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HomeMy WebLinkAbout051209 CC AgendaIn 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 will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title 11] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE MAY 12, 2009 - 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. Next in Order: Ordinance: 09-05 Resolution: 09-39 CALL TO ORDER: Mayor Maryann Edwards Prelude Music: Josiah Tolopilo Invocation: Minister Anthony Garrett Flag Salute: Council Member Naggar ROLL CALL: Comerchero, Naggar, Roberts, Washington, Edwards PRESENTATIONS/PROCLAMATIONS National Public Works Week Proclamation PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Council on items that appear within the Consent Calendar or ones that are not listed on the agenda. Speakers are limited to two (2) minutes each. If you desire to speak to the Council on an item which is listed on the Consent Calendar or a matter not listed on the agenda, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk prior to the Council addressing that item. There is a five minute (5) time limit for individual speakers. CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports. CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action. 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Action Minutes RECOMMENDATION: 2.1 Approve the action minutes of April 28, 2009. 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A City Treasurer's Report as of March 31, 2009 RECOMMENDATION: 4.1 Approve and file the City Treasurer's Report as of March 31, 2009. Professional Services Aareement for Special Tax Administration Services RECOMMENDATION: 5.1 Approve a professional services agreement with NBS for an annual amount not to exceed $59,857.21 for fiscal year 2009-10 for special tax administration for the City's Community Facilities Districts and Assessment District. 6 Edward Byrne Memorial Justice Assistance Grant RECOMMENDATION: 6.1 Approve the Edward Byrne Memorial Justice Assistance Grant Application for a proposed amount of $119,338. 7 Third Amendment to Contract with Meyer & Associates RECOMMENDATION: 7.1 Approve the third amendment to the agreement with Meyer & Associates in the amount of $27,683.50, plus 10% contingency of $2,768. 8 Replace Existina Play Structure and Surfacina at Kent Hinteraardt Memorial Park RECOMMENDATION: 8.1 Approve the Agreement with Miracle Playground Sales in the amount of $54,995.93 plus a 10% contingency in the amount of $5,499.59 to replace playground equipment and surface at Kent Hintergardt Memorial Park. 9 Regional Priorities for the 2009 Federal Transportation Authorization Bill 9.1 Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) ADOPTION OF REGIONAL PRIORITIES FOR THE 2009 FEDERAL TRANSPORTATION AUTHORIZATION BILL 10 Acceptance of certain Public Streets into the City-Maintained System within Tract Map No. 23209 (located West of Butterfield Staae Road at La Serena Way - Shea Homes) RECOMMENDATION: 10.1 Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 23209) 11 Approval of the Bid Package and Authorization to Solicit Construction Bids for the Street Striping Program, FY 2009-2010 - Project No. PW09-04 RECOMMENDATION: 1 1.1 Approve the bid package and authorize the Department of Public Works to solicit construction bids for the Street Striping Program, FY 2009-2010 - Project No. PW09-04. 12 First Amendment to a Professional Service Agreement for Geotechnical and Material Testing Services with Geocon Inland Empire, Inc. for the Pechanga Parkway Phase II Street Improvements - Project No. PW99-11 RECOMMENDATION: 12.1 Approve the First Amendment to the Agreement with Geocon Inland Empire Inc. for geotechnical and materials testing services for the Pechanga Parkway Phase I I Street Improvements Project in an amount not to exceed $61,838.10 - Project No. PW99-11. 13 First Amendment to the Minor Maintenance Services Contract with Monteleone Contractors for the Emergency Replacement of a Failed Storm Drain Pipe under Margarita Road - Proiect No. PW09-05. RECOMMENDATION: 13.1 Approve the First Amendment to the Minor Maintenance Services Contract with Monteleone Contractors in an amount not to exceed $123,618.18 for the Emergency Replacement of a Failed Storm Drain Pipe under Margarita Road, just South of Rancho Vista Road - Project No. PW09-05; 13.2 Approve a contingency of $24,723.64, which is 20% of the amendment amount. 14 First Amendment to Agreement between City of Temecula and Cato Geoscience to analyze active aggregate mining operations along the Corona/Temecula 1-15 Corridor for the Santa Margarita Annexation EIR RECOMMENDATION: 14.1 Approve First Amendment to Agreement for consulting services. 15 Minor Amendment to Resolution 08-112. Application to Riverside County LAFCO for the Santa Margarita Area Annexation. Confirming that the Annexation is pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING RESOLUTION NO. 08-112, "A RESOLUTION OF APPLICATION BY THE CITY COUNCIL OF THE CITY OF TEMECULA REQUESTING THE LOCAL AGENCY FORMATION COMMISSION TO TAKE PROCEEDINGS FOR THE ANNEXATION OF CERTAIN UNINHABITED TERRITORY DESCRIBED HEREIN AS THE SANTA MARGARITA AREA ANNEXATION COMPRISED OF APPROXIMATELY 4,997 ACRES, LOCATED IMMEDIATELY SOUTHWEST OF THE PRE-EXISTING CITY OF TEMECULA BOUNDARY LINE, WEST OF INTERSTATE 15 AND NORTH OF THE SAN DIEGO COUNTY AND RIVERSIDE COUNTY BOUNDARY TO THE CITY OF TEMECULA AND THE TEMECULA COMMUNITY SERVICES DISTRICT," CONFIRMING THAT THE ANNEXATION IS PURSUANT TO THE CORTESE-KNOX-HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 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 for the record. CSD CONSENT CALENDAR 16 Action Minutes RECOMMENDATION: 16.1 Approve the action minutes of April 28, 2009. 17 Second Amendment to the Roof Preventive Maintenance Services Agreement with Tremco/Weathermoofing Technologies. Inc. for Fiscal Year 2009-2010 RECOMMENDATION: 17.1 Approve the Second Amendment with TremcoANeatherproofing Technologies, Inc. for $27,416.00 to provide preventive roof maintenance services at the various locations and extend the Agreement to June 30, 2010. 18 First Amendment with Computer Alert Systems, Inc. RECOMMENDATION: 18.1 Approve the First Amendment with Computer Alert Systems, Inc. for Alarm Monitoring, Inspection, and Repair Services in the amount of $22,700 for Fiscal Year 2009-2010. 19 Fourth Amendment to T & T Janitorial Agreement for City Facility Janitorial Services for Fiscal Year 2009-2010 RECOMMENDATION: 19.1 Approve the Fourth Amendment with T & T Janitorial in the amount of $84,885.96 for Janitorial Maintenance Services at the various locations and extend the Agreement to June 30, 2010. 20 Third Amendment to Prudential Overall Supply Agreement RECOMMENDATION: 20.1 Approve the Third Amendment with Prudential Overall Supply in the amount of $25,000 for Uniform, Floor Mat, and Towel Cleaning/Rental Service for Fiscal Year 2009-2010. 21 Second Amendment to the Elevator Services and Monitorina Aareement with ThvssenKrupp Elevator for Fiscal Year 2009-2010 RECOMMENDATION: 21.1 Approve the Second Amendment with ThvssenKrupp Elevator in the amount of $15,000 for Elevator Services and Monitoring for Fiscal Year 2009-2010. 22 First Amendment with Arch Chemicals, Inc. formally Marine Biochemists for Water Management/Maintenance Services for Fiscal Year 2009-2010 RECOMMENDATION: 22.1 Approve the First Amendment with Arch Chemicals, Inc. formally Marine Biochemist, in the amount of $68,260 for Water Management/Maintenance Services at the Harveston Lake Park and Temecula Duck Pond for Fiscal Year 2009-2010. 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 for the record. RDA CONSENT CALENDAR 23 Action Minutes RECOMMENDATION: 23.1 Approve the action minutes of April 28, 2009. 24 Opposition to Senate Bill 93 (Kehoe) Redevelopment: Payment for Land or Buildinas RECOMMENDATION: 24.1 Approve the drafting of a letter of opposition to Senate Bill 39 (Kehoe) and send to Senator Kehoe, as well as, our local legislators. RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT TPFA CONSENT CALENDAR 25 Minutes RECOMMENDATION: 25.1 Approve the minutes of July 22, 2008. 26 Consideration of the adoption of an Amended and Restated Acquisition Agreement enabling the City of Temecula to construct certain Public Improvements for Roripaugh Ranch, including Butterfield Stage Road and Murrieta Hot Springs Road, with proceeds of the Community Facilities District No. 03-02 (Roripaugh Ranch) Bonds RECOMMENDATION: 26.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 09- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "AMENDED AND RESTATED ACQUISITION AGREEMENT BY AND BETWEEN THE TEMECULA PUBLIC FINANCING AUTHORITY AND ASHBY USA, LLC" DATED AS OF MAY 12, 2009 RELATING TO COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) 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. CITY COUNCIL BUSINESS 27 Establishment and Appointment of Subcommittee -Temecula 2030: A Quality of Life Master Plan RECOMMENDATION: 27.1 Establish a Quality of Life/Temecula 2030 Master Plan Subcommittee to interview/hire consultant to facilitate the Quality of Life Master Plan process, establish Blue Ribbon Committee, participate in the Quality of life Master Plan process, review and approve a final Quality of Life Master Plan report prior to City Council review; 27.2 Appoint two (2) Council Members to serve on this Subcommittee. CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next adjourned regular meeting: City Council Regular, Wednesday, May 20, 2009, with commencing at 10:00 AM, City Council Chambers, 43200 Business Park Drive, Temecula, California. Next regular meeting: session commencing Temecula, California. Tuesday, May 26, 2009, at 5:30 PM, for a Closed Session with regular at 7:00 PM, City Council Chambers, 43200 Business Park Drive, NOTICE TO THE PUBLIC The agenda packet (including staff reports) will be available for viewing at the Main Reception at City Hall (43200 Business Park Drive, Temecula) or at the Temecula Library (30600 Pauba Road, Temecula) after 4:00 PM the Friday before the City Council meeting. At that time, the packet may as well be accessed on the City's website - www.citvoftemecula.org Supplemental material received after the posting of the Agenda Any supplemental material distributed to a majority of the City Council regarding any item on the Agenda, after the posting of the Agenda, will be available for public review at the Main Reception at City Hall (43200 Business Park Drive, Temecula - 8:00 - 5:00 PM). In addition, such material will be made available on the City's web - www.cityoftemecula.org - and will be available for public review at the respective meeting. If you have any questions regarding any item of business on the Agenda for this meeting, please contact City Clerk's Department - 951-694-6444. 9 PRESENTATIONS -Cs ~ i 9 } 9G ~ 71- -rI C a~ N al ~ 0 + ~ ~ r p 0) • - Fes, 4-, 4-, C) 0 a=te 5 i CA a 7 Q o U o o v, W • Z 03 cd r--o a cn 0 ~ Ca +L N a O O ct T+ c3 S~ n N m ' o O o d i 7C a v W c~ N ~ +a' ~ O O iii C' ~ C N ~e ce Con Con Con <C w d w~w w w~ ~ x xax x ~ xM oo PI ~ p o ~ ~ CONSENT CALENDAR ITEM NO. 1 ITEM NO. 2 ACTION MINUTES TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE APRIL 28, 2009 - 7:00 PM 6:00 P.M. - Closed Session of the City Council/Redevelopment Agency pursuant to Government Code Section: 1) Conference with City Attorney pursuant to Government Code Section 54956.9(a), (b) and (c). The Council will meet pursuant to Government Code Section 54956.9(x) with respect to the following four matters of actual litigation pertaining to the Roripaugh Ranch Project in which the City of Temecula ("City") and Temecula Public Financing Authority ("Authority") are defendants: (1) R.J. Noble v. Ashby USA, City, Authority et. al. (Riverside Superior Court Case No. RIC 480922); (2) Riverside Construction Co. v. Ashby USA, City, Authority et. al. (Riverside Superior Court Case No. RIC 484179); (3) Utah Pacific Construction Co. Ashby USA, City, Authority et. al. (Riverside Superior Court Case No. RIC 485802); and (4) Klaer Brittain, Inc. Ashby USA, City, Authority et. al. (Riverside Superior Court Case No. RIC 506084). Additionally conference with City Attorney pursuant to Government Code Section 54956.9(b) and (c) with respect to one additional matter of potential litigation involving the Roripaugh Ranch Project in which the City Attorney has determined that a point has been reached where there is a significant exposure to litigation involving the City based on existing facts and circumstances and pursuant to Government Code Section 54956.9(c) with respect to the same matters in which the City Council will decide whether to initiate litigation. 2) Conference with City Attorney pursuant to Government Code Section 54956.9(b) and (c). The Council will meet pursuant to Government Code Section 54956.9(b) with respect to two matters of potential litigation in which the City Attorney has determined that a point has been reached where there is a significant exposure to litigation involving the City based on existing facts and circumstances and pursuant to Government Code Section 54956.9(c) with respect to the same matters in which the City Council will decide whether to initiate litigation. Public Information concerning existing litigation between the City and various parties may be acquired by reviewing the public documents held by the City Clerk. At 6:00 P.M., Council Member Roberts moved to call the Closed Session to order. The motion was seconded by Council Member Washington and voice vote reflected approval. The City Council meeting convened at 7:00 PM. CALL TO ORDER: Mayor Maryann Edwards Prelude Music: Great Oak High School Jazz Band - Jerry Burdick, Director Invocation: Pastor Leon Franklin of the Living Word Church Flag Salute: Council Member Comerchero ROLL CALL: Comerchero, Naggar, Roberts, Washington, Edwards Victims' Rights Week in Temecula Bill Hughes Day Proclamation Debbie Ubnoske Day Proclamation John Meyer Day Proclamation PUBLIC COMMENTS The following individuals addressed the City Council Members: • Jerry Burdick-Rutz • Diane Pierce - representing Wal-Mart • Roger Ziemer - representing Southwest California Legislative Council CITY COUNCIL REPORTS CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Action Minutes - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 2.1 Approve the action minutes of April 14, 2009. List of Demands - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 09-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A Procurement of CommVault Backup Software - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 4.1 Authorize the purchase of CommVault software for the total amount of $54,282.86, which includes applicable sales tax. Reauthorization of the Federal Safe Routes to School (SRTS) Legislation - at the request of Council Member Washington - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 09-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE REAUTHORIZATION OF THE FEDERAL SAFE ROUTES (SRTS) LEGISLATION Update to CalPERS Pre-Tax Payroll Deduction Plan for Service Credit Purchases - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 09-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE EMPLOYER PICKUP CALPERS PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14) Approval of the Plans and Specifications and Authorization to Solicit Construction Bids for Traffic Signal Interconnect Equipment Installation - Project No. PW04-05 -Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 7.1 Approve the Plans and Specifications for the project; 7.2 Authorize the Department of Public Works to solicit construction bids for Traffic Signal Interconnect Equipment Installation, Project No. PW04-05. Aareement for Weed Abatement Services with Inland Empire Property Services. Inc..- Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 8.1 Approve an agreement with Inland Empire Property Services Inc., to provide weed abatement services for fiscal year 2008/09 in the amount of $50,000.00. Lease agreement with the State of California Fire Marshall for Office Space at the Overland Administrative Training Center - Approved Staff Recommendation (5-0-0) - Council Member Washington made the motion; it was seconded by Council Member Comerchero; and electronic vote reflected unanimous approval. RECOMMENDATION: 9.1 Approve the lease agreement with the State of California by and through the Department of Forestry and Fire Protection, Office of the State Fire Marshall (CAL Fire) for office space at the Overland Administrative Training Center (OATC) in the amount of $17,280 for three years. At 7:46 p.m., the City Council convened as the Temecula Community Services District and the Redevelopment Agency. At 7:48 p.m. the City Council resumed with regular business. PUBLIC HEARING 14 Issuance of Multi-family Housinq Revenue Bonds by the California Statewide Communities Development Authority (CSDA) for the purpose of rehabilitating a 49-unit multi-family residential rental facility at Creekside Apartments - Approved Staff Recommendation (5- 0-0) - Council Member Comerchero made the motion; it was seconded by Council Member Roberts; and electronic vote reflected unanimous approval. RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 09-38 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF THE CREEKSIDE APARTMENTS City Planner Richardson presented the staff report (as per agenda material). Rachael Gray Shiprin, Bettencourt Properties, Inc., provided additional clarification with this moderate rehabilitation project. Tony Danielson addressed the City Council. DEPARTMENTAL REPORTS CITY MANAGER REPORT CITY ATTORNEY REPORT With regard to Closed Session, City Attorney Thorson advised that there was no action to report under the Brown Act. ADJOURNMENT At 7:56 p.m. the City Council meeting was formally adjourned to Tuesday, May 12, 2009, 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. Maryann Edwards, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] ITEM NO. 3 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: May 12, 2009 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. 09- 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. 09- 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 $1,906,583.36. 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 12th day of May, 2009. Maryann Edwards, 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. 09- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 12th day of May, 2009, 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 04/16/2009 TOTAL CHECK RUN 04/23/2009 TOTAL CHECK RUN 04/16/2009 TOTAL PAYROLL RUN: $ 878,018.53 553,687.97 474,876.86 TOTAL LIST OF DEMANDS FOR 05/12/2009 COUNCIL MEETING: $ 1,906,583.36 DISBURSEMENTS BY FUND CHECKS: 001 GENERAL FUND $ 691,648.41 165 AFFORDABLE HOUSING 11,460.06 190 TEMECULA COMMUNITY SERVICES DISTRICT 261,864.10 192 TCSD SERVICE LEVEL B 67,260.36 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 76,529.89 194 TCSD SERVICE LEVEL D 1,148.12 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 8,875.57 197 TEMECULA LIBRARY FUND 75,774.51 210 CAPITAL IMPROVEMENT PROJECTS FUND 163,622.66 280 REDEVELOPMENT AGENCY - CIP PROJECT 14,150.34 300 INSURANCE FUND 473.82 320 INFORMATION SYSTEMS 32,473.59 330 SUPPORT SERVICES 6,120.45 340 FACILITIES 13,793.12 370 CITY 2008 COP'S DEBT SERVICE 3,425.00 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 2,500.00 477 CFD- RORIPAUGH 586.50 001 GENERAL FUND $ 316,047.25 165 AFFORDABLE HOUSING 7,172.35 190 TEMECULA COMMUNITY SERVICES DISTRICT 99,677.13 192 TCSD SERVICE LEVEL B 141.34 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 5,054.51 194 TCSD SERVICE LEVEL D 1,358.02 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 1,428.96 197 TEMECULA LIBRARY FUND 779.80 280 REDEVELOPMENT AGENCY - CIP PROJECT 3,158.27 300 INSURANCE FUND 1,217.46 320 INFORMATION SYSTEMS 26,553.95 330 SUPPORT SERVICES 3,561.02 340 FACILITIES 8,726.80 $ 1,431,706.50 474,876.86 TOTAL BY FUND: $ 1,906,583.36 apChkLst Final Check List Page: 1 04/1612009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description 1235 04/1612009 000444 INSTATAX (EDD) State Disability Ins Payment 1236 04116/2009 000283 INSTATAX(IRS) Federal Income Taxes Payment 1237 04116/2009 000389 NATIONWIDE RETIREMENT OBRA- Project Retirement Payment SOLUTION 1238 04116/2009 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment SOLUTION 1239 04116/2009 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment RETIREMENT) 1240 04/16/2009 010349 CALIF DEPT OF CHILD SUPPORT Support Payment 130957 04116/2009 009010 ALEXANDER PACIFIC repair circuits: PBSP 130958 04116/2009 009033 ALLEN, STEVEN L. photography svc:Spring Egg Hunt 130959 04116/2009 006915 ALLIE'S PARTY EQUIPMENT equip rental: Old Town 130960 04116/2009 004240 AMERICAN FORENSIC NURSES DUI & drug screenings: Police DUI & drug screenings: Police April '09 stand by fees: Police 130961 04116/2009 000747 AMERICAN PLANNING APA mbrshp 07/09-6/10: Peters, M ASSOCIATION 130962 04116/2009 001587 AMERICAN PUBLIC WORKS ASSN. 130963 04116/2009 002648 AUTO CLUB OF SOUTHERN CALIF 130964 04116/2009 000475 B N I PUBLICATIONS INC APWA mbrshp 3109-2/10: Butler, G Membership: 72238014 CP Membership: 63295026 RT Membership: 88552195 MW Membership: 88552229 KH Membership: 88552336 BW Membership: 88552294 JK Membership: 88552252 SS Membership: 88551767 CA BNI Standard Const Specs:PW Amount Paid 21,841.04 82,971.32 2,315.10 19,377.60 125,102.14 25.00 2,550.00 300.00 555.76 495.00 45.00 1,200.00 322.00 181.25 47.00 76.00 47.00 47.00 47.00 47.00 47.00 47.00 637.11 Check Total 21,841.04 82,971.32 2,315.10 19,377.60 125,102.14 25.00 2,550.00 300.00 555.76 1,740.00 322.00 181.25 405.00 637.11 Page:1 apChkLst Final Check List Page: 2 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 130965 04116/2009 011666 BPS TACTICAL INC ballistic vest covers: Police 929.81 929.81 130966 04116/2009 003466 BASKETS & BALLOONS TOO! balloon decoraticns:Spring Egg Hunt 572.42 572.42 130967 04116/2009 012583 BLANCAY PRICE Apr Landscape Plan Ck Svc: Planning 1,470.00 1,470.00 130968 04116/2009 009082 C B C TECHNICAL INC Lighting:Rhythms Teen Dance 1117 198.78 198.78 130969 04116/2009 006908 C C & COMPANY INC entertainment:High Hopes 413 275.00 275.00 130970 04116/2009 003138 CAL MAT PW patch truck materials 193.74 PW patch truck materials 262.09 PW patch truck materials 770.39 PW patch truck materials 392.21 PW patch truck materials 670.85 PW patch truck materials 515.69 PW patch truck materials 675.38 PW patch truck materials 195.54 3,675.89 130971 04116/2009 004228 CAMERON WELDING SUPPLY Helium tanks rentallrefill:TCSD 42.96 42.96 130972 04116/2009 008644 CANTRELL, ROGER, AIA, AICP Mar architectural svcs: Planning 1,976.00 1,976.00 130973 04116/2009 004006 CARROLL, JOSEPH Photography Svcs: City Council 950.80 950.80 130974 04116/2009 012180 CAWLEY, MARILYN refund:sec dep:rm rental:CRC 150.00 150.00 130975 04116/2009 009640 CERTIFION CORPORATION Mar invstg database subsc:Police 150.00 150.00 130976 04116/2009 012826 CERVANTES, SONIA refund:sec dep:rm rental:CRC 150.00 refund:rm rental:CRC 19.00 169.00 130977 04116/2009 000137 CHEVRON AND TEXACO City vehicles fuel: Police 1,244.85 1,244.85 130978 04116/2009 004609 CINTAS DOCUMENT Mar doc shred srvcs: CC/Police 122.50 122.50 MANAGEMENT 130979 04116/2009 004405 COMMUNITY HEALTH CHARITIES Community Health Charities Payment 116.00 116.00 Paget apChkLst Final Check List Page: 3 