECULA Bank: union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 118898 09/27/2007 004274 TEMECULA VALLEY SECURITY Fire Stn 92 keys & locks svcs/supplies 24.05 24.05 CENTR 118899 09/27/2007 011403 TEMECURICH LLC refund: over payment/LA Fitness 96,750.00 96,750.00 118900 09/27/2007 011397 THOMPSON, JAMES refund:sec.depositlpicnic shltr/Harv.Pk 150.00 150.00 118901 09/27/2007 010276 TIME WARNER CABLE Sept high speed internet RR 44.95 Sept high speed internet MPSC 44.95 Sept high speed internet stn 92 44.95 134.85 118902 09/27/2007 004145 TIME WARNER TELECOM Sept City phones general usage 1,095.08 1,095.08 118903 09/27/2007 002452 TOP LINE INDUSTRIAL misc. supplies:pw maint div 4.84 4.84 118904 09/27/2007 007433 TOVEY SHULTZ CONSTRUCTION Aug Prgs Pmt:Field Oper Ctr 454,669.72 454,669.72 INC 118905 09/27/2007 002702 US POSTAL SERVICE August 07 postage 5,280.23 5,280.23 118906 09/27/2007 000321 UBNOSKE, DEBBIE Computer Purchase Prgm 1,376.40 1,376.40 118907 09/27/2007 002065 UNISOURCE paper supplies:TCSO holiday events 405.00 405.00 118908 09/27/2007 004261 VERIZON Sept xxx-0074 general usage 282.80 Sept xxx-0073 general usage 246.42 Sept xxx-3564 alarm 65.05 Sept xxx-0714 PO Mall Alarm 34.58 Sept xxx-5473 Moraga Rd 33.99 Sept xxx-4723 Police Storefront 33.57 Sept xxx-5275 PO OSL 33.57 Sept xxx-8573 general usage 32.53 Sept xxx-3984 M.Naggar 32.53 Sept xxx-6084 general usage 31.56 826.60 118909 09/27/2007 004789 VERIZON ONLINE Internet svcs xx2527 Police OSL 39.95 39.95 118910 09/27/2007 004848 VERIZON SELECT SERVICES INC Sept long distance phone svcs 743.08 743.08 118911 09/27/2007 009101 VISION ONE INC Aug Showare ticketing srvcs:theater 1,203.60 1,203.60 Page:9 apChkLst 09/2712007 12:54:40PM Bank: union UNION BANK OF CALIFORNIA Check # Date Vendor 118912 09/27/2007 001890 VORTEX DOORS 118913 09/27/2007 010743 WARE, KENNETH, L. 118914 09/27/2007 003730 WEST COAST ARBORISTS INC 118915 09/27/2007 004774 WOODCREST UNIFORMS 118916 09/27/2007 010882 WOODS, KIMBERLEY MARIE 118917 09/27/2007 000348 ZIGLER, GAIL 118918 09/27/2007 004101 ZUMAR INDUSTRIES INC Final Check List CITY OF TEMECULA Page: 10 (Continued) Description Amount Paid Check Total garage door repairs: Fire Stn 84 889.18 889.18 280.00 972.00 94.79 55.00 418.59 20,976.20 1,305,183.76 TCSD Instructor Earnings TCSD Instructor Earnings 210.00 70.00 8/16-31/07 Citywide tree trimming srvcs 972.00 uniform srvcs:Police 88.79 6.00 uniform srvcs:Police refund: Cite 274589 Dismissed 55.00 reimb:10/4 Theater event printing srvcs 418.59 sign purchase:I-15 sign modsfTem.Pkwy sign purchase:I-15 sign modsfTem.Pkwy 19,720.47 1,255.73 Grand total for UNION BANK OF CALIFORNIA: Page:10 apChkLst 09/2712007 12:54:40PM Final Check List CITY OF TEMECULA Page: 11 145 checks in this report. Grand Total All Checks: 1,305,183.76 Page:11 ITEM NO.3 Approvals City Attorney Director of Finance City Manager ,~I.M/ :',1 CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: October 9, 2007 SUBJECT: City Treasurer's Report as of August 31, 2007 PREPARED BY: Rudy Graciano, Revenue Manager Shannon Buckley, Accountant RECOMMENDATION: Approve and file the City Treasurer's Report as of August 31, 2007. BACKGROUND: Government Code Sections 53646 and 41004 require reports to the City Council regarding the City's investment portfolio, receipts, and disbursements respectively. Adequate funds will be available to meet budgeted and actual expenditures of the City for the next six months. Current market values are derived from the Local Agency Investment Fund (LAIF) reports, Union Bank of California trust and custody statements, and from US Bank trust statements. Attached is the City Treasurer's Report that provides this information. The City's investment portfolio is in compliance with the statement of investment policy and Government Code Sections 53601 and 53635 as of August 31,2007. FISCAL IMPACT: None. ATTACHMENTS: City Treasurer's Report as of August 31, 2007 City of Temecula, California Portfolio Management Portfolio Summary August 31, 2007 City of Temecula 43200 Business Park Drive P.O.80X9033 Temecula, CA, 92590 (951)694-6430 Po, Market Book %01 Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 350 Equiv. 365 Equiv. Certificat6<3ofDep.asit-Bart 970,451.03 970,451.03 970,451.03 OA9 1,079 1,GG5 5.548 5.B25 Managed Pool Accolllts 73,B21,231.02 73,B21,231.02 73,B21,231.02 37.2B , , 5.125 5.'9B Letter of Credit TOG TOG 3.00 O.OG , , G.GGG G.GGG LccalAgencylnv6<3tmeriFunds B9,091,B98.52 B9,OB8,404,95 B9,091,B98.52 34,97 , , 5.181 5.253 PasslxKJk!Chockirr;] Accolllts 33,109,58 33,lG9.58 33,109,58 0.02 , , G.GGG G.GGG FederalAgElllcyCallableSocurities 4B,79S,GGO.OG 4B,710,237.00 4B,793,125.00 23.B8 1,330 ew 4.242 4.301 FederalAgencyBLJletSecLrities 2,000,000.00 2,005,570.00 2,000,000.00 1.01 no ;" 5.051 5.132 InvestmJntContracts 5,055,488.75 5,055,488.75 5,055,488.75 2.55 9,335 7,310 4.289 4.349 197,577,981.91 197,476,495.34 197,576,106.91 100.00% 568 355 4.915 4.983 Investments Cash and Accrued Interest Passbook/Chockirr;] 1,851,330.39 1,851,330.39 1,851,330.39 0.579 0.587 (notincludE>dinyieldcalculatioos) Accrued Interest at plfchase 52,835.29 52,835.29 Subtotal 1,914,155.58 1,914,155.58 Total Cash and Investments 199,429,312.30 199,390,661.02 199,490,272.59 568 355 4.915 4.983 Total Earnings August 31 Month Ending Fiscal Year To Date CurrentYear 844,823.64 1,807,891.55 Average Daily Balance 200,306,744.24 212,866,468.14 Effective Rate of Return 4.97% 5.00% Reporting period 0810112007-08/3112007 Portfolio TEME CP PM(PRF]Ml)SymFep8.41.2D2a ReportVer.5.DD Run Date: Dq/27!20D7. 14:1D City of Temecula, California Portfolio Management Page 2 Portfolio Details - Investments August 31, 2007 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Certificates of Deposit - Bank 94686006-1 03-4 RESERVE USBANK 08/29/2007 96,467.50 96,467.50 96,467.50 5.080 5.080 5.151 1B4 03103/2008 95453518-2 88-12 GENIM2 USBANK 06/12/2007 873,983.53 873,983.53 873,983.53 5.600 5.600 5.678 1,096 09/01/2010 --- Subtotal and Average 883,319.09 970,451.03 970,451.03 970,451.03 5.548 5.625 1,005 Managed Pool Accounts 104348008 01-2 IMP First American Treasury 249,694.77 249,694.77 249,694.77 4.620 4.557 4.620 104348006 01-2 RES A First American Treasury 459,506.48 459,506.48 459,506.48 4.620 4.557 4.620 104348016 01-2 RES B First American Treasury 211,530.02 211,530.02 211,530.02 4.620 4.557 4.620 104348000 01-2 SP TAX First American Treasury 695,187.96 695,187.96 695,187.96 4.620 4.557 4.620 94669911 03-1 ACOA1 First American Treasury 4,148.57 4,148.57 4,148.57 4.620 4.557 4.620 94669921 03-1 ACOB1 First American Treasury 14,674.27 14,674.27 14,674.27 4.620 4.557 4.620 94669902 03-1 BOND First American Treasury 0.34 0.34 0.34 5.880 5.799 5.880 94669906 03-1 RESA1 First American Treasury 07/01/2007 0.01 0.01 0.01 4.740 4.675 4.740 94669916 03-1 RES B First American Treasury 241,965.24 241,965.24 241,965.24 4.620 4.557 4.620 94669000 03-1 SPTAX First American Treasury 749,810.45 749,810.45 749,810.45 4.620 4.557 4.620 793593011 03-2 ACO First American Treasury 89,370.09 89,370.09 89,370.09 4.620 4.557 4.620 793593009 03-2 EMW D First American Treasury 4,107.05 4,107.05 4,107.05 4.620 4.557 4.620 793593007 03-2 IMP First American Treasury 3,342.22 3,342.22 3,342.22 4.620 4.557 4.620 793593010 03-2 PW ADM First American Treasury 1,988.74 1,988.74 1,988.74 4.620 4.557 4.620 793593006 03-2 RES First American Treasury 9,053.68 9,053.68 9,053.68 4.620 4.557 4.620 793593000 03-2 SP TX First American Treasury 571,000.47 571,000.47 571,000.47 4.620 4.557 4.620 744727011 03-3 ACO 1 First American Treasury 8,828.97 8,828.97 8,828.97 4.620 4.557 4.620 744727002 03-3 BON D First American Treasury 0.51 0.51 0.51 3.920 3.866 3.920 744727007 03-3 CITY 1 First American Treasury 108.41 108.41 108.41 4.620 4.557 4.620 744727009 03-3 EMW D 1 First American Treasury 1,276.98 1,276.98 1,276.98 4.620 4.557 4.620 94669000 03-3 SP TAX First American Treasury 1,371,709.46 1,371,709.46 1,371,709.46 4.620 4.557 4.620 94686001 03-4 ADMIN First American Treasury 17,366.55 17,366.55 17,366.55 4.620 4.557 4.620 94686005 03-4 PREPMT First American Treasury 3,953.26 3,953.26 3,953.26 4.620 4.557 4.620 94686000 03-4 REDEMP First American Treasury 76,419.70 76,419.70 76,419.70 4.620 4.557 4.620 94686006 03-4 RES First American Treasury 11,341.86 11,341.86 11,341.86 4.620 4.557 4.620 78776002 03-6 BON D First American Treasury 0.02 0.02 0.02 4.740 4.675 4.740 786776007 03-6 IMP First American Treasury 17.66 17.66 17.66 4.640 4.576 4.640 786776006 03-6 RES First American Treasury 337,875.00 337,875.00 337,875.00 4.620 4.557 4.620 786776000 03-6 SP TAX First American Treasury 209,268.75 209,268.75 209,268.75 4.620 4.557 4.620 95453510 88-12 BOND First American Treasury 1,188,940.85 1,188,940.85 1,188,940.85 4.620 4.557 4.620 95453518 88-12 GEN I First American Treasury 07/01/2007 216.23 216.23 216.23 4.620 4.557 4.620 107886000 RDA 06 A INT First American Treasury 181.97 181.97 181.97 4.620 4.557 4.620 107886010 RDA 06 B INT First American Treasury 1,935.72 1,935.72 1,935.72 4.620 4.557 4.620 Portlolio TEME CP Run Date: 09/27/2007-14:10 PM (PRF _PM2) SymRept 6.41.202a ReportVer.5.00 City of Temecula, California Portfolio Management Page 3 Portfolio Details - Investments August 31, 2007 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 107886008 RDA 06 CIP A First American Treasury 175.55 175.55 175.55 4.620 4.557 4.620 107886018 RDA 06 CIP B First American Treasury 325.81 325.81 325.81 4.620 4.557 4.620 107886009 RDA 06 COI A First American Treasury 35,676.02 35,676.02 35,676.02 4.620 4.557 4.620 107886019 RDA 06 COI B First American Treasury 6,300.91 6,300.91 6,300.91 4.620 4.557 4.620 107886016 RDA 06 RES B First American Treasury 3,457.12 3,457.12 3,457.12 4.620 4.557 4.620 94434160 RDA TABs INT First American Treasury 707.09 707.09 707.09 4.620 4.557 4.620 94432360 TCSD COPs IN First American Treasury 761.57 761.57 761.57 4.620 4.557 4.620 793593011-1 03-2-1 ACOUI CA Local Agency Investment Fun 07/01/2007 39,834,000.00 39,834,000.00 39,834,000.00 5.253 5.181 5.253 793593009-1 03-2-1 EMW D CA Local Agency Investment Fun 07/01/2007 1,457,000.00 1,457,000.00 1,457,000.00 5.253 5.181 5.253 793593007-1 03-2-1 IMPRO CA Local Agency Investment Fun 07/01/2007 1,121,000.00 1,121,000.00 1,121,000.00 5.253 5.181 5.253 793593010-1 03-2-1 PW AD CA Local Agency Investment Fun 07/01/2007 675,000.00 675,000.00 675,000.00 5.253 5.181 5.253 793593006-3 03-2-3 RESER CA Local Agency Investment Fun 07/01/2007 3,698,000.00 3,698,000.00 3,698,000.00 5.253 5.181 5.253 107886008-1 RDA 06 CIP-1 CA Local Agency Investment Fun 17,401,914.93 17,401,914.93 17,401,914.93 5.253 5.181 5.253 107886018-2 RDA 06 CIP-2 CA Local Agency Investment Fun 2,852,087.76 2,852,087.76 2,852,087.76 5.253 5.181 5.253 107886006 RDA 06 RES A MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 94434166 RDA TABs RES MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 --- Subtotal and Average 72,116,860.20 73,621,231.02 73,621,231.02 73,621,231.02 5.125 5.196 Letter of Credit 104348006-1 02008 ASSURANCE CO BOND INSURANCE 07/01/2007 1.00 1.00 1.00 0.000 0.000 793593006-2 02006 Citibank, NA 07/01/2007 1.00 1.00 1.00 0.000 0.000 793593006-1 02005 Ohio Savings Bank 07/01/2007 1.00 1.00 1.00 0.000 0.000 --- Subtotal and Average 3.00 3.00 3.00 3.00 0.000 0.000 Local Agency Investment Funds 94669911-1 03-1 ACO A2 CA Local Agency Investment Fun 1,432,049.68 1,432,049.68 1,432,049.68 5.253 5.181 5.253 94669921-1 03-1 ACO B2 CA Local Agency Investment Fun 3,612,212.75 3,612,212.75 3,612,212.75 5.253 5.181 5.253 744727011-1 03-3 ACO 2 CA Local Agency Investment Fun 8,724,120.35 8,724,120.35 8,724,120.35 5.253 5.181 5.253 744727007-1 03-3 CITY 2 CA Local Agency Investment Fun 3,012,377.76 3,012,377.76 3,012,377.76 5.253 5.181 5.253 744727009-1 03-3 EMW D 2 CA Local Agency Investment Fun 621,427.50 621,427.50 621,427.50 5.253 5.181 5.253 786776007-1 03-6 IMP 1 CA Local Agency Investment Fun 492,362.18 492,362.18 492,362.18 5.253 5.181 5.253 SYSCITY CITY CA Local Agency Investment Fun 26,175,093.48 26,163,184.39 26,175,093.48 5.253 5.181 5.253 SYSRDA RDA CA Local Agency Investment Fun 24,788,020.30 24,776,742.30 24,788,020.30 5.253 5.181 5.253 SYSTCSD TCSD CA Local Agency Investment Fun 234,034.52 233,928.04 234,034.52 5.253 5.181 5.253 --- Subtotal and Average 75,073,246.91 69,091,698.52 69,068,404.95 69,091,698.52 5.181 5.253 Run Date: 09/27/2007-14:10 Portlolio TEME CP PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Page 4 Portfolio Details - Investments August 31, 2007 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Passbook/Checking Accounts 74727006 03-3 RESERVE USBANK 08/31/2007 33,109.58 33,109.58 33,109.58 0.000 0.000 --- Subtotal and Average 702,469.26 33,109.58 33,109.58 33,109.58 0.000 0.000 Federal Agency Callable Securities 31331XBC5 01056 Federal Farm Credit Bank 10/19/2006 2,000,000.00 2,001,880.00 2,000,000.00 5.500 5.425 5.500 1,509 10/19/2011 31331XCZ3 01057 Federal Farm Credit Bank 11/13/2006 1,000,000.00 1,000,940.00 1,000,000.00 5.250 5.178 5.250 B04 11/13/2009 31331XMA7 01058 Federal Farm Credit Bank 01/18/2007 2,000,000.00 2,004,380.00 2,000,000.00 5.400 5.326 5.400 1,600 01/18/2012 3133X55G9 01014 Federal Home Loan Bank 04/08/2004 3,050,000.00 3,028,070.50 3,050,000.00 3.100 3.058 3.101 129 01/08/2008 3133X52S6 01015 Federal Home Loan Bank 04/07/2004 2,965,000.00 2,942,762.50 2,965,000.00 3.000 2.960 3.001 12B 01/07/2008 3133X55H7 01016 Federal Home Loan Bank 03/29/2004 3,000,000.00 2,979,390.00 3,000,000.00 3.000 2.960 3.001 11B 12/28/2007 3133X55H7 01017 Federal Home Loan Bank 03/29/2004 1,000,000.00 993,130.00 1,000,000.00 3.000 2.960 3.001 11B 12/28/2007 3133X5DV7 01018 Federal Home Loan Bank 04/14/2004 1,000,000.00 992,500.00 1,000,000.00 3.150 3.108 3.151 135 01/14/2008 3133X5GE2 01019 Federal Home Loan Bank 04/15/2004 2,000,000.00 1,984,380.00 2,000,000.00 3.070 3.029 3.071 136 01/15/2008 3133X5K49 01020 Federal Home Loan Bank 04116/2004 1,000,000.00 992,500.00 1,000,000.00 3.125 3.083 3.126 137 01/16/2008 3133X5QF8 01021 Federal Home Loan Bank 04122/2004 2,000,000.00 1,983,120.00 2,000,000.00 3.000 2.960 3.001 143 01/22/2008 3133X5ZL5 01022 Federal Home Loan Bank 04/30/2004 2,000,000.00 1,986,260.00 2,000,000.00 3.520 3.473 3.521 151 01/30/2008 3133XCY31 01033 Federal Home Loan Bank 09/14/2005 960,000.00 959,702.40 960,000.00 4.380 4.320 4.380 13 09/14/2007 3133XD2G5 01034 Federal Home Loan Bank 09/21/2005 3,000,000.00 2,992,500.00 2,998,125.00 4.375 4.347 4.407 111 12/21/2007 3133XD3Q2 01035 Federal Home Loan Bank 09/28/2005 620,000.00 619,615.60 620,000.00 4.400 4.340 4.400 27 09/28/2007 3133XD3RO 01036 Federal Home Loan Bank 09/28/2005 2,000,000.00 1,990,620.00 2,000,000.00 4.500 4.438 4.500 209 03/28/2008 3133XD6F3 01038 Federal Home Loan Bank 09/28/2005 1,000,000.00 996,880.00 1,000,000.00 4.230 4.174 4.232 11B 12/28/2007 3133XKGD1 01063 Federal Home Loan Bank 04/25/2007 200,000.00 200,376.00 200,000.00 5.250 5.177 5.249 95B 04/16/2010 3133XKGD1 01064 Federal Home Loan Bank 04126/2007 1,000,000.00 1,001,880.00 1,000,000.00 5.250 5.177 5.249 95B 04/16/2010 3133XL4P5 01066 Federal Home Loan Bank 06/04/2007 1,000,000.00 1,002,810.00 1,000,000.00 5.300 5.227 5.300 1,007 06/04/2010 3133XL6S7 01067 Federal Home Loan Bank 06/06/2007 1,000,000.00 1,005,310.00 1,000,000.00 6.000 5.918 6.000 1,740 06/06/2012 3133XLBS1 01068 Federal Home Loan Bank 07/19/2007 1,000,000.00 1,005,000.00 1,000,000.00 5.500 5.423 5.498 1,028 06/25/2010 3133XLSQ7 01069 Federal Home Loan Bank 07/30/2007 1,000,000.00 1,013,750.00 1,000,000.00 5.650 5.573 5.650 1,794 07/30/2012 3133XLXW8 01071 Federal Home Loan Bank 08/15/2007 1,000,000.00 1,004,690.00 1,000,000.00 5.500 5.425 5.500 1,810 08/15/2012 3133XK2N4 01072 Federal Home Loan Bank 08/24/2007 2,000,000.00 2,010,620.00 2,000,000.00 5.330 5.256 5.329 1,648 03/06/2012 3133XM5R8 01073 Federal Home Loan Bank 08/28/2007 1,000,000.00 1,002,810.00 1,000,000.00 5.080 5.011 5.080 1,455 08/26/2011 3133XM5E7 01074 Federal Home Loan Bank 08/28/2007 1,000,000.00 1,003,130.00 1,000,000.00 5.220 5.135 5.206 1,823 08/28/2012 3133XKHB4 1061 Federal Home Loan Bank 04116/2007 1,000,000.00 1,000,000.00 1,000,000.00 5.250 5.178 5.250 22B 04/16/2008 3133XKH24 1062 Federal Home Loan Bank 04/16/2007 1,000,000.00 1,004,060.00 1,000,000.00 5.250 5.178 5.250 1,689 04/16/2012 3128X36R9 01030 Federal Home Loan Mtg Corp OS/24/2005 1,000,000.00 999,280.00 1,000,000.00 4.050 3.993 4.048 23 09/24/2007 3128X4NU1 01042 Federal Home Loan Mtg Corp 10/18/2005 1,000,000.00 998,830.00 1,000,000.00 4.375 4.315 4.375 47 10/18/2007 31398ADF6 01070 Federal National Mtg Assn 08/09/2007 1,000,000.00 1,005,310.00 1,000,000.00 5.600 5.521 5.598 1,746 06/12/2012 31398ABC5 1065 Federal National Mtg Assn 05/11/2007 1,000,000.00 1,003,750.00 1,000,000.00 5.300 5.227 5.300 1,710 05/07/2012 --- Subtotal and Average 43,598,851.45 46,795,000.00 46,710,237.00 46,793,125.00 4.242 4.301 659 Portlolio TEME CP Run Date: 09/27/2007-14:10 PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Investments August 31, 2007 Page 5 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Federal Agency Bullet Securities 31331XMQ2 01059 Federal Farm Credit Bank 01/26/2007 1,000,000.00 1,006,880.00 1,000,000.00 5.000 4.933 5.002 99B OS/26/2010 3133XJRX8 01060 Federal Home Loan Bank 01/30/2007 1,000,000.00 999,690.00 1,000,000.00 5.250 5.189 5.261 90 11/30/2007 --- Subtotal and Average 2,000,000.00 2,000,000.00 2,006,570.00 2,000,000.00 5.061 5.132 544 Investment Contracts 94669906-1 03-1 RESA2 American International Group M 04/28/2004 863,900.00 863,900.00 863,900.00 4.830 4.764 4.830 9,496 08/31/2033 744727006-1 03-3 RESERV IXIS Funding Corp 07/28/2004 2,171,120.00 2,171,120.00 2,171,120.00 3.000 2.959 3.000 9,861 08/31/2034 95453518-1 88-12 GEN 1M IXIS Funding Corp 07/24/1998 500,000.00 500,000.00 500,000.00 5.430 5.509 5.585 3,653 09/01/2017 95453516-1 88-12 RES 2 IXIS Funding Corp 07/24/1998 1,531 ,468.76 1,531 ,468.76 1,531,468.76 5.430 5.509 5.585 3,653 09/01/2017 --- Subtotal and Average 5,066,488.76 5,066,488.76 5,066,488.76 5,066,488.76 4.289 4.349 7,310 Total and Average 200,306,744.24 197,577,981.91 197,476,495.34 197,576,106.91 4.915 4.983 355 Run Date: 09/27/2007-14:10 Portlolio TEME CP PM (PRF _PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Cash August 31, 2007 Average Purchase CUSIP Investment # Issuer Balance Date Par Value Market Value Retention Escrow Account SYSBARN HART 1 BARN HART 1 California Bank & Trust 133,643.98 133,643.98 SYS EDGE DEVELO EDGE DEV1 California Bank & Trust 0.00 0.00 PREMIER BANK PREMIER BANK PREMIER BANK 12,397.83 12,397.83 PFF BANK & TRUS PFF BANK PFF BANK & TRUST 359,220.57 359,220.57 Passbook/Checking Accounts SYSPetty Cash Petty Cash City of Temecula 07/01/2007 2,710.00 2,710.00 SYSFlex Ck Acet Flex Ck Acet Union Bank of California 07/01/2007 20,224.21 20,224.21 SYSGen Ck Acct Gen Ck Acct Union Bank of California 07/01/2007 1,304,949.30 1,304,949.30 SYSParking Ck PARKING CITA Union Bank of California 07/01/2007 18,184.50 18,184.50 Average Balance 0.00 Accrued Interest at Purchase 62,835.29 Subtotal 1,914,165.68 Total Cash and Investmentss 200,306,744.24 199,429,312.30 199,390,661.02 Run Date: 09/27/2007-14:10 Page 6 Stated YTM YTM Days to Book Value Rate 360 365 Maturity 133,643.98 3.000 2.959 3.000 0.00 1.250 1.233 1.250 12,397.83 5.000 4.932 5.000 359,220.57 1.736 1.712 1.736 2,710.00 20,224.21 1,304,949.30 18,184.50 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 62,835.29 1,914,165.68 199,490,272.59 4.915 4.983 355 Portlolio TEME CP PM (PRF _PM2) SymRept 6.41.202a CASH AND INVESTMENTS REPORT CITY OF TEMECULA THROUGH AUGUST 2007 001 100 101 120 150 165 170 190 192 193 194 195 196 197 210 272 273 275 276 277 280 300 310 320 330 340 380 390 460 472 473 474 475 476 477 GENERAL FUND STATE GAS TAX FUND STATE TRANSPORTATION FUND DEVELOPMENT IMPACT FUND AB 2766 FUND RDA DEV LOWIMOD 20% SET ASIDE MEASURE A FUND TEMECULA COMMUNITY SERVICES DISTRICT TCSD SERVICE LEVEL "B" STREET LIGHTS TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE TCSD SERVICE LEVEL "D" REFUSE/RECYCLING TCSD SERVICE LEVEL "R" STREETIROAD MAINT TCSD SERVICE LEVEL "L" LAKE PARK MAINT. TEMECULA LIBRARY FUND CAPITAL IMPROVEMENT PROJECT FUND CFD 01-2 HARVESTON A&B IMPROVEMENT FUND CFD 03-1 CROWNE HILL IMPROVEMENT FUND CFD 03-3 WOLF CREEK IMPROVEMENT FUND CFD 03-6 HARVESTON 2 IMPROVEMENT FUND CFD-RORIPAUGH REDEVELOPMENT AGENCY - CIP PROJECT INSURANCE FUND VEHICLES FUND INFORMATION SYSTEMS SUPPORT SERVICES FACILITIES RDA 2002 TABS DEBT SERVICE TCSD 2001 COP'S DEBT SERVICE CFD 88-12 DEB T SERVICE FUND CFD 01-2 HARVESTON A&B DEBT SERVICE CFD 03-1 CROWNE HILL DEBT SERVICE FUND AD 03-4 JOHN WARNER ROAD DEBT SERVICE CFD 03-3 WOLF CREEK DEBT SERVICE FUND CFD 03-6 HARVESTON 2 DEBT SERVICE FUND CFD- RORIPAUGH Fund Total $ 44,238,930.09 341,455.12 6,821.15 8,165,957.52 404,706.65 9,197,745.88 5,956,850.88 1,578,562.95 39,142.69 6,441.62 213,311.68 34,760.61 270,502.64 1,368,244.24 22,520,646.81 249,694.77 5,063,085.27 12,368,139.97 492,379.84 42,508,819.36 22,626,161.06 1,389,314.05 496,637.87 675,842.67 276,954.14 87,243.09 685,290.99 384,980.90 4,408,646.13 1,495,319.61 1,994,236.69 224,878.15 3,881,475.55 566,631.16 5,170,849.22 GRAND TOTAL: $ 199,390,661.02 ITEM NO.4 Approvals City Attorney Director of Finance City Manager M~.i/ ..l CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Aaron Adams, Assistant City Manager DATE: Ocober 9, 2007 SUBJECT: Approve Southwest California Economic Alliance 2007-'08 Operating Agreement PREPARED BY: Gloria Wolnick, Marketing Coordinator RECOMMENDATION: That the City Council approve the Southwest California Economic Alliance 2007-'08 Operating Agreement in the amount of $60,000. BACKGROUND: Since 1999, the cities of Temecula, Murrieta, Lake Elsinore and Riverside County have partnered to market Southwest California through the Southwest California Economic Alliance. The goal of the Economic Alliance is to stimulate economic development within the Southwest region targeting mid to large companies in the high-technology, biotechnololgy and telecommunications and federal contract industries, which will in turn create high-paying jobs and thus expand the region's tax base. These industries were chosen as a result of research of existing clusters in the Southwest California region, as well as the many strengths of the region that lend to supporting these industries. The Alliance provides marketing services to the member cities and unincorporated county area in an effort to enhance the image of this region and stimulate private investment and job creation to this economy. This business attraction partnership allows Temecula to leverage its funds with other agencies for this regional effort. The Alliance marketing program consists of advertising, marketing materials, business attraction/retention, trade show attendance, and organizing a two or three day familiarization event inviting business decision makers, site selectors, developers and venture capitalists to the region. In addition to these activities, the Alliance website, www.southwestcalifornia.com. hosts a GIS system offering site selection where one can view business sites and obtain custom demographic, workforce and consumer expenditure reports all within a user entered radius. A complete listing of available properties is also accessible. In addition, the Web site includes such helpful tools as the Resource Guide to Southwest California, the commuter computer for figuring the cost of commuting to work, and an available regional jobs database where Southwest California employers can list available job opportunities. A regional virtual job fair will be hosted on the Alliance website during the week of September 16 - 23, 2007 with the goal of assisting local companies with recruitment of available high paying jobs. Up-to-date demographic figures are also available on the site. Economic Alliance members will be meeting with San Diego and Orange County commercial brokers this year, hosting a series of Broker Breakfasts. At these events, brokers who are assisting business owners in the neighboring counties locate sites for relocation or expansion of their business, will be able to learn all they need to know about Southwest California's available land, commercial and industrial properties, demographics and workforce. The Economic Alliance markets "Southwest California" as a desirable place to do business with an available pool of skilled labor, affordable real estate, innovative financing, special business zones, easy access to other key Southwest California markets and business opportunities that accompany one of the fastest growing regions in the country. In support of the effort to brand the name Southwest California to San Diego business owners, the Economic Alliance, in conjunction with the San Diego Daily Transcript, designed a special8-page insert about Southwest California included in the August 30, 2007 edition of the paper. Copies of this insert will be distributed atthe Chamber of Commerce offices and attradeshows, and mailed to site selectors during the year. The Economic Alliance follows up on leads generated from these activities. For those who are interested, a site tour of the region and further information is provided. Costs of the program will be allocated as follows: Riverside County City of Temecula City of Murrieta City of Lake Elsinore TOTAL $60,000 and provide Alliance office space $60,000 $60,000 $30,000 $210,000 FISCAL IMPACT: Adequate funding of $60,000 forthe Southwest California Economic Alliance is available in the FY2007-'08 Economic Development Department Operating Budget #001- 111-999-5264. ATTACHMENTS: 1A Agreement Between The City of Temecula and The Southwest California Economic Alliance Southwest California Economic Alliance Work Plan Bylaws of The Southwest California Economic Alliance Southwest California Economic Alliance Balance Sheet 1B 1C 10 AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE SOUTHWEST CALIFORNIA ECONOMIC ALLIANCE This Agreement, made in triplicate, this 9th day of October 2007, by and between the CITY OF TEMECULA, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California, (hereinafter referred to as "City"), and the SOUTHWEST CALIFORNIA ECONOMIC ALLIANCE, a California nonprofit corporation (hereinafter referred to as "ALLIANCE") with reference to the following facts which are acknowledged by each party as true and correct: RECITALS A. The City is desirous of promoting its advantages as a business, industrial, and residential center; disseminating information relative thereto, and of properly following up and giving consideration to inquiries made relative to the various activities of City of Temecula ("City") and its possibilities as such to residential, industrial, and business interests. B. The ALLIANCE, has special knowledge, experience and facilities for accomplishing economic development activities and business attraction. C. The City now desires to retain the SWCEA, to accomplish various business attraction activities and the SWCEA, is willing to be so retained pursuant to the terms and conditions of this Agreement. AGREEMENT NOW, THEREFORE, it is agreed by and between the parties as follows: OPERATIVE PROVISIONS 1. RESPONSIBILITIES OF THE ALLIANCE 1.1 The ALLIANCE shall undertake, during the 2007-08 fiscal year, to carry on the scope of services as listed in the attached executive summary (refer to Exhibit #1), which is attached to and made a part of this agreement. These services include business development and business attraction functions. These duties may be adjusted from time to time as agreed upon by the ALLIANCE and the City. The Executive Director of the SWCEA shall prepare and submit to the Assistant City Manager a monthly written report specifying the activities of the ALLIANCE. Said report shall be prepared in a format acceptable to the City of Temecula and submitted to the City by the second Friday of each month. 2. PAYMENT TO ALLIANCE 2.1 In consideration of the services to be performed by the ALLIANCE for the City as set forth in paragraph 1 hereof, the City hereby agrees to pay the ALLIANCE, the sum of $60,000. This shall be considered a payment for services rendered from July 1, 2007 through June 30, 2008. 2.2 In the event the City should desire any additional services, the ALLIANCE may, upon request of the City, furnish a proposal including, an itemized statement of the estimated cost thereof, and the City may modify or alter the proposal, or may reject the proposal in its entirety at its sole discretion, or may direct the submission of a new proposal which may be accepted, altered or rejected. Upon the final approval of any such proposal and execution thereof by the ALLIANCE and the City, as herein provided, the City will pay to the ALLIANCE the cost thereof and the ALLIANCE shall perform the services set forth in the proposal. All money due for carrying out said plan or proposal shall be supported by a detailed statement of the ALLIANCE showing the basis of said claims, and certified by proper officers of the ALLIANCE. 3. INDEMNIFICATION The ALLIANCE agrees that it will defend, indemnify and hold the City, Temecula Community Services District and Redevelopment Agency and its elected officials, officers, agents, and employees free and harmless from claims for damage to persons or property by reason of the ALLIANCE's acts or omissions or those of the ALLIANCE's employees, officers, agents or invitees in connection with their services rendered hereunder to the maximum extent allowed by law. 4. INSURANCE The ALLIANCE shall secure from a good and responsible company or companies doing insurance business in the State of California, pay for and maintain in full force and effect for the duration of this Agreement a policy of workers compensation and employers' Liability Insurance in which the City is the named insured or is named as an additional insured with the ALLIANCE and shall furnish a Certificate of Liability Insurance to the City Manager of the City of Temecula before execution of this Agreement. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement attached thereto, the protection offered by the policy shall: 4.1 Include the City as the insured or named as an additional insured covering the services to be performed under this Agreement against all claims arising out of, or in connection with, the Agreement. 4.2 Include the City, its officers, employees and agents while acting within the scope of their duties under this Agreement against all claims arising out of, or in connection with, the Agreement. Provide the following minimum limits: A. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. B. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. C. Workers' Compensation and Employers' Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers' Liability limits of $1,000,000 per accident. 4.3 The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Contractor for the City. 4.4 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. 4.5 If insurance coverage is cancelled or, reduced in coverage or in limits the ALLIANCE shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. 4.6 Any deductible or self-insured retention must be declared to and approved by the City of Temecula. At the option of the City, either the insurer shall reduce or eliminate such deductible or self-insured retention as respects the City, its officers, officials and employees; or the ALLIANCE shall procure a bond guaranteeing payment of losses and related investigation claim administration and defense expenses. 5. ATTORNEY'S FEES Should any litigation be commenced between the parties hereto concerning the provisions of this Agreement, the prevailing party in such litigation shall be entitled to reasonable attorney's fees, in addition any other relief to which it may be entitled. 6. TERM This Agreement shall be effective for the fiscal year commencing July 1, 2007, and terminating June 30, 2008. 6.1 This Agreement may be terminated for any reason, by either party upon thirty (30) days written notice with any sums due and payable hereunder for services actually performed. 7. 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA SOUTHWEST CALIFORNIA ECONOMIC ALLIANCE Chuck Washington, Mayor Stevie Field Executive Director ATTEST: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: Peter M. Thorson City Attorney Exhibit "A" Economic Development Plan 1. Marketing & Multi-Media Campaign Development of marketing materials to include two (2) revised demographic profile reports with current statistics specific to the Southwest California region; Business Resource Guide updates; GIS and web-site improvements to include job postings database, maintenance and updates, and promotional items. Promote industry specific campaign, such as the biomedical industry, high-tech manufacturing, telecommunications or another industry as determined by the parties hereto. Campaign(s) will include, but not be limited to, CD-ROM, radio, television, direct mail and print media. Goal: Increase annual website visitors by 20% 2. Trade Show Attendance Attend industry specific trade shows in California, throughout the U.S. and internationally, throughout the contract year. Specific trade shows include, BIO 2008 in San Diego, CA; Core Net Global in Atlanta, GA and San Diego, CA; IAMC Professional Forum, St Louis, Missouri and Scottsdale, !>Z; International Economic Development Council (IEDC),Phoenix, !>Z; Site Selection Network, San Francisco, CA; MDM West, Anaheim, CA; National Association of Industrial & Office Professionals (NAIOP), Long Beach, CA and Atlanta, GA; National Association of Manufacturing (NAM) in Las Vegas, NV and others to be determined during on-going meetings with city and county representatives. The representative will respond to contacts and leads generated as a result of this plan. Contacts are defined as individuals who involved in the real estate and development profession who have made general inquiries into the area. Leads are defined as either real estate professionals or employees of a company that have expressed an interest in expanding or relocating into Southern California or specifically Southwest California that require immediate and thorough follow-up. It is the responsibility of SWCEDC to send out identity packages, conduct follow- up phone calls, and schedule meetings with leads and assist them with the information needed in the decision making process for expansion or relocation process. Goal: 100 leads from above-referenced trade shows/conferences 3. Print Media Advertising Development of targeted print media campaigns using publications that are industry specific Publications include, but are not limited to, Expansion Management, Site Selection Magazine, Business Journals, and other publications yet to be determined. Goal: Five industry specific ads to generate a total of 30 leads 4. Virtual Job Fair Develop, market and host regional virtual job fair. Exhibitors will include Southwest California companies in the medical design and manufacturing, telecommunications, federal contract companies, aerospace and manufacturing industries. Only job paying $15.00 or more per hour will be posted. The job fair will be hosted on the Alliance website for one week with the goal of assisting local companies with recruitment of available high paying jobs. Goal: Two virtual job fairs with 500 visitors each 5. Industry Specific Newsletters Create and design four (4) industry specific newsletters which will cover topics relevant to that industry. Industries included will be medical design/biotech, manufacturing, federal contract companies, aerospace and telecommunications. Each newsletter will provide demographics, industry specific workforce information, local and state policies that will affect the industry, Alliance trade show/event updates (as we are joining several industry organizations), interviews with Southwest California companies within the industry etc. 6. Business Visitation Conduct business visitations to expose companies to investment and Expansion opportunities in Southwest California. The companies selected will be determined based on responses to direct mail campaigns, consultations with real estate professionals, and discussions with city and county representatives. Goal: Ten visits 7. Public Relations The representative will attend various economic development related meetings that pertain to Southwest California. This includes; 1-15 Inter-regional Partnership, Chambers of Commerce, EDA hosted events, and other development forums as determined by consultation with city and county representatives. 8. Special Events Organize one (1) three-day familiarization events that will invite business decision makers, site selectors, developers and venture capitalists to the Southwest California region. Goal: Ten guests to attend each event Proposed Budqet *Executive Staff (Reimbursement to Supervisor Stone) $ 60,000 Admin Staff $ 15,000 (Sharing staffw/EDA Aviation, this reflects 50% oftotal) Web-site $ 4,000 (Updates, maintenance and translation) Marketing/Advertising $ 69,000 Trade Shows $ 10,000 Memberships $ 8,000 Travel/Expenses $ 7,000 Events $ 10,000 (Broker breakfasts, site selections events, etc) GIS Application $ 12,000 Business Expenses $ 5,000 (faxes, workers compensation etc.) Office Supplies $ 2,500 Postage $ 2,500 **Contingency Fund $ 5,000 ***Grant Total $ 210,000 * As per agreement between SWCEA and Supervisor Jeff Stone **Contingency fimd may include sponsorship opporhmities and/or consultant fees as determined by the Alliance partners. ***This total does not reflect any possible rollover arnOlmt from previous year(s). 10/3/2007 Draft Bylaws Ofthe Draft SOUTHWEST CALIFORNIA ECONOMIC ALLIANCE Article 1 Offices Section 1. Principal Office The principal office of the corporation is located in Riverside Countv. State of California. Section 2. Change of Address The designation of the county or state of the corporation's principal office may be changed by amendment of these bylaws. The board of directors may change the principal office from one location to another within the named county by noting the changed address and effective date below, and such changes of address shall not be deemed, nor require, an amendment of these bylaws: New Address: Dated: Section 3. Other Offices The corporation may also have offices at such other places, within or without its state of incorporation, where it is qualified to do business, as its business and activities may require, and as the board of directors may, from time to time, designate_ Article 2 Non-profit Purposes Section 1.IRS Section 501 (c)(6) Purposes This corporation is organized exclusively for one or more of the purposes as specified in Section 501 (c)(6) of the Internal Revenue Code, including, for such purposes, lhe making of distributions to organizalions that qualify as exempt organizations under Section 501 (c)(6) of the Internal Revenue Code. 10/'lf?007 Section 2. Specific Objectives and Purposes The soecific obiectives and ourooses of this corooration shall be: I. Economic develooment marketina as it relates to business attraction. for the cilies of Lake Elsinore. Murrieta. Temecula and unincoroorated southwest Riverside Countv defined as the unincoroorated communities of Winchester Menifee Vallev. French Vallev. Wildomar and the Wine Countrv {herein collectivelv referred to as "Southwest California": II. Attract new business and investment to the Southwest California reoion throuot:l various marketino. business attraction and economic develooment efforts. with the focus on medical device. biotechnoloov. life sciences. telecommllniG':l.tiCm,.. federal contractors. and hioh technoloov - clean manufacturino comoanies: III. Promote business develooment economic oooortunites. a skilled and educated work-force: IV, Create a oeneral awareness of the Southwest California reo ion: V. Work to educate residents of Southwest California of emolovment oooortunities within the rea ion: VI. Assist local emolovers throuah virtual iob fairs. mailers. iob database. etc.. with the aoal offillina ooen oositions with local workforce~ Article 3 Directors Section 1. Number The corporation shall have uo to 15 directors and collectively they shall be known as the board of directors. Section 2. Qualifications Directors shall be of the age of majority in this state. Other qualifications for directors of this corporation shall be as follows: thev shall be residents of Riverside Countv. reo resent either a non-crofit. educational or oublic aoencv within the Countv of Riverside. be in oood standinq within the communiiv and. as determined bv the Board of Directors. to be orofessionallv aualified in assistina with the soecific aoals and obiectives of this oraanization. Initial Directors will consist of no more than the Executive Director and two {2t non-elected reoresentatives each from the cities of Lake Elsinore. Murrieta. Temecula and Riverside Countv Economic Develooment Aaencv.. Section 3. Powers Subject to the limitations of these bylaws, the Articles of Incorporation, and lhe laws of California, the activities and affairs of the SWCEA shall be conducted and all corporate powers shall be exercised by or under the direction of the Board of uo to fifteen (15) Directors. all of whom shall be reoresentino a oovernment aoencv or non-orofit oroanization. in oood standino within the communitv and. as determined bv the Board of Directors. to be orofessionallv aualified in assistinQ with the soecific ooals and obiectives of this orpanization. however no more than two (2) Directors from anv non-orofit. oublic or educational apencv shall serve. The Directors shall have all oower to fill all vacancies on the Board of Directors. Thev mav adoot rules for conductino business of the SWCEA. Should an elected official serve as a Director of the SWCEA. all meetinos will be in accordance to the Brown Act. Section 4. Duties It shall be the duty of the directors to: a. Perform any and all duties imposed on them collectively or individually by law, by the articles of incorporation, or by these bylaws; b. Appoint and remove, employ and discharge, and, except as otherwise provided in these bylaws, prescribe the duties and fix the compensation, if any, of all officers, agenls, and employees of the corporation; c. Supervise all officers, agents, and employees of the corporation to assure that their duties are performed properly; d. Meet at such times and places as required by these bylaws; e. Register their addresses with the secretary of the corporation, and notices of meetings mailed, emailed or telegraphed to them at such addresses shall be valid notices thereof. Section 5. Term of Office Each director shall hold office for a period of one vear and until his or her successor is elected and qualifies. Section 6. Compensation Directors shall serve without compensation except for reimbursement of expenses incurred in the performance of their duties as a director. Any payments to directors shall be approved in advance in accordance with this corporation's conflict of interest policy, as set forth in Article 9 of these bylaws. 