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 130980 04116/2009 006303 CONDUIT NETWORKS, INC audiovisual svcs: Library 289.50 289.50 130981 04116/2009 012353 CONSTRUCTION TESTING Feb geotech svc: Civic Ctr 1,296.00 1,296.00 130982 04116/2009 001264 COSTCO WHOLESALE vehicle maint supplies: Stn 84 242.14 242.14 130983 04116/2009 012585 DATASPAN INC power generator: Library 55,491.79 55,491.79 130984 04116/2009 002990 DAVID TURCH & ASSOCIATES Apr federal lobbyist svc: CM 3,500.00 3,500.00 130985 04116/2009 012828 DESIGNER DASH & DOOR refund:no permit regd:B09-0504 409.50 409.50 SYSTEMS 130986 04116/2009 003945 DIAMOND ENVIRONMENTAL portable restrooms:City Clean-Up 79.88 79.88 SRVCS 130987 04116/2009 003754 DOWNTOWN R & D CENTER 1 yr subscr:Downtown Idea Exchange 206.50 206.50 130988 04116/2009 012217 DUDEK Mar consulting srvcs: Planning 1,170.00 1,170.00 130989 04116/2009 001669 DUNN EDWARDS CORPORATIO N graffiti removal supplies:PW Maint 141.70 141.70 130990 04116/2009 002390 EASTERN MUNICIPAL WATER 95366-02 Diego Dr Ldscp 109.19 109.19 DIST 130991 04116/2009 004829 ELLISON WILSON ADVOCACY Apr state lobbyist svc: CM 3,500.00 3,500.00 LLC 130992 04116/2009 012829 EPIC FIRE PROTECTION refund:inspectfees:F09-0075 334.00 334.00 130993 04116/2009 003665 EXCEL COMMERCIAL Mar long distance phone svcs 53.04 53.04 130994 04116/2009 009953 FEDERAL CLEANING Apr janitorial svcs: PD mall office 625.00 625.00 CONTRACTORS 130995 04116/2009 001511 FIELDMAN ROLAPP & Mar financial srvcs:roripaugh cfd 03-02 586.50 586.50 ASSOCIATES 130996 04116/2009 011967 FULL VALUE ENTERTAINMENT sttlmnt: Battle of the Bands 413 462.00 462.00 Page:3 apChkLst 0411612009 1:47:23PM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 130997 04116/2009 007866 G C S SUPPLIES INC Final Check List CITY OF TEMECULA (Continued) Description toner cartridges: Info Sys 130998 04116/2009 010326 G E MOBILE WATER, INC exchange osmosis washer:Stn 73 130999 0411612009 000177 GLENN IES OFFICE PRODUCTS Office Supplies: Info Sys INC Office Supplies: Info Sys Office Supplies: Fire Office Supplies: MPSC Office Supplies: Finance Office Supplies: TCSD Office Supplies: Paramedics Office Supplies: PW Office Supplies: City Clerk Office Supplies: TV Museum Office Supplies: Theater Office Supplies: Code Enf 131000 04116/2009 009608 GOLDEN VALLEY MUSIC sttlmnt: Beethoven Spectacular 414 SOCIETY 131001 0411612009 002174 GROUP 1 PRODUCTIONS video svcs: State of the City 131002 0411612009 005311 H2O CERTIFIED POOL WATER Mar pool maint: CRC/TES SPCL. 131003 04116/2009 000186 HANKS HARDWARE INC Hardware supplies: PWMaint 131004 04116/2009 001135 HEALTH POINTE MEDICAL GROUP INC 131005 04116/2009 001517 HORIZON HEALTH 131006 04116/2009 000194 1 C M A RETIREMENT-PLAN 303355 Hardware supplies: CRC Hardware supplies: Library Hardware supplies: Ch Museum Hardware supplies: Aquatics Hardware supplies: TCC Hardware supplies: Theater Hardware supplies: City Hall Hardware supplies: Maint Facility Hardware supplies: Vail Rnch Pkwy Hardware supplies: PW Traffic Hardware supplies: B&S pre-employment physicals: HR Apr employee asst pgrm: HR I C M A Retirement Trust 457 Payment Amount Paid 215.33 124.99 72.14 82.01 1,015.35 432.61 201.48 2,428.95 118.48 141.28 21.52 93.62 24.11 107.24 1,506.61 9,000.00 900.00 77.84 212.27 55.55 143.41 4.82 2.78 77.55 351.25 156.23 584.94 386.81 76.96 85.00 858.00 8,751.86 Page: 4 Check Total 215.33 124.99 4,738.79 1,506.61 9,000.00 900.00 2,130.41 85.00 858.00 8,751.86 Page-.4 apChkLst 04116/2009 1:47:23PM Final Check List CITY OF TEMECULA Page: 5 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131007 04116/2009 006914 INNOVATIVE DOCUMENT fax supplies: Central Services 258.83 SOLUTIONS sales tax Feb copier usage:Library 37.67 296.50 131008 04116/2009 003266 IRON MOUNTAIN OFFSITE Mar tape storage: CC/Records 834.03 834.03 131009 04116/2009 000548 KIPLINGER LETTER, THE 1 yr subscr:Kiplinger Ca Ltr MN 84.00 84.00 131010 04116/2009 008715 KRAMER FIRM INC Apr Cnslt Svcs: Planning 2,000.00 Feb Cnslt Svcs: Planning 4,000.00 6,000.00 131011 04116/2009 001085 L N CURTIS & SONS fire rescue equip: Stn 84 383.42 383.42 131012 04116/2009 003605 LAKE ELSINORE STORM Excursion:Storm Game 615109 300.00 credit: deposit paid to hold tickets -30.00 270.00 131013 04116/2009 011022 LATITUDE GEOGRAPHICS Geocortex Software: Info Sys 1,450.00 1,450.00 GROUP LTD 131014 04116/2009 004905 LIEBERT, CASSIDY& WHITMORE Feb HR legal svcs for TE060-09 991.00 Feb HR legal svcs for TE060-01 1,713.70 2,704.70 131015 04116/2009 003726 LIFE ASSIST INC Medical Supplies: Paramedics 1,421.94 1,421.94 131016 04/1612009 004141 MAINTEX INC misc custodial supplies: TCSD 99.91 99.91 131017 04116/2009 004803 MAPLOGIC CORPORATION MapLogic software maint:Info Sys 625.00 625.00 131018 04116/2009 000217 MARGARITA OFFICIALS ASSN Mar officiating svcs: TCSD 4,725.00 4,725.00 131019 04116/2009 006571 MELODY'S AD WORKS INC. marketing/PR expenses:Old Town 487.50 marketing/PR expenses:Old Town 18.90 506.40 131020 04116/2009 012580 MINUTEMAN PRESS Business Cards:Mcclanahan/Schuma 90.74 Business Cards:Jackson/Clark 90.74 181.48 131021 04116/2009 007705 MITCHELL, DANIEL refund:sec dep:TCC 150.00 150.00 131022 04116/2009 001868 MIYAMOTO-JURKOSKY, SUSAN TCSD Instructor Earnings 303.80 A. TCSD Instructor Earnings 434.00 737.80 131023 04116/2009 001892 MOBILE MODULAR Apr modular bldg rental:TCC1OAC 832.41 832.41 Pagea apChkLst Final Check List Page: 6 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131024 04116/2009 009443 MUNYON, DENNIS G. parking license agrmnt:Old Town 2,375.00 2,375.00 131025 04116/2009 001986 MUZAK-SOUTHERN CALIFORNIA Apr On hold music:phone system 101.18 101.18 131026 04116/2009 002925 NAPA AUTO PARTS Auto parts & supplies:Fire Prevention 33.69 33.69 131027 04116/2009 008820 NEIGHBORS NEWSPAPER Mar advertising:blugrassfest 312009 250.00 250.00 131028 04116/2009 009570 O O B REPROGRAPHICS Mar reprographic srvcs:PW CIP Prjts 177.23 177.23 131029 04116/2009 002105 OLD TOWN TIRE & SERVICE City Vehicle Maint Svcs:PW Maint 36.27 City Vehicle Maint Svcs:PW Maint 312.13 City Vehicle Maint Svcs:PW Land Dev 36.27 City Vehicle Maint Svcs:PW Land Dev 36.27 City Vehicle Maint Svcs:PW Traffic Div 388.12 809.06 131030 04116/2009 003955 PANE CONSULTING SERVICE Business magnet:eco dev 829.69 (PCs) add'I sales tax:business magnetsleco 2.72 832.41 131031 04116/2009 001958 PERS LONG TERM CARE PERS Long Term Care Payment 377.54 377.54 PROGRAM 131032 04116/2009 004529 QUAID TEMECULA HARLEY- Mar veh repairlmaint:police motorcycles 4,909.95 4,909.95 DAV I DSON 131033 04116/2009 011952 RAD HATTER, THE entertainment:family fun night 4117 330.00 330.00 131034 04116/2009 000262 RANCHO CALIF WATER DISTRICT Mar 01-05-11040-1 FOC Bldg 119.01 Mar 01-05-11037-1 City Hall 448.81 Mar 01-06-99000-14 28640 pujol st 7.08 Mar 01-06-26305-0 Old Town Front St 106.49 Mar 01-06-86789-0 1st st mitigation 14.16 Mar 01-08-00035-0 30765 tem pkwy 53.40 Mar-Apr 01-00-93012-1 28582 harveston 968.04 Mar 01-06-65070-1 comm theater 360.64 Mar 01-06-66000-3 childrens museum 18.22 Mar 01-31-61237-2 calle elenita 28.30 various water meters:tcsd 4,183.71 Mar 01-06-68615-0 28910 pujol st 23.61 6,331.47 131035 04116/2009 000907 RANCHO TEMECULA CAR WASH Mar veh. detailing srvcs:var City depts 136.50 136.50 Page6 apChkLst Final Check List Page: 7 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131036 04116/2009 012288 RENT A CENTER #4086 Furniture rental:teen dance 4118109 216.68 216.68 131037 04116/2009 002110 RENTAL SERVICE equip rental: PW Maint 91.22 CORPORATION equip rental: PW Maint 14.05 105.27 131038 04116/2009 000352 RIVERSIDE CO ASSESSOR Mar assessor maps: B&S Dept 12.00 12.00 131039 04116/2009 001365 RIVERSIDE COUNTY OF renew permit:city hall 663.00 663.00 131040 04116/2009 006815 SAN DIEGO, COUNTY OF Support Payment 12.50 12.50 131041 04116/2009 009980 SANBORN, GWYN Country @ the Merc 414109 630.00 Country @ the Merc 4111109 412.50 1,042.50 131042 04116/2009 010089 SECURITAS SECURITY SRVCS Mar security srvcs:Harveston Lake 3,228.75 3,228.75 USA 131043 04116/2009 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment 367.63 367.63 131044 04116/2009 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment 200.00 200.00 131045 04116/2009 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment 100.00 100.00 131046 04116/2009 009213 SHERRY BERRY MUSIC Jazz @ the Merc 419109 441.00 441.00 131047 04116/2009 000645 SMART & FINAL INC Misc supplies:theater 33.94 33.94 131048 04116/2009 012121 SMILES 4 KYLEE CHILDRENS refund:sec dep:marg comm park 150.00 150.00 FUND 131049 04116/2009 000824 SO CALIF ASSN OF ann'I gen.assbly mtg: 517 B. Johnson 50.00 50.00 GOVERNMENTS 131050 04116/2009 000374 SO CALIF EDISON u1g srvc to 2 irrig. pedestals:pech pkwy 251.62 251.62 Page:? apChkLst Final Check List Page: 8 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131051 04116/2009 000537 SO CALIF EDISON 2-05-791-8807 various mtrs:tcsd 9,430.60 2-29-974-7899 Ynez Rd LS-3 98.01 2-10-331-2153 TCC 893.24 2-02-351-5281 CRC 3,023.20 2-30-066-2889 Rancho Vista PED 15.98 2-30-608-9384 28582 harveston 303.49 2-28-171-2620 Police Mall Stn 721.88 2-29-479-2981 Temecula Pkwy 89.92 2-01-202-7330 various mtrs 67,149.91 2-31-031-2590 28301 ranch cal rd 43.34 2-20-798-3248 C. Museum 830.22 82,599.79 131052 04116/2009 012252 SOUND SKILZ ENTERTAINMENT DJ/sound srvcs:Teen Dance 4/18/09 900.00 900.00 INC 131053 04116/2009 000519 SOUTH COUNTY PEST CONTROL Mar pest control srvcs:city facilities 541.00 INC Apr pest control srvcs:fire stn 92 42.00 Apr pest control srvcs:fire stn 73 48.00 631.00 131054 04116/2009 012652 SOUTHERN CALIFORNIA Apr gen phone usage:pbsp 81.33 Apr gen phone usage:police mall stn 36.51 117.84 131055 04116/2009 005786 SPRINT Feb 26-Mar 25 cellular usage/equip 4,916.98 4,916.98 131056 04116/2009 009500 TEMEC ELECTRONICS, INC Misc tools & equipment: PW Traffic Div 211.52 Misc tools & equipment: PW Traffic Div 279.88 491.40 131057 04116/2009 012265 TEMECULA ACE HARDWARE C/O Mar Misc Supplies:Parks 72.57 72.57 131058 04116/2009 010679 TEMECULA AUTO City veh repair/maint:fire prevention 819.93 REPAIR/RADIATOR City veh repair/maintAre prevention 1,063.37 1,883.30 131059 04116/2009 011664 TEMECULA UNITED METHODIST refund:sec dep & crc rental 519.00 519.00 CHRC 131060 04116/2009 000515 TEMECULA VALLEY CHAMBER State/City Addr:C. DeHart 419/09 40.00 40.00 OF 131061 04116/2009 010046 TEMECULA VALLEY Feb'09 Bus. Imprv District Asmnts 35,878.94 35,878.94 CONVENTION & 131062 04116/2009 005970 TEMECULA VALLEY PLAYERS Living Last Supper April '09 production 1,101.99 1,101.99 131063 04116/2009 003941 TEMECULA WINNELSON Plumbing supplies:crc/var parks 441.82 441.82 COM PANY Page:B apChkLst Final Check List Page: 9 04116/2009 1:47:23PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131064 04116/2009 003862 THYSSENKRU PP Elevator maint srvcs: City facilities 2,040.00 2,040.00 ELEVATOR.BRNCH 37 131065 04116/2009 000668 TIMMY D PRODUCTIONS INC DJ: Middle School Dance 4110 450.00 450.00 131066 04116/2009 012626 TOMSETH, DIANA H. TCSD Instructor Earnings 654.50 654.50 131067 04116/2009 012827 TORAL, JENNIFER refund:sec dep:CRC rental 400.00 400.00 131068 04116/2009 010276 TW TELECOM Apr high speed internet:city hall 183.38 Apr high speed internet:FS#92 44.95 228.33 131069 04116/2009 005460 U S BANK Admin Fees:COP 2008 3,425.00 Admin Fees:Crowne Hill CFD 03-1 2,500.00 5,925.00 131070 04116/2009 008517 UNITED SITE SERVICES OF 3126-4122 fence rental:Main St Bridge 26.40 26.40 CA,INC 131071 04116/2009 000325 UNITED WAY United Way Charities Payment 36.00 36.00 131072 04116/2009 004261 VERIZON xxx-7562 irrigation controller 36.98 xxx-6812 General usage 87.93 xxx-1941 PTA CD TTACSD 70.08 xxx-1341 Theater 871.65 xxx-2372 Wlf Crk Irrg Cntrl 35.04 xxx-6400 general usage 576.37 xxx-0682 Civic Center Camera 91.88 xxx-8900 GIS Library 837.02 xxx-4200 general usage 1,155.35 xxx-6620 general usage 33.92 xxx-1540 Old Town Prk Lot 87.80 xxx-7530 GIS Library 414.48 xxx-5180 79S Irrg Cntr 37.80 xxx-5072 general usage 1,475.81 5,812.11 131073 04116/2009 004848 VERIZON SELECT SERVICES INC Apr long distance phone Svcs 176.77 Apr long distance phone svcs 786.54 963.31 131074 04116/2009 000621 WESTERN RIVERSIDE COUNCIL Mar'09TUMF Payment 286,497.32 286,497.32 OF 131075 04116/2009 008402 WESTERN RIVERSIDE COUNTY Mar'09 MSHCP payment 27,707.46 27,707.46 131076 04116/2009 000230 WILLDAN FINANCIAL SERVICES Apr-Jun assessment eng srvcs:csd 5,633.30 5,633.30 Page9 apChkLst 0411612009 1:47:23PM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 131077 04116/2009 010193 WOOLSTENHULME, LUCIA Final Check List CITY OF TEMECULA (Continued) Description TCSD Instructor Earnings Amount Paid 33.60 Grand total for UNION BANK OF CALIFORNIA: Page: 10 Check Total 33.60 878,018.53 Page:10 apChkLst Final Check List Page: 11 0411612009 1:47:23PM CITY OF TEMECULA 127 checks in this report. Grand Total All Checks: 878,018.53 Page:11 apChkLst Final Check List Page: 1 0412312009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 131078 04123/2009 012842 ABUDO, EDWARD refund:prkg cite #66983 10.00 10.00 131079 04123/2009 012830 ALMARAZ, OLIVIA & SERGIO refund:kitchen rental:crc 59.00 59.00 131080 04123/2009 012603 ASPEN SANTA FE BALLET perform ance:th eater 511 & 512 15,000.00 15,000.00 131081 04123/2009 011961 AT&T MOBILITY 51181407013465:cell phone usage 192.37 192.37 131082 0412312009 003466 BASKETS & BALLOONS TOO! promotional baskets:eco dev 40.95 40.95 131083 04123/2009 005665 BLACK'S TOWING auto towing svcs:temecula police 190.00 190.00 131084 04123/2009 003048 BOYS & GIRLS CLUB refund:c. museum admission 37.25 37.25 131085 04123/2009 000154 C S M F O csmfo:pci compliance wkshp:JC:5114 25.00 25.00 131086 04123/2009 003138 CAL MAT asphalt materials:PW Maint 260.79 260.79 131087 0412312009 000638 CALIF DEPT OF CONSERVATION 2009 1st Qtr pmt:strong motion 3,789.19 3,789.19 131088 04123/2009 004248 CALIF DEPT OF JUSTICE- Mar:blood & alcohol analysis:police 1,190.00 1,190.00 ACCTING 131089 04123/2009 004228 CAMERON WELDING SUPPLY Helium tanks rentallrefill:TCSD 42.96 42.96 131090 04123/2009 004971 CANON FINANCIAL SERVICES, Apr Copier Lease:City Facilities 4,744.84 4,744.84 INC 131091 04123/2009 004609 CINTAS DOCUMENT document shred svcs:city fac 22.50 22.50 MANAGEMENT 131092 04123/2009 000442 COMPUTER ALERT SYSTEMS install alarm horns:west wing 800.00 800.00 131093 04123/2009 006303 CONDUIT NETWORKS, INC Shoregear Software/Support: Is 7,774.53 phone equip:civic ctr 979.00 8,753.53 131094 04123/2009 006662 COPIES & MORE Tern CAPV sign:CAP vehicle 81.57 81.57 Page:1 apChkLst Final Check List Page: 2 04123/2009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131095 04/23/2009 003962 DAVID NEAULT ASSOCIATES INC Mar Indscp insp svc:Pechanga Pkwy 2,612.50 2,612.50 131096 04123/2009 012831 DIAZ, ARMANDO refund:sec dep:crc 400.00 400.00 131097 04123/2009 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: TCSD 1,389.09 INC fuel for city vehicles: PW Maint 893.60 fuel for city vehicles: PW Lnd Dv 317.41 Fuel for City vehicles: B&S 170.27 Fuel for City vehicles: Code Enf 151.36 fuel for city vehicles: PW CIP 135.20 fuel for city vehicles: PW Traffic 102.17 Fuel for City vehicles: Police 30.16 3,189.26 131098 04123/2009 002528 EAGLE GRAPHIC CREATIONS recog mugs:HR:new empl pgrm 17.62 17.62 INC 131099 04123/2009 007319 EAGLE ROAD SERVICE & TIRE equip repair/maint:PW 272.93 272.93 INC 131100 04123/2009 002390 EASTERN MUNICIPAL WATER insp fees:old town infra:pw06-07 855.36 855.36 DIST 131101 04123/2009 002390 EASTERN MUNICIPAL WATER Apr:39569 seraphina rd 273.10 273.10 DIST 131102 0412312009 001056 EXCEL LANDSCAPE Mar Idscp maint: sprts prks/schools 43,040.00 Mar Idscp maint: South Slopes 41,885.00 Mar Idscp maint: North Slopes 28,494.00 Mar Idscp maint: sprts prks/schools 14,987.00 Mar Idscp maint: City Facilities 9,685.00 138,091.00 Paget apChkLst Final Check List Page: 3 04123/2009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131103 04123/2009 003347 FIRST BANKCARD CENTER 001590 CALIF REDEVELOPMENT ASSN RJ '09 CRA conf 514-9:Watson, L 1,100.00 001590 CALIF REDEVELOPMENT ASSN RJ '09 CRA conf 5/4-9: Richardson, P 1,100.00 001590 CALIF REDEVELOPMENT ASSN RJ '09 CRA conf 514-9: LW/PR 1,100.00 012841 AMERICAN COUNCIL OF RJ '09 Calif Env Quality/CEQA guides 213.70 006952 PAYPAL TT Verisign Payflow Pro Transaction 91.90 000515 TEMECULA VALLEY CHAMBER RJ State/City Addr: Commissioners 80.00 OF 011999 CONFERENCE MANAGER.COM RJ conference call: Waterpark 29.09 011999 CONFERENCE MANAGER.COM RJ conference call: Waterpark 17.10 011999 CONFERENCE MANAGER.COM RJ conference call: Waterpark 11.92 011999 CONFERENCE MANAGER.COM RJ conference call: Mercedes Benz 11.39 011999 CONFERENCE MANAGER.COM RJ conference call: Mercedes Benz 5.26 011999 CONFERENCE MANAGER.COM RJ conference call: Mercedes Benz 0.53 001590 CALIF REDEVELOPMENT ASSN RJ '09 CRA conf 514-9:Watson, L -1,100.00 001590 CALIF REDEVELOPMENT ASSN RJ '09 CRA conf 514-9: Richardson, P -1,100.00 1,560.89 131104 04123/2009 010493 FOREST CITY COMMERCIAL Apr:lease pmt:police mall storefront 1,458.33 1,458.33 MGMT 131105 04123/2009 006531 FORMOE, GARY Reimb:CABEC/CEPE mb renewals 245.00 245.00 131106 04123/2009 011145 FOSTER, JILL C. TCSD instructor earn:easter cookies 105.00 105.00 131107 04123/2009 011967 FULL VALUE ENTERTAINMENT settlmnt:merc:battle of bands:4110 409.50 409.50 131108 04123/2009 001937 GALLS INC activewear & uniforms:motor uniforms 581.74 activewear & uniforms:motor uniforms 262.64 844.38 131109 04123/2009 012066 GEOCON INLAND EMPIRE INC SVCS 1/26/09- 2122/09 40,708.50 credit: inv exceeds contract amt -5,235.60 35,472.90 131110 04123/2009 012391 GOODNOUGH, KIM refund:sec dep:crc 150.00 150.00 131111 04123/2009 000186 HANKS HARDWARE INC Hardware supplies: TCSD Parks 724.95 Hardware Supplies: Fire 627.21 Hardware supplies: PW Old Town 225.16 1,577.32 Page:3 apChkLst 04123/2009 12:02:53PM Final Check List CITY OF TEMECULA Page: 4 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131112 04123/2009 003198 HOME DEPOT, THE misc supplies:old town maint 113.70 113.70 131113 04123/2009 001186 IRWIN, JOHN TCSD instructorearn:balirm dance 269.50 269.50 131114 04123/2009 001091 KEYSER MARSTON ASSOCIATES Mar:consulting svcs:housing 07-08 4,493.86 INC Mar:consulting svcs:real estate econ 3,814.85 8,308.71 131115 04123/2009 006302 KIDZ LOVE SOCCER, INC Mar:TCSD instruct earn:mom/dad 545.30 Mar:TCSD instruct earn:soccer 1 487.90 Mar:TCSD instruct earn:soccer 1 315.70 Mar:TCSD instruct earn:mom/dad 229.60 Mar:TCSD instruct earn:pre-soccer 200.90 Mar:TCSD instruct earn:pre-soccer 200.90 Mar:TCSD instruct earn:tot soccer 143.50 Mar:TCSD instruct earn:tot soccer 114.80 Mar:TCSD instruct earn:soccer 3 114.80 Mar:TCSD instruct earn:pre-soccer 86.10 Mar:TCSD instruct earn:soccer 2 86.10 Mar:TCSD instruct earn:soccerz 86.10 2,611.70 131116 04123/2009 012843 LAPIO, DIANE L. refund:prkg cite #55626 55.00 55.00 131117 04123/2009 004998 LINFIELD SCHOOL refund:sec dep:crc 150.00 150.00 131118 04123/2009 002634 LITELINES INC repair/maint:lights @ harveston 114.19 114.19 131119 04123/2009 004813 M & J PAUL ENTERPRISES INC jolly jump rental:spring egg hunt 4111 185.00 jolly jump rental:spring egg hunt 4111 185.00 jolly jump rental:spring egg hunt 4111 185.00 jolly jump rental:spring egg hunt 4111 185.00 740.00 131120 04123/2009 004141 MAINTEX INC misc custodial supplies:library 1,672.37 1,672.37 131121 04123/2009 012844 MANCILLAS, ROBERT FIDEL refund:prkg cite #68707 dismissed 300.00 300.00 131122 0412312009 007210 MIDORI GARDENS Mar landscp svcs: Parks 70,105.00 70,105.00 131123 04123/2009 004951 MIKE'S PRECISION WELDING welding svcs:crc door 95.00 95.00 INC. 131124 04123/2009 004002 MILNER SIGNS FIP:Truax Dev:newsigns:old town 4,323.55 4,323.55 Page-.4 apChkLst Final Check List Page: 5 04123/2009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131125 04123/2009 005006 NBS GOVERNMENT FINANCE Revenues wrkshp: 614109 R.G.ID.B. 170.00 170.00 GROUP 131126 04/2312009 008528 NICHOLS, MELBURG & ROSETTO Feb Eng Srvcs:Civic Center 47,866.21 Feb Dsgn:Old Town Infrastructure 20,748.40 68,614.61 131127 04123/2009 009337 NOLTE ASSOCIATES INC 2120-3119109 Eng Srvcs:Bridge Realign 3,031.09 3,031.09 131128 0412312009 002139 NORTH COUNTY TIMES Mar Advertising: Theater Events 819.90 819.90 131129 04/2312009 002105 OLD TOWN TIRE & SERVICE City Vehicle Maint Svcs:City Pool Veh. 2,967.86 City Vehicle Maint Svcs: Police 36.57 City Vehicle Maint Svcs:TCSD 36.57 3,041.00 131130 04123/2009 004538 PAULEY EQUIPMENT COMPANY City veh repair & maint:police 147.75 City veh repair & maint:police 104.74 252.49 131131 04123/2009 012833 PC MALL GOV, INC. 1 yr subscrlanti-virus software:I.S. 1,835.16 1,835.16 131132 04123/2009 012832 PELAK, CAROL L. refund:sec dep:crc pool 150.00 150.00 131133 04123/2009 002498 PETRA GEOTECHNICAL INC Feb geotech srvcs:liefer rd 1,955.00 1,955.00 131134 04/2312009 000249 PETTY CASH Petty Cash Reimbursement 432.11 432.11 131135 04123/2009 011660 PLANNET CONSULTING Mar consult srvcs: Civic Cntr Master 135.63 135.63 131136 04123/2009 010338 POOL & ELECTRICAL PRODUCTS Pool chemicals:csd maint 420.24 420.24 INC 131137 04123/2009 000253 POSTMASTER Express Mail & Postal Svcs 80.87 80.87 131138 04123/2009 000254 PRESS ENTERPRISE COMPANY Mar advertising:Spring egg huntlcsd 568.40 568.40 INC 131139 04123/2009 008856 PROFIT SYSTEMS, INC. fy 09110 eventpro renewal agrmnt 530.00 530.00 131140 04123/2009 003697 PROJECT DESIGN 2116-3115 Dsgn Srvcs:Murr. Crk Br1Ovrlnd 24,996.23 24,996.23 CONSULTANTS 131141 04123/2009 005075 PRUDENTIAL OVERALL SUPPLY Mar FlrMtslUniform/Twl Rentals:Cty Facs 1,662.23 1,662.23 Pagea apChkLst Final Check List Page: 6 04123/2009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131142 04123/2009 009725 RAZAVI, MANDIS TCSD Instructor Earnings 492.80 492.80 131143 04123/2009 000271 RBF CONSULTING Feb eng srvcs:1-15/SR-79 Ult. Intrchg 15,419.85 15,419.85 131144 04123/2009 000353 RIVERSIDE CO AUDITOR Mar'09 parking citation assessments 13,912.82 Feb '09 parking citation assessments 12,087.25 26,000.07 131145 04123/2009 002226 RUSSO, MARY ANNE TCSD Instructor Earnings 805.00 805.00 131146 04123/2009 000277 S & S ARTS & CRAFTS INC Misc supplies:movies in the park 223.17 223.17 131147 04123/2009 012665 SAFE-ENTRY TECHNICAL INC equipment maint: Stn 92 105.35 105.35 131148 04123/2009 012845 SEVY, ANDREW refund:prkg cite #70651 dismissed 25.00 25.00 131149 04123/2009 004534 SKYTERRA Mar Eoc Satellite Phone Srvcs:Cm/Fire 144.94 Feb Eoc Satellite Phone Srvcs:Cm/Fire 144.94 289.88 131150 04/23/2009 000645 SMART & FINAL INC Misc supplies: F.I.T. Pgrm 71.84 Misc supplies:FAM pgrm 29.35 101.19 131151 04/23/2009 000537 SO CALIF EDISON Apr 2-27-560-0625 Deerhollow Way 2,964.69 Apr 2-26-887-0789 various mtrs 1,414.97 Apr 2-30-296-9522:31035 rncho vista 347.09 Apr 2-29-974.7568 Ynez Rd TC-1 104.68 Apr 2-28-397-1315 Redhawk Pkwy 19.16 4,850.59 131152 04123/2009 001212 SO CALIF GAS COMPANY Apr 055-475.6169-5 PBSP 171.15 Apr 015-575-0195-2:FS#92 151.06 322.21 131153 04123/2009 000519 SOUTH COUNTY PEST CONTROL pest control srvcs:Avenida SanomalMarg. 84.00 84.00 INC 131154 04123/2009 006145 STENO SOLUTIONS Mar transcription srvcs:Police 2,006.88 2,006.88 TRANSCRIPTION 131155 04123/2009 000305 TARGET BANK BUS CARD SRVCS Misc supplies:parent & me pgrm 68.31 Misc supplies:tiny tot pgrm 30.35 98.66 131156 04123/2009 012265 TEMECULA ACE HARDWARE CIO Misc Supplies:Var. Parks 26.90 26.90 131157 04123/2009 010848 TEMECULA PLANTSCAPE Apr plantscape srvcs:library 200.00 200.00 Page6 apChkLst 04123/2009 12:02:53PM Final Check List CITY OF TEMECULA Page: 7 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131158 04123/2009 000515 TEMECULA VALLEY CHAMBER State/City addr:F.Hogan/C.Fox 419109 80.00 OF State/City addr:J. Crummel 419109 40.00 120.00 131159 04123/2009 004190 TEMECULA VALLEY FILM Sponsorship:2009 tv film festival 51,000.00 51,000.00 FESTIVAL 131160 04123/2009 007187 TEMECULA YOUTH BASEBALL refund:snack bar deposit 200.00 200.00 131161 04123/2009 008379 THEATRE FOUNDATION, THE Princess and the Pea production 414109 264.44 264.44 131162 04123/2009 012676 THERMAL SOLUTIONS INT'L PDA printer paper:Police 674.25 674.25 131163 04123/2009 000319 TOMARK SPORTS INC equip repairlmaint supplies:marg. park 320.92 320.92 131164 04123/2009 012626 TOMSETH, DIANA H. TCSD Instructor Earnings 539.00 539.00 131165 04/2312009 012815 TOUR OF TEMECULA GUIDE Dec-May advertising:childrens museum 625.00 625.00 131166 04123/2009 010276 TW TELECOM Apr high speed internet:FS#92 117.12 117.12 131167 04123/2009 004001 U C REGENTS LAFCOs,Cities&Spec.Distr. 615 B.Lowrey 179.00 179.00 131168 04123/2009 004981 UNISOURCE SCREENING & 211-15109 bckgrnd srvcs:hr 102.50 102.50 131169 04123/2009 012549 UPODIUM City vehicle maint supplies: stn 84 86.68 86.68 131170 04123/2009 004261 VERIZON Apr xxx-0074 general usage 300.31 Apr xxx-0073 general usage 265.02 Apr xxx-3564 alarm 70.08 Apr xxx-3143 PD overland ofc 42.07 Apr xxx-391 0 1 st St Irrigation 38.10 Apr xxx-0714 PD Mall Alarm 36.98 Apr xxx-4723 Police Storefront 36.16 Apr xxx-5473 Moraga Rd 35.04 Apr xxx-8573 general usage 35.04 Apr xxx-6084 general usage 34.03 892.83 131171 04123/2009 004789 VERIZON ONLINE Apr Internet svcs:EOC backup @ stn 84 439.95 Apr Internet svcs:PD DSL 42.99 482.94 131172 04123/2009 009663 VERNON LIBRARY SUPPLIES IN C Security book tags:library 18,047.50 18,047.50 Page:? apChkLst Final Check List Page: 8 04123/2009 12:02:53PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 131173 04123/2009 009101 VISION ONE INC Mar ticketing software license:theater 1,446.40 1,446.40 131174 04123/2009 012846 WENNING, JASON R refund:prkg cite #68676 dismissed 99.00 99.00 131175 04123/2009 011740 WEST COAST LIGHTS & SIRENS Install pre-emption:3 pd patrol units 1,689.16 1,689.16 INC 131176 04123/2009 000230 WILLDAN FINANCIAL SERVICES Jan-Mar assessment eng srvcs:csd 5,250.00 5,250.00 131177 04123/2009 008530 WITMER ASSOCIATES INC misc. supplies: stn 84 170.96 170.96 Grand total for UNION BANK OF CALIFORNIA: 553,687.97 Page:B apChkLst Final Check List Page: 9 04123/2009 12:02:53PM CITY OF TEMECULA 100 checks in this report. Grand Total All Checks: 553,687.97 Page9 ITEM NO. 4 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: May 12, 2009 SUBJECT: City Treasurer's Report as of March 31, 2009 PREPARED BY: Rudy Graciano, Revenue Manager RECOMMENDATION: Approve and file the City Treasurer's Report as of March 31, 2009. 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 March 31, 2009. FISCAL IMPACT: None. ATTACHMENTS: City Treasurer's Report as of March 31, 2009 City of Temecula City of Temecula, Californ is 43266 Business Park Drive ;I Portfolio Management Temecula, CA, 92596 My Portfolio Summary (951)694 6436 March 31, 2009 Par Market Book % of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Certificates of Deposit - Bank 873,983.53 873,983.53 873,983.53 0.40 1,177 518 5.600 5.678 Managed Pool Accounts 102,443,471.44 102,443,471.44 102,443,471.44 47.31 1 1 1.801 1.826 Letter of Credit 3.00 3.00 3.00 0.00 1 1 0.000 0.000 Local Agency I nvestment Funds 54,362,720.01 54,443,161.98 54,362,720.01 25.11 1 1 2.652 2.689 Fed eral Ag ency Callable Securities 42,000,000.00 42,655,940.00 41,996,937.50 19.40 1,346 1,021 4.003 4.059 Fed eral Ag ency B ullet Securities 14,849,000.00 15,057,401.20 14,816,705.33 6.84 625 452 2.146 2.176 Investment Contracts 2,031,468.76 2,031,468.76 2,031,468.76 0.94 6,979 3,075 5.509 5.585 216,560,646.74 217,505,429.91 216,525,289.57 100.00% 375 261 2.516 2.551 Investments Cash Passbook/Checking 9,595,302.09 9,595,302.09 9,595,302.09 1 1 0.000 0.000 (not included in yield calculations) Total Cash and Investments 226,155,948.83 227,100,732.00 226,120,591.66 375 261 2.516 2.551 Current Year Average Daily Balance Effective Rate of Return Reporting period 03/01/2009-03/31/2009 Run Date: 0413{U2009 -12:57 483,968-73 5,979,093.14 226,265, 918.73 2.52% Portfolio TEME CID PM (PRF_PM1) SymRept 6.41.202a Report Ver. 5.00 City of Temecula, California Portfolio Management Portfolio Details - Investments March 31, 2009 Page 2 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 95453518-2 86-12 GENIM2 USBANK 06/12/2007 873,983.53 673,983.53 673,963.53 5.600 Subtotal and Average 873,983.53 873,983.53 873,983.53 873,983.53 5.600 5.676 516 09.101/2010 5.600 5.678 518 Managed Pool Accounts 122216003-2 CITY COP RE2 104348008-1 01-2 IMP 2 104346006-4 01-2 RESA2 104348016-3 01-2 RESB2 104346000-4 01-2 SPTAX2 94669911-2 03-1 ACQA2 94669921-3 03-1 ACQB3 94669902-3 03-1 BONDS 946699063 03-1 RES A3 94669916-2 03-1 RES B2 94669900-4 03-1 SPTAXI 793593011-2 03-2 ACQ 2 793593009-2 03-2 EMW D 2 793593007-2 03-2IMP2 793593016-4 03-2 LOG 2 793593010-2 03-2 PWADM2 793593006-2 03-2 RES 2 793593000-3 03-2 SPTX2 744727011-2 03-3 ACQ2 744727002-2 03-3 BOND 2 744727007-2 03-3 CITY2 744727009 03-3 EMWD 1 744727006-3 03-3 RES3 744727000-4 03-3 SP TX4 94686001-2 03-4ADMIN2 94686005-1 03-4 PREP1 94686000-1 03-4 RED1 94686006-2 03-4 RES2 786776002-2 03-6 BON D2 786776007-2 03-61MP2 766776006-2 03-6 RES2 786776000-3 03-6 SP TX3 95453510-2 68-12 BON D2 95453518-4 88-12 G14 Run Date: 04130!2009 - 1257 ASSURED GUARANTY 07/01/2008 1.00 1.00 1.00 1.000 0.986 1.000 1 First American Treasury 12/08/2008 257,154.19 257,154.19 257,154.19 0.540 0.533 0.540 1 First American Treasury 12/06/2006 607.02 607.02 607.02 0.540 0.533 0.540 1 First American Treasury 12/08/2008 290.12 290.12 290.12 0.530 0.523 0.530 1 First American Treasury 12/06/2006 92,546.08 92,548.06 92,546.06 0.540 0.533 0.540 1 First American Treasury 12/08/2008 4,272.50 4,272.50 4,272.50 0.530 0.523 0.530 1 First American Treasury 12/08/2006 15,112.67 15,112.67 15,112.67 0.530 0.523 0.530 1 First American Treasury 12/06/2008 0.34 0.34 0.34 0.540 0.533 0.540 1 First American Treasury 12/08/2008 303.82 303.82 303.62 0.530 0.523 0.530 1 First American Treasury 12/08/2008 467.92 467.92 467.92 0.530 0.523 0.530 1 First American Treasury 12/08/2008 150,469.57 150,489.57 150,489.57 0.530 0.523 0.530 1 First American Treasury 12/08/2008 92,028.50 92,028.50 92,028.50 0.530 0.523 0.530 1 First American Treasury 12/08/2008 4,229.32 4,229.32 4,229.32 0.530 0.523 0.530 1 First American Treasury 12/08/2008 3,442.06 3,442.06 3,442.06 0.530 0.523 0.530 1 First American Treasury 12/08/2006 514.25 514.25 514.25 0.530 0.523 0.530 1 First American Treasury 12/06/2008 1,716.62 1,716.62 1,716.62 0.530 0.523 0.530 1 First American Treasury 12/06/2006 367.55 367.55 367.55 0.530 0.523 0.530 1 First American Treasury 12/08/2008 3.66 3.66 3.66 0.530 0.523 0.530 1 First American Treasury 12/04/2008 147,142.60 147,142.60 147,142.60 0.530 0.523 0.530 1 First American Treasury 12/04/2008 0.51 0.51 0.51 0.530 0.523 0.530 1 First American Treasury 12/04/2008 300.47 300.47 300.47 0.530 0.523 0.530 1 First American Treasury 0.00 0.00 0.00 0.960 0.947 0.960 1 First American Treasury 12/04/2008 90.79 90.79 90.79 0.530 0.523 0.530 1 First American Treasury 12/04/2008 156,810.53 156,810.53 156,810.53 0.530 0.523 0.530 1 First American Treasury 12/04/2008 14,126.16 14,126.16 14,126.16 0.530 0.523 0.530 1 First American Treasury 12/04/2006 4,071.71 4,071.71 4,071.71 0.530 0.523 0.530 1 First American Treasury 12/04/2008 2.36 2.36 2.36 0.530 0.523 0.530 1 First American Treasury 12/04/2008 735.43 735.43 735.43 0.530 0.523 0.530 1 First American Treasury 12/06/2006 0.02 0.02 0.02 0.530 0.523 0.530 1 First American Treasury 12/08/2008 872.15 872.15 872.15 0.530 0.523 0.530 1 First American Treasury 12/06/2006 809.66 809.66 809.66 0.530 0.523 0.530 1 First American Treasury 12/08/2008 27,277.89 27,277.89 27,277.89 0.530 0.523 0.530 1 First American Treasury 12/08/2008 4.16 4.16 4.16 0.530 0.523 0.530 1 First American Treasury 12/08/2008 54,994.32 54,994.32 54,994.32 0.535 0.528 0.535 1 Portfolio TEME CID PM (PRF_PM2) SymRept 6.41.202a Report Ver. 5.00 City of Temecula, California Portfolio Management Portfolio Details - Investments March 31, 2009 Page 3 Average Purchase Stated YTM YTM Daysto Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 1 2221 60 03-4 CITY COP RE4 First American Treasury 12/06/2006 542.11 542.11 542.11 0.530 0.523 0.530 1 122216006-3 CITY COPCIP2 First American Treasury 12/04/2006 946.75 946.75 946.75 0.000 0.000 1 12221 6 00 0-2 CITY COPLPF2 First American Treasury 12/06/2006 35.76 35.76 35.76 0.530 0.523 0.530 1 9 443 41 6 0-1 RDA 02 INT1 First American Treasury 12/06/2006 17.79 17.79 17.79 0.530 0.523 0.530 1 94434161-2 RDA 02 PRIN2 First American Treasury 12/06/2006 143.97 143.97 143.97 0.530 0.523 0.530 1 107666006-2 RDA 06 CIPA2 First American Treasury 12/06/2006 62,413.20 62,413.20 62,413.20 0.530 0.523 0.530 1 107666000-2 RDA 06A INT2 First American Treasury 12/06/2006 10.27 10.27 10.27 0.530 0.523 0.530 1 1076660163 RDA 06B CIP3 First American Treasury 12/06/2006 6,624.69 6,624.69 6,624.69 0.530 0.523 0.530 1 107666010-2 RDA 06B INT2 First American Treasury 12/06/2006 0.00 0.00 0.00 0.530 0.523 0.530 1 1 07 6 66 01 6-2 RDA 06B RES2 First American Treasury 12/06/2006 202,292.57 202,292.57 202,292.57 0.530 0.523 0.530 1 107666030-2 RDA 07 CAP12 First American Treasury 12/06/2006 0.00 0.00 0.00 0.530 0.523 0.530 1 107666027-2 RDA 07 ESC2 First American Treasury 12/06/2006 0.00 0.00 0.00 0.530 0.523 0.530 1 107666020-2 RDA 071NT2 First American Treasury 12/06/2006 37.52 37.52 37.52 0.530 0.523 0.530 1 107666026-2 RDA 07 PROJ2 First American Treasury 12/06/2006 16,255.64 16,255.64 16,255.64 0.530 0.523 0.530 1 107666026-2 RDA 07 RES2 First American Treasury 12/06/2006 91.46 91.46 91.46 0.530 0.523 0.530 1 94 43 23 6 0-2 TCSD COP INT First American Treasury 12/06/2006 110,345.01 110,345.01 110,345.01 0.530 0.523 0.530 1 793593011-1 03-2-1 ACQUI CA Local Agency Investment Fun 42,340,622.72 42,340,622.72 42,340,622.72 1.622 1.797 1.622 1 793593009-1 03-2-1 EMWD CA Local Agency Investment Fun 1,536,196.76 1,536,196.76 1,536,196.76 1.622 1.797 1.622 1 793593007-1 03-2-11MPRO CA Local Agency Investment Fun 1,163,471.96 1,163,471.96 1,163,471.96 1.622 1.797 1.622 1 793593010-1 03-2-1 PW AD CA Local Agency Investment Fun 606,642.52 606,642.52 606,642.52 1.622 1.797 1.622 1 7935930063 03-23 RESER CA Local Agency Investment Fun 3,550,650.75 3,550,650.75 3,550,650.75 1.622 1.797 1.622 1 122216006 CITY COP CIP CA Local Agency Investment Fun 22,232,770.46 22,232,770.46 22,232,770.46 1.622 1.797 1.622 1 122216003-1 CITY COP RE1 CA Local Agency Investment Fun 609,616.67 609,616.67 609,616.67 1.622 1.797 1.622 1 107666006-1 RDA 06 CIP-1 CA Local Agency Investment Fun 10,174,050.15 10,174,050.15 10,174,050.15 2.046 2.016 2.046 1 107666016-2 RDA 06 CIP-2 CA Local Agency Investment Fun 3,016,570.63 3,016,570.63 3,016,570.63 1.622 1.797 1.622 1 107666030-1 RDA 07 CAP-1 CA Local Agency Investment Fun 0.00 0.00 0.00 2.046 2.016 2.046 1 107666027-1 RDA 07 ESC-1 CA Local Agency Investment Fun 0.00 0.00 0.00 2.046 2.016 2.046 1 107666026-1 RDA 07 PRO-1 CA Local Agency Investment Fun 14,451,739.90 14,451,739.90 14,451,739.90 1.622 1.797 1.622 1 107666026-1 RDA 07 RES-1 CA Local Agency Investment Fun 1,103,969.61 1,103,969.61 1,103,969.61 1.622 1.797 1.622 1 107666006 RDA 06 RES A MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 1 94434166 RDA TABS RES MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 1 Subtotal and Average 103,802,227.24 102,443,471.44 102,443,471.44 102,443,471.44 1.801 1.826 1 Letter of Credit 104346006-1 02006 ASSURANCE CO BOND INSURANCE 793593006-2 02006 Citibank, N.A. 793593006-1 02005 Ohio Savings Bank Subtotal and Average 3.00 Run Date_ 04/30/2009 -1257 07/01/2006 1.00 1.00 1.00 0.000 0.000 1 07/01/2006 1.00 1.00 1.00 0.000 0.000 1 07/01/2006 1.00 1.00 1.00 0.000 0.000 1 3.00 3.00 3.00 0.000 0.000 1 Portfollo TEME CID PM (PRF_PM2) Sy.Rept 6 41 202a City of Temecula, California Portfolio Management Portfolio Details - Investments March 31, 2009 Page 4 Average Purchase Stated YTM YTM Daysto Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Local Agency Investment Funds 94669911-1 03-1 ACQ A2 CA Local Agency Investment Fun 1,495,054.10 1,495,054.10 1,495,054.10 1.622 1.797 1.622 1 94669921-1 03-1 ACQ B2 CA Local Agency Investment Fun 3,623,066.10 3,623,066.10 3,623,066.10 1.622 1.797 1.622 1 744727011-1 033 ACQ2 CA Local Agency Investment Fun 3,624,559.69 3,624,559.69 3,624,559.69 1.622 1.797 1.622 1 744727007-1 033 CITY 2 CA Local Agency Investment Fun 739,429.31 739,429.31 739,429.31 1.622 1.797 1.622 1 766776007-1 03-6 IMP1 CA Local Agency Investment Fun 512,007.60 512,007.60 512,007.60 1.622 1.797 1.622 1 SYSCITY CITY CA Local Agency Investment Fun 19,066,252.61 19,121,171.72 19,066,252.61 2.694 2.654 2.694 1 SYSRDA RDA CA Local Agency Investment Fun 10,960,365.24 10,960,437.62 10,960,365.24 2.694 2.654 2.694 1 SYSTCSD TCSD CA Local Agency Investment Fun 13,921,964.76 13,947,435.44 13,921,964.76 2.694 2.654 2.694 1 Subtotal and Average 54,362,720.01 54,362,720.01 54,443,161.98 54,362,720.01 2.652 2.689 1 Commercial Paper - Interest Bearing Subtotal and Average 168,903.23 Federal Agency Callable Securities 3133X4M1 01075 Federal Farm Credit Bank 09/26/2007 1,000,000.00 1,016,440.00 1,000,000.00 5.000 4.932 5.000 1,276 09/26/2012 31331YSC5 01065 Federal Farm Credit Bank 02/06/2006 2,000,000.00 2,014,360.00 2,000,000.00 3.590 3.541 3.590 1,041 02/06/2012 31331YTS9 01067 Federal Farm Credit Bank 02/14/2006 2,000,000.00 2,036,260.00 2,000,000.00 3.750 3.699 3.750 1,412 02/11/2013 31331YV49 01096 Federal Farm Credit Bank 06/11/2006 2,000,000.00 2,010,000.00 2,000,000.00 4.150 4.093 4.150 1,167 06/11/2012 31331Y2F6 01099 Federal Farm Credit Bank 06/30/2006 2,000,000.00 2,015,000.00 2,000,000.00 4.230 4.172 4.230 620 06/30/2011 31331Y3E6 01103 Federal Farm Credit Bank 07/15/2006 1,000,000.00 1,020,940.00 1,000,000.00 3.950 3.696 3.950 635 07/15/2011 31331Y4G2 01106 Federal Farm Credit Bank 07/26/2006 1,000,000.00 1,007,610.00 1,000,000.00 3.300 3.255 3.300 463 07/26/2010 31331Y4H0 01107 Federal Farm Credit Bank 07/26/2006 1,000,000.00 1,006,440.00 1,000,000.00 3.750 3.699 3.750 646 07/26/2011 31331Y5N6 01112 Federal Farm Credit Bank 06/20/2006 1,000,000.00 1,011,560.00 1,000,000.00 4.250 4.192 4.250 1,237 06/20/2012 31331Y5J5' 01113 Federal Farm Credit Bank 06/21/2006 1,000,000.00 1,010,630.00 1,000,000.00 4.020 3.965 4.020 1,056 02/21/2012 31331Y5T3 01115 Federal Farm Credit Bank 06/11/2006 1,000,000.00 1,010,000.00 1,000,000.00 4.000 3.945 4.000 662 06/11/2011 31331Y5V6 01117 Federal Farm Credit Bank 06/26/2006 1,000,000.00 1,012,190.00 1,000,000.00 4.400 4.340 4.400 1,606 06/26/2013 31331 GAP4 01122 Federal Farm Credit Bank 09/04/2006 1,000,000.00 1,012,610.00 1,000,000.00 4.250 4.192 4.250 1,252 09/04/2012 3133XLSQ7 01069 Federal Home Loan Bank 07/30/2007 1,000,000.00 1,015,000.00 1,000,000.00 5.650 5.573 5.650 1,216 07/30/2012 3133XM5R6 01073 Federal Home Loan Bank 06/26/2007 1,000,000.00 1,015,630.00 1,000,000.00 5.060 5.011 5.060 677 06/26/2011 3133XM5E7 01074 Federal Home Loan Bank 06/26/2007 1,000,000.00 1,016,250.00 1,000,000.00 5.220 5.135 5.206 1,245 06/26/2012 3133XQEF5 01069 Federal Home Loan Bank 04/02/2006 1,000,000.00 1,000,310.00 1,000,000.00 3.600 3.746 3.600 1,097 04/02/2012 3133XQY46 01093 Federal Home Loan Bank 04/26/2006 1,000,000.00 1,001,660.00 1,000,000.00 3.600 3.551 3.600 940 10/26/2011 3133XRSM3 01102 Federal Home Loan Bank 07/23/2006 1,000,000.00 1,032,610.00 1,000,000.00 4.050 3.993 4.049 1,027 01/23/2012 3133XRTQ3 01104 Federal Home Loan Bank 07/30/2006 1,000,000.00 1,009,060.00 1,000,000.00 4.000 3.946 4.001 1,125 04/30/2012 3133XRVA5 01109 Federal Home Loan Bank 07/30/2006 1,000,000.00 1,036,560.00 1,000,000.00 4.220 4.162 4.220 1,216 07/30/2012 3133XRWE6 01110 Federal Home Loan Bank 06/12/2006 1,000,000.00 1,024,060.00 1,000,000.00 4.125 4.066 4.125 663 06/12/2011 3133XRM 01116 Federal Home Loan Bank 06/20/2006 1,000,000.00 1,034,060.00 1,000,000.00 4.070 4.014 4.070 1,237 06/20/2012 3133XRYN4 01116 Federal Home Loan Bank 06/20/2006 1,000,000.00 1,009,360.00 1,000,000.00 3.375 3.329 3.375 506 06/20/2010 Portfollo TEME CID Run Date_ 04/30/2009 -12 5] PM (PRF_PM2) Sym Rept 6 41 202a City of Temecula, California Portfolio Management Portfolio Details - Investments March 31, 2009 Page 5 Average Purchase Stated YTM YTM Daysto Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Federal Agency Callable Securities 3133XRZN3 01119 Federal Home Loan Bank 06/27/2006 1,000,000.00 1,010,940.00 999,750.00 4.000 3.953 4.006 1,062 02/27/2012 3133XS2J6 01120 Federal Home Loan Bank 06/27/2006 1,000,000.00 1,009,060.00 1,000,000.00 3.375 3.329 3.375 513 06/27/2010 3133XS3A4 01121 Federal Home Loan Bank 06/26/2006 1,000,000.00 1,010,310.00 1,000,000.00 3.625 3.559 3.609 696 02/26/2011 3133XKH24 1062 Federal Home Loan Bank 04/16/2007 1,000,000.00 1,001,560.00 1,000,000.00 5.250 5.176 5.250 1,111 04/16/2012 3126X7TY0 01095 Federal Home Loan Mtg Corp 06/04/2006 2,000,000.00 2,009,960.00 2,000,000.00 4.000 3.945 4.000 1,160 06/04/2012 3136F9CB7 01066 Federal National Mtg Assn 03/11/2006 2,000,000.00 2,131,660.00 2,000,000.00 4.000 3.945 4.000 1,440 03/11/2013 3136F9DP5 01090 Federal National Mtg Assn 03/27/2006 1,000,000.00 1,066,660.00 1,000,000.00 4.000 3.945 4.000 1,456 03/27/2013 3136F9MU4 01094 Federal National Mtg Assn 04/30/2006 1,000,000.00 1,001,560.00 1,000,000.00 3.000 2.959 3.000 394 04/30/2010 3136F9UF6 01097 Federal National Mtg Assn 06/24/2006 1,000,000.00 1,005,940.00 1,000,000.00 3.600 3.551 3.600 632 12/24/2010 3136F9UP6 01096 Federal National Mtg Assn 06/24/2006 1,000,000.00 1,006,560.00 997,167.50 4.000 4.044 4.101 614 06/24/2011 3136F9WV1 01100 Federal National Mtg Assn 07/02/2006 1,000,000.00 1,007,610.00 1,000,000.00 4.000 3.945 4.000 457 07/02/201C 3136F9YW7 01106 Federal National Mtg Assn 06/05/2006 1,000,000.00 1,010,000.00 1,000,000.00 4.000 3.945 4.000 656 06/05/2011 Subtotal and Average 43,125,969.76 42,000,000.00 42,655,940.00 41,996,937.50 4.003 4.059 1,021 Federal Agency Bullet Securities 31331 XMQ2 01059 31331YG46 01092 31331Y3P3 01105 31331Y3N6 01111 3133XRRU6 01101 3133XSWM6 01124 1043460065 01-2 RESA3 104346016-4 01-2 RESB3 1043460005 01-2 SPTAX3 94669906-4 03-1 RESA4 946699163 03-1 RES B3 946699005 03-1 SPTAX2 7935930165 03-2 LOC 3 744727006-4 033 RES4 744727000-5 033 SP TX5 94666000-2 03-4 RED2 94666006-3 03-4 RES3 7667760063 03-6 RES3 766776000-4 03-6 SP TX4 Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Federal Home Loan Mtg Corp Subtotal and Average 14,339,660.21 01/26/2007 1,000,000.00 1,044,360.00 1,000,000.00 5.000 4.934 5.002 420 05/26/2010 04/21/2006 2,000,000.00 2,045,000.00 1,993,700.00 2.630 2.703 2.740 750 04/21/2011 07/15/2006 1,000,000.00 1,043,750.00 996,140.00 3.500 3.514 3.563 915 10/03/2011 07/30/2006 1,000,000.00 1,044,690.00 999,000.00 3.625 3.610 3.661 635 07/15/2011 07/03/2006 1,000,000.00 1,043,750.00 996,570.00 3.625 3.626 3.676 621 07/01/2011 01/23/2009 1,000,000.00 996,250.00 1,000,000.00 2.100 2.071 2.100 1,027 01/23/2012 03/03/2009 441,000.00 440,470.60 439,760.51 0.560 1.107 1.122 152 06/31/2009 03/03/2009 203,000.00 202,756.40 202,436.65 0.560 1.107 1.122 152 06/31/2009 03/03/2009 162,000.00 161,605.60 161,552.02 0.560 1.107 1.122 152 06/31/2009 03/03/2009 666,000.00 664,960.60 663,605.27 0.560 1.107 1.122 152 06/31/2009 03/03/2009 223,100.00 222,632.26 222,463.07 0.560 1.107 1.122 152 06/31/2009 03/03/2009 231,000.00 230,722.60 230,361.22 0.560 1.107 1.122 152 06/31/2009 03/03/2009 2,641,000.00 2,637,590.60 2,633,143.65 0.560 1.107 1.122 152 06/31/2009 03/03/2009 2,176,000.00 2,175,366.40 2,171,977.22 0.560 1.107 1.122 152 06/31/2009 03/03/2009 220,000.00 219,736.00 219,391.64 0.560 1.107 1.122 152 06/31/2009 03/03/2009 21,400.00 21,374.32 21,340.62 0.560 1.107 1.122 152 06/31/2009 03/03/2009 96,000.00 95,664.60 95,734.53 0.560 1.107 1.122 152 06/31/2009 03/03/2009 336,000.00 337,594.40 337,065.34 0.560 1.107 1.122 152 06/31/2009 03/03/2009 26,500.00 26,465.60 26,421.19 0.560 1.107 1.122 152 06/31/2009 14,849,000.00 15,057,401.20 14,816,705.33 2.146 2.176 452 Investment Contracts 95453516-1 66-12 GEN IM IXIS Funding Corp Run Date_ 04/30/2009 -1257 07/24/1996 500,000.00 500,000.00 500,000.00 5.430 5.509 5.565 3,075 09/01/2017 Portfollo TEME CID PM (PRF_PM2) Sy.Rept 6 41 202a City of Temecula, California Portfolio Management Portfolio Details - Investments March 31, 2009 Page 6 Average Purchase Stated YTM VTM Daysto Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Investment Contracts 95453516-1 66-12 RES 2 IXIS Funding Corp 07/24/1996 1,531,466.76 1,531,466.76 1,531,466.76 5.430 5.509 5.565 3,075 09/01/2017 Subtotal and Average 2,031,468.76 2,031,468.76 2,031,468.76 2,031,468.76 5.509 5.585 3,075 Total and Average 226,265,918.73 216,560,646.74 217,505,429.91 216,525,289.57 2.516 2.551 261 Run Date_ 04/30/2009 -1257 Portfollo TEME CP PM (PRF_PM2) Sy.Rept 6 41 202a City of Temecula, California Portfolio Management Portfolio Details - Cash March 31, 2009 Page 7 Average Purchase Stated YTM YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Retention Escrow Account SYSAAA#1202 AAA#1202 COMMUNITY BANK 06/29/2006 499,404.64 499,404.64 499,404.64 0.000 0.000 1 4110170261 EDGEDEV TORRY PINES BANK 11/14/2006 79,414.44 79,414.44 79,414.44 0.000 0.000 1 23303600 PCL CONST Wells Fargo Bank 01/29/2009 311,345.76 311,345.76 311,345.76 0.000 0.000 1 Passbook/Checking Accounts SYSPetty Cash Petty Cash City of Temecula 07/01/2006 2,610.00 2,610.00 2,610.00 0.000 0.000 1 SYSFIex Ck Acct Flex Ck Acct Union Bank of California 07/01/2006 15,245.02 15,245.02 15,245.02 0.000 0.000 1 SYSGen Ck Acct Gen Ck Acct Union Bank of California 07/01/2006 6,669,456.45 6,669,456.45 6,669,456.45 0.000 0.000 1 SYSParking Ck PARKING CITA Union Bank of California 07/01/2006 17,623.56 17,623.56 17,623.56 0.000 0.000 1 Average Balance 0.00 1 Total Cash and Investments 226,265,918.73 226,155,948.83 227,100,732.00 226,120,591.66 2.516 2.551 261 Run Date_ 04/30/2009 -1257 Portfollo TEME CID PM (PRF_PM2) Sy.Rept 6 41 202a Cash and Investments Report CITY OF TEMECULA Through March 2009 Fund Total 001 GENERAL FUND $ 46,178,487.69 101 STATE TRANSPORTATION FUND 436,053.28 120 DEVELOPMENT IMPACT FUND 5,408,473.10 150 AB 2766 FUND 529,201.97 160 AB 3229 COPS 2.41 165 RDA AFFORDABLE HOUSING 20% SET ASIDE 10,460,465.06 170 MEASURE A FUND 8,987,955.98 190 TEMECULA COMMUNITY SERVICES DISTRICT 1,307,630.07 192 TCSD SERVICE LEVEL "B" STREET LIGHTS 103,767.84 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 447,308.61 194 TCSD SERVICE LEVEL "D" 40,191.63 195 TCSD SERVICE LEVEL "R" STREET/ROAD 38,500.45 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 203,513.70 197 TEMECULA LIBRARY FUND 2,598,840.55 210 CAPITAL IMPROVEMENT PROJECT FUND 40,193,663.54 272 CFD 01-2 HARVESTON A&B IMPROVEMENT 257,154.19 273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND 5,337,505.37 275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND 4,711,432.27 276 CFD 03-6 HARVESTON 2 IMPROVEMENT FUND 512,879.95 277 CFD-RORIPAUGH 45,161,991.34 280 REDEVELOPMENT AGENCY - CIP PROJECT 15,029,019.27 300 INSURANCE FUND 1,233,530.45 310 VEHICLES FUND 746,349.67 320 INFORMATION SYSTEMS 432,892.33 