3 Section 7. Place of Meetings Meetings shall be held at the principal office of the corporation unless otherwise provided by the board or at such other place as may be designated from time to lime by resolution of the board of directors. Section 8. Regular Meetings Regular meetings of directors shall be held on the fourth Wednesday of each month at 3:00 p.m., unless such day falls on a legal holiday, in which event the regular meeting shall be held at lhe same hour and place on the next business day, Section 9. Special Meetings Special meetings of the board of direciors may be called by the chairperson of the board, the president, the vice president, the secretary, by any two directors, or, if different, by the persons specifically authorized under the laws of this state to call special meetings of the board. Such meetin9s shall be held at the principal office of the corporation or, if different, at the place designated by the person or persons calling the special meeting. Section 10. Notice of Meetings Unless otherwise provided by the articles of incorporation, these bylaws, or provisions of law, the following provisions shall govern the giving of nolice for meetings of the board of directors: a. Regular Meetings. 72 hour notice need be given of any regular meeting of the board of directors. This includes, agendas, minutes and supporting reports. b. Special Meetings. 72 hour prior notice shall be given by the secretary of the corporation to each director of each special meeting of the board. Such notice may be oral or written, may be given personally, by first class mail, email, by telephone or by facsimile machine, and shall state the place, date, and time of the meeting and the matters proposed to be acted upon at the meeting, In the case of facsimile notification, the director to be contacted shall acknowledge personal receipt of the facsimile notice by a return message or telephone call within twenty-four hours of the first facsimile transmission. c. c. Waiver of Notice. Whenever any notice of a meeting is required to be given to any director of this corporation under provisions of the articles of incorporation, these bylaws, or the law of this state, a waiver of notice in writing signed by the director, whether before or after the time of the meeling, shall be equivalent to the giving of such notice. 4 Section 11. Quorum for Meetings A quorum shall consist of three of the members of the board of directors. Except as otherwise provided under the articles of incorporation, these bylaws, or provisions of law, no business shall be considered by the board at any meeting at which the required quorum is not present, and the only motion which the chair shall entertain at such meeting is a motion to adjourn. Section 12. Majority Action as Board Action Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present is the act of lhe board of directors, unless the articles of incorporation, lhese bylaws, or provisions of law require a greater percentage or different voting rules for approval of a matter by the board. Section 13. Conduct of Meetings Meetings of the board of direclors shall be presided over by the chairperson of the board, or, if no such person has been so designated, or in his or her absence, the presidenl of the corporation, or in his or her absence, by the vice president of the corporation, or in the absence of each of these persons, by a chairperson chosen by a majority of the directors present at the meeting, The secretary of the corporation shall act as secretary of all meetings of the board, provided that, in his or her absence, the presiding officer shall appoint another person to act as secretary of the meeting. Meetings shall be governed by such procedures as may be approved from time to time by the Board of Directors, insofar as such rules are not inconsistent with or in conflict with the articles of incorporation, these bylaws or with provisions of law. Section 14. Vacancies Vacancies on the board of directors shall exist (1) on the death, resignation, or removal of any director, and (2) whenever the number of authorized directors is increased. Any director may resign effective upon giving written notice to the chairperson of the board, the president, the secretary, or the board of directors, unless the notice specifies a later time for the effectiveness of such resignation. No director may resign if the corporation would then be left without a duly elected director or directors in charge of its affairs, except upon notice to the Office of the Attorney General or other appropriate agency of this state, Directors may be removed from office, with or wilhout cause, as permitted by and in accordance with the laws of this state. Unless otherwise prohibited by the articles of incorporation, these bylaws, or provisions of law, vacancies on the board may be filled by approval of the board of directors. If the number of directors then in office is less than a quorum, a vacancy on the board may be filled by approval of a majority of the directors then in office or by a sole remaining director. A person elected to fill a vacancy on the board shall hold office until the next election of the board of direclors or until his or her death, resignation, or removal from office. 5 Section 15. Nonliability of Directors The directors shall not be personally liable for the debts, liabilities, or olher obligations of the corporation. Section 16. Indemnification by Corporation of Directors and Officers The directors and officers of the corporation shall be indemnified by the corporation to the fullest extent permissible under the laws of this state. Section 17. Insurance for Corporate Agents Except as may be otherwise provided under provisions of law, the board of directors may adopt a resolution authorizing lhe purchase and maintenance of insurance on behalf of any agent of the corporation (including a director, officer, employee, or other agenl of the corporation) against liabilities asserted against or incurred by the agent in such capacity or arising out of the agent's status as such, whether or not the corporation would have the power to indemnify the agent against such liability under the articles of incorporation, these bylaws, or provisions of law. Article 4 Officers Section 1. Designation of Officers The officers of the corporation shall be a President, a Vice Presidenl, a Secretary and Chief Financial Officer. The corporation may also have a chairperson of the board, one or more vice presidents, assistant secretaries, assistant treasurers, and other such officers with such titles as may be determined from time to time by the board of directors. Section 2. Qualifications Any person may serve as officer of this corporation provided they are a resident of Riverside County, represent either a non-profit, educational or public agency within the County of Riverside and they are in good standing within the community and determined by the Board of Directors, to be professionally qualified in assisting with the specific goals and objectives of this organizalion. Initial Officers shall consist of no more than the Executive Director and two (2), non-elected representatives each from the cities of Lake Elsinore, Murrieta, Temecula and Riverside County Economic Development Agency Section 3. Election and Term of Office Officers shall be elected by the board of directors, at any time, and each officer shall hold office until he or she resigns or is removed or is otherwise disqualified to serve, or until his or her successor shall be elected and qualified, whichever occurs first. 6 Section 4. Removal and Resignation Any officer may be removed, either wilh or without cause, by lhe board of directors, at any time. Any officer may resign at any time by giving written notice to the board of directors or to the president or secretary of the corporation. Any such resignation shall take effect at the date of receipt of such notice or at any later date specified therein, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effeclive. The above provisions of this section shall be superseded by any conflicting terms of a contract which has been approved or ratified by lhe board of directors relating to the employment of any officer of the corporation, Section 5. Vacancies Any vacancy caused by the death, resignation, removal, disqualification, or otherwise, of any officer shall be filled by the board of directors. In the event of a vacancy in any office other than that of president, such vacancy may be filled temporarily by appointment by the president until such time as the board shall fill the vacancy. Vacancies occurring in offices of officers appointed at the discretion of the board mayor may not be filled as the board shall determine. Section 6. Duties of President The president shall preside at all meetings of the Southwest California Economic Alliance and shall serve as Chairperson of the Board of Directors. Section 7. Duties of Vice President In the absence of the president, or in the event of his or her inability or refusal to act, the vice president shall perform all the duties of the president. Section 8. Duties of Secretary The secretary shall: Certify and keep at the principal office of the corporation the original, or a copy, of these bylaws as amended or otherwise altered to date. Keep at the principal office of the corporation or at such other place as the board may determine, a book of minutes of all meetings of the directors, and, if applicable, meetings of committees of directors and of members, recording therein the time and place of holding, whether regular or special, how called, how notice thereof was given, the names of those present or represented at the meeting, and the proceedings thereof, See that all notices are duly given in accordance with the provisions of these bylaws or as required by law, Be custodian of the records and of the seal of the corporation and affix the seal, as authorized by law or the provisions of these bylaws, to duly executed documents of the corporation. Keep at the principal office of the corporation a membership book containing the name 7 and address of each and any members, and, in the case where any membership has been terminated, he or she shall record such fact in the membership book together with the date on which such membership ceased. Exhibit at all reasonable times to any director of the corporation, or to his or her agent or attomey, on request lherefor, the bylaws, the membership book, and the minutes of the proceedings of the directors of the corporation. In general, perform all duties incident to the office of secretary and such other duties as may be required by law, by the articles of incorporation, or by these bylaws, or which may be assigned to him or her from time to time by the board of directors. Section 9. Duties of Chief Financial Officer The Chief Financail Officer shall: Have charge and custody of, and be responsible for, all funds and securities of the corporation, and deposit all such funds in the name of the corporation in such banks, trust companies, or other depositories as shall be selected by the board of directors, Receive, and give receipt for, monies due and payable to the corporation from any source whatsoever. Disburse, or cause to be disbursed, the funds of the corporation as may be directed by the board of directors, taking proper vouchers for such disbursements. Keep and maintain adequale and correct accounts of lhe corporation's properties and business transactions, including accounts of its assets, liabilities, receipts, disbursements, gains, and losses. Exhibit at all reasonable times the books of account and financial records to any director of the corporation, or to his or her agent or attorney, on request therefor. Render to the president and directors, whenever requested, an account of any or all of his or her transactions as treasurer and of the financial condition of the corporation. Prepare, or cause to be prepared, and certify, or cause to be certified, the financial statements to be included in any required reports. In general, perform all duties incident to the office of treasurer and such other duties as may be required by law, by the articles of incorporation of the corporation, or by these bylaws, or which may be assigned to him or her from time to time by the board of directors_ Article 5 Committees Section 1. Executive Committee The board of directors may, by a majority vote of its members, designate an Executive Committee consisting of two board members and may delegate to such committee the powers and authority of the board in the management of the business and affairs of the corporation, to the extent permitted, and, except as may otherwise be provided, by provisions of law. 8 By a majority vote of its members, lhe board may at any time revoke or modify any or all of the executive committee authority so delegated, increase or decrease but not below two (2) the number of the members of the executive committee, and fill vacancies on the executive committee from the members of the board. The executive committee shall keep regular minutes of its proceedings, cause them to be filed wilh the corporate records, and report the same to the board from time to time as lhe board may require. Section 2. other Committees The corporation shall have such other committees as may from time to time be designated by resolution of the board of directors. These committees may consist of persons who are not also members of the board and shall act in an advisory capacity to the board. Section 3. Meetings and Action of Committees Meetings and action of committees shall be governed by, noticed, held, and taken in accordance with the provisions of these bylaws concerning meetings of the board of directors, with such changes in the context of such bylaw provisions as are necessary to substitute the committee and its members for the board of directors and its members, except that the time for regular and special meetings of committees may be fixed by resolution of the board of directors or by the committee. The board of directors may also adopt rules and regulations pertaining to the conduct of meetings of committees to the extent lhat such rules and regulations are not inconsistent with the provisions of lhese bylaws. Article 6 Execution of Instruments, Deposits, and Funds Section 1. Execution of Instruments The board of directors, except as otherwise provided in these bylaws, may by resolulion authorize any officer or agent of the corporation to enter into any contract or execute and deliver any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances. Unless so authorized. onlv the oresident or executive director shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable monetarily for any purpose or in any amount. Section 2. Checks and Notes Exceot as otherwise soecificallv determined bv resolution of the board of directors. or as otherwise reauired bv law. checks. drafts. oromissorv notes. orders for the oavment of monev. and other evidence of indebtedness of the corooration over One Thousand Dollars. ($1.000\ shall be sianed bv the CFO and countersianed bv the oresident or vice- oresident of the corooration. 9 All disbursements of One Thousand Dollars ($1.00) or less. with the exceotion of oettv cash. shall be made bv check or credit card and mav be sianed bv the Executive Director or the Associate Director. Section 3. Deposits All funds of the corporation shall be deposited from time to time to the credit of the corporation in such banks, trust companies, or other depositories as the board of directors may select. Section 4. Gifts The board of directors may accept on behalf of the corporation any contribution, gift, bequest, or devise for the nonprofit purposes of this corporation. Article 7 Corporate Records, Reports, and Seal Section 1. Maintenance of Corporate Records The corporation shall keep at its principal office: a. Minutes of all meetings of directors, committees of lhe board, and, if this corporation has members, of all meetings of members, and the names of lhose present and lhe proceedings thereof; b. Adequate and correct books and records of account, including accounts of its properties and business transactions and accounts of its assels, liabilities, receipts, disbursements, gains, and losses; c. A record of its members, if any, indicating their names and addresses and, if applicable, the class of membership held by each member and the termination date of any membership; d. A copy of the corporation's articles of incorporation and bylaws as amended to date, which shall be open to inspection by the members, if any, of the corporalion at all reasonable times during office hours. Section 2. Corporate Seal The board of directors may adopt, use, and at will alter, a corporate seal. Such seal shall be kept at the principal office of the corporation. Failure to affix the seal to corporate instruments, however, shall not affect the validity of any such instrument. Section 3. Directors' Inspection Rights 10 Every director shall have the absolute right at any reasonable time to inspect and copy all books, records, and documents of every kind and to inspect the physical properties of the corporation, and shall have such other rights to inspect the books, records, and properties of this corporation as may be required under the articles of incorporation, other provisions of lhese bylaws, and provisions of law. Section 4. Members' Inspection Rights If this corporation has any members, lhen each and every member shall have lhe following inspection rights, for a purpose reasonably related to such person's interest as a member: a. To inspect and copy the record of all members' names, addresses, and voting rights, at reasonable times, upon written demand on the secretary of the corporation, which demand shall state the purpose for which the inspection rights are requested. b. To obtain from the secretary of the corporation, upon written demand on, and payment of a reasonable charge to, the secretary of the corporation, a list of the names, addresses, and voting rights of those members entitled to vote for lhe election of directors as of the most recent record date for which the list has been compiled or as of the date specified by the member subsequent to the date of demand. The demand shall state the purpose for which the list is requested. The membership list shall be made available within a reasonable time after the demand is received by the secretary of the corporation or after the date specified lherein as of which the list is to be compiled. c. To inspect at any reasonable time the books, records, or minutes of proceedings of the members or of the board or committees of the board, upon written demand on the secretary of the corporation by the member, for a purpose reasonably related to such person's interests as a member. Members shall have such other rights to inspect the books, records, and properties of this corporation as may be required under the articles of incorporation, other provisions of these bylaws, and provisions of law. Section 5. Right to Copy and Make Extracts Any inspeclion under the provisions of this article may be made in person or by agent or attorney and the right to inspection shall include the right to copy and make extracts. Section 6. Periodic Report The board shall cause any annual or periodic report required under law to be prepared and delivered to an office of lhis state or to the members, if any, of this corporation, to be so 11 prepared and delivered within the time limits set by law. Article 8 IRC 501 (c)(3) Tax Exemption Provisions Section 1. Limitations on Activities No substantial part of the activities of this corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation (except as otherwise provided by Section 501(h) of the Internal Revenue Code), and this corporation shall not participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of, or in opposilion to, any candidate for public office. Notwithstanding any other provisions of these bylaws, this corporation shall not carry on any activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501 (c)(3) of the Intemal Revenue Code, or (b) by a corporalion, contributions to which are deductible under Section 1 70(c)(2) of the Internal Revenue Code. Section 2. Prohibition Against Private Inurement No part of the net earnings of this corporation shall inure to the benefit of, or be distributable to, ils members, directors or trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes of this corporation. Section 3. Distribution of Assets Upon the dissolution of this corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this corporation, shall be distributed for one or more exempt purposes within the meaning of Section 501 (c)(3) of the Internal Revenue Code or shall be distributed to the federal govemment, or to a state or local government, for a public purpose. Such distribution shall be made in accordance with all applicable provisions of the laws of this state. Section 4. Private Foundation Requirements and Restrictions In any taxable year in which this corporation is a private foundation as described in Section 509(a) of the Internal Revenue Code, the corporation 1) shall distribute its income for said period at such time and manner as not to subject it to tax under Section 4942 of the Internal Revenue Code; 2) shall not engage in any act of self-dealing as defined in Section 4941 (d) of the Internal Revenue Code; 3) shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code; 4) shall not make any investments in such manner as to subject the corporation to tax under Section 4944 of the Internal Revenue Code; and 5) shall not make any taxable expenditures as defined in Section 4945( d) of the Internal Revenue Code. 12 Article 9 Conflict of Interest and Compensation Approval Policies Section 1. Purpose of Conflict of Interest Policy The purpose of this conflict of interest policy is to protect this tax-exempt corporation's interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director of the corporation or any "disqualified person" as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53 .4958-3 of the IRS Regulations and which might result in a possible "excess benefit transaction" as defined in Section 4958( c)( 1 )(A) of the Intemal Revenue Code and as amplified by Section 53.4958 of the IRS Regulations. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations. Section 2. Definitions a. Interested Person. Any director, principal officer, member of a committee with governing board delegated powers, or any other person who is a "disqualified person" as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53 .4958-3 of the IRS Regulations, who has a direct or indirect financial interest, as defined below, is an interested person. b. Financial Interest. A person has a financial interest if the person has, direcily or indirectly, through business, inveslment, or family: 1. An ownership or investment interest in any entity with which the corporation has a transaclion or arrangement, 2. A compensation arrangement with the corporation or with any entity or individual with which the corporation has a transaction or arrangement, or 3. A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the corporation is negotiating a transaction or arrangement. Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial. A financial interest is not necessarily a conflict of interest. Under Section 3, paragraph B, a person who has a financial interest may have a conflict of interest only if the appropriate goveming board or committee decides that a conflict of interest exists. Section 3. Conflict of Interest Avoidance Procedures a. Duty to Disclose. In connection with any aciual or possible conflicl of interest, an 13 interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with goveming board delegated powers considering the proposed transaction or arrangement. b. Determining Whether a Conflict of Interest Exists. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing board or committee meeting while lhe determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists. c. Procedures for Addressing the Conflict of Interest. An interested person may make a presentation at the governing board or committee meeting, but after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving lhe possible conflict of interest. The chairperson of the governing board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the governing board or committee shall determine whether the corporation can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the goveming board or committee shall determine by a majority vote of the disinterested directors whether the transaction or arrangement is in the corporation's best interest, for its own benefit, and whelher it is fair and reasonable. In conformity with the above determination, it shall make its decision as to whether to enter into the transaction or arrangement. d. Violations of the Conflicts of Interest Policy. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action, Section 4. Records of Board and Board Committee Proceedings The minutes of meetings of the governing board and all committees wilh board delegated powers shall contain: a. The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflicl of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the governing board's or committee's decision as to whether a conflict of interest in fact 14 existed, b. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings. Section 5. Compensation Approval Policies A voting member of the goveming board who receives compensation, directly or indireclly, from the corporation for services is precluded from voting on matters pertaining to that member's compensation, A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the corporation for services is precluded from voting on matters pertaining to lhat member's compensation. No voting member of the governing board or any committee whose jurisdiction includes compensation matters and who receives compensation, direclly or indirectly, from the corporation, either individually or collectively, is prohibited from providing information to any committee regarding compensation. When approving compensation for directors, officers and employees, contractors, and any other compensation contract or arrangement, in addition to complying with the conflict of interest requirements and policies contained in the preceding and following sections of this article as well as the preceding paragraphs of this section of this article, lhe board or a duly constituted compensation committee of the board shall also comply with the following additional requirements and procedures: a. the terms of compensation shall be approved by the board or compensation committee prior to the first payment of compensation, b. all members of the board or compensation committee who approve compensation arrangements must not have a conflict of interest with respect to the compensation arrangement as specified in IRS Regulation Section 53.4958-6(c)(iii), which generally requires that each board member or committee member approving a compensation arrangement between this organization and a "disqualified person" (as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section 53.4958-3 of the IRS Regulations): 1. is not the person who is the subject of the compensation arrangement, or a family member of such person; 2. is not in an employment relationship subject to the direction or control of the person 15 who is the subject of the compensation arrangement 3. does not receive compensation or other payments subject to approval by the person who is the subject of the compensation arrangement 4, has no material financial interest affected by the compensation arrangement; and 5. does not approve a transaction providing economic benefits to the person who is the subject of the compensation arrangement, who in turn has approved or will approve a transaction providing benefits to the board or committee member. c. the board or compensation committee shall obtain and rely upon appropriate data as to comparability prior to approving the terms of compensation. Appropriate data may include the following: 1. compensation levels paid by similarly situated organizations, bolh taxable and tax-exempt, for functionally comparable positions. "Similarly situated" organizations are those of a similar size, purpose, and with similar resources 2. the availability of similar services in the geographic area of this organization 3. current compensation surveys compiled by independent firms 4. actual written offers from similar institutions competing for lhe services of the person who is the subject of the compensation arrangement As allowed by IRS Regulation 4958-6, if this organization has average annual gross receipts (including contributions) for its three prior tax years of less than $1 million, the board or compensation committee will have obtained and relied upon appropriate data as to comparability if it obtains and relies upon data on compensation paid by three comparable organizations in the same or similar communities for similar services. d. the terms of compensalion and the basis for approving them shall be recorded in written minutes of lhe meeting of the board or compensation committee that approved the compensation. Such documentation shall include: 1. the terms of the compensation arrangement and the date it was approved 2. the members of the board or compensation committee who were present during debate on the transaction, those who voled on it, and the votes cast by each board 16 or commitlee member 3. the comparability data obtained and relied upon and how the data was obtained 4. If the board or compensation commitlee determines that reasonable compensation for a specific position in this organization or for providing services under any other compensation arrangement with this organization is higher or lower than the range of comparability data obtained, the board or commitlee shall record in lhe minutes of lhe meeting the basis for its determination. 5. If the board or commitlee makes adjustments to comparability data due to geographic area or other specific conditions, these adjustments and the reasons for them shall be recorded in the minutes of the board or commitlee meeting. 6. any actions taken with respect to determining if a board or commitlee member had a conflict of interest with respect to the compensation arrangement, and if so, actions taken to make sure the member with the conflict of interest did not affect or participate in the approval of the transaction (for example, a notation in the records that after a finding of conflict of interest by a member, the member with the conflict of interest was asked to, and did, leave the meeting prior to a discussion of lhe compensalion arrangement and a taking of the votes to approve the arrangement). 7. The minutes of board or commitlee meetings at which compensation arrangements are approved must be prepared before the later of the date of the next board or commitlee meeting or 60 days after the final actions of the board or commitlee are taken with respect to the approval of the compensation arrangements. The minutes must be reviewed and approved by the board and commitlee as reasonable, accurate, and complete within a reasonable period thereafter, normally prior to or at the next board or commitlee meeting following final action on the arrangement by the board or commitlee. Section 6. Annual Statements Each director, principal officer, and member of a commitlee with governing board delegated powers shall annually sign a statement which affirms such person: a. has received a copy of the conflicts of interest policy, b. has read and understands the policy, c. has agreed to comply with the policy, and 17 d. understands the corporation in order to maintain its federal tax exemption and must engage primarily in activities which accomplish one or more of its tax-exempt purposes. Section 7. Periodic Reviews To ensure the corporation operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects: a. Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's-length bargaining, b. Whether partnerships, joint ventures, and arrangements wilh management organizations conform to the corporation's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, or in an excess benefit transaction. Section 8. Use of Outside Experts When conducting the periodic reviews as provided for in Section 7, the corporation may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the governing board of its responsibility for ensuring periodic reviews are conducted. Article 10 Amendment of Bylaws Section 1. Amendment Subject to the power of lhe members, if any, of this corporation to adopt, amend, or repeal the bylaws of this corporation and except as may otherwise be specified under provisions of law, these bylaws, or any of them, may be altered, amended, or repealed, and new bylaws adopted by approval of lhe board of directors. Article 11 Construction and Terms If there is any conflict between the provisions of these bylaws and lhe articles of incorporation t8 of this corporation, the provisions of the articles of incorporation shall govern. Should any of the provisions or portions of these bylaws be held unenforceable or invalid for any reason, the remaining provisions and portions of these bylaws shall be unaffected by such holding. All references in lhese bylaws to the articles of incorporation shall be to the articles of incorporation, articles of organization, certificate of incorporation, organizational charter, corporate charter, or other founding document of this corporation filed with an office of this state and used to establish the legal existence of this corporation. All references in these bylaws to a section or sections of the Internal Revenue Code shall be to such sections of the Internal Revenue Code of 1986 as amended from time to time, or to corresponding provisions of any future federal tax code. 19 ADOPTION OF BYLAWS We, the undersigned, are all of the initial directors or incorporators of this corporation, and we consent to, and hereby do, adopt the foregoing bylaws, consisting of 18 preceding pages, as the bylaws of this corporation. Dated: DEe 13 2007 8:28PM HP LASERJET 3200 lQ4831S p.2 ENDORSED. FILED In the office of !he Secletary 01 Slale of !he State of Ca~fomla ARTICLES OF INCORPORATION JUN 0 7 2007 I. The name of this corporation is Southwest California Economic Alliance. II. A, This corporation is a nonprofit PUBtlC BENEFIT CORPORATION and is not organized for the private gain of any person, It is organized under the Nonprofit Public Benefit Corporation Law for: r ) public purposes or r ) charitable purposes or IX) public ond charitable purposes, The specific purpose of the; corporaffon is to provide economic Development, job creation and marketing for the cities of Temecula, Murrieta, Lake Elsinore and the County of Riverside.. III. The nome and address in the State of Califomia of this corporation's initial agent for service of process is: Stephanie field 37552 Winchester Road Suite A Murrieta, CA 92563 IV. A. This corporation is organized and operated exclusively for charitable purposes wilhin the meaning ot Section 50 1 r c)(3), Inlemal Revenue Code. B. No substantial part of the activities of this corporation shall consisl of carrying on propaganda. or otherwise attempting to influence legisiation. and the corporation shall not participate or intervene in any campaign (inciuding lhe publishing or distribution of statements) on behalf of any candidate for public office. V. The property of this corporation is irrevocably dedicated to charitable purposes and no part of the net income or assets of this corporation shall ever inure to the benefit of any director, officer or member thereof or to the benetit of any private person, Upon !he dissolution or winding up of the corporation, its assets remaining after payment, or provision for payment, of 011 debts and liabilities of this corporation sha~ be distributed fo o nonprofit fund, foundation or corporation which is organized and operated exclusively for charitable purposes and which has established its tax exempt status under Section 501 [c)(3), Internal Revenue Code. ~u) Stephanie Field. Incorporator ZQI4..03 15 State of California Secretary of State of I, DEBRA BOWEN, Secretary of State California, hereby certify: That the attached transcript of I page(s) has been compared with the record on file in this office, of which it purports to be a copy, and that it is full, true and correct. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of JUNO ~ 2~WI b~~~ DEBRA BOWEN Secretary of State Sec/State Form CE-l07 (REV 1/2007) ~ OSP06 99734 z qqfJ jUi State of California Secretary of State I..!! STATEMENT OF INFORMATION (Domestic Nonprofit Corporation) Filing Fee $20.00. If amendment, see instructions. IMPORTANT - READ INSTRUCTIONS BEFORE COMPLETING THIS FORM 1. CORPORATE NAME (Please do not alter if name is preprinted.) SOUTHWEST CALIFORNIA ECONOMIC ALLIANCE This Space For Filing Use Only DUE DATE: SEPTEMBER 07. 2007 COMPLETE PRINCIPAL OFFICE ADDRESS (Do not abbreviate the name of the city. Item 2 cannot be a P.O. Box.) 2. STREET ADDRESS OF PRINCIPAL OFFICE IN CALIFORNIA, IF ANY. CITY 37652.. \0\ t'\drle.s-k> ~()CLJ. I Su\le A- ~lUfrl'e..h STATE ZIP CODE CA '12W3 NAMES AND COMPLETE ADDRESSES OF THE FOLLOWING OFFICERS (The corporation must have these three officers. A comparable title for the'specific officer may be added; however, the preprinted titles on this fonn must not be altered.) 3. C'HIEF EXECUTIVE OFFICER! rreSld(rll' ADDRESS CITY ANO STATE ZIP CODE 4~~Ry~<<OZ.D AD~:S?V::>2 \.0\()C~SW\~~I~~~i;Jt- t1u(n'e+a:ZI:';~E QzEk3 ~eDran\e(5h-JA'~f1:e.1t1 <:sl052- \01'~d'AY' ~, \l1'. ~ Hurn'eh1 (.14 q25&3 ~. CHIE~;~~~(~~' Hili AD37~2 W'v1d1tskY r<d,c~DrT,\,{Llv((c:hl dI7/;S<t3 ~ FOR SERVICE OF PROCESS (if the agent is an individual, the agent must reside in California'and Item 7 must be compieted with a California address. If the agent is another corporation, the agent must have on file with the California Secretary of State a certificate pursuant to Corporations Code section 1505 and Item 7 must be left blank.) 6.~;;~;:R(~;/~C~'eJ J 7. ADDRESS OF AGENT FOR SERVICE OF PROCESS IN CALIFORNIA, IF AN 1~!'1IVIDUAL 37652 W\Y\c\t\es{.-e.r ~oaJ, B)l~ A- CITY STATE ZIP CODE \v{ U.V'( I'e-h::! CA q2~&/J DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT (California Civil Code section 1350, et seq.) 8. 0 Check here if the corporation is an association fanned to manage a common interest development under the Davis-Stirling Common Interest Development Act and proceed to Items 9, 10 and 11. NOTE: Corporations fanned to manage a common interest development must also file a Statement by Common Interest Development Association (Form SI-CID) as required by California Civil Code section 1363.6. Please see instructions on the reverse side of this form. 9. ADDRESS OF BUSINESS OR CORPORATE OFFICE OF THE ASSOCIATION, IF ANY CITY STATE ZIP CODE 10. FRONT STREET AND NEAREST CROSS STREET FOR THE PHYSICAL LOCATION OF THE COMMON INTEREST DEVELOPMENT (Complete if the business or corporate office is not on the site of the common interest development) 9.DIGIT ZIP CODE 11. NAME AND ADDRESS OF ASSOCIATION'S MANAGING AGENT, IF ANY CITY STATE ZIP CODE 12. THE INFORMATION CONTAINED HEREIN IS TRUE AND CORRE Qk,ri"^r)Ie../Skvle. 'H1'eJJ ~~R ~INT NAME OF PERSOO COMPLETING THE FORM S[.100 (REV 07/2006) l3ierll.five Qlru:.ksY 7} IdOl TITLE DATE APPROVED BY SECRETARY OF STATE Results Detail Page 1 of! Results Detail Last statement fjl€!d on: 7/12/2907 -.- I Corporation ISOUTHWE;ST CALIFORNIA ECON01v1ICALLIANCE_ [Number: C2948315 IIncorporatiou Date:6/7/2007 IIStatus:Active .1 IJurisdiction;C.A:-[Type: ~()E1estic ~gnprofit 1- Address ~Z5~2 WINCHESIER ROAI:>,SUITE A i1\1URlUETA, CA 92563 1 Agent For Service Of Process jSTEl>lIANIE J FIELD .. j3Z?52 WrnCHESIER.~9AD,JlUITE A 1------------ ___n_ iMURRIETA, CA 92563 .-1 1 -J Please review this information to determine if you have located the correct corporation. Statements of Information amendment filings are not eligible for electronic filing at this time. The corporation is not yet due to file the required statement; therefore, this filing is considered an amendment and must be filed either by mail or at our public counter in Sacramento. Forms and instructions can be downloaded from our website ~t_ httQ..;jLwww.sos.ca.aov/busine~s/coro/coro soinfo.htllh Search Resu.ltsll New S~arch I https:/ Ibusinessfilings, sos.ca,gov/frmDetai1.asp?CorpID=02948315&qrystring=SOUTHW,., 9/13/2007 Fonn 88-4 (Rev December2001) Oepartmenloflhe TJeasury InlemalRBvenueService Application for Employer Identification Number (For use by employers. corporaliolls,partnel'5hips, lrusts, eslales, churches, government agencies, Indian tribal enmies, certaIn individuals. and ojhe~ ) )0. See separate Instructions for each lina. I>- Keep a copy for your records. 8a'Typeofenllly(checkonlyone} r Sole Proprielor(SSN} rpartnership r Corporation (enler form number to be filed) .. JPersonalService r Church or church-conlro!led organization W;' Other nonprofit organizalion (specify)" economic development JOIher(sPElcifvl ,. lab If a corporation, name the slale or forelgn country (ifapplicable)whereincorporaled g'Reasonlorapplying{checkonlyone) MStartednewbuslness{specifytype) to non orofit r Hired employees (Check the box and see line 12) I; Compliance wilh IRS withholding regulal10lls IOlher{soBcIM)- 10' Dale business started or acquired (month. day, year) 111 Closing month of aGCOunling year JUN 7 2007 12 FIrst dale wages or annuilles were paId or will be paId (monlh, day, yea~ Nota:/! appOeant IS a wffhholdlng agent, enter dale Income will first be paid tp nonresident alien. (month dav, veer] . . . . . . .. .. .. . ... I>- JUl 1 2007 13 Highest number of employees expecled In the next twelve months Note:/I the applieanl I Agricullure does not expect 10 have any employees dUring the pen"od, enler '.0-' . , . . . . . . . .. ... II> 14' Check box thaI besl describes Ihe principal activity of your business 1-- Heallh care & social assistance r Construction r Renlal & leasing r Transportallon & warehousing I Accommodation & food servIce I Real eslate r Manufacluring r FInance & Insurance r Relail W Olher (specify} ecanomlc developme! 115. Indicate principal line of merchandise sold; specific construction work done; producls produced; or services provided economicdevelopmel 11611' Has the applicant ever applied for an employer identificallon number for Ihis or any olher business?.. ......,. r- Yes f>i No Note If'Yes' o/easecom/?Iele lines 16b anrJ 16e 116b lfyou checked 'Yes' on line 1613, give applicant's legal name and lrade name shown on prior application if different from nne 1 or2 above lega!name I>- Tradename )- 116C Approximale dale when, and city and slate where, Ihe appllcalion was flied Enler previous employer ldenlmcation number if known. ApproxImate dale when fded (monlh, day, year) I City and state where filed I pr~VIQUs EIN I Complele section only lfyou want \0 auloorize!llB named Individual 10 receive !he enlily's EfN and answer queslions about !he complelion of ll1is form Designee's name Designee's telephone number (illCludB area code) deanna 10m peF INC Address and ZIP code l' legal name of enlily (or IndivIdual) for whom Ihe ElN Is being requested Soulhwest California Econ~l1J.k; AIfi~ 12 Trade name of business (if different Irom name on line 1) 14a< Mailing address (room, apt, suile no anctslreet,orPO box) 37552 Winchester Road SuileA !4b' Cily,slale, and ZIP code Murrieta CA 92563- 6~ County and slale where principal business Is located Count\' riverside stale CA 7a Name ofprinlJipal officer,genel31 partner,gr.:mtor, owner,orlruslor I Slate CA Third Party Designee 101 montQomerv 1500 sanfrancisco CA 94104. :1 3' Execulor,lruslee, 'careol' name S{e~i'lanleJFleld Sa Streel address (if dlfferen!) (Do nol enter a PObox) 5b City, stale, and ZIP code 17b SSN, ITIN, EIN .r- Estate (SSN of decedent) r Plan adminlslrator (SSNj r Trust ISBN 01 grantor) rNaHonalGuard I Farmers' cooperative r REMtC Group Exemption NO (GEN) I>- r Slalellocal.governmenl r Federal govemmenVmililaf)' rlndiantribalgovemmentlenterprises I Foreign country I Banking purpose (specify purpose} I>- r Changed lype of organ/zallon (specify new type) )- I Purchased going business ICreatedalrust(specifylype) "" I Crealeda pension plan (specifylype) II- Household I ~her 1- Wi'lolesafe-agentlbroker I Wholesale-other I 877 ) 438 - 4626 Designec'sfaxllumbIH(lncludeare:acode) I) - A/lplicanl'slelephonenumber(lncludeareacodB) Ullderpenalliesorperjury.ldeclarelhallhaveexaminBdlhisapplicalioll.andlolheooslolmykllowledgsandbelieLilislrue" correcl.alldcomplelc. Name and IiUe (lype orprinl clearty) )- SlephanleJFleldExeculiveDireto Signalu"ie ~ Not RequIred Dale'" June 08, 2007 GMT 1951} 236-2036 AppUcanl'sfaxtlumberjincludeareaoode) (' - MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL AUGUST 28, 2007 The City Council convened in closed session at 6:00 p.m. and its regular meeting commenced at 7:00 p.m., on Tuesday, August 28,2007, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: Council Members: Comerchero, Edwards, Roberts, Washington Absent: Council Members: Naggar. PRELUDE MUSIC The prelude music was provided by Taylin 1m. INVOCATION The invocation was provided by Pastor Leon Franklin of Living Word Church. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Council Member Comerchero. PRESENTA TIONS/PROCLAMA TIONS Certificate of Appreciation to Walt Allen for his service on the Old Town Local Review Board For his many contributions, Mayor Washington presented outgoing Board Member Allen with a Certificate of Appreciation for his nearly nine years of dedicated service to the Old Town Local Review Board. Accepting the Certificate of Appreciation, Mr. Allen relayed that he has enjoyed his time on the Old Town Local Review Board and thanked the City Council for the recognition. PUBLIC COMMENT A. Ms. Claudia Keaton, Temecula, expressed concern with the uncontrolled growth of the Farmer's Market. B. Mr. Doc Lane, Temecula, requested that the City Council explore the opportunity to revitalize the Murrieta Creek by implementing a riverwalk with specialty shops and restaurants and requested that an Environmental Impact Report (EIR) with regard to the future Civic Center in Old Town be implemented. C. Ms. Linda Del Rio, Temecula, expressed concern with the potential closure of Sixth Street, commenting on the impact it would have on her business, especially on the weekend. D. Mr. Richard Leigh, Murrieta, expressed concern with the Old Town Farmer's Market turning into a flea market. RIMinutesl082807 E. Also expressing concern with the growth of vendors of the Farmer's Market, Ms. Carol Stout stated that she had an opportunity to review the licensing agreement between the Redevelopment Agency and the Farmer's Market Management, Inc., advising that the agreements permits no more than 20 craft vendors and that 10 of these vendors may be reserved on a first right of refusal by the Old Town merchants; and requested that the City and Management, Inc. abide by its rules and conditions of the agreement. F. Ms. Evelyn Honeu, Temecula, read a letter written by the Old Town Temecula Business Association with regard to the Farmer's Market/Flea Market in Old Town. G. Ms. Lorena Spencer, Temecula, clarified that the Old Town merchants would not be against a Farmer's Market but do object to the Flea Market vendors. H. Mr. Stephen Eldred, Temecula, requested that the City uphold the license agreement between the Redevelopment Agency and Farmer's Market Management, Inc. I. Mr. John Dedovesh, Temecula, requested that red light cameras be installed at key intersections to address red light violators. J. Mr. Steve Phillips, Temecula, expressed concern with the Reserve at Crowne Hill, advising that the developer has not met all the Conditions of Approval and would request that the City take action to resolve the issues in the Crowne Hill community. Referencing Mr. Phillips' concern, Assistant City Manager Johnson stated that many of the conditions have been satisfied by the developer and that staff will ensure that the remaining conditions are met and advised that it would be the City's intent to resolve the issues at the Reserve. K. Mr. Jon Billings, Temecula, also expressed concern with the lack of inspections with the builder of the Reserve at Crowne Hill and would request City support. CITY COUNCIL REPORTS A. Having been approached by representatives of Uljin Gun, South Korea, Council Member Roberts advised of this town's desire to become a Sister City of the City of Temecula. With the City already having two Sister Cities, Mr. Roberts forwarded the information for Council co ns ide ratio n/ d iscussio n. Council Member Roberts advised that Governor Schwarzenegger has cut funds that would aid local governments as it relates to tribal casinos; that the Governor cited a state audit that raised questions as to how such monies were being utilized, including the issue of monies being utilized for projects unrelated to tribal casino impacts. Council Member Roberts requested that a letter be drafted regarding the issue and sent to the Governor B. Concurring with Council Member Roberts' request to send a letter to the Governor, Council Member Comerchero advised that the statement made by the Governor would not be accurate, stating that such money should be used to mitigate local impacts, not to balance the State budget. In response to Ms. Del Rio, Council Member Comerchero clarified that the proposal to close Sixth Street would only be a proposal at this time and will be considered under its own application, relaying that the City would not deny access to a business or a residence without providing another access to where the business could continue. RIMinutesl082807 2 C. Council Member Edwards concurred with the submittal of a letter to the Governor regarding the City's opposition to the Governor's intent to cut funds with regard to tribal casino monies. Referencing the special meeting held on Tuesday, August 21, 2007, regarding the Phase 2 Murrieta Creek improvements, Council Member Edwards relayed that although it will be difficult to secure funds in the budget, the City will continue to diligently work to secure as much funding as possible and requested that the Murrieta Creek Subcommittee attend a Riverside County Board of Supervisors' meeting in an effort to raise the matter to a higher priority level. For Mayor Washington, City Manager Nelson advised that staff will create a presentation that will simulate the impacts of a 100-year storm and to justify the funding necessary to this project and noted that a river walk proposal at this time would not be favorable. D. Mayor Washington noted that the City has previously reviewed a presentation with regard to implementing red light cameras in the City of Temecula; that, at that time, it was determined to not implement such cameras; and that if determined otherwise, the City Council would be willing to analyze the possibility of implementing red light cameras at major intersections. Commenting on Mayor Washington's remarks, City Manager Nelson advised that there has been a significant drop in red light runners; that the new Police Chief is committed to continuing heavy enforcement at key intersections throughout the City; that the red light cameras would not be able to help with other types of violations throughout the City; and that placing officers at the key intersections would assist with the issue of red light runners as well as other law enforcement issues. Mayor Washington relayed that the City Council fully supports its Old Town merchants and its Farmer's Market in Old Town and, therefore, will continue to work through the issues with the merchants as well as the Farmer's Market. Mayor Washington also invited the public to attend the Sixth Annual Temecula On Stage, Saturday, September 1, 2007, from 6:00 p.m. to 11 :00 p.m. featuring B/ood Sweat and Tears. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1 .1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of August 14, 2007. RIMinutesl082807 3 3 Resolution approvinq List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 07 -67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Approve the Sponsorship Request for the 2007 Temecula Fall Rod Run and Fundinq Aqreement RECOMMENDATION: 4.1 Approve the event sponsorship agreement for actual City-support costs in the amount up to $32,395 for the 2007 Temecula Fall Rod Run and authorize the Mayor to execute the following agreement. 5 Third Amendment to Aqreement for Law Enforcement Services RECOMMENDATION: 5.1 Approve the Third Amendment to the Agreement for Law Enforcement Services between the County of Riverside and the City of Temecula to include adding five patrol Officers, one unsupported Gang Task Force Officer, two dedicated Sergeants, two Community Service Officer II (CSO II) positions, and one Community Service Officer I (CSO I). 6 Participation in the Western Riverside Countv Clean Cities Coalition RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 07 -68 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE PARTICIPATION OF THE CITY OF TEMECULA IN THE WESTERN RIVERSIDE COUNTY CLEAN CITIES COALITION 7 Riverside Countv Ganq Task Force Proqram Addendum to Memorandum of Understandinq RECOMMENDATION: 7.1 Approve the Riverside Gang Task Force Program Addendum to Memorandum of Understanding. RIMinutesl082807 4 8 Acceptance of certain Public Streets into the Citv-Maintained Svstem within Tract Map Nos. 26828, 26828-1, and 26828-2 (Located northeasterlv of the intersection of Nicolas Road and Joseph Road) RECOMMENDATION: 8.1 Adopt a resolution entitled: RESOLUTION NO. 07 - 69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT MAP NOS. 26828, 26828-1 AND 26828-2) 9 Authorize Temporarv Street Closures for the 2007 Temecula Fall Rod Run Event (Old Town Front Street. between Moreno Road and Second Street. and other related streets) RECOMMENDATION: 9.1 Adopt a resolution entitled: RESOLUTION NO. 07 -70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING STREET CLOSURES FOR THE 2007 TEMECULA FALL ROD RUN EVENT, AND AUTHORIZING THE CITY ENGINEER TO ISSUE A PERMIT FOR THIS SPECIFIC SPECIAL EVENT 10 Furniture Purchase Associated with the Maintenance Facilitv/Field Operations Center- Phase II. Proiect No. PW03-06 RECOMMENDATION: 10.1 Approve a Purchase and Installation Agreement with GM Business Interiors in the amount of $188,166.60 for the Maintenance Facility/Field Operations Center and authorize the Mayor to execute the purchase agreement; 10.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $5,000, which is equal to 2.6% of the contract amount. 11 Police Department OTS Grant Fundinq RECOMMENDATION: 11.1 Increase estimated General Fund Grant Revenue by $102,994; 11.2 Appropriate $102,994 from General Fund Grant Revenue to the Police Department. RIMinutesl082807 5 12 Chanqe in Location for the September 11, 2007 Citv Council Meetinq RECOMMENDATION: 12.1 Adopt a resolution entitled: RESOLUTION NO. 07-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CHANGING THE LOCATION OF THE SEPTEMBER 11, 2007 CITY COUNCIL MEETING TO THE TEMECULA DUCK POND, LOCATED AT 28250 RANCHO CALIFORNIA ROAD, TEMECULA, CALIFORNIA 13 Approve Purchase and Maintenance Aqreement For Citv Banners with Kellev Displav, Inc. RECOMMENDATION: 13.1 Approve the Purchase and Maintenance Agreement for City Banners with Kelley Display, Inc. in the amount of $47,645. 14 Seismic Warninq Svstems Aqreement RECOMMENDATION: 14.1 Approve an agreement with Seismic Warning Systems, Inc. in the amount of $75,963.75 to furnish and install a Quake Guard Seismic Warning System at City Fire Stations 73, 92, and 95. 14.2 Approve 10% contingency and allow the City Manager to execute change orders. MOTION: Council Member Comerchero moved to approve the Consent Calendar. Council Member Edwards seconded the motion and voice vote reflected approval with the exception of Mayor Pro Tem Naggar who was absent. RECONVENE TEMECULA CITY COUNCIL COUNCIL BUSINESS 23 Sphere of Influence - Fiscal Impact Analvsis RECOMMENDATION 23.1 Receive and file the Sphere of Influence Fiscal Impact Analysis Report prepared by Stanley R. Hoffman Associates; 23.2 Provide policy direction that City staff will consider annexations only if they are financially feasible and which do not create a negative financial impact to the City of Temecula. RIMinutesl082807 6 Director of Finance Roberts introduced Mr. Stanley R. Hoffman of Hoffman & Associates. By way of PowerPoint Presentation, Mr. Hoffman highlighted the following aspects of the report: . Purpose . Methodology . Map of the Zones . Population Growth By Zones . Employment Growth By Zones . Commercial Retail Growth Sq. Fi. By Zone . Office Sq. Ft. Growth By Zone . Industrial Sq. Fi. Growth By Zone . Existing Fiscal Impacts By Zone . Fiscal Impacts After Build out By Zone . Fiscal Impacts for All Zones . Property Tax in Lieu of LVF. In closing, City Manager Nelson thanked Mr. Hoffman for his presentation; relayed that the information provided will create a roadmap for the City; noted that there would be two critical factors associated with the Sphere of Influence -- timing of future retail development and AB 1602; and relayed that staff will be working with the City's lobbyist and will provide a follow-up report to the City Council in six to nine months. In response to Council Member Comerchero's question, Mr. Hoffman noted that the demonstration of jobs in his presentation illustrates the point that non-residential growth is lagging behind the residential; and that retail and industrial have a strong revenue generating potential, making staff aware of the components of the jobs. Mayor Washington relayed the importance of the residents understanding the associated cost with providing City services to its residents and that a significant amount of the City's budget is attained from sales tax. In response to Mayor Washington's question, Mr. Hoffman stated that because the sales tax revenue for the Silverhawk Community is already allocated to the City, therefore, it was not included in the analysis. A. Mr. David Lander, representing the Silverhawk Area Coalition, thanked Mr. Hoffman, City Manager Nelson, and staff for their efforts with the proposed annexation. B. Mr. Wayne Hall, Temecula, expressed concern with the amount of development in the hills of the SilverhawklWinchester area, relaying that brush fires could be a concern with homes on the hill. The City Council thanked Mr. Hoffman and staff for their efforts with regard to the Sphere of Influence Analysis. MOTION: Council Member Roberts moved to receive and file this report and to support the annexations only if they were financially feasible and do not create a negative impact to the City. Council Member Comerchero seconded the motion and electronic vote reflected approval with the exception of Mayor Pro Tem Naggar who was absent. RIMinutesl082807 7 DEPARTMENTAL REPORTS 24 Economic Development Department Report 25 Planninq Department Monthlv Report 26 Citv Council Travel/Conference Report - Julv 2007 27 Public Works Department Monthlv Report 28 Police Department Monthlv Report CITY MANAGER REPORT No additional comments. CITY ATTORNEY REPORT With respect to Closed Session, City Attorney Thorson advised that there was no formal action to report. ADJOURNMENT At 8:36 p.m. the City Council meeting was formally adjourned to Tuesday, September 11, 2007, commencing at 7:00 p.m. at the Temecula Duck Pond. Chuck Washington, Mayor ATTEST: Susan W. Jones, CMC City Clerk [SEAL] RIMinutesl082807 8 ITEM NO.5 Approvals City Attorney Director of Finance City Manager ,~I.H/ l CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: October 9, 2007 SUBJECT: Authorize Temporary Partial Street Closures for "Race for the Cure" Event October 21, 2007, in the Promenade Mall area (Margarita Road, Overland Drive, Ynez Road, and Solana Way) PREPARED BY: Daniel York, Deputy Director of Public Works/City Engineer Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING PARTIAL STREET CLOSURES FOR INLAND EMPIRE "RACE FOR THE CURE" EVENT ON OCTOBER 21, 2007 AND AUTHORIZING THE CITY ENGINEER TO ISSUE PERMITS FOR THIS SPECIFIC SPECIAL EVENT. BACKGROUND: The Susan G. Komen Breast Cancer Foundation/Temecula Chapter has applied for permission to close portions of public streets in orderto hold the Inland Empire Race for the Cure on Sunday, October 21,2007, on and around the Promenade Mall area. Coordination for the activities on the Promenade Mall site has been negotiated with the Mall Site Management. A number of sponsors are supporting this event. The directly affected streets, including Ynez Road, Overland Drive, Margarita Road, and Solana Way would require some partial or full closures on the event date. The Mall Ring Road, a private road, will also be partially closed for the event. Provision for traffic movements along the race route and abutting streets have been reviewed and revised to meet traffic concerns along both major traffic routes and neighboring residences and businesses during the proposed event period. The race route begins at the starting line located on the Mall Ring Road near Macy's, proceeds to Promenade Way southerly to Overland Drive, then crossing Overland Drive to Nicole Lane with a u- turn half-way along Nicole Lane, then westerly along Overland Drive. The route then proceeds southerly along Ynez Road, easterly and southerly along Motor Car Parkway to Solana Way and then easterly along Solana Way, to Margarita Road. From Solana Way the route proceeds northerly to a u-turn at Winchester Road, returning southerly on Margarita Road to Mall Entrance at North General Kearney Road, westerly to Mall Ring Road to the finish line located in the parking lot adjacent to Edward's Cinema. The on-going construction activity for the Mall Expansion has resulted in a temporary pavement condition for the section of the private ring road between North General Kearney Road and Promenade Way. Mall representatives and Event organizers will coordinate to assure that this portion of the route will be available for safe passage of the Race participants on the day of the Event. The following summarizes the extent of street closures. The actual event hours are from 5:00 AM to 2:00 PM: Overland Drive - Overland Drive, between Margarita Road and Promenade Way, will be fully closed. Overland Drive, between Promenade Way and Ynez Road, will be partially closed. The two (2) eastbound lanes will be closed for the event. Ynez Road - Ynez Road, between Overland Drive and Motor Car Parkway, will be partially closed. The easternmost northbound lane will be closed for the event. Nicole Lane - Nicole Lane between Overland Drive and Margarita Road will be closed. Solana Way- Solana Way, between MotorCar Parkway and Margarita Road, will be partially closed. The northernmost westbound lane will be closed. Margarita Road - Margarita Road, between Solana Way and Overland Drive, will be partially closed. The two (2) southbound lanes will be closed. Margarita Road, between Overland Drive and Winchester Road, will be partially closed. The westernmost northbound lane will be closed for the event. Margarita Road, between Winchester Road and the Mall Entrance Road, will be partially closed. The two (2) southbound lanes will be closed for the event. Mall Entrance Road (Private Street) - The westbound lane of the Mall Entrance Road, the one opposite North General Kearny Road, will be closed for the event. Mall Ring Road (Private Street) - A portion of The Mall Ring Road, between the start and finish lines, will be closed entirely for the event. The traffic control plan shows the limits of closure. Under Vehicular Code Section 21101, "Regulation of Highways", local authorities, for those highways under their jurisdiction, may adopt rules and regulations by ordinance or resolution for, among other instances, "temporary closing a portion of any street for celebrations, parades, local special events, and other purposes, when, in the opinion of local authorities having jurisdiction, the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing". The City Council adopted Resolution No. 91-96 on September 10,1991, which provided standards and procedures for special events on public streets, highways, sidewalks, or public right of way. While a process was established for reviews and approvals, no mechanism was provided for delegating authority to temporarily close streets, or portions of streets, for these special events. The recommended resolution delegates the authority to approve temporary street closures for the Inland Empire "Race for the Cure" Event sponsored by The Susan G. Komen Breast Cancer Foundation/Temecula Chapter. This authority is limited to and delegated to the City Engineer (or an authorized representative) only. Any other special events requiring temporary street closures, construction related closures, etc., remain subjectto the approval of the City Council subjectto rules and regulations established by the City Council. These rules and regulations shall also be adopted by resolution in accordance with California Vehicular Code Section 21101. The basic racecourse and event schedule is attached hereto. The approved traffic control plans will more effectively allow the movement of traffic in and to the Promenade Mall and other businesses in the adjoining areas, the residential neighborhoods, and the Solana Ridge Apartments. FISCAL IMPACT: Costs for City services have been provided for in the City budget in accordance with the funding agreement with the Inland Empire affiliate of the Susan G. Komen Breast Cancer Foundation. ATTACHMENTS: 1. 2. Resolution No. 2007_ Race Course Map RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY PARTIAL STREET CLOSURES FOR INLAND EMPIRE "RACE FOR THE CURE" EVENT ON OCTOBER 21, 2007, AND AUTHORIZING THE CITY ENGINEER TO ISSUE PERMIT FOR THIS SPECIFIC SPECIAL EVENT THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, The California State Vehicular Code provides for the promulgation of rules and regulations for the temporary closure of public streets by local authorities by Resolution; and, WHEREAS, the City Council desires to establish rules and regulations for the temporary closure of public streets in the interest of promoting safety and protection; and, WHEREAS, The City of Temecula desires to authorize the partial closure of public streets for the Inland Empire Inaugural "Race for the Cure" Event sponsored by The Susan G. Komen Breast Cancer Foundation/Temecula Chapter, for which such temporary street closures promote the safety and protection of persons using or proposing to use those streets for the special event: and, WHEREAS, the City Council desires to facilitate the issuance of permission to temporarily close public streets for the Inland Empire Temecula "Race for the Cure" on Sunday, October 21, 2007 from 5:00 AM to 2:00 PM, possibly longer to allow everyone to finish the race: and, NOW, WHEREAS, the City Council desires to authorize the City Engineer to approve temporary street closures for the Inland Empire "Race for the Cure" sponsored by The Susan G. Komen Breast Cancer Foundation/Temecula Chapter, and to establish the general rule that all other proposed temporary street closures shall be reviewed and approved subject to conditions, or disapproved, by the City Council; and, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula, hereby authorizes the City Engineer to permit temporary street closures for the Inland Empire "Race for the Cure" Event on Sunday, October 21, 2007 from 5:00 AM to 2:00 PM, possibly longer to allow everyone to finish the race. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of October, 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 9th day of October, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk III ': I .. . 'ilt' II' I h II,lilqi~ I Iii i 111,'11.,: I" " "Iii' H' il' .. ':11 !!'d ! d1i! ,l,q i ,l!i.1 i . I'!I'III I I 'i (.1 I! ,II ~iJ jl II -1,1 :' I!jlH I','II(!"I I 1'1 I'il ! I HI . 11 I'~ I f; . ~ I I !! 11:11 !Lll :II! llnddl!~ ill II I ! I ! ~ I '---I i ~ ; .-~ 1 I ....2: ....:s ~1iJ~1l. Ie :ell:: .... I.. :;)liJo ~uQQ: .1iJ~~ ..... C)i:IiJ~ C) ~II::~U ~ ~~lf~ lI)liJliJu.: ~i:~ Iii!. 'i' lillil m iil Ii! , , I , " ''I I i III 'I" ! I II I!' I,,, "I: !n: Sf tIt ~ I .',"d' li'l,ii1iU ! I I Ii II r. ,I" ,. , I,' 0 '," ,I <( ~ ',,, ~'I' .. I I ~ .' , ..'; .: I. ~ 'I 'I'i! I I. . fbe' 'l i i~"}\ I I' .!! ~!!~!!:!~!! ,,' , I' ,.....) ., : J , :,1 n : G .~l 1'; ',Jlg (i ,n. j, .,.......'...."...~:.~_J,J.J ~ ilIi!I ,.,~; ~)n~ ""! "''''~ .. ,~9---l~..','~ .~ ~'~ I ~'Il i~ 1d 1 n ! !IIi; I "iil.1 j j. ~ . . ~ ~l Ii" . liJ Iii I ~ ITEM NO.6 Approvals City Attorney Director of Finance City Manager ,~I.JI.f/ ../ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: October 9,2007 SUBJECT: Authorization to Solicit and Negotiate a Proposal from RBF Consulting to Design the Interstate-15/Highway 79 South Ultimate Interchange, Project No. PW04-08 PREPARED BY: Greg Butler, Deputy Director of Public Works - CI P Avlin R. Odviar, Associate Engineer RECOMMENDATION: That the City Council authorize the Department of Public Works to solicit and negotiate a proposal from RBF Consulting to design the Interstate-15/Highway 79 South Ultimate Interchange, Project No. PW04-08. BACKGROUND: The interchange at 1-15/ 79S has experienced a steady increase in use due to the continued rise in traffic volumes on 1-15 and development in Temecula. As a result, the line of vehicles exiting the freeway at Temecula Parkway (79S) consistently backs up onto 1-15. On July 9,1996 the Redevelopment Agency approved an agreement with Robert Bein, William Frost & Associates (RBF) for the preparation of a Project Study Report (PSR) and Project Report (PR) for this project. That effort was halted due to the cancellation of the development that was driving the project at that time. In 1999, the Riverside County Transportation Department completed interim improvements to the interchange. Development of the ultimate interchange was started again in 1999, when the City Council approved an agreement with RBF to prepare the PSR. This PSR was approved by Caltrans in 2004. Subsequently, the City Council approved an agreement with RBF Consulting to prepare the Project Report (PR) and Environmental Document (ED). Completion of the PR & ED is anticipated in April 2008. The next stage of project development involves preparation of the project Plans, Specifications, and Estimate (PS&E). Initiating the design phase in advance of completing the PR & ED will facilitate ultimate delivery in accordance with City goals. Staff recommends negotiating a contract with RBF Consulting as it is the most qualified firm to design this project. RBF Consulting is a full service firm which provides professional services for project planning, design, and construction. RBF's extensive involvement as the lead firm throughout the development of this project since 1996 provides invaluable first-hand experience including established working relationships with Caltrans and a thorough understanding of the project. FISCAL IMPACT: Funding sources identified in the Capital Improvement Program, Fiscal Years 2008-2012 include CFD - Crowne Hill, Reimbursements/Other - Morgan Hill and County, SAFETEA - LU, Senate Bill 621 , and TUMF. There is no fiscal impact resulting from this action. ATTACHMENTS: 1. Project Location 2. Project Description \ 1- GH.uIlf6l-NO::\13t" \ .... u 'S t)i) i;\"" ,g "'... '" l:i ~'K do) g, il) "Cd \-01 U ."e.f3 ~rn4-1 a 1h 0 o ~.~ u t) 0 ~ P t'C ..... ~ 9 u 0 >=igjl,~ ~..-'+:i a-. 00.-0..-< rJJ;>~ C,) {.) ,$ O'\t,H~-I-': r- '4-ol Ij) ~ r.~~~ ~g"'''' \~ 'bi> 1h if ~ " i3 p d'" ... <'I "'." g 0 ,g I'i'~ '<g "t: ",1h!'\0 I'~E.~ l{'" 0 I'i \~j ~~ ~ a~ ~ ~'P.l:1~ s-all8 ",I>-g" ~ ~.~~ o on 0 'm. ~r/Jp..t " .~ 1h ,:; >.,-< ~ ~ o () '" '" g.1j)~..o .~ .g :: ~ <H'V ... ~ ~~ g ... ~ ~ ~ .e a.~ g 0'" ~."-< t) 2l o ~ v ~ .... ~'s ~ r;,"" ~1iJ f./) a> U > %~~. i v>,-01/'l..... a ",.p ~ 1?n .s t) "'C) N ~ ~~~ta.'" '3 t;S ".e .~... .<'1." ~ 7'-t q8 bn-~'~ t t5 --.; p;rA' ~~ '" " '? 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" t-- " bIl ~ ~ <( :t ,g ,!l bIl"'O ..... ~ iU ';t\~'<; .... .;l'~ o ,~ :P " ~ '" g~~ <l .g ~ Oi " ..... ',p 'd " 0 " IE bIl ~ o -'B .~ ~~. g.., "iO. .;:!l" 'O-:ID ',0) o,,'Q:P. NbIl'" .:;-<,g k ,bf)-brl " <l <l s'~ '% oo..a ,t.e~ o~o ~"'" \'lift . . . s g. ~ M "., ITEM NO.7 Approvals City Attorney Director of Finance City Manager MH/ ..I CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Susan W. Jones, City Clerk/Director of Support Services DATE: October 09, 2007 SUBJECT: Holiday Schedule for City Council Meetings RECOM M ENDA TION: That the City Council direct the City Clerk to reschedule the regularly scheduled meeting of November 13,2007 to November 6,2007, and cancel the regularly scheduled meeting of December 25, 2007; and to perform the appropriate postings and noticing requirements of the Government Code. BACKGROUND: Due to three members of the City Council attending the National League of Cities Conference November 12th through November 16th, there will not be a quorum for the regularly scheduled meeting of November 13, 2007. This meeting is proposed to be rescheduled to November 6,2007. Since the regularly scheduled second meeting in December falls on Christmas Day, December 25, 2007, it is proposed that this meeting be cancelled. FISCAL IMPACT: None. ATTACHMENTS: None. ITEM NO.8 Approvals City Attorney Director of Finance City Manager ,~~{t.{/ i CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman Parker, Director of Community Services DATE: October 9, 2007 SUBJECT: Amendment NO.1 to Verizon Cable Franchise PREPARED BY: Phyllis L. Ruse, Deputy Director of Community Services RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING 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 as listed in the original franchise agreement whether or not an incumbent operator exists and provides similar serve. 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. On September 25, 2007, the City Council considered and approved Amendment NO.1 to the Franchise Agreement. Subsequently, it was discovered that the Exhibit B attached as part of the amendment was in error. The sites listed in Exhibit B were incorrect. In order to resolve this issue, it is necessary to adopt the proposed Resolution that reapproves Amendment NO.1 with the correct version of Exhibit B and rescinds prior Resolution No. 07-75 adopted at the September 25,2007 meeting. 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. Total cable franchise fees from the two providers currently operating in the City, 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: Resolution 07-75 adopted September 25,2007 is hereby repealed. Section 5: 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 terms used herein and not otherwise defined shall have the meanings assigned to those terms 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 ("Extended Service Area") ofthe Franchise Agreement is amended 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 Extended Service Area subject to the conditions of Section 3.1.1 above and other terms set forth herein. Provided, however, that the Extended Service Area boundaries may be modified in whole or in part by Franchisee by demonstration to City that it would be technically or economically infeasible to serve an area within the Extended Service Area." 2. Replacement 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 Extended Service Area. 3. Amendment to Exhibit B. The text under the heading "Future City Facilities" in Exhibit B ("Municipal Buildings to be Provided Free Cable Service") is amended 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 ofLoeal Cable 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 (1%) 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 determined by the Temecula City Council. City shall give the Franchisee sixty (60) days prior written notice before requiring payments under this section. The Annual EG Grant payment, along with a brief summary of the Subscriber information upon which it is based, shall be delivered to City within sixty (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 same percentage of Gross Revenue basis. 3. The City shall provide Franchisee with a complete accounting annually of the distribution of funds granted pursuant to this Section." 5. No Implied Modifications. The parties confirm that, except as specifically set forth in this Amendment, all of the terms, covenants, and conditions set forth in the Franchise Agreement remain unmodified and in full force and effect. 6. Entire Agreement. 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 Acceptance. This Amendment 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 Amendment 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. Thorson 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 Il...:'!:: 0- -~ o.U ~ - ::;;.!!! ~ ~ u " " ~ E <(" ">- .!!- c: 0 ,,~ Ul -- U z "'" q ~ ~7 . ,~ .... ,. .' ,,", . ~ N~ i " ~ " o ~f ! Hd ,~~i5 :~ .I'I.! -, ~ a ziJ ! I .50::" ....... [ij 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: . City Hall 43200 Business Park Drive . Field Operations Center 43210 Business Park Drive . Community Recreation Center 30875 Rancho Vista Road . Mary Phillips Senior Center 41845 6th Street . Temecula Community Center 28816 Pujol Street . Temecula Valley Museum 28314 Mercedes Street . Imagination Workshop, The Temecula Children's Museum 42081 Main Street . Old Town Temecula Community Theater 42051 Main Street . Harveston Community Park - Community Building 28582 Harveston Drive . Fire Station No. 12 28330 Mercedes Street . Fire Station No. 73 27415 Enterprise Circle West . Fire Station No. 84 30650 Pauba Road . Fire Station No. 92 32364 Overland Trail . Temecula Police Department/Southwest County Detention Center 30755-A Auld Road . Old Town Police Sub-Station 28410 Old Town Front Street, Suite 105 . Promenade Mall Police Sub-Station 40820 Winchester Road, Suite 1870 Temecula Vallev Unified School District Facilities: . District Office 31350 Rancho Vista Road . Maintenance and Operations/Transportation 40516 Roripaugh Road . Chaparral High School 27215 Nicholas Road . Great Oaks High School 32555 Deer Hollow Way . Rancho Vista High School 31340 Rancho Vista Road . Temecula Valley High School 21555 Rancho Vista Road . Erie Stanley Gardner Middle School 45125 Via Del Coronado . James L. Day Middle School 40775 Camino Campos Verdes . Margarita Middle School 30600 Margarita Road . Temecula Middle School 42075 Meadows Parkway . Vail Ranch Middle School 33340 Camino Piedra Rojo . Abby Reinke Elementary School 43799 Sunny Meadow Drive . Helen Hunt Jackson Elementary School 32400 Camino San Dimas . Crowne Hill Elementary 33535 Old Kent Road . Paloma Elementary School 42940 Via Rami . Pauba Valley Elementary School 22125 Regina Drive . Rancho Elementary School 31530 La Serena Way . Redhawk Elementary School 32045 Camino San Jose . Sparkman Elementary School 32225 Pia Pica Road . Temecula Elementary School 41951 Moraga Road . Vail Elementary School 29915 Mira Lorna Drive . Vintage Hills Elementary School 42240 Camino Ramo . Ysabel Barnett Elementary School 39925 Harveston Drive Countv Facilities: . 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. . Temecula Public Library 30620 Pauba Road . Wolf Creek Fire Station 32211 Wolf Valley Road . Patricia H. Birdsall Sports Park (formerly Wolf Creek Sports Complex) 31621 Deer Hollow Way . Roripaugh Fire Station 32121 S. Loop Road . New City Hall TBD - (corner of Main St. and Mercedes St.) . New Field Operations Center 43230 Business Park Drive ITEM NO.9 Approvals City Attorney Director of Finance City Manager ,~I.H/ ../ CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: October 9, 2007 SUBJECT: Purchase of four City Vehicles PREPARED BY: Gus Papagolos, Fiscal Services Manager RECOMMENDATION: That the City Council: 1. Approve the purchase of the following vehicles from Rancho Ford: Two (2) - 2008, 2WD, 1-Ton Utility Truck $28,626.07 each One (1) - 2008, 4WD, "Y2-Ton F-150 Extended Cab Pickup Truck $23,044.62 One (1) - 2008, 4WD Mid-Size Extended Cab Pickup Truck $21,135.29 2. Approve an additional capital asset allocation in the vehicle internal service fund for $10,000 to complete this vehicle purchase and provide funding for all after market safety equipment. BACKGROUND: The adoption of the fiscal year 2007-08 Annual Operating Budget approved the funding for the purchase of four vehicles. These vehicles will be added to the City's fleet and utilized by the Temecula Community Services District. On August 27,2007, the RFPs were mailed to all the local dealerships for the purchase of four vehicles. Each dealership fleet manager was called and informed of the RFP and proposals were received from two dealerships. Based on historical vehicle purchasing data, the bids received on these vehicles are approximately 9% more than previous year's purchase of the same type of vehicle. The purchase of these vehicles will satisfy the vehicle requirements for the identified department and as provided for in the 2007-08 Annual Operating Budget. Two of these vehicles are replacement trucks for the current City's fleet, and the other two vehicles are additions to the current fleet. The following is bid information by vehicle: Temecula Community Services District: Two (2) - 2WD, 1-Ton Utility Truck: Rancho Ford 2WD, 1-Ton, F-350 Utility Truck Paradise Chevrolet $28,626.07 NOBID Temecula Community Services District: One (1) - 4WD, Y:!-Ton Extended Cab Pickup Truck: Rancho Ford 4WD, Y:!-Ton F-150 Pickup Truck $23,044.62 Paradise Chevrolet 4WD, Y:!-Ton Silverado 1500 Pickup Truck $23,557.51 Temecula Community Services District: One (1) - 4WD, Mid-Size Extended Cab Pickup Truck: Rancho Ford 4WD, Mid-Size Extended Cab Pickup Truck $21,135.29 Paradise Chevrolet 4WD, Mid-Size Extended Cab Pickup Truck $22,129.83 FISCAL IMPACT: With the additional capital asset allocation of $1 0,000.00, adequate funds will be available in the Vehicle Internal Service Fund for these purchases. Adequate funds are also budgeted in the respective departments for depreciation expense related to these vehicles. ATTACHMENTS: Vehicle Vendor List Vehicle Vendor List TOYOTA OF TEMECULA ATTN: DAW NAKAGAWA OR TIM GLEASON 26631 YNEZ ROAD TEMECULA, CA 92591 PHONE: 256-3108 CARRIAGE MOTOR CO. ATTN: MATT BURKE (Dan Cundiff) POBOX 892830 TEMECULA, CA 92589-2830 PHONE: 694-6060 DCH DODGE ATTN: LES THOMAS 26845 YNEZ ROAD TEMECULA, CA 92591 PHONE: 699-3331 PARADISE CHEVROLET ATTN: BECKY YOUNG POBOX 9036 TEMECULA, CA 92589-9036 PHONE: 699-2699 RANCHO FORD ATTN: GORDON SCHOCK 26895 YNEZ ROAD TEMECULA, CA 92591 PHONE: 699-9346 X255 QUALITY NISSAN OF TEMECULA ATTN: JIM PHELPS 41895 MOTOR CAR PKWY. TEMECULA, CA 92591 PHONE: 676-6601 SATURN OF TEMECULA Attn: John Johnson 27430 Ynez Road Temecula CA 92591 PHONE: 506-3000 JOHN HINE TEMECULA MAZDA 42050 Dealer Dr Temecula CA 92591 PHONE: 553-2000 ITEM NO.1 0 Approvals City Attorney Director of Finance City Manager M~.f/ ..l CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: October 9, 2007 SUBJECT: Amendment to Professional Services Agreement for Special Tax Administration Services PREPARED BY: David Bilby, Senior Debt Analyst RECOMMENDATION: That the City Council approve the Third Amendment with NBS for special tax administration services in the amount of $9,270.00 for FY 2007/08 for consultant costs related to the removal (stripping) of special tax levies from the county roll on all delinquent parcels within CFD 03-2 Roripaugh Ranch. This is a required process in order to proceed with foreclosure proceedings. BACKGROUND: The City of Temecula has six existing Community Facilities Districts and one Assessment District. On May 23, 2006, the Council approved a three-year professional services agreement with N BS for an annual amount of $48,250 for FY 2006/07, $49,215 for FY 2007/08, and $50,199.30 for FY 2008/09 for special tax administration for the City's Community Facilities Districts and Assessment District. Additional services, including sending letters to delinquent taxpayers and customary out-of- pocket expenses were not included in the annual contract amount approved by Council. On May 22, 2007, the Council approved the First Amendment to the Agreement increasing the amount of the total contract by 10% to $53,075 for FY 2006/07, $54,136.50 for FY 2007/08, and $55,219.23 for FY 2008/09. These costs were projected based on invoices received in FY 2006/07 for delinquency letters sent, postage costs, reproduction fees, etc. Thereafter, on July 24,2007, the City Manager approved the Second Amendment to the Agreement extending the term of the Agreement to June 30, 2008. In addition, on May 22,2007, the Board of Directors of The Temecula Public Financing Authority approved Resolution No. TPF A 07-04 declaring its intention to remove delinquent special taxes from the county roll and ordering judicial foreclosure proceedings against delinquent property within Community Facilities District 03-02 (Roripaugh Ranch). The Third Amendment reflects the actual consultant costs associated with the removal of delinquent special taxes from the county roll. FISCAL IMPACT: The additional costs are $9,270.00 for FY 2007/08. Funds for the administration of special districts are included in the annual special tax levies for each of the Districts. ATTACHMENTS: Third Amendment to Agreement between City of Temecula and N B S Government Finance Group for Additional Special Tax Administration Services, with attached revised District Administration Fee Schedule FIN07 -02 THIRD AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND N B S GOVERNMENT FINANCE GROUP FOR ADDITIONAL SPECIAL TAX ADMINISTRATION SERVICES THIS THIRD AMENDMENT is made and entered into as of October 9, 2007, by and between the City of Temecula ("City") and N B S Government Finance Group ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with respect to the following facts and purposes: A. On May 23, 2006, the City entered into that certain agreement entitled "City of Temecula Agreement for Special Tax Administration Services" (Agreement) in the amount of $48, 250.00 for fiscal year 2006/07. B. On May 22, 2007, the City approved the First Amendment to the Agreement increasing the amount of payment for the fiscal year 2007/08 in the amount of $4,922, for a total 2007/08 contract amount of $54,137.00 for additional special tax administration services. C. On July 24, 2007, the City approved the Second Amendment to the Agreement extending the term of the Agreement to June 30, 2008. D. The parties now desire to increase the amount of payment for the fiscal year 2007/08 an additional $9,270 for a total 2007/08 contract amount of $63,407.00 for additional special tax administration services. 