330 SUPPORT SERVICES 291,599.58 340 FACILITIES 48,125.47 370 CITY 2008 COP'S DEBT SERVICE 851,416.80 380 RDA DEBT SERVICE FUND 18,053,136.70 390 TCSD 2001 COP'S DEBT SERVICE 125,844.77 460 CFD 88-12 DEBT SERVICE FUND 4,092,067.30 472 CFD 01-2 HARVESTON A&B DEBT SERVICE 937,831.56 473 CFD 03-1 CROWNS HILL DEBT SERVICE FUND 1,500,374.64 474 AD 03-4 JOHN WARNER ROAD DEBT SERVICE 138,098.36 475 CFD 03-3 WOLF CREEK DEBT SERVICE FUND 2,871,730.08 476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 421,498.02 477 CFD 03-02 RORIPAUGH DEBT SERVICE FUND 7,325,677.01 700 CERBT CALIFORNIA EE RETIREE-GASB45 2,520,212.92 Total : 229,534,423.93 LESS: *CERBT CALIFORNIA EE RETIREE - GASB 45 (2,433,691.93) Grand Total: $ 227,100,732.00 * These investments are in an irrevocable trust with CalPers and are only available to finance retiree health care. These monies are not available for general City operations/capital projects. Since they are not available for general expenditure, they will be excluded from the monthly City Treasurer's Report so as not to overstate the City's investments. ITEM NO. 5 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: May 12, 2009 SUBJECT: Professional Services Agreement for Special Tax Administration Services PREPARED BY: David Bilby, Senior Debt Analyst RECOMMENDATION: That the City Council approve a professional services agreement with NBS for an annual amount not to exceed $59,857.21 for fiscal year 2009-10 for special tax administration for the City's Community Facilities Districts and Assessment District. BACKGROUND: The City of Temecula has six (6) existing Community Facilities Districts and one (1) Assessment District: CFD 88-12 (Ynez Corridor) CFD 01-2 (Harveston) CFD 03-1 (Crowne Hill) CFD 03-2 (Roripaugh Ranch) CFD 03-3 (Wolf Creek) CFD 03-6 (Harveston II) AD 03-4 (John Warner Road) On May 23, 2006, the City executed a three-year professional services agreement with NBS to provide special tax administration services for the above named districts. Among the services provided by NBS as Special Tax Consultant are calculation of special tax levy, public contact, delinquency management, and disclosure and reporting. NBS has assigned very experienced and knowledgeable staff to our City and is committed to providing us the best service possible. Forfiscal year2009-10, NBS has agreed to the same fee schedule used forfiscal year2008-09, the last year of their previous agreement. The City has adjusted the contract slightly to account for an estimated increase in delinquency management services as a result of an increased delinquency rate and current economic conditions. The City has been happy with the services of NBS over the past three years and wishes to engage in a new contract for FY 09/10. It is staff's recommendation that the Council approve a professional services agreement with NBS to provide special tax administration for the City's Community Facilities Districts and Assessment District. FISCAL IMPACT: The amount of the contract is not to exceed $59,857.21 forfiscal year 2009-10. Funds for the administration of special districts are included in the annual special tax levies for each of the Districts. ATTACHMENT: Professional Services Agreement for Special Tax Administration Services FIN 09-17 AGREEMENT FOR CONSULTANT SERVICES BETWEEN THE CITY OF TEMECULA AND NBS FOR SPECIAL TAX ADMINISTRATION SERVICES THIS AGREEMENT is made and effective as of May 12, 2009 between the City of Temecula, a municipal corporation ("City") and NBS ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on May 12, 2009, and shall remain and continue in effect until tasks described herein are completed, but in no event later than May 12, 2010, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Consultant shall perform the services and tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 3. PERFORMANCE Consultant shall at all time faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. PAYMENT a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Fifty Nine Thousand Eight Hundred Fifty Seven Dollars and Twenty One Cents ($59,857.21) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. 1 P:\Finance\Agreements and Contracts\AGREEMENTS.08-09.M-Z\NBS Consulting Services C. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of an invoice of any disputed fees set forth on the invoice. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of fifty dollars ($50) in such form as approved by the Director of Finance. 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4. 6. DEFAULT OF CONSULTANT a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to 2 examine and audit said books and records, shall permit City to make transcripts there from as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION The Consultant agrees to defend, indemnify, protect and hold harmless the City, District, and/or Agency, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, District and/or Agency, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City. 9. INSURANCE REQUIREMENTS Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88. 2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non-owned auto endorsement to the General Liability policy described above is acceptable. 3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. If the Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no employees. 4) Professional Liability Insurance shall be written on a policy form providing professional liability for the Consultant's profession. than: b. Minimum Limits of Insurance. Consultant shall maintain limits no less 3 1) General Liability: One million ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One million ($1,000,000) per accident for bodily injury and property damage. 3) Worker's Compensation as required by the State of California; Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. 4) Professional Liability coverage: One million ($1,000,000) per claim and in aggregate. C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) The City, its officers, officials, employees and volunteers are to be covered as insured's as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. 2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. 4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state: should the policy be canceled before the expiration date the issuing insurer will endeavor to mail thirty (30) days' prior written notice to the City. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Consultant shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. 4 e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of A-:VII or better, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 11. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. 12. RELEASE OF INFORMATION a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. 5 b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 13. NOTICES Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. Mailing Address: City of Temecula P.O. Box 9033 Temecula. CA 92589-9033 Physical Address: City of Temecula Attention: City Manager 43200 Business Park Drive Temecula. CA 92590 Consultant: NBS Attention: Pablo Perez 32605 Temecula Pkwy # 100 Temecula, CA 92592 14. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant. 15. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 6 16. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 17. PROHIBITED INTERESTNo officer, or employee of the City of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Consultant or Consultant's sub-contractors for this project, during his/her tenure or for one year thereafter. The Consultant hereby warrants and represents to the City that no officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Consultant or Consultant's sub-contractors on this project. Consultant further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. ENTIRE AGREEMENTThis Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENTThe person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Maryann Edwards, Mayor ATTEST: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: Peter Thorson, City Attorney CONSULTANT (signature of two corporate officers required): N BS 32605 Temecula Pkwy, Suite #100 Temecula, CA 92592 Phone 951-296-1997 Fax 951-296-1998 Name: Title: By: Name: Title: 8 EXHIBIT A TASKS TO BE PERFORMED Scope of Work NBS will provide a comprehensive set of year-round services that support the City's goals and meet the RFQ requirements. These services will be cost effective, but will be delivered in a manner that emphasizes quality control, data integrity and the latest in technology. NBS will provide all services requested in the City's RFQ and have included additional services below. District Administration Services Tax Roll Application. NBS will create the tax roll application of parcel's annual special tax or special assessment in a format acceptable to the Auditor/Controller-Recorder. Apportion. NBS will apportion the special tax or special assessment to each parcel within each particular district consistent with the method of apportionment for each district. Assessor Parcel Map Maintenance. NBS will maintain current Assessor Parcel Maps for all special district parcels. • Update annual prior to enrollment of levy • Notify City of any assessor parcel changes within each district • Include in database development and land use information for all district parcels where this information is necessary for use in calculation of special tax or special assessment. Debt Service Schedules. NBS will coordinate with Fiscal Agent to review debt service schedules and determine amount needed to pay debt services. Annual Administrative Expenses. NBS will assist City in projecting annual administrative expenses. Reserve Requirement. NBS will identify reserve requirements and notify City if reserve needs replenishing. Annual Levy. NBS will prepare all necessary documents, including an Annual Levy Report, to submit an annual levy for each district to the County. Levy Resubmission. NBS will perform adjustments and corrections to rejected parcels by resubmitting levies if necessary. Direct Billing. NBS will direct bill any parcels as necessary. Assessment Apportionment Applications. NBS will facilitate the preparation of assessment apportionment applications including: • Preparation of amended assessment diagrams. • Apportioning the assessment to divided parcels. • Preparation and delivery of required notices. • Recordation of required notices and amended diagrams. • Preparation of required disclosure documents. 9 Primary Contact. NBS will serve as initial and primary contact with the public regarding levy. Bond Payoff. NBS will calculate bond payoff amount or prepayment amounts as requested by landowners and provide additional information related to payoff as required. Release of Lien. NBS will prepare and record Release of Lien if prepayments are received. Bond Call Spreads. NBS will prepare bond call spreads if required due to excess proceeds or prepayments. Debt Service Requirements. NBS will coordinate with Fiscal Agent to establish new debt service requirements resulting from bond calls. Summary of Information. NBS will prepare summary of information used to calculate annual levy for each parcel. Letter of Credit. NBS will monitor Letter of Credit issuer ratings for downgrading. The following are additional district administration services which are already included in the fee: Kick-Off Meeting, Project Schedule. NBS will meet with City staff, legal counsel and other interested parties to: • Establish lines of communication. • Clarify the specific project goals and criteria that will meet the City's preference. • Identify and resolve any special circumstances that may be involved in the administration of the districts. • Develop project schedules to meet legal requirements and provide for effective interaction of all involved parties. • Establish meeting dates consistent with schedule to achieve project milestones. Data Collection. NBS will gather and review data relevant to the administration of the districts. Data will be obtained from various sources, including City records, Assessor's parcel maps, and County Assessor information and establish a database for the assessment districts. Policy Review. NBS will review polices and procedures that have been established by the City for compliance with the governing documents and law. These policies will be incorporated into our service to the City. Cost Recovery. NBS will identify all costs associated with the administration of the Assessment Districts and recover those costs through the levy process as outlined in §8682 and §8682.1 of the California Streets and Highways Code. These costs may include, but not be limited to Registrar/Transfer/Paying Agent fees, Arbitrage Rebate calculation fees, bank fees, and expenses of the City and its consultants related to the administration of the districts. Fund Analysis. NBS will determine the balance requirements and acquire the current cash balances for the districts. We will make recommendations to ensure that the flow of funds and fund balances are in compliance with bond documents. Cash flow analysis will also be performed to determine any levy shortfall or surplus. 10 Maintain Assessment District Data. NBS will annually track all parcel changes to ensure that all changes are documented. Historical parcel change and assessment apportionment data will be maintained by NBS. Annual Report. NBS will provide a comprehensive Annual Report that will show a detail listing of the amounts submitted to the levy or directly billed for collection, details of delinquent assessments, fund analysis, paid off parcels and release of liens, all bond call activity, and assessed valuation information. Delinquency Monitoring. NBS will provide the City with a comprehensive list of delinquencies after each installment becomes due. This report will show delinquency percentage as well as a detailed list of each delinquent parcel. Notice of Special Assessment. NBS will provide a "Notice of Special Assessment" disclosure notice to requesting parties as required by §53754 of the Government Code of the State of California. The fee of any Notice of Special Tax shall be paid by the party requesting the disclosure notice. Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the City, other interested parties and all property owners. Our staff will be available to answer questions regarding the formation and ongoing collection of assessments for the districts. Bilingual staff is available for Spanish-speaking property owners. County Assessor Reporting. NBS will work with the County Assessor to aid in complying with the requirements of Revenue & Taxation Code 163. This includes providing data such as parcel number, original assessment and current principal balance to the County Assessor. Apportionments Application Forms. NBS will provide apportionment application forms and instructions to the City's Engineering representative for inclusion as a condition of approval for subdivision within an assessment district. Segregation. NBS will apportion the special assessment according to the method of spread as described in the engineer's report. Notice of Apportionment. NBS will prepare a notice of apportionment and send it via certified mail to the issuing underwriter, as required. Assessment Diagram. NBS will prepare an amended assessment diagram and notice. The diagram and notice will be filed and recorded with the County Recorder. Amortization Schedule. NBS will prepare an amortization schedule for each newly created assessment type. Apportionment Report. NBS will prepare and submit to the City an Apportionment Report showing the finalized apportionment and the amended assessment diagram. 11 Resolutions. NBS will prepare the required resolutions to order the amended assessment, the amended assessment diagram, notices to the property owner, and fix the amount of costs to perform the apportionment. Public Meetings. NBS will be available to attend any public meetings required to complete the apportionment. Municipal Disclosure Disclosure Requirements. NBS will assist City in preparation of enhanced disclosure requirements required by the State of California or its agencies including reporting to CDIAC. Annual Reports. NBS will prepare annual reports to meet the requirements of continuing disclosure. Continuing Disclosure Reports. NBS will file continuing disclosure reports with the Dissemination Agent. Website. NBS will post disclosure reports on the City's website. Notice of Special Assessment/Tax Document. NBS will provide Notice of Special Assessment/Tax document to seller of taxable property. The following are additional municipal disclosure services which are already included in the fee: In accordance with the Disclosure Certificate of the issue, NBS will assist in compliance with the annual disclosure requirement of the SEC Continuing Disclosure Rule 15c2-12. Since the establishment of the Rule, the Bond Disclosure Certificate has guided our efforts. We scrupulously follow the requirements of the Disclosure Certificate to assure full compliance by the City. Even prior to Rule 15c2-12, our consultants had been providing many of the disclosure requirements to the investment community. Specifically, NBS will perform the following: Document Review. NBS will review pertinent documents of the issue, including the Official Statement and Disclosure Certificate. We will identify material such as the Consolidated Annual Financial Report and/or other operating data that the City has agreed to provide in the Disclosure Certificate. Data Collection. NBS will collect the annual financial information and operating data that the City has agreed to provide to each Nationally Recognized Municipal Securities Information Repository (NRMSIR) and the appropriate State Information Depository (SID), if any. Report Preparation. NBS will prepare the Annual Disclosure Report as required in the Disclosure Certificate. Annual Dissemination. NBS will disseminate the Annual Disclosure Report to state and national repositories and post to our website to allow public access free of charge. Delinquency Management 12 Policies. NBS will advise City that any policies established related to collection of delinquent special assessments/taxes are consistent with foreclosure covenant and/or requirement of the band issue. Database. NBS will maintain database that includes regularly updated delinquency history for each parcel located in each district. District Delinquencies. NBS will track and report district delinquencies after each tax installment due date, after the City's fiscal year end and prior to initiation of foreclosure proceedings. Property Owner Letters. NBS will prepare and mail letters (registered return receipt if requested) to property owners at the request of the City. Removal of Delinquent Taxes/Assessments. NBS will prepare correspondence to the County for removal of delinquent taxes/assessments from the tax rolls in the event these amounts are paid directly to the district. Foreclosure Coordination. NBS will assist with foreclosure coordination • Prepare City Council documents initiating foreclosure • Provide delinquent amounts for foreclosure counsel • Act as an expert witness on behalf of the City of necessary Direct Collections. NBS will coordinate direct collections of individual delinquencies and deposits with the Fiscal Agent. Payment Plans. NBS will monitor payment plans established under direction of the City or foreclosure counsel. The following are additional delinquency management services which are already included in the fee: NBS will develop a comprehensive delinquency management program which includes a discussion and interpretation of the issuer's foreclosure covenant together with a review of the existing polices and procedures of the City. This service can be provided as part of overall annual administration or as a stand-alone service. When deemed as the appropriate course of action, NBS will perform the following. Demand Letter. At the City's direction, send a demand letter to the property owner of each delinquent parcel for the April 10th installment. This letter will be mailed to any property owner who remains delinquent for both installments or who is delinquent for April 10th only. The purpose of this letter is to further educate the property owner and advise them of a potential foreclosure. Foreclosure Letter. This type of letter is typically sent after the installments for a parcel have been removed from the tax roll. The letter delineates what amount must be paid directly to the City to forestall the turnover of documents to the foreclosure attorney. Payment Plans. At the City's discretion, NBS will offer payment plans to property owners in lieu of turning parcels over to the City's foreclosure counsel. 13 Toll-Free Phone Number. NBS will provide a toll-free phone number for use by the City, other interested parties and all property owners. Our staff will be available to answer questions regarding the formation and ongoing collection of assessments/special taxes for the districts. Bilingual staff is available for Spanish-speaking property owners. 14 EXHIBIT B PAYMENT RATES AND SCHEDULE The Consultant shall be paid based on the fee schedule provided by the Consultant attached hereto and set forth in full, but in no event shall the total sum for fiscal year 2009/10 exceed $59,857.21 for the total term of the Agreement as shown below. The City, at its sole discretion, has the option to add two additional one year terms at the Base Fee Rate & Continuing Disclosure Rate below plus 2% CPI each year. Additional years will require an amended Agreement by the City. Special Tax Administration Contract Fee Schedule District # District Name Base Fee FY 09110 + CD 10% Conting. FY 09110 DM Adjust. Total FY 09110 CFD 88-12 Ynez Corridor $7,022.70 $ 702.27 $ 0 $ 7,724.97 CFD 01-2 A&B Harveston A & B $8,583.30 $ 858.33 $ 899.17 $ 10,340.80 CFD 03-1A&B Crowne Hill A & B $7,542.90 $ 754.29 $ 971.99 $ 9,269.18 AD 03-04 Wolf Creek $7,022.70 $ 702.27 $ 2,133.41 $ 9,858.38 CFD 03-03 Harveston II $7,022.70 $ 702.27 $ 633.41 $ 8,358.38 CFD 03-06 Roripaugh Ranch $9,623.70 $ 962.37 $ 0 $ 10,586.07 CFD 03-02 John Warner Road $3,381.30 $338.13 $ 0 $ 3,719.43 Totals $50,199.30 $ 5,019.93 $ 4,637.98 $ 59,857.21 CD = Continuing Disclosure (Includes Dissemination Costs) DM = Delinquency Management At the City's discretion, optional services are available at the stated rates to follow. 