2. Section 4 - Pavment is hereby amended to read as follows: The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment, as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based on actual time spent of the above tasks. Any terms in Exhibit B, other than the payment rates and schedule of payment are null and void. The First Amendment amount shall not exceed Three Thousand Three Hundred Sixty Five Dollars and No Cents ($3,365.00) for additional special tax administration services. The Third Amendment shall not exceed Nine Thousand Two Hundred Seventy Dollars and No Cents ($9,270.00) for additional special tax administration services. The maximum amount of payment under this Agreement shall not exceed the total Agreement amount of Sixty Three Thousand Four Hundred Seven Dollars and No Cents ($63,407.00). 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. R :\Fin ance\Purchasin g\Agreements.07 -08. M-Z\N BS.Spcl Tax Admin .Amen d3. FI NO? -02 1 10/09/07 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA BY: Chuck Washington, Mayor ATTEST: BY: Susan W. Jones, MMC, City Clerk Approved As to Form: BY: Peter M. Thorson, City Attorney Consultant: NBS Attn: Greg Davidson 32605 Highway 79 South #100 Temecula, CA 92592 Phone: 951-296-1997 Fax: 951-296-1998 BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) 2 Attachment "A" Below hereto and incorporated herein is the revised District Administration Fee Schedule for fiscal year 2007/08, and 2008/09. Consultant shall be paid based on the fee schedule added thereto and set forth in full, but in no event shall the total sum for fiscal year 2007/08 exceed $63,407.00 for the total term of the Agreement. Exhibit B - Payment Rates and Schedules Revised District Administration Fee Schedule (Special Tax Administration Contract Price Update) NBS Admin Council Base Fee Approved Total FY Total FY District # District Name FY 07/08 CD 07/08 FY 07/08 07/08 * 08/09 * CFD 88-12 Ynez Corridor $ 5,610 $ 1,275 $ 7,574 $ 7,574 $ 7,725 CFD 01-2 A Harveston (A) & (8) $ 7,140 $ 1,275 $ 9,257 $ 9,257 $ 9,442 CFD 03-01 A Crowne Hill A & B $ 6,120 $ 1,275 $ 8,135 $ 8,135 $ 8,297 AD 03-04 Wolf Creek $ 5,610 $ 1,275 $ 7,574 $ 7,574 $ 7,725 CFD 03-03 Harveston II $ 5,610 $ 1,275 $ 7,574 $ 7,574 $ 7,725 CFD 03-06 Roripauqh Ranch $ 8,160 $ 1,275 $ 10,377 $ 19,647 $ 10,586 CFD 03-02 John Warner Road $ 2,040 $ 1,275 $ 3,646 $ 3,646 $ 3,719 Totals $ 40,290 $ 8,925 $ 54,137 $ 63,407 $ 55,219 CD = Continuing Disclosure *FY 07/08, 08/09 are estirnated 3 ITEM NO. 11 ORDINANCE NO. 07-12 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 HEREBY 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 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. RJOrds 2007/0rds 07-12 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. RJOrds 2007/0rds 07-12 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. the City. Community Events on public or private property hosted or sponsored by 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. RJOrds 2007/0rds 07-12 3 TABLE N-1 TEMECULA lAND USE /NOISE STANDARDS Property Receiving Noise Maximum Noise level (ldn or CNEl, dBA) Type of Use land Use Interior Exterior Designation Hillside Rural Very Low 45 65 Residential Low Low Medium Medium 45 65/70' High 45 70' Neighborhood Community 70 Commercial and -- Office Highway Tourist Service Professional Office 50 70 Light Industrial Industrial Park 55 75 Schools 50 65 Publicllnstitutional All others 50 70 Vineyards/Agriculture -- 70 Open Space Open Space 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, RJOrds 2007/0rds 07-12 4 Land Use 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 TABLE N-2 NOISE/LAND USE COMPATIBILITY MATRIX Community Noise Exposure (Ldn or CNEL) 55 60 65 70 75 80 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. 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, . 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, III 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, ~ Clearly Unacceptable, New construction or development clearly should not be undertaken, RJOrds 2007/0rds 07-12 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 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. RJOrds 2007/0rds 07-12 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 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 and shall only engage in or conduct construction activity between the hours of 7 a.m. and 6:30 p.m. 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. RJOrds 2007/0rds 07-12 7 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. RJOrds 2007/0rds 07-12 8 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. RJOrds 2007/0rds 07-12 9 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of October, 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. 07-12 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 9th day of October, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RJOrds 2007/0rds 07-12 10 ITEM NO. 12 ORDINANCE NO. 07-13 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 Findinqs. 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. 07-76 entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA RJOrds 2007/0rds 07-13 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 Findinqs. 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. RJOrds 2007/0rds 07-13 2 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. Authority of City Manaqer. 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 Ordinance. This Ordinance shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 9th day of October, 2007. Chuck Washington, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] RJOrds 2007/0rds 07-13 3 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. 07-13 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 9th day of October, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RJOrds 2007/0rds 07-13 4 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 Creating Financing 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 Financing 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 Regarding 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 Compliance 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 Compliance. 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 3D-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 bv 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. Legal 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 Remedv. 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 Legal 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. Thirtv (30) Davs 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 Signatories. 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 Majeure. 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. Litigation. 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 Agencies. 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 Ae:reement 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. Subsequent Amendment to Authorizing 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 Governing 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 Headings. 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 Liabilitv. 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. Authoritv 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. Counteroarts. 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 9118/07 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 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 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/herltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Signature of Notary 34 EXHIBIT A (Description of Property) EXHIBIT A LEGAL DESCRIPTION PARCEL A, LOT LINE ADJUSTMENT NO. P A-06w0179 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 California, 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 of 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 aTC distance of 216.74 feet; Thence South 17018'43" East, aelistance of 109. 23feet, to the beginning ofa tangent curve concave northeasterly, having a radius of 1450.00 feet, a radial line bears South 72041'17"West; 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 of232.02fee/; 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 feet, 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-aI-way line through a central angle of26 OJ7 '06 ", an arc distance of 369.33 feet; Thence along said right-ol-way line North 460]0 '35" West, a distance of 184.96 feet, to an angle point In said right-aI-way line; Thence along said right-of-way line South 880]9 '25" West, a distance of 32.53 feet; Thence along said right-aI-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 46OJ1 '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 South 48 "09 '38" West, a distance of 2019.60 feet, to the TRUE POINT OF BEGINNING. The above described parcel of land contains 66.23 acres, more or less. This was prepared by me or under my direction. S.B. & 0., Inc. ~,,- ~\ ~'~ ~ 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 "I ~'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 ~~ ~ ~ t:, . ~~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 . .....:a-S1:1O ..lll::> 3<3/QG!,R1 :10 ..ll./oI'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 ... II O~ II I, ..:J I: " II II 1\ II =~~--- ~ ---=~====~====~~ 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....- ~ ~ - . - . ~ -. "f-',"- ~~ ~'~~ - :--;;..-..;"--....-:--= ""'--~.~~....."..., - ' ---------------- --------- '";.~-""'--- _ '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' .,. ..... .-- "- ~ 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) '0~ 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 C01Ulty, 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 ....,:s>SJ. ~ ..ut: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 OIF 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 development 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 . 'informatlon 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 ahall be phased In over 8 th.....year period. The non-residential fees would not be Increaaed (except for the annual Bel 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 realdenUaI and non-resldenUaI development Impact fees wiD be 8ubJect to an automatic annual adjustment based on the percentage Increase or decrease. If any. of the Engineering Newa Record BuDding Cost Index ("Bel") for the. '-os AngelB8 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 adjuabn8nts 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 meeUog 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 correcl 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 the seal oltha ellyof Tamseura thlsaday olJ1.tH.' .~o.!!i. MIchaela A. Ballrelch. Depu\y City dlerll by: \. t.. . ~ ~~. 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. CLlC "'-- ./ "- CIty CIerfc I 1 I \ i i , ../ R:lResos 20031Res0s 03-63 .3 " . , AnACHIIENr A CITY OPTlliICULA DEVELOPMIH1' IIPACT PElS COMPARISON: CURRENT FEll VI. STUDY MAXIMUM AllOWABLE PIES ~ ....~ ~. rllllo &IgrM IIIlt TIIIlID CrlnhI trMJII.. ~, "j,..... ".. facll1ltt , . .. "hI' , " .1. ~ ..... '"aIIt1nd Rec:redon ,..... :Jpen SI*e" TmI De\ ,11',j .-~ . iIlIIrIIII fYII. OPUIII.... .....,..... AItIcIIIN RMIdInIIII DtlIltM :<*01 RIIII COIwnIldII 8IMcI eo.McdII BuIInNI PIIIl/InMlIIII ............ 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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~~ ~~@~ ~~~~ ~~~~ ~~81~ ~~~~ ~i~~w ~ ~~ u ~!l:: !II It ~~~!II ~~~!5 ~~~~ m~~!a . ~~~~ ~ 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 . jo.::::::::: ......... , . EXHIBIT J (Curb Cuts) ~ !::l ~ ~ Q':slg !Q~S .;t~ ~~t ~~~~ ~~~~ !::)lll. ~ ~~~~ ~~8\~ ~~~~ ii~~ ~ ~ ~~ ~~12~ ~~tb~ ~~~~ III !,Sill ~~l3j~ ~ ~~~~ ~~~~ 1':::S~c( iii ij R - ~ ~ I ~il~ ~tt'l ~ I I ~ r 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 '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) -..-....--.........-..... ~ h. C) -.J , , ; : : : , ' , . , ! ~ , , ' I \ .~ : \ , \ : \ , . I ' I - It , . · · i I .1 it a~l ~il m'II:! , :1 ml:i . I (. ..J J 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 ...: "'It) ~....<:> '<:.~ ':!l~~ <:~~ 0-.... ~~o ~~~~ ;;t~~;:, ~>"C>~ otO' ~ ~l~~ ~~'O,'c ~~'<:.~ % '&<:3 ~~'c!,~ o"'::t:'" ...,""Il.tr; ",~~t) '" ",'" ~'i,,?\Q tO~"";:' ~~:... lc>~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 \,) -----;;--_...~~~ -~~ 10 '0 :.1 ---- V"\IO~ .!I) ).l.\? 3O\~;!t\~ .IIJ ~ .---- TEMECULA COMMUNITY SERVICES DISTRICT ITEM NO. 13 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT SEPTEMBER 25, 2007 A regular meeting of the City of Temecula Community Services District was called to order at 8:00 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 5 DIRECTORS: Edwards, Naggar, Roberts, Washington, Comerchero ABSENT: o DIRECTORS: None. Also present were Assistant City Manager Adams, City Attorney Thorson, and Deputy City Clerk Ballreich. PUBLIC COMMENTS No input. 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 Landscaped Medians RECOMMENDATION: 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 Aqreement Between the City 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. MOTION: Director Edwards moved to approve the Consent Calendar. Director Washington seconded the motion and electronic vote reflected unanimous approval. R:\Minutes\092507 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 8:01 p.m., the Temecula Community Services District meeting was formally adjourned to Tuesday, October 9, 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\092507 2 ITEM NO. 14 Approvals City Attorney Director of Finance City Manager ,~~/,I.-f/ l TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: October 9, 2007 SUBJECT: TCSD Proposed Election for Service Level C Rates and Charges PREPARED BY: Barbara Smith, Senior Management Analyst RECOMMENDATION: That the Board of Directors: 1. Adopt a resolution entitled: RESOLUTION NO. CSD 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT INITIATING PROCEEDINGS TO INCREASE THE RATES AND CHARGES FOR SERVICE LEVEL C COMMENCING FISCAL YEAR 2008-2009, TO PROVIDE AN ANNUAL ADJUSTMENT THERETO AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING IN CONNECTION THEREWITH BACKGROUND: The Temecula Community Service District (TCSD) operates under the authority of Community Services District Law and provides residential street lighting; perimeter landscaping and slope maintenance; recycling and refuse collection and unpaved road maintenance services in the City of Temecula. The boundaries of the TCSD are coterminous with the City and the City Council also serves as the Board of Directors of the TCSD. Upon incorporation the TCSD established Service Level C and accepted the landscape maintenance responsibilities for residential perimeter landscaping and slopes that were previously maintained by Riverside County Service Area 143. In addition, as new residential development occurred, TCSD accepted additional perimeter landscaping and slope zones into Service Level C. At this time, TCSD has established thirty-one (31) landscape areas or "zones". See Attachment 1 for a listing of the zones. Service Level C rates and charges assessed for each zone were determined by the then current maintenance costs based on the area's square footage, plant material and topography. The total landscape maintenance costs were proportionally spread among all assessable property owners within the tracts associated with the residential development. The passage of California Proposition 218 in 1996 restricted the ability to increase Service Level C rates without conducting a noticed public hearing and property owner mailed ballot election. Service Level C rates and charges, collected with property taxes, have not increased since they were established. Although the costs for utilities and maintenance have continued to rise, the Service Level C rates and charges have never increased. As a result, in most cases, the fees currently being collected do not cover the actual cost to maintain each zone. Increases in landscape maintenance costs have been subsidized with Service Level C fund balance. This fund has now been depleted requiring the TCSD to initiate an election process to increase Service Level C rates and charges to correspond with current maintenance costs. The rates for Service Level C have never increased and in some cases the cost for maintaining certain zones have greatly exceeded the revenues generated through their rate and charge. There are four (4) zones that are adequately funded for landscape maintenance costs through their current Service Level C rate and charges. These include Zones 2, 9, 16 and 28. There are twenty-five (25) zones that are not adequately funded for landscape maintenance costs through their current Service Level C rate and charge. These include Zones 1,3,4,5,6, 7, 8, 10, 11, 12, 13, 14, 15, 17, 18, 19,20, 21, 22, 23, 24, 25, 26, 27 and 30. There are two (2) zones that are adequately funded for landscape maintenance costs through their current Service Level C rate and charge. In addition the property owners of these zones have previously approved an annual inflator and therefore will not be included in this election process. These include Zones 29 and 31. The property owners within the twenty-five (25) zones that are not adequately funded for Service Level C landscaping maintenance costs will be requested to approve an increase to their current Service Level C rate and charge. In order not to burden the property owners with a large single year increase the amount of the rate and charge adjustment will be based on a ten percent (10%) increase of the zone's current Service Level C charge. This way, the increase to each property owner will be addressed over several years, as opposed to an increase to fund the shortfall in one year. Staff recommendations that if the rate and charge increase is over 10% then a flat rate shall be determined for the number of years that it will take to bring the zone into an adequately funded status. Further detail of this calculation is provided in the Preliminary Report which is on file with the Secretary of the TCSD. All zones, with the exception of Zones 29 and 31 will include a request to approve a cost-of-living inflator. This adjustment shall be equivalent to the lesser of 5% or the annual percentage change in the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index of All Urban Consumers (CPI-U), for the Los Angeles-Riverside-Orange County Area, from the previous calendar year. Any increase to the Service Level C rates as a result of the cost-of-living inflator shall be determined based on annual projected landscape maintenance costs for each zone. Annual cost-of-living increases will not exceed 5%. Should the property owners of a zone not approve the requested rate change and/or cost-of living inflator, the landscaping maintenance standards within the zone shall be decreased to the existing level of funding. Well maintained perimeter landscaping and slope areas within the City of Temecula create enhanced aesthetics and help maintain property values. As a result of the decrease in service the slope and landscaping aesthetics, known as "curb appeal" of the properties can diminish which may cause a decrease in property value. The levy process includes adopting a resolution accepting the filing of a report on the proposed rates and charges; noticing each affected property owner in the City; conducting a public hearing to consider the proposed rates and charges and submitting the proposed rates and charges to a vote of the affected property owners. TCSD will conduct a public workshop on the proposed increase on Wednesday, November 7, 2007 at 6 pm at the Temecula Public Library in Room A. Staff recommends that the Board of Directors adopt the resolution to accept the filing of the report on the proposed Service Level C rates and charges for FY 2008-2009 and schedule a public hearing for December 11 , 2007. Staff will then proceed with noticing each affected property owner regarding the proposed rates and charges and the December 11,2007 public hearing. FISCAL IMPACT: The revenue generated for the TCSD FY 2008-2009 Rates and Charges will fund perimeter landscaping and slope maintenance services (Service Level C) in the Temecula Community Services District. The estimated TCSD levy budget for Service Level C for FY 2008-2009 is $1,867,062. ATTACHMENTS: 1. Zone Listing 2. Resolution of Intention 3. Public Hearing Notice Attachment 1 Zone Listing Annual Proposed Zone Development Current Annual Number Rate Rate of Years Increase 1 Saddlewood $116.00 $14.64 7 2 Winchester Creek 89.00 NA NA 3 Rancho HiQhlands 116.00 10.85 2 4 The Vineyards 46.00 6.30 7 5 SiQnet Series 175.00 14.50 2 6 Woodcrest Country 89.00 6.00 1 7 RidQeview 89.00 11.58 7 8 VillaQe Grove 175.00 19.92 4 9 Rancho Solana 46.00 NA NA 10 Martinique 116.00 12.00 1 11 Meadowview Homes 175.00 28.75 11 12 VintaQe Hills 116.00 12.12 4 13 Presley Development 46.00 5.13 3 14 Morrison Homes 89.00 9.06 4 15 Barclay Estates 175.00 24.23 7 16 Tradewinds 175.00 NA NA 17 Monte Vista 46.00 4.87 5 18 Temeku Hills 70.00 7.22 5 19 Chantemar 225.00 3.00 1 20 Crowne Hill 175.00 8.00 1 21 Vail Ranch 129.00 13.18 3 22 Sutton Place 116.00 14.64 7 23 Pheasant Run 20.00 2.28 5 24 Harveston 100.00 2.00 1 25 Serena Hills 200.00 18.45 4 26 Traditions (Gallery) 270.00 26.18 3 27 Avondale 70.00 6.49 3 28 Wolf Creek 129.00 NA NA 29 Portraits (Gallery) 315.00 NA NA 30 Valdemosa 129.00 9.45 2 31 RoripauQh Ranch $ 26.00 NA NA RESOLUTION NO. CSD 07- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT INITIATING PROCEEDINGS TO INCREASE THE RATES AND CHARGES FOR SERVICE LEVEL C COMMENCING FISCAL YEAR 2008-2009, TO PROVIDE AN ANNUAL ADJUSTMENT THERETO AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING IN CONNECTION THEREWITH THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICE DISTRICT HEREBY FINDS, RESOLVES, DECLARES, DETERMINES AND ORDERS AS FOLLOWS: Section 1. Upon incorporation of the City of Temecula, effective December 1, 1989, voters approved the formation of the Temecula Community Services District ("TCSD"), to provide specified services to properties within its jurisdiction. Section 2. TCSD provides perimeter landscaping and slope landscape maintenance in numerous residential developments within the City of Temecula. Pursuant to Government Code Section 61115, TCSD has prescribed, revised and collected rates and charges for perimeter landscaping and slope maintenance services (Service Level C) furnished by it, and has elected to have these rates and charges collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes in the manner prescribed by Government Code Section 61115. Section 3. TCSD hereby initiates proceedings to increase the rates and charges for Service Level C commencing Fiscal Year 2008-2009 and to provide an annual adjustment to such rates and charges (collectively, the "Proposed Rates and Charges Increase"). Section 4. The Board of Directors hereby directs staff to cause to be prepared a report identifying the parcels upon which the Proposed Rates and Charges Increase will be imposed (the "Identified Parcels") and the amount of the Proposed Rates and Charges Increase for each Identified Parcel. Section 5. The Board of Directors hereby appoints December 11, 2007 at the hour of 7:00 p.m., or as soon thereafter as feasible, in the City Council Chambers at City Hall, 43200 Business Park Drive, Temecula, California, 92590, as the time and place for the public hearing on the Proposed Rates and Charges Increase. Section 6. At the public hearing, the Board of Directors will hear and consider all objections or protests, if any, to the Proposed Rates and Charges Increase. If written protests against the Proposed Rates and Charges Increase are presented by a majority of the owners of the Identified Parcels, TCSD shall not impose the Proposed Rates and Charges Increase and may continue to levy rates and charges for Service Level C in the amount previously authorized by property owners. In the absence of a majority protest, TCSD may submit the Proposed Rates and Charges Increase to a vote of the property owners in accordance with Article XIII D of the California Constitution. Section 7. The Secretary of the TCSD is hereby directed to give notice of the time and place of hearing on the Proposed Rates and Charges Increase pursuant to the requirements Article XIII D of the California Constitution and to certify to the adoption of the Resolution. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Community Services District of the City ofTemecula this 9th day of October, 2007. Jeff Comerchero, President 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 Community Services District of the City of Temecula, do hereby certify that the foregoing Resolution No. CSD 07- was duly and regularly adopted by the Board of Directors of the Temecula Community Services District of the City of Temecula at a meeting thereof held on the 9th day of October, 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 NOTICE OF PUBLIC HEARING CITY OF TEMECULA TEMECULA COMMUNITY SERVICES DISTRICT IN CONNECTION WITH A PROPOSED INCREASE TO SERVICE LEVEL C RATES AND CHARGES The Temecula Community Services District (TCSD) is proposing to increase the rates and charges for perimeter landscaping and slope landscape maintenance services (Service Level C) beginning July 1, 2008; and is proposing to include an annual inflation adjustment based upon the Consumer Price Index increase (collectively, the "Proposed Increase"). The actual amount of your Proposed Increase is shown on Attachment A. This increase is the first proposed for any landscaped area since the incorporation of the City in 1989. With the costs for utilities and maintenance continuing to increase, it is necessary to increase charges to cover the costs of these services. The amount of the Proposed Increase on an annual basis will be approximately 10% of your current charges, regardless of how much it costs to maintain the landscaping. This way, the Proposed Increase to each property owner will be phased in over several years, as opposed to an increase to fund the shortfall in one year. However, for some property owners, a Proposed Increase of less than 10% will fund the shortfall. TCSD has prepared a report regarding the Proposed Increase, which has been filed with the Secretary of TCSD. The report identifies the parcels upon which the Proposed Increase will be imposed (the "Parcels"). NOTICE OF PUBLIC HEARING The TCSD Board of Directors will conduct a public hearing on the Proposed Increase at the following date, time and location: Date: Time: Location: December 11,2007 7:00 p.m. City Council Chambers City Hall 43200 Business Park Drive Temecula, California Protest Procedures. At the December 11, 2007 public hearing, the TCSD Board will hear and consider all objections or protests, if any, to the Proposed Increase. If written protests are filed by the owners of a majority of the Parcels, then the TCSD Board will not adopt the Proposed Increase. If there is not a majority protest, then the TCSD Board may call for a property owner election. A written protest must identify the Parcel and be signed by the property owner or the property owner's authorized representative. Only one written protest will be counted per parcel. TCSD will not accept protests by email. Written protests may be delivered in person to the TCSD Secretary during the public hearing or during normal business hours (8:00 a.m. to 5:00 p.m., Monday through Friday) at City Hall at 43200 Business Park Drive, Temecula, California or may be mailed to the TCSD Secretary at P.O. Box 9033, Temecula, California 92589- 9033. Written protests must be filed with the TCSD Secretary prior to the conclusion of the public hearing in order to be counted in determining whether a majority protest exists. Please note that written protests which are mailed or delivered must be received at City Hall by 5:00 p.m. on December 11,2007 to be counted. Election. If there is not a majority protest, the TCSD Board may submit the Proposed Increase to the property owners for a vote in accordance with Article XIII D of the California Constitution. If this action is taken, you will receive a mailed ballot in January 2008. SUMMARY OF PROPOSED RATES AND CHARGES INCREASE Service Level C Charaes. The TCSD, which operates under the authority of the Community Services District Law, assumed responsibility for providing perimeter landscaping and slope maintenance services (Service Level C) in the City of Temecula in 1989. The boundaries of TCSD are the same as those of the City. As new residential development occurred in the City, TCSD accepted responsibility for the perimeter landscaping and slope maintenance services for those developments. The property owners in each development or Service Level C "zone" pay rates and charges (the "Charges") annually on their property tax bill. The revenues from the Charges for each Service Level C zone are used to finance the operation, maintenance, utility costs, improvements, and administration of the perimeter landscaping and slope maintenance for that zone. The current Charges are based on the budget for providing perimeter landscaping and slope maintenance services at the time TCSD assumed responsibility for providing these services. - 2- The Proposed Increase. The Proposed Increase is comprised of two components: (1) A "funding requirement" increase that brings Service Level C Charges for each zone in line with the cost of providing services for each zone and (2) an annual inflation adjustment. The funding requirement increase is based on the current per parcel cost of providing Service Level C services in a zone and assumes an annual 2% increase in those costs during the phase-in period described below. If your property requires more than a 10% funding requirement increase, TCSD proposes to annually increase your Service Level C Charges by a flat dollar amount (the "Annual Phase-in Amount") until the Charges equal the cost of providing services for your zone. The period of time during which the Annual Phase-in Amount is imposed is the "Phase-in Period." The Phase-in Period for each zone is determined by calculating the number of years to eliminate the funding shortfall per parcel by increasing Charges in an amount that is, on average, 10% a year. The Proposed Increase also includes an annual inflation adjustment to keep Service Level C revenues in line with the costs of providing perimeter landscaping and slope maintenance services in future years. Once the Phase-in Period is completed, TCSD proposes to annually increase Charges by a Consumer Price Index adjustment that would not exceed 5% in any year. For zones that are currently adequately funded, the Proposed Increase will only include the annual inflation adjustment beginning July 1, 2008. PUBLIC WORKSHOP TCSD will conduct a public workshop on the Proposed Increase on Wednesday, November 7, 2007 at 6:00 p.m. at the Temecula Public Library - Room A located at 30600 Pauba Road, Temecula, California. QUESTIONS AND INQUIRIES If you have any questions about this notice or the Proposed Increase, please do not hesitate to contact Barbara Smith at the City of Temecula, Community Services Department at (951) 694-6480. - 3- ATTACHMENT A ***THIS IS NOT A BILL*** CITY OF TEMECULA COMMUNITY SERVICES DISTRICT 43200 BUSINESS PARK DRIVE P.O. BOX 9033 TEMECULA, CA 92589-9033 (951) 694-6480 Zone 1 John Doe 12345 Temecula Road Temecula, CA 92590 The following information lists your property's Assessor's Parcel Number (APN), the property address (if available), current Service Level C Charge and the Proposed Increase to your Service Level C Charge. Assessor's Parcel Number (APN): Property Address: 2007-2008 Annual Charge: 995-123-456 12345 Temecula Road $116.00 Fiscal year 2008-09 2009-10 2010-11 2011-12 2012-13 2014-15 2015-16 Annual Increase $14.64 $14.64 $14.64 $14.64 $14.64 $14.64 $14.64 If approved, beginning July 1, 2016, TCSD proposes to increase the annual Service Level C Charge by the percentage change in the Los Angeles-Riverside-Orange County, CA Consumer Price Index for All Urban Consumers for the previous calendar year but by no more than 5%. The TCSD Board of Directors will hold a public hearing each year to determine the amount of the annual inflation adjustment, if any. Please Note: The Riverside County Assessor's Office provided the Property/Ownership information within this notice. If this information is incorrect, please contact the Assessor's Office at (951) 955-6200; they can be reached by mail at: Riverside County Assessor, P.O. Box 1240, Riverside, CA 92502 or visit their websites: www.riversideacr.com or www.riversidetaxinfo.com. If you have questions about the proposed rate change, please contact Barbara Smith at the City of Temecula, Community Services Department at (951) 694-6480. ATTACHMENT A [note - this attachment is for zones 2, 9, 16 and 28 only] ***THIS IS NOT A BILL*** CITY OF TEMECULA COMMUNITY SERVICES DISTRICT 43200 BUSINESS PARK DRIVE P.O. BOX 9033 TEMECULA, CA 92589-9033 (951) 694-6480 Zone 2 [property owner] [property address] The following information lists your Assessor's Parcel Number (APN), the property address (if available), current Service Level C Charge and the Proposed Rates and Charges Increase for Service Level C. Assessor's Parcel Number (APN): Property Address: 2007 -2008 Annual Charge [APN] [address] [rate] Rates and Charges for the parcel identified above currently meet the funding requirement for your Service Level C services. However, beginning July 1, 2008 and each fiscal year thereafter, TCSD proposes to increase the annual Service Level C rates and charges by the lesser of (i) the percentage change in the Los Angeles-Riverside-Orange County, CA Consumer Price Index for All Urban Consumers for the previous calendar year or (ii) five percent. The TCSD Board of Directors will hold a public hearing each year to determine the amount of the annual inflation adjustment, if needed. Please Note: The Riverside County Assessor's Office provided the Property/Ownership information within this notice. If this information is incorrect, please contact the Assessor's Office at (951) 955-6200; they can be reached by mail at: Riverside County Assessor, P.O. Box 1240, Riverside, CA 92502 or visit their websites: www.riversideacr.com or www.riversidetaxinfo.com. If you have questions about the proposed rate change, please contact Barbara Smith at the City of Temecula, Community Services Department at (951) 694-6480. 11086-0007\972747v1.doc REDEVELOPMENT AGENCY ITEM NO. 15 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY SEPTEMBER 25, 2007 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 8:01 p.m., in the City Council Chambers, at 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 5 AGENCY MEMBERS: Comerchero, Naggar, Roberts, Washington, Edwards ABSENT: o AGENCY MEMBERS: None. Also present were Assistant City Manager Adams, City Attorney Thorson, and Deputy City Clerk Ballreich. PUBLIC COMMENTS No reports at this time. RDA CONSENT CALENDAR 12 Minutes RECOMMENDATION: 12.1 Approve the minutes of September 11, 2007. MOTION: Agency Member Roberts moved to approve the Consent Calendar. Agency Member Washington seconded the motion and electronic vote reflected unanimous approval. RDA DEPARTMENTAL REPORT 13 Redevelopment Departmental Monthlv Report RDA EXECUTIVE DIRECTORS REPORT No reports at this time. RDA AGENCY MEMBERS REPORTS No reports at this time. R:\Minutes\092507 RDA ADJOURNMENT At 8:02 p.m., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, October 9, 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\092507 2 PUBLIC HEARING ITEM NO. 16 Approvals City Attorney Director of Finance City Manager ,~I.I,<.{/. .. / CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: October 9, 2007 SUBJECT: Planning Application No. PA07-0252, Winchester Hills Development Agreement Amendment PREPARED BY: Christine Damko, Associate Planner RECOMMENDATION: That the City Council: 1. Introduce and read by title only an ordinance entitled: ORDI NANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND WINCHESTER HILLS I, LLC 2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "FEE CREDIT AGREEMENT" BY AND BETWEEN THE CITY OF TEMECULA AND JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC BACKGROUND: On August 28, 2001, the City Council adopted Ordinance 01-08 approving a Development Agreement for the Harveston Specific Plan. The Development Agreement is comprised of two sections. The first section is an Agreement with Lennar regarding the residential portion and commercial main street portion of the Harveston Specific Plan. The second is the Winchester Hills I LLC property, which is comprised of an estimated 100 acres of property zoned service commercial along the Interstate 15 freeway. The FirstAmendment modifies certain provisions of the Development Agreement which will affect the Winchester Hills I, LLC property. No provisions of this First Amendment are intended to nor shall be construed to affect the Lennar property. The original Section 2.3, Term, of the Development Agreement indicated that the Agreement shall terminate the date the City issues the first building permit for a non-residential building on the Winchester Property. The Development Agreement Amendment is extending this language to include the development of a car dealership or ancillary uses on Parcels A and B. Therefore, the term for the Agreement will read "the date the CITY issues the first building permit for a non- residential building on the Winchester Property, other than for motor vehicle dealerships, or ancillary uses thereto, on Parcel A and Parcel B." This amendment proposes the following changes to the Development Agreement: Section 2.3, Term, of the Development Agreement is hereby amended to read as follows: "2.3 Term. This Agreement shall become effective on the Effective Date. Unless terminated pursuant to Section 2.4, with respect to the Lennar Property, this Agreement shall terminate at 11 :59 p.m. on the tenth (10th) anniversary of the earlier of either: (i) the date the CITY issues either the first (1 st) building permit for a residential dwelling unit other than a model unit or for a commercial structure within the Lennar Property; or (ii) the second (2"d) anniversary of the Effective Date. The termination shall occur subject to specific extensions, force majeure, revisions, and termination provisions of this Agreement. Unless terminated pursuant to Section 2.4, with respect to the Winchester Property, this Agreement shall terminate at 11 :59 p.m. on the fifteenth (15th) anniversary of the later of either: (i) the date the CITY issues the first (1'~ building permit for a non- residential building on the Winchester Property, other than for motor vehicle dealerships, or ancillary uses thereto, on Parcel A and Parcel B; or (ii) the date the limitations on development imposed by Section 4.3.4 hereof terminate." Attached to the Development Agreement Amendment is the Fee Credit Agreement between the City and Jones/Blumenthal Temecula Real Property, LLC for the waiver of fees for the future car dealership located on Parcel A and Parcel B. The City has determined that the future development of the auto dealership will be of substantial economic benefit to the City through the generation of new quality employment opportunities within the City and generating new tax revenues that will assist the City in funding public services for the residents and businesses within the City. The City finds and determines that the amount of fees waived for the development of Parcel A and Parcel B when compared to the Developer's investment in the land costs, public improvement costs, and construction costs in the development of a motor vehicle dealership on both Parcels is de minimus, comprising less than one and sixty-four one hundredths percent (1.64%) of the total project cost. PLANNING COMMISSION COMMENTS: In orderto meet City Council Public Notice requirements, this staff report was prepared prior to the Planning Commission's hearing. Planning Commission comments will be presented verbally to the City Council. ENVIRONMENTAL DETERMINATION: Pursuant to the California Environmental Quality Act ("CEQA"), staff has reviewed and considered the Final Environmental Impact Report for the Harveston Specific Plan approved by City Council on August 29, 2001, including the impacts and mitigation measures identified therein, and the subsequent environmental reviews required as mitigation measures identified therein. Based on that review, staff determined that the proposed First Amendment of the Development Agreement does not require the preparation of a subsequent Environmental Impact Report or Mitigated Negative Declaration as none of the conditions described in Section 15162 of the CEQA Guidelines (14 Cal. Code Regs. 15162) exist. Specifically, staff also determined that the proposed First Amendment does not involve significant new effects, does not change the baseline environmental conditions, and does not represent new information of substantial importance, which shows that the First Amendment will have one or more significant effects not previously discussed in the EIR. All potential environmental impacts associated with the proposed First Amendment are adequately addressed by the prior EIR, and the mitigation measures contained in the EIR will reduce those impacts to a level that is less than significant. An Addendum pursuant to Section 15164 of the CEQA Guidelines (14 Cal. Code Regs. 15164) is therefore the appropriate type of CEQA documentation for the First Amendment, and no additional environmental documentation is required. FISCAL IMPACT: Development fees totaling an estimated $149,076.54will be deferred for a period up to fifteen years from issuance of Certificate of Occupancy for Parcel A. Parcel B development fees will also be deferred for a period up to fifteen years from issuance of Certificate of Occupancy. ATTACHMENTS: CC Ordinance 07- Exhibit A - Draft Development Agreement Amendment CC Resolution 07- Exhibit A - Fee Credit Agreement Planning Commission October 3, 2007 Staff Report ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND WINCHESTER HILLS I, LLC THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare that: A. The City of Temecula ("City"), a general law City in the State of California, Lennar Homes, Inc., A California Corporation and Winchester Hills I LLC, a California limited liability company ("Winchester"), entered into a Development Agreement dated August 28, 2001 for the development of the Harveston Specific Plan ("Development Agreement"). B. On August 29, 2007, Winchester Hills I LLC, filed Planning Application No. PA07-0252, a Development Agreement Amendment, in a manner in accord with the City of Temecula General Plan and Development Code. C. Government Code Section 65864 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 in order to, among other matters: ensure high quality development in accordance with comprehensive plans; provide certainty in the approval of development projects so as to avoid the waste of resources and the escalation in the cost of housing and other development to the consumer; provide assurance to the applicants for development projects that they may proceed with their projects in accordance with existing policies, rules and regulations and subject to Conditions of Approval, in order to strengthen the public planning process and encourage private participation in comprehensive planning and reduce the private and public economic costs of development; and provide for economic assistance to Owner for the entitlements authorizing development related improvements. D. On October 3, 2007, the Planning Commission of the City of Temecula held a duly noticed public hearing on the proposed First Amendment to the Development Agreement ("First Amendment") as prescribed by law at which time all persons interested in the proposed First Amendment had the opportunity to and did address the Planning Commission on this matter. E. Following consideration of the entire record of information received at the public hearings and due consideration of the proposed First Amendment, the Planning Commission adopted Resolution No. 2007- _ recommending to the City Council approve the proposed First Amendment. F. On October 9, 2007 the City Council of the City of Temecula held a duly noticed public hearing on the proposed First Amendment as prescribed by law at which time all persons interested in the proposed First Amendment to the Development Agreement had the opportunity and did address the City Council on this matters. G. Following due consideration of the testimony received at the public hearing and the administrative record, the City Council adopted this Ordinance. Section 2. Environmental Compliance Findinqs. The City Council further finds, determines and declares that: A. On August 28, 2001, the City Council approved and certified Final Environmental Impact Report ("FEIR") for the Harveston Specific Plan. Pursuant to California Environmental Quality Act ("CEQA") Guidelines section 15164(a) (14 Cal. Code of Regs. S15000 et. seq.), the City of Temecula has prepared an Addendum to make a minor change to a previously certified EIR in connection with the proposed First Amendment and the construction of a motor vehicle dealership within the Specific Plan. B. The City prepared an Initial Study to determine whether the First Amendment or construction of the motor vehicle dealership within the Specific Plan triggered any of the conditions described in Sections 15162 and 15163 of the CEQA Guidelines which require the preparation of a subsequent or supplemental EIR. The Initial Study evaluated the impacts of the proposed First Amendment and the motor vehicle dealership on Land Use and Planning, Public Services, Utilities and Service Systems, Population and Housing, Transportation/Circulation, Water, Biological Resources, Energy and Mineral Resources, Cultural Resources, Recreation, Aesthetics, Geophysical, Hazards, Noise, Air Quality and Mandatory Findings of Significance. C. The Initial Study compared the environmental impacts of the proposed First Amendment and motor vehicle dealership with the identified environmental impacts of the approved Development Agreement evaluated in the previously certified Harveston Specific Plan EIR. The analysis in the Initial Study indicates that no new significant effects will be caused by the First Amendment and subsequent construction of a motor vehicle dealership within the Specific Plan. Nor will the proposed First Amendment and motor vehicle dealership increase the severity of any previously identified significant impact. The impacts will remain the same as analyzed in the Harveston Specific Plan EIR. D. The Initial Study also analyzed whether new circumstances would result in new significant effects or increase the severity of previously identified effects. The Initial Study found that no new circumstances exist that introduce new significant effects or increase the severity of previously identified significant effects. E. Further, the Initial Study analyzed whether new information exists that indicates that the project would introduce new significant effects or increase the severity of previously identified significant effects, or whether any new information suggests new mitigation measures or shows that the mitigation measures previously identified as infeasible are in fact feasible. The Initial Study found no new information that suggested new significant effect or increased the severity of previously identified effects. Nor did any new information suggest new mitigation measures or suggest that mitigation measures previously identified as infeasible were in fact feasible. F. Because the Initial Study finds no new significant effects, no increase in the severity of previously identified effects, no new mitigation measures and no change in the mitigation measures previously discussed, the Planning Commission finds that a supplemental or subsequent EIR need not be prepared, and that the City may rely on the Addendum to approve the Development Agreement Amendment and the construction of the motor vehicle dealership within the Specific Plan. G. The City Council finds that the Initial Study and Addendum were prepared in compliance with CEQA. The City Council certifies and approves the Initial Study and Addendum prepared for the Development Agreement Amendment and the construction of a motor vehicle dealership within the Specific Plan. The Planning Commission further finds that the conclusions reached in the Initial Study and Addendum represents the independent judgment of the Commission. H. The custodian of records for the Initial Study, Addendum and all other materials, which constitute the record of proceedings upon which the Planning Commission's decision is based, is the Planning Department of the City of Temecula. Those documents are available for public review in the Planning Department located at Planning Department of the City of Temecula, 43200 Business Park Drive, Temecula, California. Section 3. Further Findinqs. The City Council hereby finds and determines that: A. The First Amendment 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 First Amendment complies with the goals and objectives of the Circulation Element of the General Plan. C. The First Amendment 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. D. The First Amendment 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. E. All legal reconditions to the adoption of this Ordinance has occurred. Section 4. Approval. The City Council of the City of Temecula hereby approves that certain agreement entitled "First Amendment to Development Agreement by and between the City of Temecula, Lennar Homes, Inc., a California corporation, and Winchester Hills I LLC, a California limited liability company" ("First Amendment") between the City of Temecula and Winchester Hills I LLC in substantially the form attached hereto as Exhibit A, with such changes to the First Amendment as may be mutually agreed upon by Winchester Hills I LLC and the City Manager and which are in substantial conformance with the form of such First Amendment attached hereto. The Mayor is hereby authorized to execute the First Amendment, including related exhibits and attachments on behalf of the City. A copy of the final First Amendment when executed by the Mayor and the other parties shall be placed on file in the Office of the City Clerk. Section 5 Authority of City Manaqer. 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 First Amendment and to administer the City's obligations, responsibilities and duties to be performed under the First Amendment, 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 6. Certification. The City Clerk shall certify to the adoption of this Ordinance. This Ordinance shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 23rd day of October, 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 9th day of October, 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 23rd day of October, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk DRAFT: SEPTEMBER 28, 2007 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Temecula 43200 Business Park Dr. Post Office Box 9033 Temecula, CA 92589-9033 Attn: Susan Jones, MMC City Clerk Exempt from recording fees pursuant to Govt. Code Section 27383 (Space above for recorder's use) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TEMECULA AND LENNAR HOMES, INC., A CALIFORNIA CORPORATION AND WINCHESTER HILLS I LLC, A CALIFORNIA LIMITED LIABILITY COMPANY This First Amendment to Development Agreement is made and entered into as of October 23,2007, by and between the CITY OF TEMECULA, a California municipal corporation ("City") WINCHESTER HILLS I LLC, a California limited liability company ("Winchester") pursuant to the authority of Section 65864 through 65869.5 of the California Government Code and Article XI, Section 2 ofthe California Constitution. Pursuant to said authority and in consideration of the mutual covenants set forth in this First Amendment, the parties hereto agree as follows: 1. Recitals. This First Amendment is made with respect to the following purposes and facts which the parties agree to be true and correct: 985430.4 September 28, 2007 DRAFT: SEPTEMBER 28, 2007 A. On August 28, 2001, the City Council of the City of Temecula approved that certain agreement entitled "Development Agreement By And Between The City Of Temecula And Lennar Homes, Inc., A California Corporation And Winchester Hills I LLC, A California Limited Liability Company" by the adoption of Ordinance No. 01-08 (the "Develooment Aereement"). B. The Development Agreement was recorded on January 16,2002 as Document No. 2002-026470 in the Official Records of the County of Riverside. C. The real property which is subject to the Development Agreement and this First Amendment is comprised of two components. The first is the Lennar Property described in the Development Agreement ("Lennar Prooertv"). The second is the Winchester Hills I LLC Property which is specifically described in Exhibit A to this First Amendment and incorporated herein as though set forth in full ("Winchester Prooern:"). D. Winchester proposes to develop Parcel A and Parcel B within the Winchester Property as one or more motor vehicle dealerships. Parcel A and Parcel B are specifically described in Exhibit B to this First Amendment and incorporated herein as though set forth in full ("Parcels A and B"). E. City and Winchester continue to work diligently with Caltrans to define and convey the Interchange Improvement Area to Caltrans as provided in Section 4.3.3 and 4.3.4 of the Development Agreement, but have not yet completed the process of identifying the Interchange Improvement Area and the conveyance ofthe land to Caltrans despite these efforts. F. Winchester desires to develop Parcels A and B with one or more motor vehicle dealerships. Development of a motor vehicle dealership on Parcels A and B will benefit the City by providing many quality jobs, enhancing the motor vehicle sales market in the City, and providing increased tax revenue to the City. G. Winchester and City desire to provide for the development of Parcels A and B for the benefit of both parties while continuing to provide for the conveyance of the Interchange Improvement Area to Caltrans and the development regulations described in the Development Agreement, and particularly Section 4.3.4, enabling Winchester to work around the uncertainties surrounding the identification and conveyance to Caltrans of the Interchange Improvement Area. H. This First Amendment modifies certain provisions of the Development Agreement which affect the Winchester Property. No provisions of this First Amendment are intended to nor shall be construed to affect the Lennar Property or any portion thereof. I. The Planning Commission of the City of Temecula held a duly noticed public hearing on October 3, 2007 and by Resolution No. 07- recommended to the City Council that this First Amendment be approved. 985430.4 September 28, 2007 2 DRAFT: SEPTEMBER 28, 2007 J. On October 9,2007, the City Council of the City of Temecula held a duly noticed public hearing on the proposed First Amendment and the CEQA documentation at which time all persons had the opportunity to testify in support of or opposition to the proposed First Amendment and Addendum. K. On October 9,2007 the City Council of the City of Temecula adopted Ordinance No. 07- approving this First Amendment. 2. Amendment of Section 2.3 of Develooment Allreement. Section 2.3, Term, of the Development Agreement is hereby amended to read as follows: "2.3 Term. This Agreement shall become effective on the Effective Date. Unless terminated pursuant to Section 2.4, with respect to the Lennar Property, this Agreement shall terminate at 11 :59 p.m. on the tenth (10th) anniversary of the earlier of either (i) the date the CITY issues either the first (1 st) building permit for a residential dwelling unit other than a model unit or for a commercial structure within the Lennar Property or (ii) the second (2d) anniversary of the Effective Date. The termination shall occur subject to specific extensions, force majeure, revisions, and termination provisions of this Agreement. Unless terminated pursuant to Section 2.4, with respect to the Winchester Property, this Agreement shall terminate at 11 :59 p.m. on the fifteenth (15th) anniversary of the later of either: (i) the date the CITY issues the first (1 st) building permit for a non-residential building on the Winchester Property, other than for motor vehicle dealerships or ancillary uses thereto on Parcels A and B; or (ii) the date the limitations on development imposed by Section 4.3.4 hereof terminate." 3. Entire Allreement. This First Amendment contains the entire understanding between the parties relating to the subject matter hereof, all prior or contemporaneous agreements, understandings, representations and statements, oral or written, concerning the subject matter hereof, except for the Development Agreement, Operating Memoranda, are merged into this Agreement and shall be of no further force or effect. 4. Effective Date of First Amendment. This First Amendment shall be effective upon the date a bona fide escrow closes on the sale of Parcels A and B for development of automobile dealerships. Winchester shall notify the City of the date such escrow closes and shall provide City with reasonable documentation of the close of escrow. Within thirty (30) days following such notice, City and Winchester shall approve and execute an Operating Memorandum to be recorded confirming the effective date of this First Amendment. 985430.4 September 28, 2007 3 DRAFT: SEPTEMBER 28, 2007 5. Lender Consent. Winchester warrants and represents to the City that the following persons hold recorded deeds of trust upon or other beneficial interests in the Winchester Property and that each has duly executed a "Lender's Consent And Subordination To Development Agreement And First Amendment To Development Agreement" which are attached hereto as Exhibit C: (1) : (2) 6. Authoritv to Enter Into First Amendment. Winchester warrants and represents to the City that its approval of this First Amendment will not violate any agreements it may have with other persons. The person or persons executing this First Amendment on behalf of Winchester warrant and represent to the City that this First Amendment has been duly approved by Winchester and that all applicable notices, approvals and procedures were complied with and that he or she is duly authorized by Winchester to execute this First Amendment on behalf of Winchester and has been duly authorized to do so. 7. Other Terms Remain. Except as specifically set forth herein, all other terms and conditions of the Development Agreement shall remain in full force and effect. 985430.4 September 28,2007 4 DRAFT: SEPTEMBER 28, 2007 IN WITNESS WHEREOF, the parties hereto have executed this Covenant as of the day and year first above written. CITY OF TEMECULA, a municipal corporation Chuck Washington Mayor Attest: Susan W. Jones, MMC City Clerk Approved As to Form: Peter M. Thorson City Attorney 985430.4 September 28, 2007 5 DRAFT: SEPTEMBER 28, 2007 WINCHESTER HILLS I LLC, a California limited liability company Name: Title: Name: Title: 985430.4 September 28, 2007 6 DRAFT: SEPTEMBER 28, 2007 State of California ) ) ss ) County of On before me, 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 hislher/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. Witness my hand and official seal. Signature of Notary 985430.4 September 28, 2007 7 DRAFT: SEPTEMBER 28, 2007 State of California ) ) ss ) County of On before me, 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 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 985430.4 September 28, 2007 8 1002666.1 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY RBF CONSULTING 27555 YNEZ ROAD, SUITE 400 TEMECULA, CA 9259] Revised July ]9, 2001 May 10, 2001 IN 15100181.M2 Page 1 of 2 EXHIBIT liB" LEGAL DESCRIPTION WINCHESTER IDLLS I LLC PROPERlY That certain parcel of land situated in the City of Temecula, County of Riverside, State of California, being those portions of Lots 109, 110, 120 and 121 (together with those portions ofvacated Date Street, Monroe Avenue and Jackson Avenue adjoining said lots), aU as shown on a Map of the Temecula Land and Water Company filed in Book 8, Page 359 of Maps, Records of San Diego County, California, together with a portion of Parcel 4 of Parcel Map No. 19677 (together with that portion ofYnez Road adjoining said Parcel 4), all as shown on a map filed in Book 135, Pages 85 and 86 of Parcel Maps, Records of Riverside County, California, described as a whole as follows; BEGINNING at the most northerly corner of said Lot 121, said comer being a point on the centerline of said J ackson Avenue; thence along said centerline South 41038'09" East 1290.73 feet to the most northerly corner of said Lot 120; thence continuing along said centerline South 42014'33" East 1290.79 feet to the most easterly comer of said Lot 120; thence continuing along said centerline South 41052'47" East 794.56 feet to the centerline of said Ynez Road; thence along said centerline of Ynez Road South 30007'20" West 432.]4 feet to the beginning of a tangent curve concave southeasterly and having a radius of 1675.00 feet; thence along said curve southwesterly 699.71 feet through a central angle of 23056'04" to the easterly prolongation of a course in the southeasterly line of said Parcel 4 shown as "North 83048'37" West" on said Parcel Map; thence radially from said curve, along said course and prolongation North 83048'44" West 142.82 feet to an angle point in said southeasterly line; 1002666.1 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY Exhibit "B" Legal description Winchester Hills I LLC Property Revised July 19,2001 May 10, 2001 IN 15100181.M2 Page 2of2 thence along said southeasterly line South 63031'52" West 962.68 feet to the most southerly corner of said Parcel 4 and a point in the northeasterly line of Interstate 215; thence along said northeasterly line through the following courses: North 19016'02" West 376.97 feet; thence North 30035'46" West 450.40 feet; thence North 28041'12" West 758.78 feet; thence North 18040'57" West 346.24 feet; thence North 28039'30" West 199.91 feet; thence North 37"45'11" West 253.17 feet; thence North 29058'20" West 449.97 feet; thence North 21"49'02" West 251.95 feet; thence North 28024'39" West 519.02 feet to the northwesterly line of said Lot 121; thence along said northwesterly line North 48010'42" East 1190.56 feet to the POINT OF BEGINNING. CONTAINlNG: 135.24 Acres, more or less. SUBJECT To all covenants, rights, rights-at-way and easements of record. EXlDBIT "B.l" attached hereto and made a part hereof. This description was prepared by me or under my direction. Raymond L Mathe, P.L.S. 6185 My license expires 3/31/02. H:\PDA T A\lS lOO181\OFFICE\ WPWIN\1811g1002. WPD 2 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY '1000' 0 1090 2000 ~-~,_......... ',,~.o _,r GRAPHiC- SCALE (.0 ~ ,\0 10 ~j r c1 ~c., !b"'\. ~~ :9 '1,,~\'O't{ ~Q? ~~"\") 1'<:-.., :-"'~. l:)V' ~. "\ Il' f--'"?- ~ @ PCL .A" PER INST. NO. 37561B,0.R. c,' (10-30-91): EXHIBIT uB-l U ATTACHMENT NO. 2 LEGAL DESCRIPTION OF '~I NCHESTER HILLS I LC PROPERTY 1i o oD 8 )C w a:; ;;- Ln l- iD :E )C ~ 1i . CClN.TIIUCTION 53 a:; o e ;r. -" ... I- '" C Q. ./ @ INST. NO. .389573,O.R. ( 11-0B-91 ) SHEET 1 OF 1 SHEET PL.,ANNINO . ceSIQN ~ 27555 Y1EZ ROAO. SUITE 400 iCI.ECU.A. CAL.FOINA e2S1-4S7V 909.G78JlO42 . FAA 909.678.1240 . _1lBF.com CONSUL.TINt3 F"!ELD SoOK JOB NO. 15100181-1.42 REVISED ..u. Y 19., 2oo1l MAY 10, 2001 SCALE t..l000' 1002666.1 3 E Q. :;; ~ o ...... <Xl "- I"- e DRAFT: SEPTEMBER 28, 2007 EXHIBIT B LEGAL DESCRIPTION OF PARCELS A AND B PARCEL A: Parcel A is described as Parcel A of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. PARCEL B: Parcel B is described as Parcel B of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. 985430.4 September 28, 2007 10 DRAFT: SEPTEMBER 28, 2007 EXHIBIT C LENDER'S CONSENT LENDER'S CONSENT AND SUBORDINATION TO DEVELOPMENT AGREEMENT AND FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 1. _ ("Lender") holds a security interest in a portion of the Property described in the First Amendment to Development Agreement set forth above between Winchester Hills I LLC, a California limited liability company ("Owner"), and the CITY OF TEMECULA, a municipal corporation ("City"). 2. Lender acknowledges that the Development Agreement and the First Amendment to the Development Agreement are integral parts of the Owner's land use entitlements for the Property and provide significant benefits to the Owner and to the Property as well as vesting Owner's land use entitlements pursuant to the terms of the Development Agreement and the First Amendment to the Development Agreement. 3. In consideration of the rights and benefits conferred upon the Owner by the terms of the Development Agreement and the First Amendment to the Development Agreement and in recognition of the accrual of those benefits to the Lender in the event Lender takes possession of the Property, Lender hereby consents to the Development Agreement and the First Amendment to the Development Agreement and their recordation and further agrees that Lender's interests in the Property are subject to, and made subordinate to, the rights and interests of the City as set forth in the Development Agreement and the First Amendment to the Development Agreement. 4. The City agrees to provide notice of any default to Lender pursuant to Section 10 of the Development Agreement at the following address: 985430.4 September 28, 2007 11 DRAFT: SEPTEMBER 28, 2007 IN WITNESS WHEREOF the Lender has executed this Consent and Subordination as of ,2007. Lender: Name: Title: Name: Title: 985430.4 September 28, 2007 12 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "FEE CREDIT AGREEMENT" BY AND BETWEEN THE CITY OF TEMECULA AND JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The City Council does hereby find determine and declare that: A. The City and Jones/Blumental Temecula Real Property LLC ("Jones/Blumenthal") propose to enter into that certain agreement entitled: "Fee Credit Agreement By and Between the City of Temecula and Jones/Blumenthal Temecula Real Property LLC" ("Agreement") that will provide for the deferral of approximately $210,000 in development fees to the City in return for Jones/Blumenthal building a Mercedes new motor vehicle dealership on Parcel A and either a "boutique" new motor vehicle dealership at least comparable to Mercedes or expand the Mercedes dealership onto Parcel B. B. Developer expects to employ approximately 100 persons at the Mercedes dealership within the next five (5) years. C. The City Council finds and determines that performance of the City's obligations under this Agreement and the undertakings of the Parcel A Dealership and the Parcel B Dealership 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. D. This Agreement places no obligation on the City beyond the year of its execution unless and until: (1) Developer becomes obligated to pay any Parcel A Fees related to the Parcel A Dealership or to pay Parcel B Fees on Parcel B related to the Parcel B Dealership, and (2) Developer continues in business and maintains its Parcel A Dealership and Parcel B Dealership within the City as provided in this Agreement. E. An Addendum to the Environmental Impact Report for the Harveston Specific Plan Development Agreement was prepared for the Council's adoption of the Ordinance approving the First Amendment to the Development Agreement for this property. 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 Addendum and the findings contained in said ordinance. F. All legal prerequisites to the adoption of this Resolution have occurred. G. The Agreement approved by this Resolution 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. Section 2. Approval of Agreement. The City Council of the City of Temecula hereby approves that certain agreement entitled "Fee Credit Agreement By and Between City of Temecula and Jones/Blumental Temecula Real Property LLC" ("Agreement") with such changes to the Agreement as may be mutually agreed upon by Jones/Blumenthal 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 Jones/Blumenthal shall be placed on file in the Office of the City Clerk. Section 3. Authority of City Manager. 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. 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 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 DRAFT: OCTOBER 1, 2007 FEE CREDIT AGREEMENT BY AND BETWEEN THE CITY OF TEMECULA AND JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC THIS AGREEMENT is made by and between the City of Temecula, a municipal corporation, and Jones/Blumenthal Temecula Real Property LLC, a Nevada limited liability company ("Developer") and is made and entered into as of October 9, 2007. In consideration of the mutual covenants set forth in this Agreement, the parties hereto agree as follows: 1. Recitals. This Agreement is made with respect to the follow facts and for the following purposes, which each of the parties acknowledge and agree to be true and correct: A. Developer is a Nevada limited liability company authorized and licensed to do business in the State of California. B. Developer is in escrow to purchase Parcel A and Parcel B, as described on Exhibit A. C. Upon close of escrow, Developer will develop Parcels A and B as one or more facilities for the retail sale and service of high end motor vehicles. D. The development of Parcels A and B is subject to and governed by that certain Development Agreement dated as of August 28, 2001 by and between the City, Lennar Homes, Inc., and Winchester Hills I LLC ("Development Agreement"). E. Developer plans to develop a Mercedes new motor vehicle dealership on Parcel A ("Parcel A Dealership"). The estimated cost of the construction of the Parcel A Dealership is estimated to be thirty six million dollars ($36,000,000.00). The Developer also plans to either develop a "boutique"new motor vehicle dealership at leaset comparable to Mecedes or expand the Mercedes dealership onto Parcel B ("Parcel B Dealership"). The estimated cost of the construction of the Parcel B Dealership is estimated to be ten million dollars ($10,000,000.00). F. Developer expects to employ approximately 100 persons at the Parcel A Dealership within the next five (5) years. G. Developer and the City desire to provide for the Developer's operation of the Parcel A Dealership and the Parcel B Dealership within the City. H. The City Council finds and determines that performance of the City's obligations under this Agreement and the undertakings of the Parcel A Dealership and the Parcel B Dealership 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. 1001288.3 October 1,2007 1 DRAFT: OCTOBER 1, 2007 I. This Agreement places no obligation on the City beyond the year of its execution unless and until: (1) Developer becomes obligated to pay any Parcel A Fees related to the Parcel A Dealership or to pay Parcel B Fees on Parcel B related to the Parcel B Dealership, and (2) Developer continues in business and maintains its Parcel A Dealership and Parcel B Dealership within the City as provided in this Agreement. J. 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. Waiver of Parcel A and Parcel B Fees. A. Pursuant to the Development Agreement, certain fees will be due the City for the development of the Parcel A Dealership on Parcel A and the development of the Parcel B Dealership on Parcel B. The Parcel A fees and the approximate amounts thereof are described on Exhibit B attached hereto ("Parcel A Fees") and the Parcel B Fees are also described Exhibit B ("Parcel B Fees"). The final amount of the Parcel A and Parcel B Fees shall be determined upon final approval of each Development Plan for the Parcel A Dealership and the Parcel B Dealership. B. The Parcel A Fees fees shall be deferred for a period of fifteen (15) years from the date of issuance of the Certificate of Occupancy for the Parcel A Dealership to be built on Parcel A in accordance with the provisions of this section. The Parcel B Fees shall be deferred for a period of fifteen (15) years from the date of issuance of the Certificate of Occupancy for the Parcel B Dealership to be built on Parcel B ("Parcel BDeferral Period") in accordance with the provisions of this section. C. If the Parcel A Dealership continuously operates on Parcel A for the duration of the Parcel A Deferral Period, the Parcel A fees shall be deemed paid. If the Parcel B Dealership continuously operates on Parcel B for the duration of the Parcel B Deferral Period, the Parcel B fees shall be deemed paid. D. If during the Parcel A Deferral Period, the Parcel A Dealership is not operating on Parcel A for a period of two (2) months or more, then any subsequent user of the parcel shall be required to pay the then-applicable user or City Development Impact Fees less the Fee Credit. The "Fee Credit" shall be an amount equal to the Parcel A Fees, divided by fifteen and multiplied by the number of years the Parcel A Dealership was open for business on Parcel A. E. If during the applicable Deferral Period, the Parcel B Dealership is not operating on Parcel B for a period of two (2) months or more, then any subsequent user of the parcel shall be required to pay the then-applicable user or City Development Impact Fees less the Fee Credit. The "Fee Credit" shall be an amount equal to the Parcel B Fees, divided by fifteen and multiplied by the number of years the Parcel B Dealership was open for business on Parcel B. 3. Findinqs Concerninq Inapplicabilitv of Prevailinq Waqes. A. The City finds and determines that the amount of fees waived for the development of Parcels A and B pursuant to this Agreement when compared to the Developer's 1001288.3 October 1,2007 2 DRAFT: OCTOBER 1, 2007 investment in the land costs, public improvement costs, and construction costs in the development of motor vehicle dealerships on Parcels A and B is de minimus, comprising less than one and sixty four one hundredths percent (1.64%) of the total project cost. B. Therefore, based on the above finding, the City and Developer have determined that prevailing wages are not required to be paid on the private improvements and development of Parcels A and B in accordance with Labor Code Sections 1720, et seq. C. Developer hereby represent to City that it understands and acknowledges the relationship of the Parcel A and Parcel B Fee waiver described in this Agreement and the potential impact on the application of prevailing wages to development on Parcel A and Parcel B. Accordingly, Developer on behalf of itself and its successors in interest (except as provided in Paragraph 8F), hereby expressly and knowingly waive their respective rights under Labor Code Sections 1726 and 1781 to seek recovery against the City of any prevailing wage liabilities they may incur based upon this Agreement. Developer hereby acknowledge that it has either consulted with legal counsel, or had an opportunity to consult with legal counsel, regarding the provisions of the California Civil code section 1542, which provides as follows: "A general release does not extend 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" Developer hereby acknowledges that it may have claims which are presently unknown and unsuspected, and such claims in the future. Nevertheless, Developer hereby acknowledges that this Agreement has been negotiated and agreed upon in light of that situation, and hereby expressly waive any and all rights which they may have under California Civil Code Section 1542, or under any statute or common law or equitable principal of similar effect. 4. City Monument Entrance Siqn. A. City and Developer desire to design and construct a monument entrance sign for the City on a portion of Parcel A. B. Concurrently with the approval of this Agreement, Developer has tendered to the City an Irrevocable Offer of Dedication of the land necessary for the monument sign along with necessary access and maintenance easements over Parcel A or Parcel B, which Irrevocable Offer of Dedication shall be effective upon both the approval of this Agreement by the City Council and the close of the escrow conveying Parcel A to the Developer. City agrees to cooperate with the Developer in determining the actual land required for the monument sign once the plans and specifications for the sign are approved. City shall accept only such land as is necessary for the monument sign pursuant to the approved plans and specifications for the sign. C. Developer's architect shall design the monument sign for the City to provide a monument entry sign with high quality design and style and compatible with the architecture of the Dealership. The architect shall meet regularly with the Director of Community Services and Director of Planning, or their designees, to discuss concepts and to coordinate the design process. As part of this process the proposed design will need to be reviewed by the City's Infrastructure Beautification Committee. The design of the City monument sign shall be approved by the City Manager. Developer shall submit the final design to the City for approval on or before submission of the application for Development Plan approval for the Dealership. As used in this Agreement, the "City Monument Sign" shall mean the design of the sign as approved by the City Manager. 1001288.3 October 1,2007 3 DRAFT: OCTOBER 1, 2007 D. Following City approval of the City Monument Sign design, the Developer and City shall meet and establish a budget for the City Monument Sign. The City Manager shall approve the budget for the City Monument Sign and shall approve any changes to the budget. E. Following approval of the design and the budget, Developer's architect shall prepare construction plans and specifications. The architect shall meet regularly with the Director of Community Services and the Director of Public Works, or their designees, to discuss and coordinate the preparation of the plans and specifications. The plans and specification shall be approved by the City Manager. The plans and specifications shall be submitted for approval on or before the issuance of a building permit for the Dealership. F. Following approval of the plans and specifications, Developer shall construct the City monument sign in accordance with the approved plans and specifications and in accordance with the approved budget. Developer shall payor cause to be paid prevailing wages pursuant to Labor Code Sections 1720 et seq. seq. for the construction of the of the City Monument Sign. G. Developer shall require all contractors working on the City Monument Sign to procure and maintain liability insurance in a policy amount of not less than $2 million in such form and with such provisions as approved by the Director of Finance. Developer shall also procure a labor and materials bond in a form approved by the Director of Finance in the amount of the contracts let for the construction of the City Monument Sign. H. The City's Director of Finance shall establish the "Monument Sign Fund." Developer shall contribute the sum of thirty six thousand dollars ($36,000.00) to the Fund which contribution may be made in case or as a credit for design and construction work performed for the City Monument Sign. The City shall contribute the difference between the Developer's $36,000 contribution and the budget amount for the City Monument Sign described in Subsection D. of this Section. Developer shall submit payment requests to the City for reimbursement of its reasonable expenses for design and construction of the City Monument Sign in excess of its contribution in accordance with the approved budget for the City Monument Sign. The form of the payment request and the supporting documentation of the expenses shall be established by the Director of Finance. Developer shall be responsible for any expenses exceeding the approved budget. 5. Representations and Aqreements Concerninq Use of Parcel A and Parcel B as a Motor Vehicle Dealership or Dealerships. A. Developer hereby agrees on behalf of itself and its successors and assigns (except as provided in Paragraph 8F), that neither Developer nor its successors in interest, lessee or licensee on the Parcel A and Parcel B shall be a Vehicle Dealer that is Relocating from the territorial jurisdiction of one Local Agency to the territorial jurisdiction of the City but within the same Market Area. B. Section 53084 and Vehicle Code. As used in this section, "Vehicle Dealer" is defined in Government Code means a retailer that is also a dealer as defined by Section 285 of the C. As used in this Section "Local Agency" is defined in Government Code Section 53084 and means a chartered or general law city, a chartered or general law county, or 1001288.3 October 1,2007 4 DRAFT: OCTOBER 1, 2007 a city and county. "Local Agency" does not include a redevelopment agency that is subject to Section 33426.7 of the Health and Safety Code. D. As used in this Section "Market Area" is defined in Government Code Section 53084 and means a geographical area that is described in independent and recognized commercial trade literature, recognized and established business or manufacturing policies or practices, or publications of recognized independent research organizations as being an area that is large enough to support the location of the specific vehicle dealer that is relocating. With respect to a vehicle dealer, a "Market Area" shall not extend further than 40 miles, as measured by the most reasonable route on roads between two points, starting from the location from which the vehicle dealer is relocating and ending at the location to which the vehicle dealer is relocating. E. As used in this Section "Relocating" is defined in Government Code Section 53084 and means the closing of a Vehicle Dealer in one location and the opening of a Vehicle Dealer in another location within a 365-day period when a person or business entity has an ownership interest in both the Vehicle Dealer that has closed or will close and the one that is opening. "Relocating" does not mean and shall not include the closing of a Vehicle Dealer because the Vehicle Dealer or Big Box Retailer has been will be acquired or has been or will be closed as a result of the use of eminent domain. 6. Effective Date. This Agreement shall be effective upon the date a bona fide escrow closes on the sale of Parcel A and Parcel B to the Developer. Developer shall provide the City with reasonable documentation of the close of escrow. Within thirty (30) days of the close, City and Developer shall approve and execute an Operating Memorandum confirming the effective date of this Agreement. 7. Operatinq Memorandum. The parties acknowledge that refinements and further development of Parcel A 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 the details of the administration of the terms of this Agreement. If and when the parties mutually find that nonsubstantive changes, adjustments, or clarifications are appropriate to further the intended purposes of this Agreement, and such are not materially inconsistent with the terms 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 City Manager, or designee, on behalf of the CITY and by any corporate officer or other person designated for such purpose in a writing signed by a corporate officer on behalf of Developer, which, after execution, shall be attached hereto as addenda and become a part hereof. 8. General. A. 