15 Optional Services Apportionments Apportionments will be performed upon request and paid for by the requesting party at our then current fee structure, as shown below. NBS will apportion the assessment according to the original method of spread, prepare the amended assessment diagram, and record the notice of apportionment and amended diagram per Parts 10 and 10.5 of the Streets and Highways Code. Apportionment Fee (Four parcels or less): $950 Apportionment Fee (Five or more parcels): $1,800 (plus $35 per parcel) Recording Fee (each): $40 Resolutions: $300 Meeting Attendance: hourly, plus travel costs* * reasonable and customary travel costs, as needed CPI will not apply to Apportionment work. Municipal Disclosures Report Fee (per report) (Fiscal Year 2009110) $1,300.50 Report Fee (per report) (Fiscal Year 2010111) $1,326.51 Report Fee (per report) (Fiscal Year 2011112) $1,353.04 Significant Event Notification hourly or $100 per event Dissemination Services Report Dissemination (per recipient) $25 Significant Event Dissemination (per recipient) $25 Posting to NBS website No charge CPI applies only to Report Fee as shown on three-year tables above Delinquency Management) Reminder Letters $15 Demand Letters 30 Foreclosure Letters 50 Payment Plan Administration 150 Tax Roll Removal 75 Subsequent Foreclosure Fees 100 All fees are based on a per parcel/per district basis * This fee will be recovered as part of the next levy. This fee includes filing of "Notice of Intent to Remove Delinquent Installments" but does not include County fees for removal from the tax roll. 16 This fee is per parcel/per district/per year from the initiation of the foreclosure. CPI will not apply to Delinquency Management work. Expenses Customary out-of-pocket expenses will be billed to the City at actual cost to NBS. These expenses may include, but not be limited to travel, postage, telephone, reproduction, meals and various County charges for tapes, maps, and recording fees. Annual Fee Increases Cost of living increases have been pre-determined and applied as shown for a contract period of three (3) years. Additional Services Following is the current hourly rate. Additional services authorized by the City will be billed at this rate or the then-applicable hourly rate. Director $ 190 Senior Consultant/Programmer 150 Engineer 140 Consultant 130 Analyst 100 Clerical/Support 55 Expert Witness TBD; with minimum fee JTermsJ Administration services will be invoiced quarterly at the beginning of each quarter. Expenses will be itemized and included in the next regular invoice. Fees for all other services will be invoiced upon completion of the project. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of a non-disputed invoice. If payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per month. 17 ITEM NO. 6 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Jerry Williams, Chief of Police DATE: May 12, 2009 SUBJECT: Edward Byrne Memorial Justice Assistance Grant PREPARED BY: Heidi Schrader, Management Analyst RECOMMENDATION: That the City Council approve the Edward Byrne Memorial Justice Assistance Grant Application for a proposed amount of $119,338. BACKGROUND: The Edward Byrne Memorial Justice Assistance Grant Program (JAG) is awarded by Bureau of Justice Assistance (BJA). It allows local governments to support a broad range of activities to prevent and control crime. This grant replaces the Local Law Enforcement Block Grant (LLEBG) program that has funded law enforcement projects within the City of Temecula in previous years. Requirements for submission of the JAG grant proposal to the BJA include: 30 day review period by the community with an opportunity to comment. 2. Approval of the application by the City Council. A notice was published in the local papers on Friday April 10 outlining the grant application. The notice invited the public to review a copy of the grant application posted in the law library at City Hall and to submit written comments or to make verbal comments in person on the date of action. The 2009 JAG proposal requests funds for the Temecula Police Department to participate in the Southwest County Youth Court. These funds will be used to purchase equipment for use by Temecula's Youth Court Officer for coordination of Temecula cases. It will also fund overtime for the Officer to preside on Temecula cases and for extra youth oriented patrols at the Promenade Mall. Funds will also be used to send Temecula Officers to annual training at the National Association of Youth Courts which will ensure that we are up to date on the most effective techniques. It is anticipated that funding of this important program will ensure early intervention in youth crime which will reduce the likelihood of juvenile offenders re-offending. The JAG grant is a non-competitive grant with funds allocated for the City of Temecula based on crime statistics and population. Submission of the grant package is a requirement for funding the grant. It is anticipated that the grant will be awarded and funds will be made available by August 2009. FISCAL IMPACT: Appropriation of funds for the grant will be made upon notification of the final award amount for the programs noted above. ATTACHMENTS: Edward Byrne Memorial Justice Assistance Grant Program Narrative Proposal to Fund Half of the Southwest County Youth Court Program Program Challenges As one of the fastest-growing cities in Riverside County, Temecula faces a significant challenge to keep pace with rapid population growth. Between 1990 and 2008, Temecula grew in population from 27,099 to 101,057, a 273% growth rate. In addition, as of 2000, 42.6% of Temecula's households were reported to have children under the age of 18. Temecula has sought to make our community a desirable and fun place where the youth in the surrounding area want to come. Subsequently, locations such as the Promenade Mall have become popular youth hang outs. With this high concentration of youth, we are experiencing an increase in juvenile crime such as vandalism, shoplifting, theft from vehicles, alcohol and drug possession and other quality of life issues that can negatively impact the family environment we are working so hard to ensure. In addition, the rapid population growth has resulted in a more culturally diverse community. Many of the new residents have moved from the inner city areas of larger metropolitan areas, such as San Diego, Orange and Los Angeles counties. Some of the new residents brought to the area advanced ideas regarding gang and more sophisticated criminal behavior. The result is the community has seen an increase of gang related crimes as well which includes serious assaults, robbery, theft and graffiti. Many of these crimes are committed in around the retail business locations like the Promenade Mall. Should this trend continue, it is the concern of the Temecula Police Department and the City of Temecula that the citizens and business community will be looking for another place to live and conduct business. The result would be a loss of viable employers, increased unemployment, decreased tax revenues affecting city and government services, vacant homes, vacant businesses, all of which often leads to a further increase in crime in general. Many retailers and other businesses have closed their doors already due to the economic downturn. This decrease of employers directly affects the job market available to this year's graduates and many other youth dreaming of obtaining viable employment. By receiving this grant funding the City of Temecula's Police Department will effectively be able to mitigate many of the low level crimes that occur now and in the future. In addition, the program will mentor many young people who are not criminal offenders, and afford them to chance to further their community leadership abilities. Most youth court's experience a 96 % success rate, resulting in about 4% of the juveniles re-offending. The Temecula Police and Muirieta Police Departments have forged a partnership to conduct a future joint youth court project, however due to the current economic times the City of Temecula has been unable to fund this valuable program. Program Solutions Our goal is to reach juvenile offenders with a comprehensive approach that starts with high visibility foot patrols at locations saturated with juveniles and ends with an effective youth court program geared to positively impact the juvenile offender in a way that significantly reduce the likelihood of them re- offending. Specifically, we intend to have two uniformed school resource officers conduct foot patrol at the Promenade Mall in Temecula during times of high juvenile activity. These officers will interact with the numerous juveniles congregating in and around the mall in an attempt to identify those engaged in criminal activity (tobacco, alcohol, illegal drug use or possession, vandalism or theft). City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 2 of 4 Each juvenile cited or arrested will be evaluated to determine if Youth Court would be an acceptable option for them. Our goal would be to utilize Youth Court for as many of these juveniles as is possible. This will allow us to utilize both education/enforcement to increase the probability of success in our Youth Court program. Currently, the City of Munieta and their police department have initiated a successful youth court operation known as the Southwest County Youth Court. During the planning stages of the court, our department was involved in the planning and future implementation. The plan was for the youth court to be a joint venture between the two cities and police departments, but at the time of inception and implementation, the City of Temecula did not have the resources available to fund the program. The Murrieta Police Department decided to solely operate the program until the Temecula Police Department could participate. The Munieta Police Department has put in place the entire basic infrastructure to insure a successful program. Their program has developed a volunteer group, which includes Riverside County Superior Court Judges who oversee the court process. In addition they have developed policy and procedure manuals, court case management forms, letters, and such that our department just has to simply modify to meet our needs. Currently the Temecula Police Department has developed its own volunteer base which includes thirty Mock Trial Juvenile leaders which will serve as the prosecution and defense teams. The Mock Trial Team's adult supervisors are also on board to actively participate in this important program. In addition to the above listed volunteers, we will be required to pay half the cost of the private Guardsmark courtroom security as well as the sworn deputy sheriff who will be assigned to the courtroom. Currently, the City of Murrieta is paying the full cost for both of these services. In addition, the Temecula Police Department will be required to pay for one sworn officer and one sworn supervisor to staff each Youth Court session. Program Goals and Objectives Objectives Mall Enforcement 1. To conduct high visibility foot patrols at the Promenade Mall to suppress or reduce juvenile crime. 2. To contact juvenile non-offenders to develop a positive police / juvenile rapport. 3. To meet with and develop rapport with businesses that caters to or attracts juveniles. Tailor business and law enforcement strategies to address and mitigate juvenile crimes. 4. To work with mall security to identify juvenile offenders. 5. Work with retailers, security, and the public to identify current juvenile crime trends. 6. Contact, counsel or arrest juvenile offenders. 7. Develop rapport with juvenile's parents or family and develop a course of action to mitigate the juveniles criminal behavior. 8. Encourage non-violent juvenile offenders and their parents to be involved with the Youth Court Project or Youth Accountability Team (YAT.) 9. Use citations or normal juvenile criminal process as a last resort to mitigate juvenile criminal behavior. Youth Court RAGrantsTolice Grants_Heidi\Grants 2009-10VAG 2009\1 _Program Narrative.doc City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 3 of 4 1. Work with schools, the community and police officers to obtain juvenile referrals to the Youth Court process. 2. Work with the Youth Accountability Team staff to review juvenile criminal reports for Youth Court case development. 3. Work with juvenile offenders and encourage their volunteer participation in the Youth Court process. 4. Work with parents of juvenile offenders and encourage them to support or allow their child to participate in the Youth Court process. 5. Identify resources that are available to parents whose child is a juvenile offender, such as the Parent Project, Safe Alternatives for Everyone (SAFE), Social Services, school officials and related programs, counseling services, drug and alcohol intervention programs, etc. 6. SAFE and officers would conduct juvenile offender case management, including mentoring and the monitoring of the juvenile's progress. The process would include school and home visits, community service, etc. 7. Involve high school student leaders and Mock Trial teams in the youth court process. 8. Develop and showcase positive peer role models. 9. Involve juvenile offenders in the positive side of the Youth Court process such as Peer Jury Duty, court clerk duties, etc. 10. Provide a program for high school students to fulfill their community service requirements. Goals 1. To review at least 8 youth court cases a quarter. 2. To fund at least 65 overtime hours for youth patrol a quarter. 3. To mitigate a minimum of 33 juvenile criminal cases per year. Organization Capabilities and Competencies The City maintains a comprehensive accounting system with various modules, including general ledger, payroll, accounts payable, accounts receivable, and capital assets. Utilizing this accounting system, the City has developed a fund model to ensure and demonstrate its compliance with restrictions placed on public resources. This fund model facilitates the segregation of resources and promotes accuracy of its recordkeeping functions. Each fund is established utilizing a detailed subsidiary system to assist in monitoring individual program and classification of both revenue and expenditure transactions. The City completes various reconciliations to assist in ensuring the integrity of its fund structure and its pooled cash and investments recorded separately in each fund. The City intends to establish and maintain a separate fund for the Federal grant monies supporting the Edward Byrne Memorial Justice Assistance Grant (JAG) Formula Program utilizing Recovery Act Funds. The city currently has seven school resource officers and one Youth Accountability Team (YAT) officer whose primary focus is the direct or indirect contact with about 28,000 students within the Temecula Valley Unified School District. Currently the Southwest Station and the Temecula Police Department's patrol officers process three to four hundred juvenile cases a year. Many of the cases are low level, non- violent misdemeanor or infraction cases. This case load is a huge burden on the YAT team and the Juvenile Probation/Justice system. The YAT team is at best able to mitigate about 130 cases per year. By the addition of the Youth Court Project and the Mall patrol program, officers will be able to mitigate some of the remaining cases, either through direct citation to Temecula Traffic Court, or by referring the juveniles to the Youth Court process. The Youth Court will be able to initially hear at least 33 cases the first year. RAGrantsTolice Grants_Heidi\Grants 2009-10\JAG 2009\1 _Program Narrative.doc City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 4 of 4 Activities that Can Be Started Expeditiously/Project Timeline The City has been working on developing a youth court program for the past two years and has a plan to implement this program as soon as funding is identified. We anticipate being able to begin this program in the Fall of 2009. We have already begun meeting with the local mock-trial teams at local high schools and facilitated an opportunity to sit in during a recent Munieta Youth Court session. Performance Measures Timeline /Project Plan 1. Youth Offender will meet with case management team at the conclusion of their case for initial signup. 2. Each adjudicated case will be monitored for about three months, based on case judgment. 3. After initial court start up, a three month period will result in a normal case management of about Six to Eighteen cases. 4. Cases will be monitored by Safe Alternatives for Everyone (SAFE) staff and the youth court officer. 5. If the juvenile completes all of the requirements of his/her sentence, their criminal case will be expunged. 6. If the juvenile does not complete the requirements, their case will be sent for normal review either through the YAT program or the juvenile justice system. 7. Reports will be sent to the City Finance Department and maintained in a central file. 8. During the high visibility foot patrols at the Promenade Mall, Officers will record the total number of juveniles contacted and any, enforcement or intervention actions taken at the conclusion of each patrol shift. We will be able to report the number of juvenile cases referred to Youth Court each quarter. 9. Quarterly reports will be completed and forwarded within 10 calendar days after the end of each calendar quarter starting July 10, 2009. RAGrantsTolice Grants_Heidi\Grants 2009-10VAG 2009\1 _Program Narrative.doc City of Temecula Edward Byrne Memorial Justice Assistance Grant Application Budget Detail and Narrative Worksheet C. Travel - Itemize travel expenses of project personnel by purpose (e.g., staff to training, field interviews, advisory group meeting, et c.). Show the basis of computation (e.g., six people to 3-day training at $X airfare, $X lodging, $X subsistence). In training projects, travel and meals for trainees should be listed separately. Show the number of trainees and the unit costs involved. Identify the location of travel, if known. Indicate source of Travel Policies applied, Applicant or Federal Travel Regulations. Purpose of Travel Location Item Computation Cost All travel expenses are for sending one Officer and one Sergeant to the Annual National Association of Youth Courts (NAYC) conference for four years. The NAYC conference will provide a valuable source of knowledge for our team as they network with other Youth Court officers and learn techniques and options for operating our local Youth Court. All travel will be in accordance with City of Temecula travel policies. TOTAL $ 9 688 2 Officers to NAYC Regional Airfare 2 Officers x $240 airfare x 4 $1,920 training Training years 2 Officers to NAYC Regional Rental Car 3 days x $100/day rental x 4 $1,200 training Training years 2 Officers to NAYC Regional Meals $75/day x 2 Officers 3 days x 4 $1,800 training Training years 2 Officers to NAYC Regional Lodging $173/night x 2 Officers x 2 $2,768 training Training nights x 4 years 2 Officers to NAYC Regional Tuition $250/person x 2 Officers x 4 $2,000 training Training years Office supplies (printing, literature, business cards, etc.) $500/year x 4 years $2,000 debrief; and to make improvements or modify the program to meet updated needs. Additionally, E. Supplies -List items by type (office supplies, postage, training materials, copying paper and expendable equipment items costing less than $5,000, such as books, hand held tape recorders) and show the basis for computation. (Note: Organization's own capitalization policy may be used for items costing less than $5,000). Generally, supplies include any materials that are expendable or consumed during the course of the project. Supply Items Computation Cost certificates of completion will be issued to the juveniles involved in the program. Mock Trial participants will be recognized for their participation and hard work through certificates and other awards. Office supplies and Polo Shirts will be used on a daily basis for Youth Court operations as volunteers and staff members interact with the public. TOTAL S 12,480 Food and recognition awards for annual banquet $1 ,000 banquet per x 4 years $4,000 O Palo Shirts for Teacher/Student Volunteers $30/each x 50 shirts x 4 years $6,000 Polo Shirts for four involved PD staff` members $30/each x 4 x 4 years $480 The annual banquet is a way to bring together all youth court partici pantants , to uct an informal conduct City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 2 of 3 G. Consultants/Contracts - Indicate whether applicant's formal, written Procurement Policy or the Federal Acquisition Regulations are followed. All personnel costs are covered under Contractual Serv ices due to the law enforcement contractual services provided by the Riverside County Sheriff's Department for the City of Temecula. The Guard provided through Guardsm ark and the Court Deputy are contracted with the City ofMurrieta through the Riverside County Sheriff's Department Court Services. The City of Temecula will follow written Procurement Policy in order to pay a portion of the Court Deputy and Guard Services. Name of Consultant Service Provided Computation Cost The Southwest County Youth Court uses the Temecula Traffic Court, per agreement with Riverside County. Per this agreement, the Riverside County Sheriff's Department requires that the courtroom be staffed with one Court Services Deputy Sheriff trained in courtroom procedures and security. A company known by the name of Guardsmark is required by Riverside County to maintain visitor and client security screening at the entry point the courtroom. Guardsmark uses metal detecting devices and x-ray screening. All persons who enter the court are required to be screened for security reasons. TOTAL $ 94.081 Riverside County 1 Officer - YouthCourt 60 OT hours x $53.90/hr x 4 $12,936 Sheriff s Department Coordination years Riverside County 1 Sergeant -Youth Court 60 OT hours x $80.37/hr x 4 $19,289 Sheriff's Department Coordination years Riverside County 1 Officer - Juvenile/Mall 260 OT hours x $53.90/hr x 4 $56,056 Sheriff's Department Foot Patrols years Riverside County Guard Services in Court '/z Annual Costs of Guard {$400) $1,600 Sheriff's Department Room x 4 years Court Services Riverside County Court Deputy Services '/z Annual Costs of Court $4,200 Sheriff s Department Deputy {$1,050} x 4 years Court Services Portable Printer with Case $400 x 1 printer $400 H. Other Costs -List items (e.g., rent, reproduction, telephone, janitorial or security services, and investigative or confidential funds) by major type and the basis of the computation. For example, provide the square footage and the cost per square foot for rent, or provide a monthly rental cost and how many months to rent. Description Computation Cost laptop computer, case, and portable printer. The Youth Court Officer will be making school and home visits to juveniles involved the program. Having the laptop computer at his/her disposal, the Officer will have all of the required forms at hand, and will be able to track the juvenile's progress. The cell phone will be used 24 hours aday / 7 days per week by the Officer. The Youth Court Officer will be called many times by other Officers, the public, juveniles and their parents who are involved in the Youth Court Process. The Youth Court Officer is often able to solve many problems via the cell phone when he/she does not have access to a dedicated land line phone service. TOTAL $ 5,760 Cell Phone Service $70/month x 48 months $3,360 Laptop Computer $2,000 x 1 computer $2,000 The Youth Court O Officer position will be a very mobile bile position which necessitates the need for a R:\GrantslPolice Grants_Heidi\Grants 2009-101JAG 2009\2 Budget Narrative.doc City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 3 of 3 Budget Summary - When you have completed the budget worksheet, transfer the totals for each category to the spaces below. Compute the total direct costs and the total project costs. Indicate the amount of Federal requested and the amount of non-Federal funds that will support the project. Budget Category Amount A. Personnel $0 B. Fringe Benefits $0 C. Travel $9,688 D. Equipment $0 E. Supplies $12,480 F. Construction $0 G. Consultants/Contracts $94,081 H. Other $5,760 Total Direct Costs $122,009 1. Indirect Costs $0 TOTAL PROJECT COSTS $122,009 Federal Request $119,338 Non-Federal Amount $2,671 RAGrantsTolice Grants_Heidi\Grants 2009-10VAG 2009\2 Budget Narrative.doc Review Narrative On Friday, 4/10/09 the following notice will be published in the local media, on the City of Temecula website at City Hall, and at two additional locations within City limits. Notice of Availability for review and comment THE CITY OF TEMECULA 43200 Business Park Drive Temecula, CA 92590 CONSIDERATION OF A GRANT APPLICATION has been scheduled before the CITY COUNCIL to consider the matter described below. Case No: Grant Application - Edward Byrne Memorial Justice Assistance Grant Applicant: City of Temecula Police Department Location: Citywide Proposal: The City of Temecula Police Department is applying for grant funds to participate in a Comprehensive Youth Court Program Any person may submit written comments to the Temecula Police Department before the date of action or may appear and be heard in support of or opposition to the grant at the date of action. The proposed grant application may be viewed in the Law Library, in the City Clerk's Department, 43200 Business Park Drive, Temecula, California, Monday through Friday from 8:00 a.m. until 5:00 p.m. Questions concerning the grant may be addressed to Heidi Schrader, City of Temecula Police Department, (951) 693-3923. PLACE OF ACTION City Council Chambers 43200 Business Park Drive Temecula, California DATE OF ACTION May 12, 2009 TIME OF HEARING 7:00 PM City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 2 of 3 On the date of 5/12/09, the following agenda report will be sent to the Temecula City Council for consent and approval by the local governing body. TO: City Manager/City Council FROM: Jerry Williams, Chief of Police DATE: May 12, 2009 SUBJECT: Edward Byrne Memorial Justice Assistance Grant PREPARED BY: Heidi Schrader, Management Analyst RECOMMENDATION: That the City Council approve the Edward Byrne Memorial Justice Assistance Grant Application for a proposed amount of $119,338. BACKGROUND: The Edward Byrne Memorial Justice Assistance Grant Program (JAG) is awarded by Bureau of Justice Assistance (BJA). It allows local governments to support a broad range of activities to prevent and control crime. This grant replaces the Local Law Enforcement Block Grant (LLEBG) program that has funded law enforcement projects within the City of Temecula in previous years. Requirements for submission of the JAG grant proposal to the BJA include: 1. 