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 with return receipt or affidavit of delivery, (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 a written notice provided in accordance with this Section. Notice shall be effective upon delivery to the addresses specified below or on the third business 1001288.3 October 1,2007 5 DRAFT: OCTOBER 1, 2007 day following deposit with the document delivery service or United States Mail as provided above. To City: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To: Developer: Jones/Blumental Temecula Real Property LLC Attention:Garth Blumenthal 3300 Jamboree Road Newport Beach, CA 92660 With a copy to: Fletcher Jones, Jr. c/o Howard Miller, Esq. 7300 W. Sahara Ave. Las Vegas, NV 89117 B. Entire Aqreement. Modifications. This Agreement and the documents referenced herein contain the complete expression of the whole agreement between the parties with respect to the obligations set forth herein, and there are no promises, representations, agreements, warranties or inducements, either expressed verbally or implied, except as are fully set forth herein. This Agreement cannot be enlarged, modified, or changed in any respect except by written agreement between the parties. No alteration, supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all of the parties hereto. The City Manager is authorized to enter into any amendments to this Agreement without any further action by the City Council. C. Applicable Law/Venue. This Agreement shall be deemed to have been entered into and shall, in all respects, be interpreted, construed, enforced and governed by and under the laws of the State of California. The venue of any legal action relating to this Agreement shall be in the Superior Court or U.S. District Court, as applicable, with jurisdiction over the County of Riverside. D. Independent Advice of Leqal Counsel. Each party acknowledges that it had retained independent legal counsel of its own choice to review this Agreement and that prior to the execution hereof each party has had the opportunity to review the terms of this Agreement with its counsel and is entering into this Agreement after such review. E. Validitv of Aqreement. All parties agree that this Agreement is legal, valid and binding on each party and enforceable in accordance with its terms. F. Bindinq on Successors. Except as further provided in this paragraph, this Agreement shall be binding on and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, assigns, executors and administrators. In the event 1001288.3 October 1,2007 6 DRAFT: OCTOBER 1, 2007 that Parcel A and Parcel B revest in Winchester Hills I LLC, this Agreement shall automatically terminate upon the date of revesting and shall be of no further force and effect. G. Attornevs' Fees. If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees and other costs and expenses incurred in that action or proceeding in addition to any other relief to which it or they may be entitled. H. Time. Time is of the essence of this Agreement. I. Force Maieure Delavs. Nonperformance of any of the conditions or covenants herein by any party hereto shall be excused when performance is prevented or delayed by reason of any of the following forces reasonably beyond the control of such party: acts of God, strike, war, lockout, labor trouble, reasonable inability to secure materials or labor, unreasonable delay by a governmental entity in the issuance of any required governmental permit, license or approval, act of nature (including but not limited to hurricane, earthquake, windstorm, flood, wildfire, or other severe weather or environmental condition) insurrection, riot, casualty, acts of public enemy, governmental restrictions, litigation initiated by a party other than a party hereto or its affiliate, unreasonable acts or failures to act of any governmental agency or entity or unreasonable delays of any contractor, subcontractor or supplier. In such event, nonperformance shall be excused and the time of performance shall be extended only by the number of days the performance is delayed or prevented. J. Exhibits. The following Exhibits are attached hereto and incorporated herein by this reference as though set forth in full: Exhibit A Description of Parcel A and Parcel B Exhibit B Description Of Parcel A and Parcel B Fees To Be Waived K. Authoritv to Execute this Aqreement. The person or persons executing this Agreement on behalf of a party warrants and represents that he or she has the authority to execute this Agreement on behalf of the party and has the authority to bind that party to the performance of its obligations hereunder. 1001288.3 October 1,2007 7 DRAFT: OCTOBER 1, 2007 IN WITNESS WHEREOF, the parties hereto have executed this Covenant as of the day and year first above written. CITY OF TEMECULA, a municipal corporation Chuck Washington Mayor Attest: Susan W. Jones, MMC City Clerk Approved As to Form: Peter M. Thorson City Attorney 1001288.3 October 1,2007 8 DRAFT: OCTOBER 1, 2007 JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC, a Nevada limited liability company Fletcher Jones, Jr. Managing Member Garth Blumenthal Managing Member 1001288.3 October 1,2007 9 DRAFT: OCTOBER 1, 2007 EXHIBIT A LEGAL DESCRIPTION OF PARCEL A AND PARCEL B PARCEL A: Parcel A is described as Parcel A of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. PARCEL B: Parcel B is described as Parcel B of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. 1001288.3 October 1,2007 10 DRAFT: OCTOBER 1, 2007 EXHIBIT B DESCRIPTION OF PARCEL A AND PARCEL B FEES TO BE WAIVED 1001288.3 October 1,2007 11 EXHI BIT B Description of Parcel A and Parcel B fees to be waived Analysis does not include utility connections Lastrevised:g/30/07 ** fees are based on the current Fee Schedule and are subject to change Parcel A - Description and fees to be waived Assumptions 1) Project will be constructed on a legal lot 2) Project site has an improved street system 3) Project site has been rough graded 4) Some fees are calculated by project square footage, therefore minor fee adjustments may be necessary NOTE- If any of the above assumptions are not accurate, the estimated fee analyses will be adjusted Site acreage: Building = 65,561 SF based on PR07-0019 Landscape percentage (20% minimum) Hardscape Estimated Earthwork quantity: Planning fees Development Plan Architectural Review Environmental Determination Conceptual Landscape Plan Review Construction Landscape fees Public Works fees (based on 13.31 acres) Grading (Plan check and Inspection) Onsite fees (Plan check & Inspection) (estimated Engineer's Cost estimate = $1,162,000) Grading plan review for Planning Grading plan review for Fire WQMP review Drainage Study (if needed) Building and Safety fees Petmit fees Plan check Strong Motion Building plan review for Fire (Plan check and inspection) Fire fees Sprinkler (Plan check & Inspection) Alarm (Plan check and inspection) Underground (Plan check & inspection) Hazardous Materials (Plan check & inspection) Spray booth (Plan check & inspection) Development Impact Fees: Land Use = Retail Commercial Street System Improvements component Traffic Signal and Traffic Control Systems component Corporate Facilities component (max: $0. 248/SF) Fire Protection Facilities component (max: $0.048/SF) Page 1 of 2 13.31 acres 1.51 acres 2.66 acres 9.14 acres 41,024CY User Fees Development Impact Fees $ 9,758.00 $ 3,250.00 $ 238.00 $ 250.00 $ 2,692.00 $ 1,69700 $ 76,230.00 $ 221.00 $ 5,810.00 $ 1,500.00 $ 1,933.00 $ 8,526.00 $ 5,684.00 $ 1,113.98 $ 3,321.50 $ 1,85700 $ 1,863.00 $ 1,440.00 $ 1,372.00 $ 914.00 $ $ 16,259.13 $ 3,146.93 Subtotal $ 129,670.48 $ 19,406.06 Grand Total $ 149,076.54 Parcel B - Description and fees to be waived (no estimate) Planning fees Development Plan Architectural Review Environmental Determination Conceptual Landscape Plan Review Construction Landscape fees Public Works fees (for Parcel B's precise grading) Grading (Plan check and Inspection) Onsite fees (Plan check & Inspection) Grading plan review for Planning Grading plan review for Fire WQMP review Building and Safety fees Permit fees Plan check Strong Motion Building plan review for Fire (Plan check and inspection) Fire fees Sprinkler (Plan check & Inspection) Alarm (Plan check and inspection) Underground (Plan check & inspection) Hazardous Materials (Plan check & inspection) Spray booth (Plan check & inspection) Development Impact Fees: Land Use = Retail Commercial Street System Improvements component Traffic Signal and Traffic Control Systems component Corporate Facilities component (max: $O.248/SF) Fire Protection Facilities component (max: $O.048/SF) Page 2 of 2 DATE OF MEETING: PREPARED BY: PROJECT DESCRIPTION: RECOMMENDATION: CEQA: STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION October 3, 2007 Christine Damko, Associate Planner Winchester Hills Development Aqreement Amendment TITLE: Planning Application No. PA07-0252, is the First Amendment to the Winchester Hills Development Agreement to adjust development timing thresholds from the first building permit to the first building permit outside of "Parcel A" and "Parcel 8," as defined in the proposed First Amendment for a proposed car dealership. The Agreement will also provide findings to avoid prevailing wages on the future construction of the car dealership. The future car dealership is proposed to be developed within Neighborhood 12 of the Harveston Specific Plan and would be located on the west side of Ynez Road, north of Date Street, adjacent to east side of Interstate 15 freeway and the southern boundary line of the City of Murrieta. A separate Development Plan would be required for the design and approval of the future car dealership. o Approve with Conditions o Deny o Continue for Redesign o Continue to: i:2$J Recommend Approval to City Council o Recommend Denial o Categorically Exempt (Section) (Class) o Notice of Determination (Section) o Negative Declaration o Mitigated Negative Declaration with Monitoring Plan i:2$J EIR Addendum G:\Planning\2007\PA07-0252 Winchester Hills Commercial Dev Agree\Planning\PC STAFF REPORT.doc 1 PROJECT DATA SUMMARY Name of Applicant: Andrew Bieri representinq Winchester Hills I, LLC Date of Completion: Auqust 29, 2007 Mandatory Action Deadline Date: October 3. 2007 General Plan Designation: Service Commercial Zoning Designation: Harveston Specific Plan (SP-13) Site/Surrounding Land Use: Service Commercial/Residential (Harveston Specific Plan) Site: Vacant North: South: East: West: City of Murrieta boundai\' line- vacant land and existinq residential Vacant land and existinq industrial buildinqs Existinq residential Interstate 15 freeway Lot Area: N/A Total Floor Area/Ratio: N/A Landscape Area/Coverage: N/A Parking Required/Provided: N/A BACKGROUND SUMMARY On August 28, 2001, the City Council adopted Ordinance 01-08 approving a Development Agreement for the Harveston Specific Plan area. The Development Agreement is comprised of two sections. The first section is an Agreement with Lennar regarding the residential portion and commercial main street portion of the Harveston Specific Plan. The second is the Winchester Hills I LLC property, which is comprised of an estimated 100 acres of property zoned service commercial along the Interstate 15 freeway. The First Amendment modifies certain provisions of the Development Agreement which will affect the Winchester Hills I, LLC property. No provisions of this First Amendment are intended to nor shall be construed to affect the Lennar property. Winchester Hills I, LLC desires to develop a car dealership on a portion of their property. In order for this to be accomplished Winchester Hills needs to obtain approval of two tasks: 1. Amend the Development Agreement relating to fee timing thresholds, which is part of this application. 2. Establish two legal lots for the future car dealership. The property is currently mapped as a Remainder Parcel. In order for the future car dealership to obtain legal lot status in a specific location of the Remainder Parcel, a Lot Line Adjustment application is G:IPlanningI2007IPA07-0252 Winchester Hilis Commercial Dev AgreelPlanninglPC STAFF REPORT.doc 2 required to adjust property lines. The applicant has submitted a Lot Line Adjustment application and staff is currently reviewing the project. A Lot Line Adjustment is approved administratively; therefore it is not a part of this project scope. Attached to this staff report is the Fee Credit Agreement between the City and Jones/Blumenthal Temecula Real Property, LLC for the waiver of fees for the future car dealership located on Parcel A. This Agreement is attached for informational purposes only and is not part of the requested action. The City has determined that the future development of the auto dealership will be of substantial economic benefit to the City such as generating new quality employment opportunities within the City and generating new tax revenues that will assist the City in funding public services for the residents and businesses within the City. The City finds and determines that the amount of fees waived for the development of Parcel A when compared to the Developer's investment in the land costs, public improvement costs, and construction costs in the development of a motor vehicle dealership on Parcel is de minimus, comprising less than one and sixty-four one hundredths percent (1.64%) of the total project cost. This Agreement will be administratively approved. ANALYSIS This amendment proposes the following changes to the Development Agreement: Section 2.3, Term, of the Development Agreement is hereby amended to read as follows: "2.3 Term. This Agreement shall become effective on the Effective Date. Unless terminated pursuant to Section 2.4, with respect to the Lennar Property, this Agreement shall terminate at 11 :59 p.m. on the tenth (10th) anniversary of the earlier of either: (i) the date the CITY issues either the first (1") building permit for a residential dwelling unit other than a model unit or for a commercial structure within the Lennar Property; or (ii) the second (2"d) anniversary of the Effective Date. The termination shall occur subject to specific extensions, force majeure, revisions, and termination provisions of this Agreement. Unless terminated pursuant to Section 2.4, with respect to the Winchester Property, this Agreement shall terminate at 11 :59 p.m. on the fifteenth (15th) anniversary of the later of either: (I) the date the CITY issues the first (1") building permit for a non- residential building on the Winchester Property, oother than for motor vehicle dealerships, or ancillary uses thereto, on Parcels A and B; or (ii) the date the limitations on development imposed by Section 4.3.4 hereof terminate." The original Section 2.3, Term, of the Development Agreement indicated that the agreement shall terminate the date the City issues the first building permit for a non-residential building on the Winchester Property. The Development Agreement Amendment is extending this language to include the development of a car dealership or ancillary uses on Parcels A and B. G:IPlanningI2007IPA07-0252 Winchester Hills Commercial Dev AgreelPianninglPC STAFF REPORT. doc 3 LEGAL NOTICING REQUIREMENTS Notice of the public hearing was published in the Californian on September 22. 2007 and mailed to the property owners within the required 600-foot radius. ENVIRONMENTAL DETERMINATION Pursuant to the California Environmental Quality Act ("CEQA"), staff has reviewed and considered the Final Environmental Impact Report for the Harveston Specific Plan approved by City Council on August 29, 2001. including the impacts and mitigation measures identified therein. and the subsequent environmental reviews required as mitigation measures identified therein. Based on that review, staff determined that the proposed First Amendment of the Development Agreement does not require the preparation of a subsequent Environmental Impact Report or Mitigated Negative Declaration as none of the conditions described in Section 15162 of the CEQA Guidelines (14 Cal. Code Regs. 15162) exist. Specifically, staff also determined that the proposed First Amendment does not involve significant new effects. does not change the baseline environmental conditions. and does not represent new information of substantial importance. which shows that the First Amendment will have one or more significant effects not previously discussed in the EIR. All potential environmental impacts associated with the proposed First Amendment are adequately addressed by the prior EIR, and the mitigation measures contained in the EIR will reduce those impacts to a level that is less than significant. An Addendum pursuant to Section 15164 of the CEQA Guidelines (14 Cal. Code Regs. 15164) is therefore the appropriate type of CEQA documentation for the First Amendment. and no additional environmental documentation is required. CONCLUSION/RECOMMENDA TION Staff recommends that the Planning Commission recommend the City Council approve the Development Agreement Amendment. ATTACHMENTS 1. Vicinity and Aerial Maps - Blue Page 2. PC Resolution 07-_ - Blue Page 6 Exhibit A - Draft CC Ordinance 07-_ 3. Initial Study - Blue Page 9 4. EIR Addendum - Blue Page 10 5. Fee Credit Agreement - Blue Page 11 6. Notice of Public Hearing - Blue Page 12 G:\Planning\2007\PA07~0252 Winchester Hills Commercial Dev Agree\Planning\PC STAFF REPORT. doc 4 ATTACHMENT NO.1 VICINITY AND AERIAL MAPS G;\Planning\2007\PA07~0252 Winchester Hills Commercial Dev Agree\Planning\PC STAFF REPORT.doc 5 . '_.._......;..;-=-"-=-..---.;f..~:;;'>-.. Ii . _!i"'!'!! "0., : : : L ~"';;;<'" 0 'l\-: !; '" Iii "a,!>" \ I ~. ~'..:I .\\ t '\. ~: ? "I \ ' ii \ : ' . ~ ,j, ,:>,.. \ rllbfO&l'ii \ A" \ : \ \ ..) ...... ........ ........ ,r" c ::; ... ~:~ o ~ ~ ~.~~.~ ~ .~;,h~~ ~~ ,,"'" ~ 'u t; :::c: ~u Vl-j " ? uj <.J :j ;;... '" t...., " ~ , ~ - Zu ~ '" c" 0.:5 UlOI', ~6 ;.:, 3 o. , , " o ,= ~ v, r-~-.~' i i i i i i J ~I' ~: " ~ 30~ @@...::z <=> -;...,::> - ;~~ g'" lR . . roo g> E c . .~~'@ 2:g-2 "'~- ~ ~ o e i~1 '~~ 'i '\:~ " ~ .~ ~E ::;0 <:: ..-: 8,,; .::;::::.. o = o ~ 00 Eo ~ 8 u '" .; ....- <.J .~ 2'~ '::2 ;.. j) '; ~ ~ ~ ~ ~~~ E,,;:: <.J C . N u; C ';;: :'::;0_ "":: :; :'-.", - '" Woo;:: ~j~~ o . 7."':", ''"l..3 "- u .... ;j .~~ ~--g j ~ 0. u u c o U . ~ o " j J1 ~l j l~ t1 ~ ~E:' ~:;~ :ity of Teme~Jla o 412.5 825 1,650 2,475 Feet ... J This map was made by tho City of Temecula Geographic InfOfmation System. Tho map Is derive<! from base data produced by the Riverside County Assessor's Dcp,utmcnt and the Trnnsportation and land Management Agency of Riverside County. The City of TcmeaJla assumes no warranty or lagal responsibility fIX the information contained on this map. Cala and information represented on this map arc subject 10 update and modification. Tho Geographic Information System and other sources should 00 queried for tho most current information. This ffiilp is not for reprint or rcs.:Ile. ~). ATTACHMENT NO.2 PC RESOLUTION NO. 07-_ G:\Plannjng\2007\PA07~0252 Winchester Hills Commercial Dev Agree\PJanning\PC STAFF REPORT. doc 6 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 APPROVING THE FIRST AMENDMENT TO THE HARVESTON SPECIFIC PLAN DEVELOPMENT AGREEMENT (PLANNING APPLICATION NO. PA07- 0252)" Section 1. Procedural Findinas. The Planning Commission of the City of Temecula does hereby find, determine and declare that: A. The City of Temecula ("City"), a general law City in the State of California, Lennar Homes, Inc., a California Corporation and Winchester Hills I LLC, a California limited liability company ("Winchester"), entered into a Development Agreement dated August 28, 2001 for the development of the Harveston Specific Plan ("Development Agreement"). B. On August 29,2007, Winchester Hills I LLC, filed Planning Application No. PA07-0252, a Development Agreement Amendment, in a manner in accord with the City of Ternecula General Plan and Development Code. C. The application 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 October 3, 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 the attached Development Agreement Amendment 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 approval of the application hereby finds, determines and declares that: A. The First Amendment is consistent with the City's General Plan, and each element thereof and constitutes a present valid exercise of the City's police power. B. The First Amendment is being entered into pursuant to and in compliance with the requirements of Government Code Section 65867. G:\Pbnning\2007\PA07~0252 Winchester Hills Commercial Dc\' Agrcc\Planning\Mcrccdcs Project PC Resolution PMT Revisions 9_26_07 (2).DOC Section 3. Environmental Comoliance Findinos. The Planning Commission further finds, determines and declares that: A. On August 28, 2001, the City Council approved and certified Final Environmental Impact Report ("FEIR") for the Harveston Specific Plan. Pursuant to California Environmental Quality Act ("CEQA") Guidelines section 15164(a) (14 Cal. Code of Regs. S15000 et. seq.), the City of Temecula has prepared an Addendum to make a minor change to a previously certified EIR in connection with the amendment of the Development Agreement and the construction of a motor vehicle dealership within the Specific Plan. B. The City prepared an Initial Study to determine whether the amendment of the Development Agreement or construction of the motor vehicle dealership within the Specific Plan triggered any of the conditions described in Sections 15162 and 15163 of the CEQA Guidelines which require the preparation of a subsequent or supplemental EIR. The Initial Study evaluated the impacts of the proposed Development Agreement Amendment on Land Use and Planning, Public Services, Utilities and Service Systems, Population and Housing, Transportation/Circulation, Water, Biological Resources, Energy and Mineral Resources, Cultural Resources, Recreation, Aesthetics, Geophysical, Hazards, Noise, Air Quality and Mandatory Findings of Significance. C. The Initial Study compared the environmental impacts of the proposed Development Agreement Amendment and the motor vehicle dealership with the identified environmental impacts of the approved Development Agreement evaluated in the previously certified Harveston Specific Plan EIR. The analysis in the Initial Study indicates that no new significant effects will be caused by the Development Agreement Amendment and subsequent construction of a motor vehicle dealership within the Specific Plan. Nor will the proposed Development Agreement Amendment and motor vehicle dealership increase the severity of any previously identified significant impact. The impacts will remain the same as analyzed in the Harveston Specific Plan EIR. D. The Initial Study also analyzed whether new circumstances would result in new significant effects or increase the severity of previously identified effects. The Initial Study found that no new circumstances exist that introduce new significant effects or increase the severity of previously identified significant effects. E. Further, the Initial Study analyzed whether new information exists that indicates that the project would introduce new significant effects or increase the severity of previously identified significant effects, or whether any new information suggests new mitigation measures or shows that the mitigation measures previously identified as infeasible are in fact feasible. The Initial Study found no new information that suggested new significant effect or increased the severity of previously identified effects. Nor did any new information suggest new mitigation measures or suggest that mitigation measures previously identified as infeasible were in fact feasible. G:\Planning\2007\PA07.0252 Winchester Hills Commercial Dc\' Agrcc\Planning\Mcrccdcs Project PC Resolution PMT Revisions 9_26_07 (2).DOC 2 F. Because the Initial Study finds no new significant effects, no increase in the severity of previously identified effects, no new mitigation measures and no change in the mitigation measures previously discussed, the Planning Commission finds that a supplemental or subsequent EIR need not be prepared, and that the City may rely on the Addendum to approve the Development Agreement Amendment and the construction of the motor vehicle dealership within the Specific Plan. G. The Planning Commission finds that the Initial Study and Addendum were prepared in compliance with CEQA. The Planning Commission hereby recommends that the City Council certify and approve the Initial Study and Addendum prepared for the Development Agreement Amendment and the construction of a motor vehicle dealership within the Specific Plan. The Planning Commission further finds that the conclusions reached in the Initial Study and Addendum represents the independent judgment of the Commission. H. The custodian of records for the Initial Study, Addendum and all other materials, which constitute the record of proceedings upon which the Planning Commission's decision is based, is the Planning Department of the City of Temecula. Those documents are available for public review in the Planning Department located at Planning Department of the City of Temecula, 43200 Business Park Drive, Temecula, California. Section 4. Recommendation. The Planning Commission of the City of Temecula hereby recommends that the City Council adopt Ordinance 07-_ approving the First Amendment to the Harveston Specific Plan Development Agreement in substantially the form of Exhibit "A" attached hereto. G:\Planning\2007\PA07-0252 Winchester Hills Commercial Dc\' Agn~c\P]annillg\McrceJcs Project PC Resolution PMT Revisions 9_26_07 (2).DOC 3 Section 5. PASSED, APPROVED AND ADOPTED by the City of Temecula Planning Commission this 3rd day of October, 2007. Dennis Chiniaeft, 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 3rd day of October 2007, by the following vote: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: ABSTAIN: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary G;\Planning\2007\PA07.0252 Winchester Hills Commercial Dc\' Agrcc\Plalllling\Mcrccdcs Project PC Resolution PMT Revisions 9_26_07 (2).DOC 4 EXHIBIT A PROPOSED CC ORDINANCE 07-_ G:\Planning\2007\PA07-0252 Winchester Hills Commercial Dc" Agrcc\Planning\i\lcrccdcs Project PC Resolution PMT Revisions 9_26_07 (2).DOC 5 ORDINANCE NO. 07- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND WINCHESTER HILLS I, LLC THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare that: A. The City of Temecula ("City"), a general law City in the State of California, Lennar Homes, Inc., A California Corporation and Winchester Hills I LLC, a California limited liability company ("Winchester"), entered into a Development Agreement dated August 28, 2001 for the development of the Harveston Specific Plan ("Development Agreement"). B. On August 29, 2007, Winchester Hills I LLC, filed Planning Application No. PA07-0252, a Development Agreement Amendment, in a manner in accord with the City of Temecula General Plan and Development Code. C. Government Code Section 65864 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 in order to, among other matters: ensure high quality development in accordance with comprehensive plans; provide certainty in the approval of development projects so as to avoid the waste of resources and the escalation in the cost of housing and other development to the consumer; provide assurance to the applicants for development projects that they may proceed with their projects in accordance with existing policies, rules and regulations and subject to Conditions of Approval, in order to strengthen the public planning process and encourage private participation in comprehensive planning and reduce the private and public economic costs of development; and provide for economic assistance to Owner for the entitlements authorizing development related improvements. D. On October 3, 2007, the Planning Commission of the City of Temecula held a duly noticed public hearing on the proposed First Amendment to the Development Agreement ("First Amendment") as prescribed by law at which time all persons interested in the proposed First Amendment had the opportunity to and did address the Planning Commission on this matter. E. Following consideration of the entire record of information received at the public hearings and due consideration of the proposed First Amendment, the Planning Commission adopted Resolution No. 2007- _ recommending to the City Council approve the proposed First Amendment. F. On October 9, 2007 the City Council of the City of Temecula held a duly noticed public hearings on the proposed First Amendment as prescribed by law at which time all persons interested in the proposed First Amendment to the Development Agreement had the opportunity and did address the City Council on this matters. G. Following due consideration of the testimony received at the public hearing and the administrative record, the City Council adopted this Ordinance. Section 2. Environmental Comoliance Findinos. The City Council further finds, determines and declares that: A. On August 28, 2001, the City Council approved and certified Final Environmental Impact Report ("FEIR") for the Harveston Specific Plan. Pursuant to Califomia Environmental Quality Act ("CEQA") Guidelines section 15164(a) (14 Cal. Code of Regs. 915000 et. seq.), the City of Temecula has prepared an Addendum to make a minor change to a previously certified EIR in connection with the proposed First Amendment and the construction of a motor vehicle dealership within the Specific Plan. B. The City prepared an Initial Study to determine whether the First Amendment or construction of the motor vehicle dealership within the Specific Plan triggered any of the conditions described in Sections 15162 and 15163 of the CEQA Guidelines which require the preparation of a subsequent or supplemental EIR. The Initial Study evaluated the impacts of the proposed First Amendment and the motor vehicle dealership on Land Use and Planning, Public Services, Utilities and Service Systems, Population and Housing, Transportation/Circulation, Water, Biological Resources, Energy and Mineral Resources, Cultural Resources, Recreation, Aesthetics, Geophysical, Hazards, Noise, Air Quality and Mandatory Findings of Significance. C. The Initial Study compared the environmental impacts of the proposed First Amendment and motor vehicle dealership with the identified environmental impacts of the approved Development Agreement evaluated in the previously certified Harveston Specific Plan EIR. The analysis in the Initial Study indicates that no new significant effects will be caused by the First Amendment and subsequent construction of a motor vehicle dealership within the Specific Plan. Nor will the proposed First Amendment and motor vehicle dealership increase the severity of any previously identified significant impact. The impacts will remain the same as analyzed in the Harveston Specific Plan EIR. D. The Initial Study also analyzed whether new circumstances would result in new significant effects or increase the severity of previously identified effects. The Initial Study found that no new circumstances exist that introduce new significant effects or increase the severity of previously identified significant effects. E. Further, the Initial Study analyzed whether new information exists that indicates that the project would introduce new significant effects or increase the severity of previously identified significant effects, or whether any new information suggests new mitigation measures or shows that the mitigation measures previously identified as infeasible are in fact feasible. The Initial Study found no new information that suggested new significant effect or increased the severity of previously identified effects. Nor did any new information suggest new mitigation measures or suggest that mitigation measures previously identified as infeasible were in fact feasible. F. Because the Initial Study finds no new significant effects, no increase in the severity of previously identified effects, no new mitigation measures and no change in the mitigation measures previously discussed, the Planning Commission finds that a supplemental or subsequent EIR need not be prepared, and that the City may rely on the Addendum to approve the Development Agreement Amendment and the construction of the motor vehicle dealership within the Specific Plan. G. The City Council finds that the Initial Study and Addendum were prepared in compliance with CEQA. The City Council certifies and approves the Initial Study and Addendum prepared for the Development Agreement Amendment and the construction of a motor vehicle dealership within the Specific Plan. The Planning Commission further finds that the conclusions reached in the Initial Study and Addendum represents the independent judgment of the Commission. H. The custodian of records for the Initial Study, Addendum and all other materials, which constitute the record of proceedings upon which the Planning Commission's decision is based, is the Planning Department of the City of Temecula. Those documents are available for public review in the Planning Department located at Planning Department of the City of Temecula, 43200 Business Park Drive, Temecula, Califomia. Section 3. Further Findinos. The City Council hereby finds and determines that: A. The First Amendment 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 First Amendment complies with the goals and objectives of the Circulation Element of the General Plan. C. The First Amendment 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. D. The First Amendment 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. E. All legal reconditions to the adoption of this Ordinance has occurred. Section 4. Aooroval. The City Council of the City of Temecula hereby approves that certain agreement entitled "First Amendment to Development Agreement by and between the City of Temecula, Lennar Homes, Inc., a Califomia corporation, and Winchester Hills I LLC, a Califomia limited liability company" ("First Amendment") between the City of Temecula and Winchester Hills I LLC in substantially the form attached hereto as Exhibit A, with such changes to the First Amendment as may be mutually agreed upon by Winchester Hills I LLC and the City Manager and which are in substantial conformance with the form of such First Amendment attached hereto. The Mayor is hereby authorized to execute the First Amendment, including related exhibits and attachments on behalf of the City. A copy of the final First Amendment when executed by the Mayor and the other parties shall be placed on file in the Office of the City Clerk. Section 5 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 First Amendment and to administer the City's obligations, responsibilities and duties to be performed under the First Amendment, 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 6. Certification. The City Clerk shall certify to the adoption of this Ordinance. This Ordinance shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 23rd day of October, 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 9th day of October, 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 23rd day of October, 2007, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT A DRAFT DEVELOPMENT AGREEMENT AMENDMENT DRAFT: SEPTEMBER 28, 2007 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City ofTemecula 43200 Business Park Dr. Post Office Box 9033 Temecula, CA 92589-9033 Attn: Susan Jones, MMC City Clerk Exempt from recording fees pursuant to Govt. Code Section 27383 (Space above for recorder's use) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF TEMECULA AND LENNAR HOMES, INC., A CALIFORNIA CORPORATION AND WINCHESTER HILLS I LLC, A CALIFORNIA LIMITED LIABILITY COMPANY This First Amendment to Development Agreement is made and entered into as of October 23,2007, by and between the CITY OF TEMECULA, a California municipal corporation ("City") WINCHESTER HILLS I LLC, a California limited liability company ("Winchester") pursuant to the authority of Section 65864 through 65869.5 of the California Government Code and Article XI, Section 2 of the California Constitution. Pursuant to said authority and in consideration of the mutual covenants set forth in this First Amendment, the parties hereto agree as follows: 1. Recitals. This First Amendment is made with respect to the following purposes and facts which the parties agree to be true and correct: 985430.4 September 28, 2007 DRAFT: SEPTEMBER 28, 2007 A. On August 28, 2001, the City Council of the City ofTemecula approved that certain agreement entitled "Development Agreement By And Between The City OfTemecula And Lennar Homes, Inc., A California Corporation And Winchester Hills I LLC, A California Limited Liability Company" by the adoption of Ordinance No. 01-08 (the "Develooment A!!reement"). B. The Development Agreement was recorded on January 16, 2002 as Document No. 2002-026470 in the Official Records of the County of Riverside. C. The real property which is subject to the Development Agreement and this First Amendment is comprised of two components. The first is the Lennar Property described in the Development Agreement ("Lennar Prooertv"). The second is the Winchester Hills I LLC Property which is specifically described in Exhibit A to this First Amendment and incorporated herein as though set forth in full ("Winchester Prooertv"). D. Winchester proposes to develop Parcel A and Parcel B within the Winchester Property as one or more motor vehicle dealerships. Parcel A and Parcel Bare specifically described in Exhibit B to this First Amendment and incorporated herein as though set forth in full ("Parcels A and B"). E. City and Winchester continue to work diligently with Caltrans to define and convey the Interchange Improvement Area to Caltrans as provided in Section 4.3.3 and 4.3.4 of the Development Agreement, but have not yet completed the process of identifYing the Interchange Improvement Area and the conveyance of the land to Caltrans despite these efforts. F. Winchester desires to develop Parcels A and B with one or more motor vehicle dealerships. Development of a motor vehicle dealership on Parcels A and B will benefit the City by providing many quality jobs, enhancing the motor vehicle sales market in the City, and providing increased tax revenue to the City. G. Winchester and City desire to provide for the development of Parcels A and B for the benefit of both parties while continuing to provide for the conveyance of the Interchange Improvement Area to Caltrans and the development regulations described in the Development Agreement, and particularly Section 4.3.4, enabling Winchester to work around the uncertainties surrounding the identification and conveyance to Caltrans of the Interchange Improvement Area. H. This First Amendment modifies certain provisions of the Development Agreement which affect the Winchester Property. No provisions of this First Amendment are intended to nor shall be construed to affect the Lennar Property or any portion thereof. I. The Planning Commission of the City of Temecula held a duly noticed public hearing on October 3, 2007 and by Resolution No. 07- recommended to the City Council that this First Amendment be approved. 985430.4 September 28, 2007 2 DRAFT: SEPTEMBER 28, 2007 J. On October 9, 2007, the City Council of the City of Temecula held a duly noticed public hearing on the proposed First Amendment and the CEQA documentation at which time all persons had the opportunity to testify in support of or opposition to the proposed First Amendment and Addendum. K. On October 9,2007 the City Council of the City of Temecula adopted Ordinance No. 07-_ approving this First Amendment. 2. Amendment of Section 2.3 of Develooment Agreement. Section 2.3, Term, of the Development Agreement is hereby amended to read as follows: "2.3 Term. This Agreement shall become effective on the Effective Date. Unless terminated pursuant to Section 2.4, with respect to the Lennar Property, this Agreement shall terminate at 1 1 :59 p.m. on the tenth (lOth) anniversary of the earlier of either (i) the date the CITY issues either the first (1st) building permit for a residential dwelling unit other than a model unit or for a cornmercial structure within the Lennar Property or (ii) the second (2d) anniversary of the Effective Date. The termination shall occur subject to specific extensions, force majeure, revisions, and termination provisions of this Agreement. Unless terminated pursuant to Section 2.4, with respect to the Winchester Property, this Agreement shall terminate at 1 1 :59 p.m. on the fifteenth (l5th) anniversary of the later of either: (i) the date the CITY issues the first (l st) building permit for a non-residential building on the Winchester Property, other than for motor vehicle dealerships or ancillary uses thereto on Parcels A and B; or (ii) the date the limitations on development imposed by Section 4.3.4 hereo f terminate." 3. Entire AQreement. This First Amendment contains the entire understanding between the parties relating to the subject matter hereof, all prior or contemporaneous agreements, understandings, representations and statements, oral or written, concerning the subject matter hereof, except for the Development Agreement, Operating Memoranda, are merged into this Agreement and shall be of no further force or effect. 4. Effective Date of First Amendment. This First Amendment shall be effective upon the date a bona fide escrow closes on the sale of Parcels A and B for development of automobile dealerships. Winchester shall notifY the City of the date such escrow closes and shall provide City with reasonable documentation of the close of escrow. Within thirty (30) days following such notice, City and Winchester shall approve and execute an Operating Memorandum to be recorded confirming the effective date of this First Amendment. 985430.4 September 28, 2007 3 DRAFT: SEPTEMBER 28, 2007 5. Lender Consent. Winchester warrants and represents to the City that the following persons hold recorded deeds of trust upon or other beneficial interests in the Winchester Property and that each has duly executed a "Lender's Consent And Subordination To Development Agreement And First Amendment To Development Agrecment" which are attached hereto as Exhibit C: (1) ; (2) 6. Authoritv to Enter Into First Amendment.. Winchester warrants and represents to the City that its approval of this First Amendment will not violate any agreements it may have with other persons. The person or persons executing this First Amendment on behalf of Winchester warrant and represent to the City that this First Amendment has been duly approved by Winchester and that all applicable notices, approvals and procedures were complied with and that he or she is duly authorized by Winchester to execute this First Amendment on behalf of Winchester and has been duly authorized to do so. 7. Other Terms Remain. Except as specifically set forth herein, all other terms and conditions of the Development Agreement shall remain in full force and effect. 985430.4 September 28, 2007 4 DRAFT: SEPTEMBER 28, 2007 IN WITNESS WHEREOF, the parties hereto have executed this Covenant as of the day and year first above written. CITY OF TEMECULA, a municipal corporation Chuck Washington Mayor Attest: Susan W. Jones, MMC City Clerk Approved As to Form: Peter M. Thorson City Attorney 985430.4 September 28, 2007 5 DRAFT: SEPTEMBER 28, 2007 WINCHESTER HILLS I LLC, a California limited liability company Name: Title: Name: Title: 985430.4 September 28,2007 6 DRAFT: SEPTEMBER 28, 2007 State of California ) ) ss ) County of On before me. 