30 day review period by the community with an opportunity to comment. 2. Approval of the application by the City Council. A notice was published in the local papers on Friday April 10 outlining the grant application. The notice invited the public to review a copy of the grant application posted in the law library at City Hall and to submit written comments or to make verbal comments in person on the date of action. The 2009 JAG proposal requests funds for the Temecula Police Department to participate in the Southwest County Youth Court. These funds will be used to purchase equipment for use by Temecula's Youth Court Officer for coordination of Temecula cases. It will also fund overtime for the Officer to preside on Temecula cases and for extra youth oriented patrols at the Promenade Mall. Funds will also be used to send Temecula Officers to annual training at the National Association of Youth Courts which will ensure that we are up to date on the most effective techniques. It is anticipated that funding of this important program will ensure early intervention in youth crime which will reduce the likelihood of juvenile offenders re-offending. The JAG grant is a non-competitive grant with funds allocated for the City of Temecula based on crime statistics and population. Submission of the grant package is a requirement for funding the grant. It is anticipated that the grant will be awarded and funds will be made available by August 2009. FISCAL IMPACT: Appropriation of funds for the grant will be made upon notification of the final award amount for the programs noted above. RAGrantsTolice Grants Heidi\Grants 2009-101JAG 2009\3 JAG Review.doc City of Temecula Edward Byrne Memorial Justice Assistance Grant Proposal Page 3 of 3 ATTACHMENTS: Edward Byrne Memorial Justice Assistance Grant. RAGrantsTolice Grants Heidi\Grants 2009-101JAG 2009\3 JAG Review.doc Abstract Applicant Name: City of Temecula Project Title: Proposal to Fund Half of the Southwest County Youth Court Program Project Goals: 1. To review at least 8 youth court cases a quarter. 2. To fund at least 65 overtime hours for youth patrol a quarter. 3. To mitigate a minimum of 33 juvenile criminal cases per year. Strategies to Be Used: This proposal identifies two aspects of the Youth Court process: enforcement and education. The major strategies for this two pronged approach include: 1. Conduct high visibility foot patrols at the Promenade Mall to suppress or reduce juvenile crime and to develop a positive police /juvenile rapport. 2. To meet with and develop rapport with businesses that caters to or attracts juveniles. Tailor business and law enforcement strategies to address and mitigate juvenile crimes. 3. Encourage non-violent juvenile offenders and their parents to be involved with the Youth Court Project or Youth Accountability Team (YAT.) Work with the Youth Accountability Team staff to review juvenile criminal reports for Youth Court case development. 4. Identify resources that are available to parents whose child is a juvenile offender, such as the Parent Project, Safe Alternatives for Everyone (SAFE), Social Services, school officials and related programs, counseling services, drug and alcohol intervention programs, etc. 5. Develop and showcase positive peer role models and involve juvenile offenders in the positive side of the Youth Court process such as Peer Jury Duty, court clerk duties, etc. Major Deliverables: All JAG grant funded overtime will require a statistical log be filled out indicating youth contacted, cases managed and other pertinent data. These logs will be compiled into a quarterly report to be delivered to the Bureau of Justice Assistance. Coordination Plans: The Temecula Police Department has already been coordinating with the Murrieta Police Department to set up the Southwest Youth Court Program. This program is operating successfully and coordinating with many local agencies through the Temecula Police Department such as Safe Alternatives for Everyone, the Temecula Valley School District, the Youth Accountability Team and the Parent Project. Upon notice of funding, one School Resource Officer is ready to start working with the Murrieta Youth Court to set up cases for Temecula Offenders. Mall staff is also ready to begin saturation patrols in conjunction with this program. ITEM NO. 7 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: Third Amendment to Contract with Meyer & Associates PREPARED BY: Cathy McCarthy, Development Services Administrator RECOMMENDATION: That the City Council approve the third amendment to the agreement with Meyer & Associates in the amount of $27,683.50, plus 10% contingency of $2,768. BACKGROUND: On November 22, 2005 the City and TCSD approved an agreement with Meyer & Associates for the development of a conceptual master plan and plans and specifications for the Temecula Community Center (TCC) expansion project in the amount of $138,880. On July 10, 2007 Council approved the first amendment to the agreement in the amount of $70,052.50 for additional scope of work associated with grading plans and engineering costs. A Second Amendment was approved February 26, 2008 in the amount of $47,540. This amendment provided additional work associated with the plans and specifications for tenant improvements needed for the Escalier House and barn after relocation to the TCC property. The third amendment before you provides a scope and cost for additional design work required for the Escalier House and barn. This work includes structural design for walls inside the barn to meet County Health requirements for food storage. It includes electrical design to replace the existing electrical wiring for the Escalier House to address safety issues. The amendment also includes additional design to address efficiency requirements to comply with Title 24. The improvements to the TCC area will greatly enhance our ability to provide a full range of human service programs in one location within the City. FISCAL IMPACT: Community Development Block Grant (CDBG) funds for this amendment are available in the CIP account No. 210-190-197. The additional cost associated with this amendment is $27,683.50 and a 10% contingency, which brings the total cost of this contract to $284,156 with a 10% contingency amount of $28,415. ATTACHMENTS: Third Amendment to Agreement THIRD AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND MEYER AND ASSOCIATES TCC EXPANSION PROJECT THIS THIRD AMENDMENT is made and entered into as of May 12, 2009, by and between the City of Temecula ("City"), a municipal corporation, and Meyer and Associates ("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 which each party agrees to be true and correct: a. On November 22, 2005 the City and Meyer and Associates ("Consultant") entered into that certain agreement entitled "City of Temecula Agreement for TCC Expansion Project" ("Agreement"), in the amount of $138,880. b. On July 10, 2007 the parties entered into the "First Amendment to Agreement" in the amount of $70,052.50. C. On February 26, 2008 the parties entered into the "Second Amendment to Agreement" in the amount of $47,540. d. The parties now desire to increase the payment for services in the amount of $27,683.50 and amend the Agreement as set forth in this Third Amendment. 2. Section v.a. Payment of the Agreement is hereby amended to read as follows: a. "The City agrees to pay Consultant monthly, in accordance with the payment rates and schedules and terms set forth in Exhibit B for services described in Section B of Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full. The payment for the work required by the First Amendment to the Agreement shall not exceed seventy thousand fifty two dollars and 50/100 ($70,052.50) plus a 10% contingency in the amount of seven thousand five dollars and No/100 ($7,005.00). The payment for the work required by the Second Amendment to the Agreement shall not exceed forty seven thousand five hundred forty dollars ($47,540) plus a 10% contingency in the amount of four thousand seven hundred fifty four dollars ($4,754). The payment for the work required by the Third Amendment to the Agreement shall not exceed twenty seven thousand six hundred eighty three dollars and 50/100 ($27,683.50) plus a 10% contingency in the amount of two thousand seven hundred sixty eight dollars ($2,768).The total amount of payment pursuant to the Agreement, as amended, shall not exceed the sum of two hundred eighty four thousand one hundred fifty six dollars ($284,156) plus the contingencies authorized by the original agreement and the First, Second and Third Amendments." 1 CAProgram Files\Neevia.Com\Document Converterltemp\915733.doc 3. Exhibits B and C to the Agreement are hereby amended by adding thereto the items set forth on Attachment "A" to this Third Amendment, which Attachment "A" is attached hereto and incorporated herein as though set forth in full. 4. Section 1, Term, is hereby amended to provide that the Agreement, as amended, expires on June 30, 2010. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement are hereby ratified and shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Maryann Edwards, Mayor ATTEST: BY: Susan W. Jones, MMC, City Clerk Approved As to Form: BY: Peter M. Thorson, City Attorney CONSULTANT: Meyer and Associates 23265 South Pointe Drive, Suite 102 Laguna Hills, CA 92653 Attention: Randy Meyer 949-380-1151 949-380-8117 fax BY: Randy Meyer, Principal 2 CAProgram Files\Neevia.Com\Document Converterltemp\915733.doc EXHIBIT A Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Consultant. CAProgram Files\Neevia.Com\Document Converterltemp1915733.doc Exhibit A description of extra work (Revised) ADDITIONAL ARCHITECTURAL DESIGN Provide structural drawings for Barn ceiling improvements. (Note: Finish surface selections are part of our previous contract work). 2. Provide coordination with Structural Engineer, Electrical Engineer, and Mechanical Engineer. 3. Field measure windows for Title 24 compliance calculations. Observe windows in need of repair or replacement. Document windows requiring attention. Prepare window repair/replacement drawings. (Note: All window protective devices must be removed by City prior to Architect's site visit). 4. Field observe and document interior and exterior finish areas requiring patching or repair. Prepare documents illustrating required patching or repair. 5. Research products/techniques and prepare drawings for addition of wall insulation in exterior house walls. 6. Provide required ventilation and access for Barn attic areas above new dropped ceiling. 7. Provide management and project administration. 8. Provide 2 construction site visits. 9. Provide shop drawing review. 10. Review RFI's and respond as necessary. 11. Review Contractor prepared Record Drawings. Prepare as-built drawings. Provide mylar plans of as-built conditions as recorded by the Contractor (post-construction). As-built drawings do not include major changes to landscape and irrigation plans. All as-built drawings shall be prepared by Architect and do not include changes by Subconsultant Engineers. ADDITIONAL STRUCTURAL ENGINEERING 1. Provide structural design, calculations, and sketches for flat ceiling design at Barn so that drywall finish can be applied to provide an acceptable surface for food storage. (Note: Existing roof framing is not adequate to support additional ceiling loading). 2. Coordination with Architect. 3. Review RFI's and respond as necessary. ADDITIONAL ELECTRICAL ENGINEERING 1 . Provide 2 visits to site to obtain interior electrical information. (Note: City to provide ladder access to building and temporary lighting as necessary for detailed review of interior). 2. Provide coordination with SCE. 3. Provide coordination with the City's Building Department. 4. Provide coordination with Architect. 5. Provide electrical engineering and construction documents for: A. Removal of existing House electrical equipment, devices, plates, j-boxes, and light fixtures. B. Replacement of removed items with new conduit, wire, light fixtures, power outlets, j-boxes, plates, and electrical panel. 6. Prepare electrical Title 24. 7. Provide 1 construction site visit. 8. Provide shop drawing review. 9. Review RFI's and respond as necessary. ADDITIONAL MECHANICAL ENGINEERING 1. Provide Kitchen and Laundry Room plumbing and water/sewer hookups. 2. Recalculate hot water demand for new hookups and increase water heater capacity. 3. Provide coordination with Architect. 4. Provide 2 construction site visits. 5. Provide shop drawing review. 6. Review BFI's and respond as necessary RESPONSIBILITIES OF THE CITY 1. If available, provide documents accurately describing the existing buildings. Coordinate and pay for required testing for hazardous materials, including asbestos investigation and report. Provide hazardous materials abatement specifications if necessary. 2. Coordinate and monitor document reviews, checking, and approvals. Pay all agency fees. 3. Pay for reproduction of final bid documents (plans and specs). 4. Provide construction administration and inspection services. 5. Provide any required environmental surveys and reports. 6. Furnish City's standard front end bid documents ("Boiler Plate") in final form for the project specifications. 7. Provide plan check submissions to City, County, State or Federal Agencies if necessary. 8. Provide access to all areas of the site necessary for consultant reviews. Provide temporary lighting as necessary for detailed interior observations. 9. Coordinate all meetings with City Staff. 10. Provide specific architectural program and technical assistance regarding operation of the facility. 11. Provide any additional information required by the Consultant for proper performance of the work. 12. Provide documents or files to Contractor for as-built drawings. 13. Provide all hazardous materials investigations and reports. 14. Review landscape and irrigation construction submittals. 15. Attach this proposal (minimum Project Description, Scope of Services, and Fee Proposal) to any design services contract or contract addendum. EXCLUSIONS BY MEYER AND ASSOCIATES (Excluded services can be provided for additional fees). 1. All Consultant or Sub-Consultant services that are not listed as services to be included in our Scope of Services. 2. All Sub-Consultants and disciplines that are not listed as participants on our project team. 3. Excluded services include the following: a. Construction documents for improvements other than those listed in the Project Description. b. Artists renderings or illustrations. Models. c. Environmental impact reports or similar documents. d. Plan check, permit or similar fees to governmental agencies. e. Preparation or modification of drawings or documents due to City changes to previously approved documents or City changes to previous City direction. f. Printing or reproduction of documents for project bidding or construction. g. Studies or analyses not specifically listed as included. Any off-site studies or analyses. Investigations of existing building systems, barriers to the disabled, seismic conditions, etc. h. On-site field utility investigations in addition to pre-planning document research information provided by Underground Service Alert. Utility pot-holing. i. Additional soils investigations for agricultural suitability or foundation design. j. Off-site services including off-site utility connections, studies, or research. k. Street improvement documents for signalized intersections or for street improvements. 1. Consulting of any kind with respect to hazardous materials such as asbestos, mold, or lead paint. m. On-going grounds or building maintenance analyses or reports. n. Destructive testing, x-ray services, or other invasive building investigations. o. Materials demolition or removal for evaluations. p. Providing specialized testing equipment or specialty testing by specialty consultants. q. Fire sprinkler, fire alarm, or smoke control engineering or construction documents, design coordination with City vendors, plan set-up for design/build construction. r. Means of egress plan (typically not required by Fire Department for this project scope). s. Meetings or site visits in excess of those specifically outlined in this proposal. t. Timed egress analysis or fire modeling (not required by Fire Department for this project). u. Alternative or phased plans. V. Security system or alarm system design, design coordination with City vendors, plan set-up for design/build construction. w. Acoustical study or design by an acoustical consultant. x. Traffic or parking studies or reports. y. Furniture or equipment design, layout, specifications, or purchasing. Interior design. Z. Wiring design for data and telephone. (If desired wiring design can be provided by City on marked up plan and transferred to construction drawings by Consultant). aa. Video systems. bb. Site retaining wall design. Building retaining walls or complex site retaining walls with special loading requirements (such as automobile surcharges, etc.), other than foundation walls. cc. Additional sub-surface site drainage systems. dd. Pile and grade beam foundation system. ee. Prestressed concrete design. ff. Boundary survey. gg. Additional WQMP, SWPPP, or similar storm water management plans. BMP's. hh. Kitchen design. ii. Value. engineering. jj. Certifications of as-built or record documents for completeness or accuracy. The Architect will not have sufficient knowledge of the day-to-day operations of the Contractor to make such a certification. kk. Health Department submittals. 11. Additional construction support services or post construction support services. mm. Lighting or power design for the house structure. nn. Electrical Title 24 calculations except for barn and site lighting. oo. Additional grading and drainage plans. Civil Engineering services other than site utilities plan. pp. Improvements to existing structures except as previously contracted or as described herein. qq. Seismic analysis, seismic retrofit, or seismic related structural design of any to the existing structures. Design of any structure moving or relocation systems, or similar. rr. Major landscape or irrigation changes on as-built drawings. Any as-built landscape or irrigation plans by Irrigation Designer. Any as-built drawings by Electrical or Mechanical Engineers. (As-built plans shall be drafted by Architect only). professional fees (Revised) Meyer and Associates proposes to complete the proposed Scope of Work for the followi ng fees: (Itemiz ed hours are estimates only and may vary from actual hours expended per task). ADDITIONAL ARCHITECTURAL DESIGN 1. Structural Drawings Architect: 2.00 Hours @ $125.00/Hour $ 250.00 AutoCAD Operator: 8.00 Hours @ $60.00/Hour $ 480.00 Word Processing: 1.00 Hour @ $40.00/Hour $ 40.00 2. Subconsultant Coordination Architect: 3.00 Hours @ $125.00/Hour $ 375.00 3. Site Visit/Window Documen tation Architect: 4.00 Hours @ $125.00/Hour $ 500.00 4. Window Drawings/Specs Architect: 2.00 Hours @ $125.00/Hour $ 250.00 AutoCAD Operator: 6.00 Hours @ $60.00/Hour $ 360.00 Word Processing: 1.00 Hour @ $40.00/Hour $ 40.00 5. Site Visit/Document Interior Architect: 5.00 Hours @ $125.00/Hour $ 625.00 6. Interior Documents Architect: 4.00 Hours @ $125.00/Hour $ 500.00 AutoCAD Operator: 10.00 Hours @ $60.00/Hour $ 600.00 Word Processing: 1.00 Hour @ $40.00/Hour $ 40.00 7. Research/Wall Insulation Documents Architect: 2.00 Hours @ $125.00/Hour $ 250.00 AutoCAD Operator: 2.00 Hours @ $60.00/Hour $ 120.00 Word Processing: 1.00 Hour @ $40.00/Hour $ 40.00 8. Barn Attic Ventilation Calcs/Documents Architect: 3.00 Hours @ $125.00/Hour $ 375.00 AutoCAD Operator: 5.00 Hours @ $60.00/Hour $ 300.00 Word Processing: 1.00 Hour @ $40.00/Hour $ 40.00 9. Construction Visits (2) Architect: 8.00 Hours @ $125.00/Hour $ 1,000.00 10. Shop Drawings Architect: 3.00 Hours @ $125.00/Hour $ 375.00 11. RFI's Architect: 3.00 Hours @ $125.00/Hour $ 375.00 12. Extra Work Administration Architect: 8.00 Hours @ $125.00/Hour $ 1,000.00 13. As-Built Drawings Architect: 16.00 Hours @ $125.00/Hour $ 2,000.00 AutoCAD Operator: 20.75 Hours @ $60.00/Hour $ 1,245.00 Reproduction: Allowance for Mylars $ 2,500.00 Word Processing/Clerical: 1.00 Hour @ $40.00/Hour $ 40.00 SUBTOTAL $ 13,720.00 ADDITIONAL STRUCTURAL ENGINEERING 1. Barn Ceiling Design/Calculations Structural Engineer: 7.50 Hours @ $125.00/Hour $ 937.50 2. Coordination Structural Engineer: 1 .00 Hour @ $125.00/Hour $ 125.00 3. RFI'S Structural Engineer: 2.00 Hours @ $125.00/Hour $ 250.00 4. 15% Insurance and Administration $ 196.00 SUBTOTAL $ 1,508.50 ADDITIONAL ELECTRICAL ENGINEERING 1. 