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 hislher/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. Witness my hand and official seal. Signature of Notary 985430.4 September 28, 2007 7 DRAFT: SEPTEMBER 28, 2007 State of California ) ) ss ) County of On before me, 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 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 985430.4 September 28, 2007 8 1002666.1 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY RBF CONSULTING 27555 YNEZ ROAD, SUITE 400 TEMECULA, CA 92591 Revised July 19, 2001 May 10, 2001 IN 15100181.M2 Page 1 of .2 EXHIBIT liB" LEGAL DESCRIPTION WINCHESTER fiLLS I LLC PROPERlY That certain parcel of land situated in the City of Temeculaj County of Riverside, State of California, being those portions of Lots 109, 110, 120 and 121 (together with those ponions of vacated Date Street, Monroe AVenue and Jackson Avenue adjoining said lots), all as shown on a Map of the Tomecula Land and Water Company filed in Book 8, Page 359 of Maps, Records of San Diego County, California, together with a portion of Parcel 4 of Parcel Map No. 19677 (togetherwilh that ponion ofYnez Road adjoining said Parcel 4), aU as shown on a map filed in Book 135, Pages 85 and 86 of Parcel Maps, Records of Riverside County, California, described as a whole as follows: BEGINNING at the most northerly corner of said Lot 121, said corner being a point on the centerline of said Jackson Avenue; thence along said centerline South 41038'09" East 1290.73 feet to the most northerly corner of said Lot 120; thence cominuing along said cemerline South 42014'33" East 1290.79 feet to the most easterfy corner of said Lot 120; thence continuing along said centerline South 41052'47" East 794.56 feet to the centerline of said Y nez Roadj thence along said centerline of Ynez Road South 30007'20" West 432.14 feet to the beginnin8 of a tangent curve coqcave southeasterly and having a radius of 1675.00 feet; thence along said curve southwesterly 699.71 feet through a central angle of 23056'04" to the easterly prolongation of a course in the southeasterly line of said Parcel 4 shown as ~'North 83048'37" West" on said Parcel Map; thence radially from said CUIVe, along said course and prolongation North 83048'44" West 142.82 feet to an angle point in said southeasterly line; 1 l002666.1 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY Exlu"bit "B" Legal description Winchester Hills 1 LLC Property Revised July 19, 2001 May 10, 2001 JN 15100181-M2 Page 20i2 thence along said southeasterly line South 63031'52" West 962.68 feet to the mOst southerly corner of said Parcel 4 and a point in the nonheasterly line of Interstate 215; thence along said northeasterly line through the following courses: Nonh 29026'02" West 376.97 feet; thence North 30035'46" West 450.40 feet; thence North 28041']2" West 758.78 feet; thence North 18040'57" West 346.24 feet; thence North 28039'30" West 199.91 feet; thence North 37045'11" West 253.17 feet; thence North 29058'20" WeSl449.97 feet; thence North 21"49'02" West 251.95 feet; thence Nonh 28024'39" West 5]9.02 feet to the northwesterly line of said Lot 121; thence along said northwesterly line North 48010'42" East 1190.56 feet to the POINT OF BEGINNING. CONTAlNING: 135.24 Acres, more or Jess. SUBJECf To all covenants, rights, rights-of-way and easements of record. EXHIDIT "B-1" attached hereto and made a part hereof. This description was prepared by me or under my direction. Raymond L Mathe, P.LS. 6185 My license expires 3131102. H:IPDA TAI1S1OO1B1IOFFlCE\WPWlN\lB1IgtOO2.WPD 2 EXHIBIT A LEGAL DESCRIPTION OF WINCHESTER PROPERTY 1000 . I o 10pO 2000 -0'1' 30.00 ,0 ~ ,0 "t> 'E!:P~ ~ ~ ~ " GRAPHi( SCALE "" I. II {' (0'0 , E "- ;; M EXHIBIT 'B-1' ATTACHMENT NO. 2 LEGAL DESCRIPTION OF ''VI NCHESTER H r LLS I LC PROPERTY @ lNST. ,,"'0. .389573.0.R. ( 11-08-91) SHEET 1 OF 1 SHEET 6' .f? fo'O"''\.~'') Q ~ 9:f # .p~,,,,\. !;1 <3-.Y'.,. :;; ~ .Y g " r_I''?- <J) Po. -A- PER INST. m. 375618.0.R. .~ -J ( 10-30-91) : ~ ~ g; " " ~ ~ 05 8 o -' < ~ . c ~ -' ~ '" "- ~ o PL..ANNINtI . QC!lION . CQ"8TJIIUCT1C,," CCN5ULTINI:l 275S!'11El AO.AO, 31XTE 400 1'E>.ECU.A.C.I.l..FOfNA5I~~ 00EI.lS711b042. flAX QOO.15711.12<40 . __llfF.com I RevISED ..u.y 19, 2001 I MAY 10, 2001 SCALE 1~.1000' rtELD BOOK JOB NO. lSIOD18J-M2 l002666.1 3 DRAFT: SEPTEMBER 28, 2007 EXHIBIT B LEGAL DESCRIPTION OF PARCELS A AND B PARCEL A: Parcel A is described as Parcel A of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. PARCEL B: Parcel B is described as Parcel B of Lot Line Adjustment No. PA07-D249 recorded as Document No. 07- in the Official Records of Riverside County. 985430.4 September 28, 2007 ]0 DRAFT: SEPTEMBER 28, 2007 EXHIBIT C LENDER'S CONSENT LENDER'S CONSENT AND SUBORDINATION TO DEVELOPMENT AGREEMENT AND FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 1. _ ("Lender") holds a security interest in a portion of the Property described in the First Amendment to Development Agreement set forth above between Winchester Hills I LLC, a California limited liability company ("Owner"), and the CITY OF TEMECULA, a municipal corporation ("City"). 2. Lender acknowledges that the Development Agreement and the First Amendment to the Development Agreement are integral parts of the Owner's land use entitlements for the Property and provide significant benefits to the Owner and to the Property as well as vesting Owner's land use entitlements pursuant to the terms of the Development Agreement and the First Amendment to the Development Agreement. 3. In consideration of the rights and benefits conferred upon the Owner by the terms of the Development Agreement and the First Amendment to the Development Agreement and in recognition of the accrual of those benefits to the Lender in the event Lender takes possession of the Property, Lender hereby consents to the Development Agreement and the First Amendment to the Development Agreement and their recordation and further agrees that Lender's interests in the Property are subject to, and made subordinate to, the rights and interests of the City as set forth in the Development Agreement and the First Amendment to the Development Agreement. 4. The City agrees to provide notice of any default to Lender pursuant to Section 10 of the Development Agreement at the following address: 985430.4 September 28, 2007 11 DRAFT: SEPTEMBER 28, 2007 IN WITNESS WHEREOF the Lender has executed this Consent and Subordination as of ,2007. Lender: Name: Title: Name: Title: 985430.4 September 28, 2007 12 ATTACHMENT NO.3 INITIAL STUDY G:\Planning\2007IPA07-0252 Winchester Hills Commercial Oev Agree\PlanninglPC STAFF REPORT.doc 7 City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 I Project Title I Lead Agency Name and Address I Contact Person and Phone Number Project Location I Proiect Sponsor's Name and Address I General Plan Desiqnation I Zoning Description of Project Surrounding Land Uses and Setting I Other public agencies whose approval is required Environmental Checklist Development I I I Harveston Specific Plan First Amendment to Agreement City of T emecula P.O. Box 9033, Temecula, CA 92589-9033 Christine Damko, Associate Planner (951) 694-6400 The project is located on the northwest and southwest corners of Ynez Road and Date Street, abutting the east side of the Interstate 15 freeway. Winchester Hills I, LLC Service Commercial (SC) Harveston Specific Plan (SP-13) The proposed project is the first amendment of the Harveston Specific Plan Development Agreement to adjust development timing thresholds from the first building permit to the first building permit outside "Parcel A" and "Parcel B" as defined in the proposed First Amendment for a proposed car dealership. The agreement will also provide findings to avoid prevailing wages on the future construction of the car dealership. The site is surrounded by industrial development and vacant land to the south, existing single-family homes and vacant land within the City of Murrieta limits to the north, existing single-family homes (Harveston development) to the east, and Interstate 15 freeway to the west. None at this time G:IPlanning12007IPR07.0019 Mercedes Benz of Temecula DP Pre ApplPlanninglCEaA INITIAL STUDY - 2005.doc 1 Environmental Factors Potentially Affected The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. I ' Aesthetics I Aqriculture Resources I -/ Air Quality I Bioloqical Resources I Cultural Resources I Geology and Soils I Hazards and Hazardous Materials i Hydroloqy and Water Quality I . Land Use and Planninq I Mineral Resources Noise I Population and Housinq Public Services Recreation T ra nsportation/T raffic Utilities and Service Systems Mandatory Findinqs of Siqnificance . None Determination (To be completed by the lead agency) On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a I 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 proiect proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an I 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 because the Initial Study determines that are no new significant effects, no increase in the severity of previously identified effects, no new mitigation measures and no change in the mitigation measures previously discussed in the EIR for the Harveston Specific Plan Environmental Impact Report that a supplemental or subsequent EIR need not be prepared, and that the City may rely on the Addendum to aoorove the Proiect. Signature Date Christine Damko Printed Name Citv of Temecula For G:\Planning\2007\PR07-0019 Mercedes Benz ofTemecula OP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 2 1. AESTHETICS. Would the project: la, b. Issues and SupqortinQ Information Sources Have a substantial adverse effect on a scenic vista? Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic hiqhway? Substantially degrade the existing visual character or guality of the site and its surroundinqs? 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 Incorporated Less Than Significant Impact No Impact ./ ./ I c. d. ./ ./ Comments: 1.a. ImDacts remain the same as characterized in the Harveston EIR. No Impact: The proposed project is on vacant land. No scenic vistas have been identified per the City's General Plan or will be adversely impacted from developing the proposed project. 1.b. ImDacts remain the same as characterized in the Harveston EIR. No Impact: No major rock outcroppings or historic buildings exist on the project site. The project site is not located on a scenic highway. 1.c. ImDacts remain the same as characterized in the Harveston EIR. No Impact: The proposed project site is currently undeveloped and is within an urbanizing area. Residential developments exist to the east and southeast of the project, and commercial development exists to the south of the proposed development while future commercial development is planned just north, within the City of Murrieta. The proposed service commercial development is an anticipated development that the Harveston Specific Plan and adopted EIR envisioned. 1.d. ImDacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: This project will be constructed in accordance with zoning development standards including maximum height, landscape buffers, and the Mount Palomar Lighting Ordinance. The City of Temecula requires all new development to comply with the Riverside County Mount Palomar Ordinance 655. Ordinance 655 requires lighting to be shielded, directed down to avoid glare onto adjacent properties and emit low levels of glare into the sky. G;IPlanningI2007IPR07-0019 Mercedes Benz of Ternecula DP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 3 2. AGRICULTURE RESOURCES. In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a. Issues and SuoportinQ Information Sources Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources 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-aqricultural use? Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated less Than Significant Impact ./ No Impact lb. ./ c. ./ Comments: 2.a. Imoacts remain the same as characterized in the Harveston EIR. Less Than Significant Impact: According to Figure 5.2-1 labeled "Agricultural Resources" in the Agricultural Resources, Section OS-3D of the General Plan, the project is in an area of farmland of local importance. However, the site is surrounded by industrial development, the 1-15 freeway, and residential homes and there are no other immediate properties in the vicinity of the project which have been allocated for farmland use. The subject site is not currently being used for agricultural purposes, and the City's General Plan Land Use Element has designated the site for Service Commercial uses. 2.b.c. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The site is not under a Williamson Act contract nor is it zoned for agricultural uses. This property is not considered prime or unique farmland of statewide or local importance as identified by the State Department of Conservation and the City of Temecula General Plan. In addition, the project will not involve changes in the existing environment, which would result in the conversion of farmland to non-agricultural uses. G:IPlanning\2007\PR07.0019 Mercedes Benz of Temecula OP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 4 3. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: la, lb. c. I d. Ie. Issues and Supporting Information Sources Conflict with or obstruct implementation of the applicable air guality plan? Violate any air quality standard or contribute substantially to an existinq or proiected air quality violation? Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? Expose sensitive receptors to substantial pollutant concentrations? Create objectionable odors affecting a substantial number of people? Potentially Significant Impact Potentially Significant Unless Mitigation InCOrPorated ./ No Impact Less Than Significant Impact ./ ./ ./ ./ Comments: The general impacts related to air quality issues from development of the project as part of the implementation of the Specific Plan are forecast on pages 5-88 through 5-103 of the certified Final EIR. The analysis of the Specific Plan, including the service commercial phase of development, concluded that Air Quality impacts were anticipated to exceed SCAQMD's daily threshold emission levels and would not be reduced to less than significant even with mitigation. Mitigation measures were identified to address short-term and long-term impacts. A Statement of Overriding Considerations was adopted for the air quality impacts. 3.a.b. Imoacts remain the same as characterized in the Harveston EIR. Potentially Significant unless Mitigation Incorporated: The proposed project is the amendment of existing Development Agreement in order to construct the final phase of an approved Specific Plan. The EIR analysis concluded that implementation of the Specific Plan, including the final emissions were determined to be at or above thresholds during conslruction and operation even with mitigation. 3.c. Imoacts remain the same as characterized in the Harveston EIR. Potentially Significant unless Mitigation Incorporated: The proposed project does not include uses or encompass large enough project to cause significant changes in area climate. No additional impact is identified and no mitigation is required. 3.d.e. Imoacts remain the same as characterized in the Harveston EIR. No Impact: During construction, the proposed project includes operations that will have diesel odors associated with equipment and materials. None of these odors are permanent, nor are they normally considered so offensive as to cause sensitive receptors to complain. Diesel fuel odors for construction equipment and new asphalt paving fall into this category. Based on the short-term of the emission and the characteristics of these emissions, no significant odor impacts are forecast to result from implementing the proposed project. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 5 4. BIOLOGICAL RESOURCES. Would the project? a. b. c. d. e. f. Issues and SupDortinp 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 imFede 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 No Impact Less Than Significant Impact ./ ./ ./ ./ ./ ./ The general impacts related to biological resources from development of the project as part of implementation of the Harveston Specific Plan are forecasted on pages 5-148 through 5-158 of the certified Harveston Final EIR. Several biological studies were conducted to evaluate biological resources within the Specific Plan which includes this proposed project and general scope. A summary of studies and technical reports are included in the certified EIR for the Harveston Specific Plan and are incorporated by reference into this analysis. The EIR concluded that no significant resources were present on the site and that no adverse impacts to the onsite biological resource issues would result from the implementation of this part of the Specific Plan. The EIR also addressed that alteration of the project areas from their existing conditions, and removal of non-native grasslands would not contribute incrementally at any level of biological significance to general losses of natural habitat within the local area. However, the project, in conjunction with other past, present, and reasonably foreseeable future projects will incrementally contribute to the cumulative loss of biological resources. The project's incremental contribution to this impact will be mitigated to a less than significant level with the implementation of mitigation measures listed in the Harveston Final EIR. No additional biological impacts would occur from the project implementation that was analyzed in the Harveston EIR. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 6 4.a. Imoacls remain the same as characterized in the Harveston EIR: Less Than Significant Impact: The site is currently completely disturbed from the mass grading, weed abatement, and storm water controls completed in the previous Harveston Specific Plan development on other locations. No biological resources remain onsite. The proposed project would not disturb or destroy any biological resources. There is no blue-line stream currently on site and drainage on site has been altered through the implementation of earlier phases of the Harveston Specific Plan and anticipated by the Harveston EIR. 4.b. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: No sensitive (rare or endangered) plant, invertebrate, fish, amphibian, bird or mammal species are known or expected to reside within, or occur in a resource-dependant relationship with, any portion of the overall site within the Harveston Specific plan. The Harveston Specific Plan occurs within the Stephens kangaroo rat (SKR) habitat conservation plan area, and the Harveston EIR provided mitigation measures to reduce potential impacts. In addition, a further analysis was conducted before the adopted of the Final Harveston EIR, which concluded that the overall impact development was not impact the SKR. 4.c. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: According to the Harveston Specific Plan Final EIR, the entire Harveston development will impact approximately 2.86 acres of "waters of the United States." No wetlands or riparian plant communities will be affected by the project. The applicant for the Harveston Specific Plan (Lennar Homes) has already obtained a 404 permit from the Army Core of Engineers and a 1603 permit from the California State Department of Fish and Game. Mitigation for these impacts included avoidance and habitat creation. No additional significant impacts are expected from the current proposal. 4.d. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The project site is currently disturbed. It is surrounded by other urban uses, existing single family residential, and the 1-15 freeway making it isolated from habitat areas making it generally unsuitable as a wildlife movement corridor. The project site is not located within wildlife movement corridor and the lack of habitat resources indicate that the proposed project will create a less than significant impact. 4.e.f. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The proposed project does not interfere with any local or State conservation plans or policies. In fact the project has already been anticipated within the Harveston Specific Plan, Harveston EIR, City of Temecula General Plan and General Plan EIR. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula OP Pre App\Planning\CEQA INITIAL STUOY - 2005.doc 7 5. CULTURAL RESOURCES. Would the project: la, lb. I c. I d. Issues and Suoportinq Information Sources 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? Disturb any human remains, including those interred outside of formal cemeteries? Potentially SignifIcant Impact Potentially Significant Unless Mitigation Incorporated No Impact Less Than Significant Imoact ./ ./ ./ ./ Comments: Cultural Resource studies were submitted and reviewed within the Harveston EIR. Mitigation measures were identified and determined that less than significant impacts related to cultural resources for this project. 5.a.-d. ImDacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The project consists of land that has been previously disturbed as a result of maintenance activities and other human related disturbances. Cultural resources of either prehistoric or historical origin were not observed within the site boundaries. Due to possible potential for such resources to occur on the property, the EIR provided mitigation measures for future development to comply with. G:IPlanning12007IPR07.0019 Mercedes Benz of Temecula DP Pre ApplPianninglCEQA INITIAL STUDY - 2005.doc 8 6. GEOLOGY AND SOILS. Would the project: Issues and SUPDortinq Information Sources 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 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 Qround shakinQ? I Iii. Seismic-related Qround failure, includinq liquefaction? I iv, Landslides? I b. Result in substantial soil erosion or the loss of topsoil? c. 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 spreadinQ, subsidence, liquefaction or collapse? d. Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e. Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? Comments: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated No Impact less Than Significant Impact ./ ./ ./ ./ ./ ./ ./ ./ The general impacts related to geology and soil issues from development of the project as part of the implementation of the Specific Plan are forecast on pages 5-121 through 5-133 of the certified Harveston EIR. The analysis of the Specific Plan, including the proposed development concluded that no significant adverse impacts to geology or soil resources would result from the Specific Plan implementation. Several mitigation measures were identified to address the project site geology and soil resource impacts. A geotechnical report of the site was prepared as part of the environmental analysis in the certified EIR for the Specific Plan. 6.a.i. Imoacts remain thp. Silmp. as characterized in the Harveston EIR: Less than Significant Impact: According to the City's General Plan EIR and the Harveston Specific Plan, the site is not located with an Earthquake Fault Hazard Zone as defined by the State of California and County of Riverside. The site could, however, be subjected to significant shaking in the event of a major earthquake on the San Jacinto fault or other nearby regional faults. As mitigation measures, the current project will need to comply with the Harveston EIR mitigations of building struclures in accordance with the current UBC seismic codes and local ordinances. G:\Planning\2007\PR07.0019 Mercedes Benz of Temecula DP Pre App\Planning\CEaA INITIAL STUDY. 2005.doc 9 6.a.ii-iii. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The principal seismic considerations for most structures in southern California are surface rupturing of fault traces and damage caused by ground shaking or seismically induced ground settlement. The possibility of damage due to ground rupture is considered low since active faults are not known to cross the site. Lurching due to ground shaking from distant seismic events in not considered a significant hazard. The project will be required to comply with all building code requirements per the State Building Code to help mitigate the risk of damage during strong seismic ground shaking as required in the Harveston EIR. 6.a.iv. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The Harveston EIR concluded that there is a low potential for earthquake induced landslides or rock falls on the project site because the site and its surroundings are essentially flat. As a result, no impacts will occur or mitigation is required for landslides or rock falls. 6.b. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The proposed development of the project site will expose it to potential erosion and downstream sedimentation. The Harveston Specific Plan and City General Plan require mitigation for erosion control. Further, the State- wide NPDES program requires every project with ground disturbance greater than five acres to implement a Storm Water Pollution Prevention Plan (SWPPP) during project construction and operation. Best Management Practices (BMPs) are identified in the SWPPP to control erosion on a site any sedimentation generated by disturbing the site forf development with conformance to the NPDES program. 6.c.d. Imoacts remain the same as characterized in the Harveston EIR: Less Than Significant Impact: The Harveston EIR identified that the project is not located on a geologic unit or soil that is unstable, or that would become unstable as a result of this project, and potentially result in on or off-site grading landslide, lateral spreading, subsidence, liquefaction, or collapse. The applicant will be required to prepare soils reports prior to issuance of a grading permit. 6.e. Imoacts remain the same as characterized in the Harveston EIR: Less Than Significant Impact: The Harveston EIR identified that the project site will be served by a sewer collection system owned by Eastern Municipal Water District. G:\Planning12007\PR07.0019 Mercedes Benz of Temecula OP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 10 7. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a. b. c. d. e. f. g. h. Issues and SUDPortinfllnformation 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 exislinQ 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 project 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 proiect 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 Imoact Potentially Significant Unless Mitigation Incoroorated No Impact less Than Significant Impact ./ ./ ./ ./ ./ ./ ./ ./ 7.a Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The proposed project will use the existing Ynez Road and a future road to be developed with the project as the ingress and egress point. At this time, there are no hazardous materials proposed for the project. However, all chemicals stored, used, and handled at facilities are required to ensure that proper types of fire and life safety protection systems and procedures in place by the City Fire Department. Therefore, there will be no significant hazard to the public or environment from the routine transportation, use, or disposal of hazardous materials. 7.b. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: It is not anticipated that the project would create a significant hazard to the public environment through reasonably foreseeable accident conditions involving the release of hazardous materials into the environment. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula OP Pre App\Planning\CEQA INITIAL STUDY - 200S.doc 11 7.c. Imoacts remain the same as characterized in the Harveston EIR: No Impact: No schools are located within one mile of the site. The proposed project and construction on the property does not include any activities or uses (at this time) that wouid pose a potential health hazard to the local population or the nearby school. 7.d. Imoacts remain the same as characterized in the Harveston EIR: No Impact: The Harveston EIR indicates no past uses that may have involved hazardous materials. 7.e.f. Imoacts remain the same as characterized in the Harveston EIR: No Impact: According to the Harveston EIR and the City's General Plan EIR, the project site is not located within an airport land use plan or within two miles of a public or private airstrip. No impact upon airport uses will result from this proposal. 7.g. Imoacts remain the same as characterized in the Harveston EIR: No Impact: The proposed project is not located in an area and is not within a portion of an emergency response or evacuation plan and will be designed to allow for adequate emergency vehicle access to the site. Therefore, the project would not impair the implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan. 7.h. Imoacts remain the same as characterized in the Harveston EIR: No Impacts: The proposed project is not located in or near wild land area that would be subject to fire hazards. The location of the proposed project would not expose people or structures to a significant risk or loss, injury, or death involving wild land fires. G:\Planning\2007\PR07.0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 12 I f. g. I h. i. Ii. 8. HYDROLOGY AND WATER QUALITY. Would the project: a. Issues and SUPDortina Information Sources Violate any water quality standards or waste discharge requirements or otherwise substantially degrade water guality? 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 wanted)? 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 120lluted runoff? Require the preparation of a Water Quality Management Plan? Place housing within a 100-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 imoede or redirect flood fiows? Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? Inundation by seiche, tsunami, or mudflow? b. c. d. e. Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incorcorated Less Than Significant No Impact Imoact ./ ./ ./ ./ ./ ./ ./ ./ ./ ./ The general impacts related to hydrology and water quality from development of this project as part of the implementation of the Harveston Specific Plan are forecasted on pages 5-138 through 5-147 of the Harveston Specific Plan Final EIR. The Harveston Specific Plan has the potential to result in a long term impact on water quality due to the addition of pollutants typical of urban runoff. Storm water fiows from the future buildout of the Specific Plan project will be subject to the NPDES permit process, as addressed in Harveston EIR and is a City requirement. The proposed project, in conjunction with other past, present, and reasonably foreseeable future projects will result in cumulative impact to hydrology and drainage issues. The project's incremental contribution to this impact will be mitigated to a level less then significant. Water runoff will cumulatively increase due to the introduction of impervious surfaces. The mitigation measures listed in the Harveston EIR will reduce the project's incremental cumulative impacts to an impact if less than significant. G;IPlanningI2007IPR07-0019 Mercedes Benz of Temecula OP Pre ApplPlanninglCEQA INITIAL STUOY - 2005.doc 13 8.a. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The project proposes an amendment to a Development Agreement and the future development of a car dealership. This type of development typically generates domestic and/or municipal wastewater that does not require pretreatment or waste discharge requirements. No water quality standards are forecast to be violated by implementing the proposed project which will deliver its wastewater flows to the regional wastewater plant. During construction and occupancy, Best Management Practices (BMP's) will be implemented which will control storm water runoff pollution to a level of no significance. 8.b. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: Groundwater related problems are not expected to be encountered during site development. The proposed project does not include any extraction of groundwater, so no adverse direct impact can result from implementing the proposed project. Less than significant impacts are anticipated. 8.c. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: Through the implementation of the project SWPPP, erosion and siltation issues are controlled to a less than significant impact and this project would not result in substantial erosion or siltation on or off site. 8.d.-f. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The future project would increase runoff as a result of increasing the impervious surface on the project site. The Harveston EIR mitigation measures and City requirements impose mitigations to detain surface water runoff on the property to ensure that lhe maximum runoff volume from the site is not significantly increased. The project will not violate any water quality standards or waste discharge requirements established by the State of California. However, the project is required to prepare a Water Quality Management Plan (WQMP) pursuant to the Municipal Separate Storm-Sewer permit (MS4 permit) issued by the San Diego Regional Water Quality Control Board. The water quality control measures identified in the future project specific WQMP have either been incorporated into the design of the project or have been added to the project with specific conditions of approval and are expected to eliminate potential adverse impacts to receiving waters. 8.g.h. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: No future buildings or structures will be located within the 1 DO-year floodplain according to the City's General Plan as a result of implementing this project. No significant flood hazards are expected to occur from developing the project site as proposed. 8.i. Imoacts remain the same as characterized in the Harveston EIR: Less than Significant Impact: The future project would not expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of the failure of a levee or dam. The subject property is not located within a dam inundation area per the City's General Plan. In addition, the City has implemented a mulli-hazard functional plan pursuant to the California Emergency Services Act. The proposed project does not contain critical or essential facilities (at this time). 8.j. Imoacts remain the same as characterized in the Harveston EIR: No Impact: Due to the project area's distance from the ocean and higher elevation, there is no potential for a tsunami. The project area is not located near a large surface water body and there is no potential for inundation by seiche or mudflow. G:IPlanningI2007IPR07-0019 Mercedes Benz of Temecula OP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 14 9. LAND USE AND PLANNING. Would the project: I a. b. Issues and SUDPortin9 Information Sources Physically 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? Confiict with any applicable habitat conservation plan or natural community conservation plan? Potentially Significant Impact Potentially Signlficant Unless Mitigation Incoroorated Less Than Significant Impact ./ ./ No Impact I c. ./ Comments: The general impacts to land use and planning of the Harveston Specific Plan, of which the proposed project is a component, are forecast on pages 5-3 to 5-24 of the Harveston EIR. The EIR concluded that in conjunction with other past, present, and foreseeable future projects will incrementally contribute to the cumulative impact of development in the area. The future development of the project is consistent with the City of Temecula General Plan, City Development Code and Subdivision Ordinance and City-wide Design Guidelines. No significant cumulative land use consistency impacts are anticipated. The EIR determined that no significant impacts have been identified; therefore no mitigation measures are necessary. 9.a.b. Imoacts remain the same or less than as characterized in the Harveston EIR. Less than Significant Impact: The fulure proposed development and amendment to the development agreement would not confiict with the General Plan designation, Zoning Ordinance, or Harveston Specific Plan. The proposed project would develop the final phase anticipated and shown in the Harveston Specific Plan and comply with all applicable rules and regulalions. The proposed development would not physically divide an established community. The proposed development was anticipated and expected according to the adopted Harveston Specific Plan. 9.c. ImDacts remain the same or less than as characterized in the Harveston EIR. Less than Significant Impact: The Harveston EIR has already researched, analyzed, and provided mitigations for habitat conservation. No jurisdictional drainage features or riparian/riverine habitat occur inside the project site. No vernal pools or fairy shrimp habitat were observed on the project site. Please refer to the Biological Section for a full discussion of this item and details of the mitigation measures required. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 15 10. MINERAL RESOURCES. Would the project: a. Issues and Supportinq 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 Impact Potentially Significant Unless Mitigation Incoroorated Less Than Significant Imoact No Impact ,f b. ,f 10.a.b. ImDacts remain the same as characterized in the Harveston EIR. No Impact: According to the California Geological Survey, no known mineral resources exist in the City of Temecula. Future development pursuant to the City's General Plan will not result in the loss of known mineral resources. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUOY - 2005.doc 16 11. NOISE. Would the project result in: a. lb. c. d. e. f. Issues and SUDDortinQ 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 groundborne noise levels? A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the !)roiect? A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the proiect? 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 proiect area to excessive noise levels? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incoroorated No Imoact less Than Significant Imoact v' v' v' v' v' v' The general impacts related to noise issues from development of the project as part of implementation of the Harveston Specific Plan are forecasted on pages 5-104 through 5-120 of the Harveston EIR. The analysis of the Specific Plan, including the development of the subject property, concluded that the high future traffic noise environment in the vicinity of the project is almost exclusively due to cumulative growth. The impact would occur with or without the future proposed project. If the impact would occur without the project implementation, and if the project contribution is de minimis, the cumulative impact is also considered less than significant. Mitigation measures were identified to address long-term project noise impacts and standard conditions of approval for controlling construclion noise. A Noise Assessment was prepared as part of the environmental analysis in the EIR. 11. a.-d. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: Temporary construction noise impacts would increase noise levels in the area and is considered a short-term impacl to ambient noise levels. Noise generated by equipment can reach high episodic levels, but these episodes are of relatively short duration and typically restricted to day light hours. In order to control construction noise levels to a level consistent with the City's General Plan Noise Element, the Harveston development is required to implement noise reduclion measures as part of their Conditions of Approval for grading and building permits. The EIR also provides additional mitigation measures to address construction noise along with construction techniques to reduce interior and exterior noise impacts. Given the location of the proposed development (abutting a freeway and vacant land), the potential for significant noise impacts on sensitive receptors is considered very low. No changes in conditions or the results of the analysis would occur as a result of developing the final phase of the Specific Plan as analyzed in the Harveston EIR. G:IPlanningI2007IPR07.0019 Mercedes Benz of Temecula OP Pre ApplPlannin91CEQA INITIAL STUDY - 2005.doc 17 11.e.f. ImDacts remain the same as characterized in the Harveston EIR. No Impact: The project is not within two miles of a public airport or private use airport. According to Figure 5.10-4 of the French Valley Future Noise Contours in the Noise Element of the General Plan, the project is not located in the noise impact area fro the French Valley Airport. In addition, the project is not located in the French Valley Airport Land Use Compatibility Zone according to Figure 5.9-3 in the Land Use and Planning Element of the General Plan. Therefore, the project area will not be exposed to excessive noise levels generated by an airport and no impacts will result from this project. G:IPlanning\2007IPR07.0019 Mercedes Benz of Temecula DP Pre ApplPlanninglCEQA INITIAL STUDY. 2005.doc 18 12. POPULATION AND HOUSING. Would the project: a. Issues and Supporting 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 Impact ./ No Impact b. ./ I c. ./ Comments: 12.a. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: The proposed project is a Development Agreement Amendment to adjust timing thresholds relating to fees and the subsequent development of an automobile dealership within the final phase of the Specific Plan. The project will not provide housing or lead to a significant increase in population or housing. The project will attract people that live outside City limits, and may cause some people to relocate to (or near to) Temecula to their place of employment (future automobile dealership employees), which is considered a moderate indirect affect. However, the project will not induce substantial growth beyond what is projected in the City's General Plan. 12.b.c. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The project will not displace substantial numbers of people or existing housing, as the site is vacant property zoned for service commercial development. Therefore, the project will not necessitate the construction of replacement housing due to displacement of housing or people. G:IPlanning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\PlanninglCEQA INITIAL STUDY - 2005.doc 19 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: la, lb. I c. I d. Ie. Issues and Suooortina Information Sources Fire protection? Police protection? Schools? Parks? Other public facilities? Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated Less Than Significant Imoact ../ ../ No Imoact ../ ../ ../ Comments: The general impacts related to public services from development of the project as part of the implementation of the Harveston Specific Plan area forecasted on pages 5-158 through 5-180 of the Harveston EIR. The analysis of the Specific Plan, including the proposed development concluded that the project would not result in significant adverse impacts to any public services. However, cumulative impacts would be significant. The EIR has identified mitigation measures to reduce the cumulative impacts to a level of less than significant. 13.a.b.d.e. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: The analysis of the EIR concluded that the Harveston development as a whole will create an increased demand for public services and utilities on a local and regional basis, but development of the property within the project will nol cause significant numbers of people to relocate within or to the City. Implementation of mitigation measures listed in the EIR will reduce each incremental cumulative impact on the associated public services and/or utilities to a level less than significant. 13.c. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The project itself is not creating a residential use and therefore will have no impact upon, or result in a need for new or altered school facilities. No impacts are anticipated as a result of this project G:\Planning\2007\PR07-0019 Mercedes Benz oITemecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 20 14. RECREATION. Would the project: a. Issues and Supoortina 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 Incorooraled Less Than Significant Imoact No Imoact -/ b. -/ Comments: 14.a.b. ImDacts remain the same or less than as characterized in the Harveston EIR. No Impact: The future proposed project is a commercial development and does not include housing. The Specific Plan does include existing residential uses, which are not considered at this time. Therefore, no demand for recreation would be generated from the commercial project and Development Agreement Amendment implementation. No demand for recreation facilities or parks would result from the implementation of the proposed project. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 21 15. TRANSPORTATION/TRAFFIC. Would the project: a. b. c. d. Ie. I f. g. Issues and Suoportinq 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 congestion at intersections)? Exceed, either individually or cumulatively, a level of service standard established by the county congestion manaqement aqency for designated roads or highways? 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 inadequate parking capacity? Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incorporated No Imoact Less Than Significant Impact .,/ .,/ .,/ .,/ .,/ .,/ .,/ The general impacts related to transportation/traffic issues from development of the project as part of implementation of the Harveston Specific Plan are forecasted on pages 5-35 through 5-87 of the Harveston EIR. Extensive mitigation measures were identified to reduce circulation impacts. The analysis concluded that with lhe mitigation measures incorporated, no potentially significant impacts would occur to the circulation system as a result of the Specific Plan implementation. However, cumulative impacts to circulation would be potentially significant. The future project will be required to pay fair share to circulation system components that are impacted by cumulative traffic growth in the Temecula region. Based on the identified project specific and cumulative impacts of the proposed project, the EIR concludes that potential project specific and cumulative effects of the project are effectively mitigated to a less than significant impact level based on the mitigation measures identified in the EIR. 15.a. ImDacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: The City of Temecula has identified the minimum level of service (LOS) as '0' or better for City intersections not adjacent to the interstate freeways and LOS 'E' for intersections and ramps adjacent to freeways. As described above, the project will generate traffic. However, the traffic generated by the development of the Specific Plan was anticipated by the Harveston EIR and mitigation measures were included to reduce traffic impacts to less than significant levels. The Harveston EIR also identified potentially significant cumulative impacts to the City circulation system due to potential growth in that area that cannot be mitigated to a less than significant level. No new or greater impacts to circulation will result from project implementation that were not analyzed in the Harveston EIR and recently validated in the General Plan EIR updated in 2005. 15.b. ImDacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: New road improvements were proposed and constructed as part of the earlier phases of the Harveston Specific Plan. Any design proposed for road improvements or parking facililies will meet the Cily's design standards that are deemed to be sufficient so as to create no traffic flow hazards. Based on the approved Specific Plan and EIR lhe proposed project is not forecast to pose significant hazards to pedestrians, bicyclists, or vehicles. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 22 15.c. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The project site is located approximately seven miles from the nearest airport, French Valley, and therefore project implementation has no potential to adversely impact any air traffic patterns. 15.d. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The proposed circulation system improvements associated with the project will be installed in conformance with the City's circulation system and Harveston Specific Plan requirements. Implementation of the required measures will ensure that no residual traffic hazards result form the construction of the roadways in conjunction with the proposed project. 15.e. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The Fire and Public Works Departments will review all proposed projects and determine that there is adequate internal emergency vehicle access. The future proposed development will have no effect on emergency access to adjacent parcels after development. 15.f. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The future project will be developed to be consistent with the parking requirements of the City's Development Code. No adverse parking capacity impacts are forecasted to occur. 15.g. Imoacts remain the same as characterized in the Harveston EIR. No Impact: The City of Temecula mass transit is provided by the Riverside Transit Authority (RT A). The future project will be required to be designed consistent with adopted policies, plans, or programs supporting this alternative transportation. No conflict or adverse impact to adopted alternative transportation policies, plans or programs is forecast to occur from implementing the proposed project. No impacts are anticipated. G:\Planning\2007\PR07-0019 Mercedes Benz of Temecula DP Pre App\Planning\CEQA INITIAL STUDY - 2005.doc 23 16. UTILITIES AND SERVICE SYSTEMS. Would the project: I a. b. c. d. e. If. I g. Issues and $upportinQ 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 accommodate the project's solid waste disposal needs? Comply with federal, state, and local statutes and requlations related to solid waste? Comments: Potentially Significant Impact Potentially Significant Unless Mitigation Incorporated No Impact ./ Less Than Significant Impact ./ ./ ./ ./ ./ ./ The general impacts related to utilities from development of the project as part of the implementation of the Harveston Specific Plan are forecast on pages 5-158 through 5-180 of the certified Final EIR. The analysis of the EIR concluded that no significant adverse impacts would affect any utilities. However, cumulative impacts would remain significant. Standard conditions and a few mitigation measures were identified to address project specific potential adverse impacts that were identified in the analysis. The future proposed project may adversely impact utilities in one of two ways: first, during construction existing utility lines may be affected by construction and the lines relocated, either within the existing alignment or along another alignment; and second, over the long term the project would utilize a particular utility service. 16.a. ImDacts remain the same as characterized in the Harveston EIR. No Impact: The proposed project will deliver wastewater to the Eastern Municipal Water District (EMWD) wastewater treatment plant in Temecula. Through the payment of annexation fees and sewer connection fees, the impact of implementing the proposed project on sewage systems is forecast to have no impact. 16.b. ImDacts remain the same as characterized in the Harveston EIR. No Impact: Through the payment of water district fees, sewer connection fees, and meter installation fees, the impact of implementing the proposed project in sewage systems is forecasted to be less lhan significant. Adequate capacity exists in each system for this project to be implemented without causing adverse impacts. G:IPlanningI2007IPR07-0019 Mercedes Benz of Temecula DP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 24 16.c. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: The proposed project would increase runoff as a result of increasing the impervious surface on the project site. The City imposes standard conditions of approval to detain surface runoff on the property to ensure that the maximum runoff volume from the site is not significantly increased. 16.d. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: Adequate water supplies have been identified by the Rancho California Water District to meet the current and immediate future demands in its service area, including the proposed project. 16.e. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: Adequate wastewater treatment capacity has been identified by the EMWD to meet the current and immediate future demands in its service area, including the proposed project. 16.f. Imoacts remain the same as characterized in the Harveston EIR. No Impact: According to the General Plan and the County Solid Waste Management Plan adequate landfill disposal capacity exists wilhin the regional landfills to meet current and future demands. Solid waste mitigation measures identified in the General Plan EIR must be implemented by all projects in the City to meet the City's source reduction requirements. 16.g. Imoacts remain the same as characterized in the Harveston EIR. No Impact: By participating in the City's source reduction and recycling element, the proposed project will comply with all statues and regulations for managements of solid waste. The proposed commercial project does not pose any significant or unique management requirements. G:IPlanning\2007IPR07.0019 Mercedes Benz of Temecula OP Pre ApplPlanninglCEQA INiTIAL STUOY - 2005.doc 25 a. b. c. 17. MANDATORY FINDINGS OF SIGNIFICANCE. Would the project: Issues and Supportinq Information Sources Does the projecl have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or 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 indirectly? Comments: Potentially Significant Imoact Potentially Significant Unless Mitigation Incarcorated No Imoact Less Than Significant Imoact ./ ./ ./ The proposed project consists of a Development Agreement Amendment to defer the required development fees from the first building permit to the first building permit outside of this development agreement amendment to provide for the future development of an automobile dealership. The project is part of the Harveston Specific Plan and is permitted under the Specific Plan regulations. The construction and operation of this proposed project has been evaluated as having no potentially significant effects that are significantly greater that those analyzed in the EIR and that would not be reduced to less than significant level with mitigation incorporated from the Specific Plan EIR. In addition, changes in circumstances for issues as biological resources (MSHCP), water quality (SWPP and WQMP), and air quality do not result in additional significant adverse impact that requires new mitigation measures. 17.a. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: Potentially significant environmental impacts associated with the proposed project have been identified in the areas of biological and cultural resources for the Specific Plan in the Specific Plan EIR. However, based on technical studies for these issues, all were reduced to a less than significant impact level by implementing the mitigation measures identified in the Harveston EIR. 17.b.c. Imoacts remain the same as characterized in the Harveston EIR. Less than Significant Impact: Potentially significant long-term and cumulative impacts of the proposed project as part of the Specific Plan were analyzed in the EIR. Because the proposed development was anticipated in the City's General Plan EIR and Harveston EIR, no further analysis of cumulative issues is required and the findings in the Initial Study are consistent with the findings in the Harveston EIR. The proposed project would have impacts that remain relatively the same as those evaluated in the Specific Plan EIR. The project complies with existing land use designations and zoning standards. With the identified mitigation required as part of the EIR, the project is not forecast to cause any significant adverse environmental impacts to any of the environmental issues addressed in this Initial Study or EIR. The project does not anticipate environmental effects which will cause substantial adverse effecls on human beings, either directly or indirectly, therefore less than significant impacts are anticipated. G:\Planning\2007\PR07-0019 Mercedes Benz of Teffiecula op Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 26 18. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets. I a. Earlier analyses used. Identify earlier anal','ses 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 by miti!1ation 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 from the earlier document and the extent to which they address site-specific conditions for the proiect. 18. a.b. A previous CEQA analysis of the site for the proposed project includes the EIR for the Harveston Specific Plan (November 2000) for the purpose of developing the Harveston Specific Plan. The proposed project is consistent with the Harveston Specific Plan. 18.c. See Harveston EIR for list of mitigation measures. SOURCES 1. City of Temecula General Plan. 2. City of Temecula General Plan Final Environmental Impact Report. 3. Harveston Draft Environmental Impact Report 4. Harveston Final Environmental Impact Report G:IPlanningI2007IPR07-0019 Mercedes Benz of Temecula DP Pre ApplPlanninglCEQA INITIAL STUDY - 2005.doc 27 ATTACHMENT NO.4 EIR ADDENDUM G;\Planning\2007\PA07-0252 Winchester Hills Commercial Dev Agree\Planning\PC STAFF REPORT.doc 8 ADDENDUM TO THE HARVESTON SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT This document is an Addendum to the Harveston Specific Plan Environmental Impact Report ("EIR"). Pursuant to California Environmental Quality Act ("CEQA") Guidelines section 15164(a) (14 Cal. Code of Regs. S15000 et. Sea.), the City of Temecula has prepared this Addendum to make minor changes to a previously certified EIR. Additionally, pursuant to CEQA Guidelines section 15164 (e), the Addendum must include a brief explanation of the City's decision not to prepare a subsequent or supplemental EIR. Project Description The proposed project is the First Amendment to the Harveston Specific Plan Development Agreement to adjust development timing thresholds from the first building permit to the first building permit outside of "Parcel A" and "Parcel B" as defined in the proposed First Amendment for a proposed car dealership. The agreement will also provide findings to avoid prevailing wages on the future construction of the car dealership. The future car dealership is proposed to be developed within Neighborhood 12 of the Harveston Specific Plan and would be located on the west side of Ynez Road, north of Date Street, adjacent to east side of Interstate 15 freeway and the southern boundary line of the City of Murrieta. A separate Development Plan would be required for the design and approval of the future car dealership. Legal Standard As noted above, an addendum should include a brief explanation of the lead agency's decision not to prepare a subsequent or supplemental EIR. A lead agency may only require the preparation of a subsequent or supplemental EIR under very narrow circumstances. Section 15162 of the CEQA Guidelines states: "(a) When an EIR has been certified or a negalive declaration adopted for a project, no subsequent EIR shall be prepared for that project unless that lead agency determines, on the basis of substantial evidence on the light of the whole record, one or more of the following: (1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or Negalive Declaration due to the involvement of new significant environmental effects or a substanlial increase in the severity if previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or the Negative Declaration was adopted, shows any of the following: (A) The project will have one or more significant effects not discussed in the previous EIR or Negative Declaration; (B) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (C) Mitigation measures or alternatives previously found not to be infeasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternatives: or (D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative." Further, Section 15163 allows for the preparation of a supplement to an EIR in the following circumstances: "(a) The Lead or Responsible Agency may choose to prepare a supplement to an EIR rather a subsequent EIR if; (1) Any of the conditions described in Section 15162 would require the preparation of a subsequent EIR; and (2) Only minor additions or changes would be necessary to make the previous EIR adequately apply to the project in the changed situation." CEQA Findings The City prepared an Initial Study to determine whether the amendment of the Development Agreement triggered any of the conditions (described above) which require the preparation of a subsequent or supplemental EIR. The City hereby incorporates the Initial Study as part of this Addendum. The Initial Study evaluated the impacts of the proposed amendment of the Development Agreement on Land Use and Planning, Public Services, Utilities and Service Systems, Populalion and Housing, Transportation/Circulation, Water, Biological Resources, Energy and Mineral Resources, Cultural Resources, Recreation, Aesthetics, Geophysical, Hazards, Noise, Air Quality and Mandatory Findings of Significance. The Initial Study compared the environmental impacts of the proposed amendment of the Development Agreement with the identified environmental impacts of the approved Development Agreement evaluated in the previously certified Harveston EIR. The analysis in the Initial Study indicates that no new significant effects will be caused by the proposed amendment to the Development Agreement. Nor will the proposed extension to the Development Agreement increase the severity of any previously identified significant impact. The impacts will remain the same as analyzed in the Harveston EIR. The Initial Study also analyzed whether new circumstances would result in new significant effects or increase the severity of previously identified effects. The Initial Study found that no new circumstances exist that introduce new significant effects or increase the severity of previously identified significant effects. Further, the Initial Study analyzed whether new information exists that indicated that the project would introduce new significant effects or increase the severity of previously identified significant effects, or whether any new information suggests new mitigation measures or shows that the mitigation measures previously identified as infeasible are in fact feasible. The Initial Study found no new information that suggested new significant effect or increased the severity if previously identified effects. Nor did any new information suggest new mitigation measures or suggest that mitigation measures previously identified as infeasible were in fact feasible. Because the Initial Study finds no new significant effects, no increase in the severity of previously identified effects, no new mitigation measures, and no change in the mitigation measures previously discussed, the City finds that a supplemental or subsequent EIR need not be prepared, and that the City may rely on the Addendum to approve the proposed extension to the Development Agreement. ATTACHMENT NO.5 FEE CREDIT AGREEMENT G:\Planning\2007\PA07~0252 Winchester HjlJs Commercial Dev Agree\Planning\PC STAFF REPORT. doc 9 DRAFT: SEPTEMBER 27, 2007 FEE CREDIT AGREEMENT BY AND BETWEEN THE CITY OF TEMEUCLA AND JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC THIS AGREEMENT is made by and between the City of Temecula, a municipal corporation, and JoneslBlumenthal Temecula Real Property LLC, a Nevada limited liability company ("Developer") and is made and entered into as of October 9, 2007. In consideration of the mutual covenants set forth in this Agreement, the parties hereto agree as follows: 1. Recitals. This Agreement is made with respect to the follow facts and for the following purposes, which each of the parties acknowledge and agree to be true and correct: A. Developer is a Nevada limited liability company authorized and licensed to do business in the State of California. B. Developer is in escrow to purchase Parcel A and Parcel B, as described on Exhibit A. C. Upon close of escrow, Developer will develop Parcels A and B as one or more facilities for the retail sale and service of high end motor vehicles. D. The development of Parcels A and B is subject to and governed by that certain Development Agreement dated as of August 28, 2001 by and between the City, Lennar Homes, Inc., and Winchester Hills I LLC ("Development Agreement"). E. Developer plans to develop a Mercedes motor vehicle dealership on Parcel A ("Dealership"). The estimated cost of the construction of the Dealcrship is estimated to be thirty six million dollars ($36,000,000.00). The Developer plans to either , develop a "boutique" motor vehicle dealership or expand the Mercedes dealership on . Parcel B. The estimated cost of the construction of a dealership facility, or the expansion of dealership facilities on Parcel B is estimated to be ten million dollars ($10,000,000.00). F. Developer expects to employ approximately 100 persons at the Dealership within the next five (5) years. G. Developer and the City desire to provide for the Developer's continued operation of the Dealership within the City. H. The City Council finds and determines that performance of the City's obligations under this Agreement and the undertakings ofthe Dealership 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 1001288.2 September 27, 2007 1 DRAFT: SEPTEMBER 27, 2007 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. I. This Agreement places no obligation on the City beyond the year of its execution unless and until: (1) Developer becomes obligated to pay any Parcel A Fees related to the Dealership, and (2) Developer continues in business and maintains its Dealership within the City. J. This Agreement is a contract within the meaning of Section 5351 l(a) of the California Government Code and therefore subject to a validation action pursuant to Section 860 ofthe California Code of Civil Procedure. 2. Waiver of Parcel A Fees. A. Pursuant to the Development Agreement, certain fees will be due the City for the development of a motor vehicle dealership on Parcel A. These fees and the approximate amounts thereof are described on Exhibit B attached hereto ("Parcel A Fees"). The final amount of the Parcel A Fees shall be determined upon final approval of the Development Plan for the motor vehicle dealership to be built on Parcel A. The Parcel A Fees shall be deferred for a period of fifteen (15) years from the date of issuance ofthe Certificate of Occupancy for the motor vehicle dealership to be built on Parcel A ("Deferral Period") in accordance with the provisions of this section. B. If a motor vehicle dealership continuously operates on Parcel A for the duration of the Deferral Period, the Parcel A fees shall be deemed paid. C. If during the Deferral Period, a motor vehicle dealership is not operating on Parcel A for a period of two (2) months or more, then any subsequent user shall be required to pay the then-applicable user or City Development Impact Fees less the Fee Credit. The "Fee Credit" shall be an amount equal to the Parcel A Fees, divided by fifteen and multiplied by the number of years a motor vehicle dealership was open for business on Parcel A. 3. Findin>!s Concernin>! Inaoolicabilitv of Prevail in!! Wa!!es. A. The City finds and determines that the amount of fees waived for the development of Parcel A pursuant to this Agreement when compared to the Developer's investment in the land costs, public improvement costs, and construction costs in the development of a motor vehicle dealership on Parcel A is de minimus, comprising less than one and sixty four one hundredths percent (1.64%) of the total proj ect cost. 1001288.2 September 27,2007 2 DRAFT: SEPTEMBER 27, 2007 B. Therefore, based on the above finding, the City and Developer have determined that prevailing wages are not required to be paid on the private improvements and development of Parcel A in accordance with Labor Code Sections 1720, et seq. C. Developer hereby represent to City that it understands and acknowledges the relationship ofthe Parcel A Fee waiver described in this Agreement and the potential impact on the application of prevailing wages to development on Parcel A. Accordingly, Developer on behalf of itself and its successors in interest (except as provided in Paragraph 8F), hereby expressly and knowingly waive their respective rights under Labor Code Sections 1726 and 1781 to seek recovery against the City of any prevailing wage liabilities they may incur based upon this Agreement. Developer hereby acknowledge that it has either consulted with legal counsel, or had an opportunity to consult with legal counsel, regarding the provisions of the California Civil code section 1542, which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which ifknown by him must have materially affected his settlement with the debtor" Developer hereby acknowledges that it may have claims which are presently unknown and unsuspected, and such claims in the future. Nevertheless, Developer hereby acknowledges that this Agreement has been negotiated and agreed upon in light of that situation, and hereby expressly waive any and all rights which they may have under California Civil Code Section 1542, or under any statute or common law or equitable principal of similar effect. 4. Citv Monument Entrance Si<m. A. City and Developer desire to design and construct a monument entrance sign for the City on a portion of Parcel A. B. Concurrently with the approval of this Agreement, Developer has tendered to the City an Irrevocable Offer of Dedication of the land necessary for the monument sign along with necessary access and maintenance eascments over Parcel A or Parcel B, which Irrevocable Offer of Dedication shall be effective upon both the approval of this Agreement by the City Council and the close ofthc escrow conveying Parcel A to the Developer. City agrees to cooperate with the Developer in determining the actual land required for the monument sign once the plans and specifications for the sign are approved. City shall accept only such land as is necessary for the monument sign pursuant to the approved plans and specifications for the sign. C. Dcveloper's architect shall design the monument sign for the City to provide a monument entry sign with high quality design and style and compatible with the architecture of the Dealership. The architect shall meet regularly with the Director of Community Services and Director of Planning, or their designees, to discuss concepts and to coordinate the design process. As part of this process the proposed design will need to be reviewed by the City's Infrastructure Beautification Committee. The design of the City monument sign shall be approved by the City Manager. Developer shall submit the final design to the City for approval on or before submission of the application for 1001288.2 September 27, 2007 3 DRAFT: SEPTEMBER 27, 2007 Development Plan approval for the Dealership. As used in this Agreement, the "City Monument Sign" shall mean the design of the sign as approved by the City Manager. D. Following City approval of the City Monument Sign design, the Developer and City shall meet and establish a budget for the City Monument Sign. The City Manager shall approve the budget for the City Monument Sign and shall approve any changes to the budget. E. Following approval of the design and the budget, Developer's architect shall prepare construction plans and specifications. The architect shall meet regularly with the Director of Community Services and the Director of Public Works, or their designees, to discuss and coordinate the preparation of the plans and specifications. The plans and specification shall be approved by the City Manager. The plans and specifications shall be submitted for approval on or before the issuance of a building permit for the Dealership. F. Following approval of the plans and specifications, Developer shall construct the City monument sign in accordance with the approved plans and specifications and in accordance with the approved budget. Developer shall payor cause to be paid prevailing wages pursuant to Labor Code Sections 1720 et seq. seq. for the construction of the ofthe City Monument Sign. G. Developer shall require all contractors working on the City Monument Sign to procure and maintain liability insurance in a policy amount of not less than $2 million in such form and with such provisions as approved by the Director of Finance. Developer shall also procure a labor and materials bond in a form approved by the Director of Finance in the amount of the contracts let for the construction of the City Monument Sign. H. The City's Director of Finance shall establish the "Monument Sign Fund." Developer shall contribute the sum of thirty six thousand dollars ($36,000.00) to the Fund which contribution may be made in case or as a credit for design and construction work performed for the City Monument Sign. The City shall contribute the difference between the Developer's $36,000 contribution and the budget amount for the City Monument Sign described in Subsection D. of this Section. Developer shall submit payment requests to the City for reimbursement of its reasonable expenses for design and construction of the City Monument Sign in excess ofits contribution in accordance with the approved budget for the City Monument Sign. The form of the payment request and the supporting documentation ofthe expenses shall be established by the Director of Finance. Developer shall be responsible for any expenses exceeding the approved budget. 5. Reoresentations and AIITeements Concerninll Use of Parcel A and Parcel B as a Motor Vehicle Oealershin or Dealershins. A. Developer hereby agrees on behalf of itself and its successors and assigns (except as provided in Paragraph SF), that neither Developer nor its successors in 1001288.2 September 27,2007 4 DRAFT: SEPTEMBER 27, 2007 interest, lessee or licensee on the Parcel A and Parcel B shall be a Vehicle Dealer that is Relocating from the territorial jurisdiction of one Local Agency to the territorial jurisdiction of the City but within the same Market Area. B. As used in this section, "Vehicle Dealer" is defined in Government Code Section 53084 and means a retailer that is also a dealer as defined by Section 285 of the Vehicle Code. C. As used in this Section "Local Agency" is defined in Government Code Section 53084 and means a chartered or general law city, a chartered or general law county, or a city and county. "Local Agency" does not include a redevelopment agency that is subject to Section 33426.7 ofthe Health and Safety Code. D. As used in this Section "Market Area" is defined in Govcrnment Code Section 53084 and means a geographical area that is described in independent and recognized commercial trade literature, recognized and established business or manufacturing policies or practices, or publications of recognized independent research organizations as being an area that is large enough to support the location of the specific vehicle dealer that is relocating. With respect to a vehicle dealer, a "Market Area" shall not extend further than 40 miles, as measured by the most reasonable route on roads between two points, starting from the location from which the vehicle dealer is relocating and ending at the location to which the vehicle dealer is relocating. E. As used in this Section "Relocating" is defined in Government Code Section 53084 and means the closing of a Vehicle Dealer in one location and the opening of a Vehicle Dealer in another location within a 365-day period when a person or business entity has an ownership interest in both the Vehicle Dealer that has closed or will close and the one that is opening. "Relocating" does not mean and shall not include the closing of a Vehicle Dealer because the Vehicle Dealer or Big Box Retailer has been will be acquired or has been or will be closed as a result of the use of eminent domain. 6. Effective Date. This Agreement shall be effective upon the date a bona fide escrow closes on the sale of Parcel A and Parcel B to the Developer. Developer shall provide the City with reasonable documentation of the close of escrow. Within thirty (30) days of the close, City and Developer shall approve and execute an Operating Memorandum confirming the effective date of this Agreement. 7. Ooeratim! MemoranchnlJ. The parties acknowledge that refinements and further development of Parcel A may demonstrate that changes are appropriate with respect to the details and performance ofthe parties under this Agreement. The parties desire to retain a certain degree of flexibility with respect to the details of the administration of the terms of this Agreement. If and when the parties mutually find that nonsubstantive changes, adjustments, or clarifications are appropriate to further the intended purposes of this Agreement, and such are not materially inconsistent with the terms ofthis 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 City Manager, or designee, on 1001288.2 September 27,2007 5 DRAFT: SEPTEMBER 27, 2007 behalf of the CITY and by any corporate officer or other person designated for such purpose in a writing signed by a corporate officer on behalf of Developer, which, after execution, shall be attached hereto as addenda and become a part hereof. 8. General. A. 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 with return receipt or affidavit of delivery, (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 a written notice provided in accordance with this Section. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. To City: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To: Developer: Jones/Blumental Temecula Real Property LLC Attention: Garth Blumenthal 3300 Jamboree Road Newport Beach, CA 92660 With a copy to: Fletcher Jones, Jr. c/o Howard Miller, Esq. 7300 W. Sahara Ave. Las Vegas, NY 89117 B. Entire A!!reement. Modifications. This Agreement and the documents referenced herein contain the complete expression of the whole agreement between the parties with respect to the obligations set forth herein, and there are no promises, representations, agreements, warranties or inducements, either expressed verbally or implied, except as are fully set forth herein. This Agreement cannot be enlarged, modified, or changed in any respect except by written agreement between the parties. No alteration, supplement, modification or amendment ofthis Agreement shall be binding unless executed in writing by all of the parties hereto. The City Manager is 1001288.2 September 27, 2007 6 DRAFT: SEPTEMBER 27,2007 authorized to enter into any amendments to this Agreement without any further action by the City Council. C. Aoolicable LawNenue. This Agreement shall be deemed to have been entered into and shall, in all respects, be interpreted, construed, enforced and governed by and under the laws of the State of California. The venue of any legal action relating to this Agreement shall be in the Superior Court or U.S. District Court, as applicable, with jurisdiction over the County of Riverside. D. Indeoendent Advice of Lecal Counsel. Each party acknowledges that it had retained independent legal counsel of its own choice to review this Agreement and that prior to the execution hereof each party has had the opportunity to review the terms ofthis Agreement with its counsel and is entering into this Agreement after such review. E. Validitv of A!!reement. All parties agree that this Agreement is legal, valid and binding on each party and enforceable in accordance with its terms. F. Bindinc on Successors. Except as further provided in this paragraph, this Agreement shall be binding on and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, assigns, executors and administrators. In the event that Parccl A and Parcel B revest in Wincester Hills I LLC, this Agreement shall automatically terminate upon the date ofrevesting and shall be of no further force and effect. G. Attomevs' Fees. If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or misreprescntation in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees and other costs and expenses incurred in that action or proceeding in addition to any other reliefto which it or they may be entitled. H. Time. Time is of the essence of this Agreement. r. Force Maieure Delavs. Nonperformance of any of the conditions or covenants herein by any party hereto shall be excused when performance is prevented or delayed by reason of any of the following forces reasonably beyond the control of such party: acts of God, strike, war, lockout, labor trouble, reasonable inability to secure materials or labor, unreasonable delay by a governmental entity in the issuance of any required governmental permit, license or approval, act of nature (including but not limited to hurricane, earthquake, windstorm, flood, wildfire, or other severe weather or environmental condition) insurrection, riot, casualty, acts of public enemy, governmental restrictions, litigation initiated by a party other than a party hereto or its affiliate, unreasonable acts or failures to act of any governmental agency or entity or unreasonable delays of any contractor, subcontractor or supplier. In such event, nonperformance shall be excused and the time of performance shall be extended only by the number of days the performance is delayed or prevented. 1001288.2 September 27, 2007 7 DRAFT: SEPTEMBER 27, 2007 J. Exhibits" The following Exhibits are attached hereto and incorporated herein by this reference as though set forth in full: Exhibit A Description of Parcel A and Parcel B Exhibit B Description Of Parcel A Fees To Be Waived K. Authoritv to Execute this Al!reement. The person or persons executing this Agreement on behalf of a party warrants and represents that he or she has the authority to execute this Agreement on behalf of the party and has the authority to bind that party to the performance of its obligations hereunder. 1001288.2 September 27,2007 8 DRAFT: SEPTEMBER 27, 2007 IN WITNESS WHEREOF, the parties hereto have executed this Covenant as of the day and year first above written. CITY OF TEMECULA, a municipal corporation Chuck Washington Mayor Attest: Susan W. Jones, MMC City Clerk Approved As to Form: Peter M. Thorson City Attorney 1001288.2 September 27, 2007 9 DRAFT: SEPTEMBER 27,2007 JONES/BLUMENTHAL TEMECULA REAL PROPERTY LLC, a Nevada limited liability company Fletcher Jones, Jr. Managing Member Garth Blumenthal Managing Member 1001288.2 September 27,2007 10 DRAFT: SEPTEMBER 27, 2007 EXHIBIT A LEGAL DESCRIPTION OF PARCEL A AND PARCEL B PARCEL A: Parcel A is described as Parcel A of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. PARCEL B: Parcel B is described as Parcel B of Lot Line Adjustment No. PA07-0249 recorded as Document No. 07- in the Official Records of Riverside County. 1001288.2 September 27, 2007 11 DRAFT: SEPTEMBER 27, 2007 EXHIBIT B DESCRIPTION OF PARCEL A FEES TO BE W AlVED 1001288.2 September 27, 2007 12 "EXHIBIT B" DESCRIPTION 'OF PARCEL A FEES TO BE 1'1AIVED" Mercedes Benz Clly ot Temecula estimated fee analysis .. Analysis dOGS nollnclucfe utility connectlons laslrovlsod:9/25107 .. fees 8rB based on the current Fee Schedule and are subjoct /0 change Assumptions: 1.) Project will be cons/rucled on a legallof 2.) Project site has 8n improved street sysrem 3.) Project silo has been rough gr8d&d 4.) Some fces ara calculated by project square footage, (herolore minor fee adjustments may be necessary NOTE: If any of the above assumptions are nol accurate, IhfJ estimatfJd loa analyses will be adjusted. Site acreage: Building", 65.561 SF based on PA07.Q019 Landscape percenlage (20% minimum) Hardscape Estimated Earthwork quantity: PlannIng (ees Development Plan Architectural Review Environmental Determination Conceptual Landscape Plan Review Construction Landscape fees publlc Works fees U based on 13.31 Bcres Grading (Plan check and Inspection) Dnsite lees (Plan chock & Inspection) (estimated Engineer'S Cost estimate = $1,162,000) Grading plan review lor Planning Grading plan review for Fire WQMP review Drainage Study (if needed) 8uUding and safety fees .. Permit fees Plan check Strong Motion Building plans for Fire review (Plan check and inspection) Flre!ees .. Sprinkler (Plan check & Inspection) Alarm (Plan check and inspection) Underground (Plan check & inspection) Hazardous Materials (Plan check & inspection) Spray boolh (Plan check & inspection) Development Impact Fees: land Use = Retail Commercial Street System Improvements component Traffic Signal and Traffic Conlrol Systems component Corporate Facilities component (max: $0.248/SF) Rre Protection Facilities component (max: $0.048) "Poslllon Is conllngent on full approval Irom entire City Council. 13.31 acres 1.51 acres 2.66 acres 9.14 acres 41,024CY User Fees Development Impact Fees $ 9.758.00 $ 3.250.00 $ 238.00 $ 250.00 $ 2.692.00 $ 1.697.00 $ 76,230.00 $ 221.00 $ 5.810.00 S 1.500.00 $ 1,933.00 $ 8.526.00 S 5.684.00 S 1,113.98 $ 3.321.50 S 1.857.00 $ 1.863.00 $ 1.440.00 $ 1,372.00 $ 914.00 S $ 16,259.13 $ 3.146.93 Totals $ 129,670.48 $ 19.406.06 Grand Total $ 149.076.54 ATTACHMENT NO.6 NOTICE OF PUBLIC HEARING G:\Planning\2007\PA07-0252 Winchester Hills Commercial Dev Agree\Planning\PC STAFF REPORT.doc 10 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. 07-0252 Winchester Hills I, LLC North west corner and south west corner of Date Street and Ynez Road A proposed Development Agreement Amendment to amend fee timing thresholds related to building permit issuance on the Winchester Hills Development Agreement located within the Harveston Specific Plan service commercial area Environmental: In accordance with Section 15164 of the California Environmental Quality Act (CEQA), an EIR Addendum will be completed for the project Case Planner: Christine Damko, Associate Planner Place of Hearing: City of Temecula, Council Chambers 43200 Business Park Drive, Temecula, CA 92590 Date of Hearing: October 3, 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. unlil 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. Case No: Applicant: Location: Proposal: / yE ~,( "/ /'\'~ " "'/.);(::/.<[l"v~-"~'(M'v"y<y'" ')-2 ':/W.%,/';i'y.:'i~~~~tE 'Y-, '\l\:EjI' .//~ '\.<./ ''''~"y)<i}.-~^';...,,/ /~" :~'.,. " .r ':;.~:.;:,,~Vy'~~"~<i~>-;<);~Yf/';'~~~~~~'<<~("'.~~<?r>i{f;ifiil~-:: ~i:_~:--=:~_~~.t[if,.i~ ,...", ) A, ,~ \\ >',~<.. \ \, "" /' \\:-...:.-~,,~ ~ ,:>;::",!~"'~y,: /:'/}"0'~n:P ;~~..:,\ t, ~<>"';;~~~'""~::---il. .. 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