2 Site Visits Electrical Engineer: 12.00 Hours @ $140.00/Hour $ 1,680.00 2. SCE Coordination Electrical Engineer: 2.00 Hours @ $140.00/Hour $ 280.00 3. Mechanical and Architectural Coordination Electrical Engineer: 1.00 Hour @ $140.00/Hour $ 140.00 4. Demo Plans Electrical Engineer: 1.00 Hour @ $140.00/Hour $ 140.00 AutoCAD Operator: 4.00 Hours @ $80.00/Hour $ 320.00 Word Processing: 2.00 Hours @ $40.00/Hour $ 80.00 5. Improvement Plans Electrical Engineer: 8.00 Hours @ $140.00/Hour $ 1,120.00 AutoCAD Operator: 16.00 Hours @ $80.00/Hour $ 1,280.00 Word Processing: 3.00 Hours @ $40.00/Hour $ 120.00 6. Title 24 Electrical Engineer: 5.75 Hours @ $140.00/Hour $ 805.00 7. Construction Visit (1) Electrical Engineer: 4.50 Hours @ $140.00/Hour $ 630.00 8. Shop Drawings Electrical Engineer: 2.00 Hours @ $140.00/Hour $ 280.00 9. RFI's Electrical Engineer: 1.00 Hour @ $140.00/Hour $ 140.00 10. 15% Insurance and Admi nistration $ 1,050.00 SUBTOTAL $ 8,065.00 ADDITIONAL MECHANICAL ENGINEERING 1. Kitchen/Laundry Plumbing Plans HVAC Engineer: 2.00 Hours @ $115.00/Hour $ 230.00 Plumbing Engineer: 6.00 Hours @ $105.00/Hour $ 630.00 Principal: 1.00 Hour @ $155.00/Hour $ 155.00 AutoCAD Operator: 2.00 Hours @ $80.00/Hour $ 160.00 Word Processing: 2.00 Hours @ $40.0011-four $ 80.00 2. Recalculate HW Demand Plumbing Engineer: 1.00 Hour @ $105.00/Hour $ 105.00 3. Architectural Coordination Plumbing Engineer: 1.00 Hour @ $105.00/Hour $ 105.00 4. Construction Visits (2) Plumbing Engineer: 12.00 Hours @ $105.00/Hour $ 1,260.00 5. Shop Drawings Plumbing Engineer: 2.00 Hours @ $105.00/Hour $ 210.00 6. BFI's Plumbing Engineer: 1.00 Hour @ $105.00/Hour $ 105.00 7. 15% Insurance and Adminis tration $ 450.00 SUBTOTAL $ 3,490.00 REIMBURSABLE ALLOWANCE 1. Plotting and Reproduction $ 900.00 TOTAL ADDITIONAL FEE $ 27,683.50 Bid support services as requested shall be billed separately at the enclosed Standard Hourly Rates. Construction support services can be handled in the same manner. The above fees include costs for transportation, telephone, interim submittals, review specifications, and normal insurance coverage. Meyer and Associates understands the City will furnish information and services listed after our Scope of Services. These fees have been based on the Project Description and Scope of Work. Meyer and Associates will provide construction documents for improvements within the limits of the Project Description and Scope of Work. Documents for improvements exceeding the Project Description or Scope of Work are not included. Should the Project Description or Scope of Work be increased, the fee may be adjusted accordingly. Services will be billed on an hourly basis for actual work performed up to the total not-to-exceed fee. The breakdown of fees above is a guideline only to illustrate estimated fee components of the overall services. Without exceeding the not-to-exceed fee, actual work performed will be responsive to specific job requirements and may vary from the itemized listing above. standard hourly rates 1. MEYER AND ASSOCIATES will provide services, as may be required and authorized by the City, for hourly fees in accordance with the following schedule: Project Coordinator $ 125.00 Project Architect $ 125.00 Project Landscape Architect $ 125.00 CAD Operator $ 60.00 Word Processor $ 40.00 Clerical $ 40.00 2. R.F. DANIELS AND ASSOCIATES will provide services, as may be required and authorized by the City, for hourly fees in accordance with the following schedule: Principal Engineer $ 125.00 Clerical $ 40.00 3. REEDCORP will provide services, as may be required and authorized by the City, for hourly fees in accordance with the following schedule: Principal Engineer $ 140.00 CAD Operator/Drafting $ 80.00 Clerical $ 40.00 4. F.T. ANDREWS will provide services, as may be required and authorized by the City, for hourly fees in accordance with the following schedule: Principal $ 140.00 Engineer (HVAC) $ 115.00 Engineer (Plumbing) $ 105.00 CADD Technicians $ 80.00 Clerical $ 55.00 5. LANDSCAPE IRRIGATION CONSULTING will provide irrigation design services, as may be required and authorized by the City, for hourly fees in accordance with the following schedule: Principal Irrigation Designer $ 110.00 AutoCAD Operator $ 60.00 Clerical $ 40.00 fee notes 1. Consultation in connection with Contractor disputes, arbitration, litigation, court appearances and additional consultants will be quoted separately and is not a part of this proposal. 2. Additional billing classifications may be added to the above listing during the year as new positions are created. 3. It should be noted that the foregoing wage rates are effective through September 1, 2009. The rates may be negotiated with the City after that date to compensate for labor adjustments and other increases in costs. 4. Services of outside consultants not listed in this proposal shall be billed at our direct cost, plus 15% of the actual cost of their services for coordination. 5. Reimbursable items, such as the cost of blueprinting, graphic reproduction, FAX, and plotting shall be billed at our direct cost plus 15%. 6. It is the responsibility of Meyer and Associates to schedule the project's completion under normal conditions without the use of its staff on an overtime basis. If the City adjusts the deadline or requests that work be completed earlier than originally scheduled and thus requires overtime, the fees shall be adjusted to cover the increased costs incurred by Meyer and Associates. The hourly rates for overtime will be one and one-half (1 %2) times the standard hourly rates except for Sundays and holidays, which will be two (2) times the standard hourly rates. 7. We will bill on a monthly basis in proportion to the time spent on the project. All billing statements are due upon receipt. Interest will be charged at the rate of 1 %2 % per month on the past due balance thirty days and over. Meyer and Associates shall have the right to stop work should accounts become past due. 8. Fees contained herein are valid for 2 months from the date of this Proposal. ITEM NO. 8 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: Replace Existing Play Structure and Surfacing at Kent Hintergardt Memorial Park PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the City Council approve the Agreement with Miracle Playground Sales in the amount of $54,995.93 plus a 10% contingency in the amount of $5,499.59 to replace playground equipment and surface at Kent Hintergardt Memorial Park. BACKGROUND: The existing playground equipment, rubber surfacing and sand have been in place for approximately 16 years. The original rubber surfacing and sand has deteriorated and is in need of immediate replacement. Upon further review of the playground equipment it was determined that many of the components no longer meet current standards set by; Consumer Protection Safety Commission (CPSC), American Society for Testing and Materials (ASTM) and American Disabilities Act (ADA). Therefore it is recommended that we replace the existing equipment and install new safety surfacing. Miracle Playground Sales is a current member of California Multiple Award Schedule (CMAS) therefore, no bid process is necessary for this project. Additionally, the rubber surfacing replacement represents a small portion of the project and is best accomplished in conjunction with the play equipment replacement. FISCAL IMPACT: The cost of the construction contract is $54,995.93 plus an additional 10% contingency of $5,499.59. Sufficient funds from Parks and Recreation Development Impact Fees have been included in the Capital Improvement Budget for Fiscal Year 2008 - 2009 in the appropriate accounts. ATTACHMENTS: 1) Contract CITY OF TEMECULA PURCHASE AND INSTALLATION AGREEMENT This Purchase and Installation Agreement ("Agreement") is made and entered into as of May 12, 2009 by and between the Cityof Temecula ("City"), a municipal corporation, and Miracle Playground Sales ("Vendor"). In consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. Purchase and Sale of Equipment. On and subject to the terms and conditions set forth in this Agreement and the Contract Documents, Vendor agrees to manufacture, sell and deliver to the Citya Miracle Playground equipment, as more particularly described in Exhibit A, Description of Equipment, attached hereto and incorporated herein as though set forth in full (hereafter "Equipment"). 2. Purchaselinstallation Price. The Purchase and Installation price which City agrees to pay to Vendor for the Equipment and service is Fifty Four Thousand Nine Hundred Ninety Five and 931100 Dollars ($54,995.93) The Purchase price is final and shall be paid by City to Vendor upon acceptance of equipment as installed. 3. Scope of Work. Vendorshall manufacture and install the equipmentas described in the Scope of Work, attached hereto and incorporated herein as Exhibit A ("Work"). Vendor shall provide and furnish all labor, materials, necessarytools, expendable equipment and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed by the City. 4. Representations and Warranties of Vendor. Vendor makes the following representations and warranties to City: a. Authority and Consents. Vendor has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement. No approvals or consents of any persons are necessary in connection with Vendor's execution, delivery, installation and performance of this Agreement, except for such as have been obtained on or prior to the date hereof. The execution, delivery, installation and performance of this Agreement by Vendor have been duly authorized by all necessary action on the part of Vendor and constitute the legal, valid and binding obligations of Vendor, enforceable against Vendor in accordance with their respective terms. b. Title and Operatina Condition. Vendor has good and marketable title to all of the Equipment manufactured and installed. All of the Equipment are free and clear of any restrictions on or conditions to transfer or assignment, and City will acquire absolute title to all of the Equipment free and clear of mortgages, liens, pledges, charges, encumbrances, equities, claims, covenants, conditions and restrictions except for such as may be created or granted by City. All of the Equipment are in good operating condition, are free of any defects, and are in conformity with the specifications, descriptions, representations and warranties set forth in the Contract Documents. Vendor is aware the City is purchasing the Equipment for use as Miracle Playground Equipment and that City is relying on C:\Program FilesWeevia.COmTocument Conveiterltemp1915780.doc Vendor's warranties that the Equipment is fit for this purpose and the ordinary purposes for which the Equipment is normally used. C. Full Disclosure. None of the representations and warranties made by Vendor in this Agreement contain or will contain any untrue statement of a material fact, or omits to state a material fact necessaryto make the statements made, in light of the circumstances under which they were made, not misleading. 5. Performance. Vendor shall at all times faithfully, competently and to the best of his or her ability, experience, and talent perform all tasks described herein. Vendor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Vendor hereunder in meeting its obligations under this Agreement. 6. City Approval. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of the Cityor its authorized representatives, and the quality of the workmanship shall be guaranteed for one year from date of acceptance. City shall inspect the Equipment at the time and place of delivery. Such inspection may include reasonable tests and use of the Equipment by City. If, in the determination of City, the Equipment fails to conform to the Agreement I N ANY MANNER OR RESPECT, City shall so notify Vendor within ten (10) days of delivery of the Equipment to City. Failing such notice, the Equipment shall be deemed accepted by City as of the date of receipt. 7. Time of Delivery. The date and time of deliveryof the Equipmentshall be on or before June 17. 2009 8. Place of Delivery. The Equipment shall be delivered to this location: 31465 Via Cordoba, Kent Hintergardt Memorial Park Temecula CA, 92590 9. Resection. In the event of such notice of non-conformity by City pursuant to Section 6, City may, at its option, (1) reject the whole of the Equipment and Installation, (2) accept the whole of the Equipment and Installation, or (3) accept any commercial unit or units of the Equipment and reject the remainder or the Installation. The exercise of any of the above options shall be "without prejudice" and with full reservation of any rights and remedies of City attendant upon a breach. In the event of such notice and election by City, City agrees to comply with all reasonable instructions of Vendor and, in the event that expenses are incurred by City in following such instructions, Vendor shall indemnify City in full for such expenses. 10. No Replacements of Cure. This Agreement calls for strict compliance. Vendor expressly agrees that both the Equipment and Installation tendered and the tender itself will conform fully to the terms and conditions of the Agreement on the original tender. I n the event of rejection by City of the whole of the Equipment or any part thereof pursuant to Section 8, City may, but is not required to, accept any substitute performance from Vendor or engage in subsequent efforts to effect a cure of the original tender by Vendor. 11. Indemnification. Vendor agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees, agents and volunteers from and against anyand all claims, demands, losses, damages, costs and liability of any kind or nature which the City, its officers, officials, employees, agents or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of or from the Equipment or Vendor's maintenance thereof, excepting only liability arising out of the sole negligence of the City. C:\Program FilesWeevia.COmTocument Converterltemp1915780.doc 12. Contract Documents. a. This Agreement includes the following documents, which are by this reference incorporated herein and made a part hereof: quotation from vendor dated March 7, 2006. b. In the event any term or condition of the Contract Documents conflicts with or is contradictory to any term or condition of the Agreement, the terms and conditions of this Agreement are controlling. C. In the event of a conflict in terms between this Agreement, the RFP and/or the Vendor's response to the RFP, this Agreement shall prevail overthe RFP and the Vendor's Response to the RFP, and the RFP shall prevail overthe Vendor's Response to the RFP. 13. Default of Vendor. a. The Vendor's failure to comply with the provisions of this Agreement shall constitute a default. In the event the Vendor is in default for cause under the terms of this Agreement, the Cityshall have no obligation ordutyto continue compensating Vendorforanywork performed after the date of default and can terminate this Agreement immediately bywritten notice to the Vendor. If such failure bythe Vendor to make progress in the performance of work hereunder arises out of causes beyond the Vendor's control, and without fault or negligence of the Vendor, it shall not be considered a default. b. If the City Manager or his delegate determines the Vendor is in default in the performance of any of the terms or conditions of this Agreement, it shall service the Vendor with written notice of the default. The Vendor shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event the Vendor fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 14. Liability Insurance. Consultant shall procure and maintain forthe duration of the contract insurance against claims for injuries to persons or damages to propertywhich mayarise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance. Consultant shall maintain limits no less than: C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc -3- (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Employer's Liability: $1,000,000 per accident for bodily injury or disease. C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. (2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained bythe City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. (3) Any failure to complywith reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc -4- days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed bya person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 15. Survival of Representations and Warranties. All representations, warranties, covenants and agreements of the parties contained in this Agreement shall survive the execution, delivery, installation and performance of this Agreement. 16. Legal Responsibilities. The Vendor shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Vendor shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned byfailure of the Vendor to complywith this section. 17. Prohibited Interest. No officer, or employee of the City of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Contractor or Contractor's sub-contractors on this project. Contractor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. Independent Contractor. Vendor is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of the Vendor shall at all times be under the Vendor's exclusive direction and control. Neither the City nor any of its officers, employees, agents or volunteers shall have control over the conduct of the Vendor or any of the Vendor's officers, employees, agents or volunteers except as set forth in this Agreement. Vendor shall not at anytime or in any manner represent that it or any of its officers, employees or agents are in any manner, officers, employees or agents of the City of Temecula. Vendor shall not incur or have the powerto incur any debt, obligation or liability whatever against the City, or bind the City in any manner. C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc -5- 19 Assignment. The Vendor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the city. 20. Notices. Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice: To City at: City of Temecula 43200 Business Park Drive Temecula, California 92589 Attn: City Manager To Vendor at: Miracle Playground Sale 9196 Stellar Court Corona, CA 92883 Phone (800) 264-7225 Contact Person: Mike Etchison 21. Governing Law. The City and Vendor understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior or federal district court with jurisdiction over the City of Temecula. 22. 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 orwritten, are merged 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. 23. Authority To Execute This Agreement. The person or persons executing this Agreement on behalf of Vendor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Vendor and has the authority to bind Vendor to the performance of its obligations hereunder. C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc -6- IN WITNESS WHEREOF, the parties to this Agreement have duly executed in on the day and year first above written. CITY OF TEMECULA Maryann Edwards, Mayor Attest: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney Vendor: Miracle Playground Sale 9196 Stellar Court Corona, CA 92883 Phone (800) 264-7225 Contact Person: Mike Etchison By: Name: Title: C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc _7_ EXHIBIT A DESCRIPTION OF EQUIPMENT/SCOPE OF WORK MIRACLE c s A i o I n T N (Vendor Quotation April 21, 2009) QUOTATION 9196 Stellar Court Date Quotation # Corona, CA 92883 (800) 264-7225 (877) 215-3869 FAX 4/21/2009 113690A Customer Name City of Temecula Attn: Jerzy Kanigowski PO Box 9033 Temecula, CA 92589 jerzy.kanigowski@cityoftemecula.org Terms Rep FOB Project Net 30 OAC ME Factory Kent Hintergardt Opt 2 Item Description Qty Cost TOTAL 714-000 Kids' Choice Playsystem - 11617SD Kent 1 21,473.09 21,473.09T Hintergardt_Park_2 - AS SPECIFIED Swings 2- Bay Arch Swing Set with 2 Belt Seats & 2 Toddler 1 2,735.92 2,735.92T Seats - AS SPECIFIED Freight Commercial Freight 1 2,401.55 2,401.55 FIBAR SYSTE... FIBAR SYSTEM 112, SYS 1 3,886.05 3,886.05T 3,465 Sq. Ft. 12" Depth FIBAR ENGINEERED WOODCHIPS with a 35% compaction figure added. FIBAR FELT 0 FIBAR MATS ( NOT Included in this System) ***To validate the 12-yr warranty a Fiber Mat needs to be installed under all swings and by all slide exits and sliding poles, provided proper installation & maintenance instructions are followed at all times. Freight Commercial Freight 1 561.00 561.00 This quote is good for 30 days. Subtotal The acceptance signature below serves as authorization to Sales Tax (8.75%) order the items quoted and indicates acceptance of the listed prices and payment terms. Signature will not substitute for a Purchase Order, if a Purchase Order is required by customer. TOTAL Unloading, storage and installation of equipment upon arrival is not included in above prices unless specifically noted on quote. State law requires that playgrounds be installed by manufacturer certifed installers or inspected after installation before first use by a CPSI. Should you require such an inspection from us there will be a separate charge as the sale of the equipment does not include the cost of after installation Page 1 SIGNATURE C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc _g_ EXHIBIT A DESCRIPTION OF EQUIPMENT/SCOPE OF WORK (Vendor Quotation April 21, 2009) MIRACLE 9 s 0 C v Z o I a N 9196 Stellar Court Corona, CA 92883 (800) 264-7225 (877) 215-3869 FAX QUOTATION Date Quotation # 4/21/2009 113690A Customer Name City of Temecula Attn: Jerzy Kanigowski PO Box 9033 Temecula, CA 92589 jerzy.kanigowski@cityoftemecula.org Terms Rep FOB Project Net 30 OAC ME Factory Kent Hintergardt Opt 2 Item Description Qty Cost TOTAL Install Installation Provide by Ortco Inc. License #657695. 1 21,480.00 21,480.00 Also Includes Demo/ Removal of Existing Play Equipment & Surfacing CMAS Pricing Pricing reflects CMAS pricing as per: CMAS 0.00 Contract #4-99-78-0006A Miracle Recreation Equipment Company Terms Net 30 TERMS: Net 30 - Payment is due in full within 30 0.00 days from the invoice date. Balances not paid within the terms are subject to a 1.25% per month finance charge until paid. All terms are subject to credit approval. Exclusions Exclusions: Unloading, storage, assembly, 0.00 installation, concrete flatwork / footings, other safety surfacing, site preparation, permits & fees This quote is good for 30 days. Subtotal $52,537.61 The acceptance signature below serves as authorization to Sales Tax (8.75%) $2,458.32 order the items quoted and indicates acceptance of the listed prices and payment terms. Signature will not substitute for a Purchase Order, if a Purchase Order is required by customer. TOTAL $54,995.93 Unloading, storage and installation of equipment upon arrival is not included in above prices unless specifically noted on quote. State law requires that playgrounds be installed by manufacturer certifed installers or inspected after installation before first use by a CPSI. Should you require such an inspection from us there will be a separate charge as the sale of the BdulDment does not include the cost Of after installation Page 2 SIGNATURE C:\Program Files\Neevia.Com\Document Converter\temp\915780.doc -9- ITEM NO. 9 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Greg Butler, Director of Public Works DATE: May 12, 2009 SUBJECT: Regional Priorities for the 2009 Federal Transportation Authorization Bill PREPARED BY: Beryl Yasinosky, Management Analyst RECOMMENDATION: That the City Council 1. Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) ADOPTION OF REGIONAL PRIORITIES FOR THE 2009 FEDERAL TRANSPORTATION AUTHORIZATION BILL BACKGROUND: In the coming months, the U.S. House of Representatives will consider new legislation to authorize the next era of federal transportation policy and funding. As part of this process, Riverside County and its local jurisdictions have a unique opportunity to emphasize our regional priorities at the federal level. Based on the standards set by the House Transportation and Infrastructure Committee and numerous meetings with federal representatives, Riverside County Transportation Commission (RCTC) staff has determined that Riverside County will benefit from maintaining a strategy that supports regional corridors for improvement rather than individual projects. As a result, RCTC has carefully vetted the many transportation needs in our region. In selecting priority corridors, RCTC emphasized corridors that demonstrated a clear federal nexus; provided regional benefits; and could be delivered within the 6-year timeframe of the proposed legislation. RCTC is fully aware that the needs of Riverside County far exceed these three corridors. However, federal funding is highly competitive and Congress is raising the level of scrutiny on Member-designated projects. On April 8, 2009 the Commission unanimously adopted three high priority corridors for the next federal transportation bill, as follows: Alameda Corridor East (Railroad grade separations throughout Riverside County): There are 13 railroad grade separations that meet the proposed funding criteria requirements. Interstate 215 (1-215) Corridor Improvements: The 1-215 corridor improvements consist of three critical High Priority Projects: (1) the French Valley Parkway Interchange; (2) the Central 1-215 Project: Scott Road to Nuevo Road; and (3) the 1-215 Bi-County HOV Gap Closure Project. Interstate 10 (1-10) Corridor Improvements: The Coachella Valley Association of Governments and their local agency partners in the desert have spent many years developing a series of five important interchange reconstruction projects along 1-10. Additional federal funding will guarantee delivery of all five interchanges along the 1-10 corridor. The City of Temecula recently submitted a project application and letter of support to Congresswoman Mary Bono-Mack for the French Valley Parkway Interchange Project as part of the overall 1-215 Corridor Improvements. A copy of the letter is provided for your review. In addition, RCTC is requesting that the City Council adoptthe attached resolution supporting these three priority corridors and the strategic regional approach adopted by the Commission. FISCAL IMPACT: None. ATTACHMENTS: 1. Resolution No. 09- 2. Mayor Edwards' Letter of Support dated 4/23/09 RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION (RCTC) ADOPTION OF REGIONAL PRIORITIES FOR THE 2009 FEDERAL TRANSPORTATION AUTHORIZATION BILL THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Riverside County Transportation Commission (RCTC) is the Regional Transportation Planning Agency representing all 26 cities and unincorporated areas in Riverside County concerning regional transportation issues, planning, and administration; and Section 2. The U.S. House of Representatives is in the process of considering new legislation for the 2009 Federal Transportation Authorization Bill and has outlined their standards for High Priority Project requests; and Section 3. Based on this criteria, and the highly competitive nature of federal transportation funding, RCTC has determined that Riverside County will benefit from a strategy that supports regional corridors for improvement rather than individual projects; and Section 4. RCTC has carefully vetted the many transportation needs in our region with the federal standards for authorization projects; and Section 5. On April 8, 2009 RCTC unanimously adopted three high priority corridors for the next federal transportation bill: A. The Alameda Corridor East - (13 railroad grade separations throughout Riverside County) B. Interstate 215 (1-215) Corridor Improvements - (French Valley Parkway Interchange; Central 1-215 Project - Scott Rd. to Nuevo Rd.; and the 1-215 Bi-County HOV Gap Closure Project) C. Interstate 10 (1-10) Corridor Improvements - (Coachella Valley Association of Governments - Reconstruction of 5 Interchanges along the 1-10 corridor) Section 6. RCTC and City of Temecula have submitted an application and letter of support for consideration of federal transportation funds for the French Valley Parkway Interchange Project as one of the High Priority Projects within the 1-215 Corridor; and Section 7. The City of Temecula supports the three high priority corridors for the 2009 Federal Transportation Authorization Bill and the regional approach recommended by RCTC to help Riverside County obtain funding for these very important projects. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 12th day of May, 2009. Maryann Edwards, 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. 09- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 12th day of May, 2009, 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 43200 Business Park Drive - Temecula, CA92590 ■ Mailing Address: P.O. Box 9033 ■ Temecula, CA92589-9033 (951) 506-5100 - Fax (951) 694-6499 ■ vvww.cityoftemecula.org Maryann Edwards April 23, 2009 Mayor Jeff Comerchero Mayor Pro-Tem The Honorable Mary Bono Mack Michael S. Naggar United States House of Representatives Council Member 104 Cannon House Office Building Washington D.C. 20515 Ronald H. Roberts Council Member Subject: City of Temecula - Letter of Support for the Interstate 215 Chuck Washington Corridor Improvements; I-15/French Valley Parkway/ Council Member Winchester Road Interchange Project (2009 Federal Surface 951-506-5100 Transportation Reauthorization Bill - High Priority Projects) FAX 951-694-6499 Dear Representative Bono Mack: On behalf of the Temecula City Council, I am providing this letter in support of the Riverside County Transportation Commission's (ROTC) efforts to secure 2009 Federal Surface Transportation Funding for the Interstate 215 (I-215) Corridor Improvements. As part of the I-215 Corridor, the City of Temecula is requesting $91.491 million in funding for the $140.846 million I-15/French Valley Parkway/Winchester Road Interchange Project, located on I-15, between the existing Winchester Road (State Route 79, SR 79)/I-15 Interchange and the I-15/I-215 junction, within the cities of Temecula and Murrieta. As you are aware, I-15/I-215 are the only major north-south freeways providing regional access to/from the Cities of Temecula and Murrieta, and adjoining areas within Southwest Riverside County. 1-15 serves as the primary connector to major employment centers located in the San Diego metropolitan area to the south, as well as the Corona and Los Angeles metropolitan areas to the north. I- 215 serves a similar role connecting Southwest Riverside County to Riverside and San Bernardino. However, due to unprecedented growth and development in this area, traffic volumes have far surpassed the capacity of the existing facilities, contributing to significant traffic congestion and dangerous driving conditions on the I-15/I-215 mainline and existing freeway off-ramps. The I- 15/French Valley Parkway/Winchester Road Interchange Project represents a critical component of local and regional efforts to reduce traffic congestion, enhance safety conditions, and provide access and infrastructure improvements necessary to support future development along the I-15/I-215 corridors. ® Printed on Recycled Paper The Honorable Mary Bono Mack April 23, 2009 Page 2 The City of Temecula is committed to the implementation and completion of this project. Our request for $91.491 million represents 68.5% of the current right-of-way and construction cost estimate. The remaining 31.5% ($41.998 million) of the project cost will be funded with a combination of State Transportation Improvement Program (STIP) funds ($31.545 million), SAFETY-LU HPP funds ($1.44 million), and Local Funds ($9.013 million). The Project's Draft Environmental Document was approved on April 15, 2009 and is currently under public review and comment. The City is hosting an informal meeting/open house on May 7, 2009 to allow the public to view exhibits, documents, and speak with Project Team members about the interchange. Upon approval of the Final Environmental Document and Project Report, the City will initiate the final design of the project, with completion targeted for late 2012. The City of Temecula urges your support for the I-215 Corridor Improvements and the I-15/French Valley Parkway/Winchester Road Interchange Project. These regional projects represent multi jurisdictional infrastructure improvements that benefit area residents as well as future development and interstate transportation needs. Thank you for your consideration and your diligent work over the years as our federal representative. Sincerely, Maryann Edwards Mayor cc: Temecula City Council Shawn Nelson, Temecula City Manager Greg Butler, Temecula Director of Public Works David Torch & Associates Murrieta City Council Rick Dudley, Murrieta City Manager ITEM NO. 1 0 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Greg Butler, Director of Public Works DATE: May 12, 2009 SUBJECT: Acceptance of certain Public Streets into the City-Maintained System within Tract Map No. 23209 (Located West of Butterfield Stage Road at La Serena Way - Shea Homes) PREPARED BY: Daniel A. York, City Engineer Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 23209) BACKGROUND: Tract Map No. 23209 was recorded by the County Recorder on June 28, 2002. The owner, Shea Homes Limited Partnership, dedicated to public use for street and public utility purposes streets designated as lettered lots on the map. The City Clerk accepted the offers of dedication, subject to improvements constructed in accordance with City Standards. Public Works Staff reviewed and inspected the public improvements, and verified all required repairs and replacements were satisfactorily completed. However, the one-year Warranty and Labor & Materials Bonds have not been released. The Warranty Bond will be released at the end of the one- year period in May 2010. The Labor and Materials Bonds will be released six months into the one- year warranty period in November 2009. The public streets now being accepted by this action are as follows: Portion of Butterfield Stage Road, portion of La Serena Way, portion of Walcott Lane, Wgasa Place, Aurora Court, Reyes Court, Avenida Enrique, Luzon Street, Cebu Drive, Pasos Place, Corte Cynthia, Avenida Mallari, Calle Elenita, Azucena Court, Daniel Way, Carlena Lane, Julo Way, Ahern Place, and portion of Leigh Lane. FISCAL IMPACT: None at this time. Periodic surface and I or structural maintenance will be required every 5 to 8 years. ATTACHMENTS: Resolution No. 09 - with Exhibits "A - B" inclusive. RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN PUBLIC STREETS INTO THE CITY-MAINTAINED SYSTEM (WITHIN TRACT NO. 23209) THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, Tract Map No. 23209 was recorded by the County Recorder on June 28t", 2002 in which offers of dedication for street and public utility purposes were accepted by the City of Temecula from Shea Homes Limited Partnership; and, WHEREAS, City Public Works Staff reviewed and inspected the public improvements and all repairs and replacements were satisfactorily completed; and, WHEREAS, Only the Warranty Bond and Labor and Material Bond pertaining to this tract have not been released; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula hereby accepts into the City-Maintained Street System the streets offered to and accepted by the City of Temecula described in Exhibits "A" and "B" attached hereto. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 12th day of May, 2009. Maryann Edwards, 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. 09- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 12th day of May, 2009, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk EXHIBIT "A" TO RESOLUTION NO. 2009 - Accepting certain public streets offered to and accepted by the City of Temecula as indicated on Tract Map 23209 into the City-Maintained Street System as described as follows: 1. Lot "A" (portion of Butterfield Stage Road) of said Tract Map No. 23209 2. Lot "B" (portion of La Serena Way) of said Tract Map No. 23209 3. Lot "C" (portion of Walcott Lane) of said Tract Map No. 23209 4. Lot "D" (VVgasa Place) of said Tract Map No. 23209 5. Lot "E" (Aurora Court) of said Tract Map No. 23209 6. Lot "F" (Reyes Court) of said Tract Map No. 23209 7. Lot "G" (Avenida Enrique) of said Tract Map No. 23209 8 Lot "H" (Luzon Street) of said Tract Map No. 23209 9. Lot "I" (Cebu Drive) of said Tract Map No. 23209 10. Lot "J" (Pasos Place) of said Tract Map No. 23209 11. Lot "K" (Corte Cynthia) of said Tract Map No. 23209 12. Lot "L" (Avenida Mallari) of said Tract Map No. 23209 13. Lot "M" (portion of Calle Elenita) of said Tract Map No. 23209 14. Lot "N" (portion of Calle Elenita) of said Tract Map No. 23209 15. Lot "O" (Azucena Court) of said Tract Map No. 23209 16. Lot "P" (Daniel Way) of said Tract Map No. 23209 17. Lot "Q" (Carlena Lane) of said Tract Map No. 23209 18. Lot "R" (portion of Julo Way) of said Tract Map No. 23209 19. Lot "S" (portion of Ahern Place) of said Tract Map No. 23209 20. Lot "T (portion of Julo Way) of said Tract Map No. 23209 21. Lot "U" (portion of Leigh Lane) of said Tract Map No. 23209 0 m EXHIBIT "B" TO RESOLUTION NO. 2009- TRACT MAP 23209 s I ` V- wwe VICINITY MAP NO SCALE II o II II 1I 1 I~ II 1 ~I ~I a 1 1 I a c~ m \ I I o\ 1 !oT? 1 'J ITEM NO. 11 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Greg Butler, Director of Public Works DATE: May 12, 2009 SUBJECT: Approval of the Bid Package and Authorization to Solicit Construction Bids for the Street Striping Program - FY 2009-2010, Project No. PW09-04 PREPARED BY: Mayra De La Torre, Senior Engineer- CIP Chris White, Assistant Engineer - CIP RECOMMENDATION: That the City Council approve the bid package and authorize the Department of Public Works to solicit construction bids for the Street Striping Program - FY 2009- 2010, Project No. PW09-04. BACKGROUND: The Street Striping Program provides for bi-annual Citywide re- painting of street striping and pavement markings as part of routine maintenance. In addition to repainting existing stripes and pavement markings, the scope of work includes minor modifications as directed by the City Engineer including the removal of existing stripes and the placement of new traffic stripes and pavement markings. The City may extend this contract annually up to three (3) years. In no event shall the contract be extended beyond June 30, 2013. The quantity of work and individual unit prices shall be negotiated with the contractor at the time of each extension. The bid package is complete and the project is ready to be advertised for construction bids. The contract documents are available for review in the office of the Director of Public Works. The Engineer's Construction Estimate for the project is $ 144,725.00 annually FISCAL IMPACT: Award of the contract will be contingent upon adoption of the FY2009- 2010 Operating Budget. Adequate funds will be available in the Public Works Department Maintenance Division FY2009-2010 Operating Budget for Public Works Routine Street Maintenance Striping/Stenciling Account No. 001-164-601-5410. ATTACHMENTS: None ITEM NO. 12 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Greg Butler, Director of Public Works DATE: May 12, 2009 SUBJECT: First Amendment to a Professional Service Agreement for Geotechnical and Material Testing Services with Geocon Inland Empire, Inc. for the Pechanga Parkway Ph II Street Improvements Project; Project No. PW99-11 PREPARED BY: Amer Attar, Principal Engineer, CIP Mayra De La Torre, Senior Engineer, CIP RECOMMENDATION: That the City Council approve the First Amendment to the Agreement with Geocon Inland Empire Inc. for geotechnical and materials testing services for the Pechanga Parkway Ph II Street Improvements Project ; PW99-11, in an amount not to exceed $61,838.10. BACKGROUND: On May 13, 2008, the City Council approved a $125,589.00 agreement with Geocon Inland Empire Inc. (Geocon) and also authorized a contingency amount equal to 10% of the contract or $12,558.90 for geotechnical and material testing services needed for the Pechanga Parkway Ph II Street Improvements Project (the Project). The Project, which includes the widening and reconstruction of Pechanga Parkway from Temecula Parkway to Pechanga Road is currently in the final stages of construction. During the course of the work the contractor encountered many areas of unsuitable unstable sub-grade. This resulted in the need for extensive geotechnical consultant presence onsite, performing additional tests, providing appropriate remediation recommendations, and monitoring the implementation of these recommendations. It was necessary to have the geotechnical consultant on the project site much more than originally estimated; therefore Geocon requested an increase to the scope of the geotechnical services. The extent of the quality control and quality assurance work needed from Geocon to complete the project exceeds the original 10% contingency for this agreement. Staff has negotiated a fair and equitable increase in scope and is recommending that the City Council approve additional geotechnical services in the amount of $61,838. It is anticipated that some of the geotechnical costs will be recovered from All American Asphalt (AAA), the contractor for the Project. AAA elected to work overtime and weekends in order to meet the project schedule. When doing so, AAA was advised that they must pay the overtime and weekend premium costs for all support services, such as City inspections and geotechnical services. The amount of this recovery is yet to be determined. FISCAL IMPACT: The Pechanga Parkway Ph II Street Improvements, Project No. PW99-11, is a Capital Improvement Project funded with Development Impact Fees - Street Improvements, a Pechanga Indian Tribe Contribution, a Public Lands and Highways Grant, Reimbursements from RCWD and Standard Pacific Homes and the Wolf Creek Community Facilities District (CFD). The total cost of the original Agreement is $138,147.90, which includes a $12,558.90 contingency. This First Amendment for $61,838.10 brings the total Agreement authorization to $199,986.00. Adequate funds are available in the project account, no. 210-165- 668-5805 for this $61,838.10 request. ATTACHMENTS: 1. First Amendment 2. Location Map & Project Description FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND GEOCON INLAND EMPIRE, INC. PECHANGA PARKWAY PH II STREET IMPROVEMENTS PROJECT PROJECT NO. PW99-11 THIS FIRST AMENDMENT is made and entered into as of May 12, 2009 by and between the City of Temecula, a municipal corporation ("City") and Geocon Inland Empire, Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with respect to the following facts and purposes: A. On May 13, 2008 the City and Consultant entered into that certain agreement entitled "City of Temecula Agreement for Geotechnical and Laboratory Materials Testing Services ("Agreement") in the amount of One Hundred Twenty Fifty Thousand Five Hundred Eighty Nine Dollars and No Cents ($125,589.00). B. The parties now desire to increase payment for geotechnical and material testing services, only upon request and authorized by the City, in the amount of Sixty One Thousand Eight Hundred Thirty Eight Dollars and Ten Cents ($61,838.10) and amend the Agreement as set forth in this Amendment. 2. Section 5. PAYMENT of the Agreement is hereby amended to read as follows: A. Replace paragraph 5A with the following A. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Consultant shall not bill the City for any travel time and expenses associated with it, nor shall the Consultant charge a set minimum number of hours for each site visit. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed One Hundred Eighty Seven Thousand Four Hundred Twenty Seven Dollars and Ten Cents ($187,427.10), including the original agreement amount of $125,589.00 and this Amendment No. 1 in the amount of $61,838.10, for the total term of the Agreement unless additional payment is approved as provided in this Agreement. B. Replace paragraph 5B with the following: B. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City. C:Wrogram FilesWeevia.ComUocument ConveneNemp1M508.doc The City Manager may approve additional work up to ten percent (10%) of the amount of the Agreement or thirty thousand dollars ($30,000.00). In no event shall the total sum of the agreement exceed thirty thousand dollars ($30,000.00). Any additional work in excess of this amount shall be approved by the City Council. 3. Exhibits A and B to the Agreement are 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. z C:Wrogram FilesWeevia.ComDocument Converterttemp1916508.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Maryann Edwards, Mayor ATTEST: Susan W. Jones, MMC, City Clerk Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT Geocon Inland Empire, Inc. 41571 Corning Place, Suite #101 Murrieta, CA 92562-7065 (951) 304-2300 (951) 304-2392 Fax John Hoobs, CEG, President Michael S. Chapin, Chief Executive Officer (Two Signatures Required For Corporations) 3 R OPiPROJECTS/PW991PW99-11 Poch Pkwy PhII Street I mprovslCONSTRUCTIONIAgreements/Geocon Amend 1.doc ATTACHMENT "°A" 4 R lCIPiPROJECTS/PVV99/PVV99-11 Poch Pkwy Phll Street I mprovslCONSTRUCTIONIAgreements/Geocon Amend 1.doc PROJECT LOCATION Project Title: PECHANGA PARKWAY IMPROVEMENTS - PHASE II yNErR µD D DE POR~O~ VALLEJO AV RF P G TEMECULAPK~ a ~Y Bq AEHO L\NOA RD ~ AP y NG pq pR T VIA SAITIO 4 2 a 3 i \9d ~ y \ 1 m w N s o y A ~w O PROJECT DESCRIPTION Project Title: PECHANGA PARKWAY IMPROVEMENTS - PHASE II PRIORITY: Project Type: Circulation Description: Design and construct full-width street improvements of Pechanga Parkway from Temecula Parkway to Pechanga Road. Full width is 134 feet from Temecula Parkway to Via Gilberto, and 110 feet from Via Gilberto to Pechanga Road. Department: Public Works - Account No. 210.165.668 Scope of Project: Project will include the design, acquisition, environmental studies, mitigation, and construction of road impro vements to include curb, gutters, sound wall, and storm drain facilities from Deer Hollow Way to Temecula Creek. Benefit: Project will improve traffic circulation. Project Cost: Actuals Total Project to Date 2008-09 2009-10 2010-11 2011-12 2012-13 Cost Administration $ 1,606,780 $ 300,000 $ 1,906,780 Acquisition $ 412,866 $ 425,334 $ 838,200 Construction $ 13,680,333 $ 8,945,162 $ 22,625,495 Construction Engineering $ 81,852 $ 304,296 $ 386,148 Design $ 988,579 $ 23,814 $ 1,012,393 Environmental* $ 400,000 $ 400,000 MSHCP $ 467,258 $ 467,258 Totals $ 16,770,410 710,865,864 $ - $ - $ - $ - $ 27,636,274 Source of Funds: AD 159 (Deer Hollow Way) $ 2,455,521 $ 2,455,521 AD 159 (Wolf Valley Channel) $ 4,839,554 $ 4,839,554 CFD (Wolf Creek) $ 4,291,473 $ 5,073,729 $ 9,365,202 DIF (Street Improvements) $ 2,233,055 $ 2,233,055 PLH Program $ 23,645 $ 3,976,355 $ 4,000,000 Reimbursements/Other (Bonds) $ 20,910 $ 20,910 Reimbursements/Other (Pechanga Indian Tribe Contr.) $ 2,700,000 $ 1,700,000 $ 4,400,000 Reimbursements/Other(RCWD) $ 227,162 $ 94,870 $ 322,032 Total Funding: $ 16,770,410 $ 10,865,864 $ - $ - $ - $ - $ 27,636,274 Future O & M Cost: $ 3,000 Annually *Environmental Costs includes the creation of a mitigation site for Pechanga Parkway. 71 GEOCON INLAND EMPIRE, INC. G E O T E C H N I C A L ■ E N V I R O N M E N T A L ■ Project No. T2462-52-01 February 23, 2009 Revised April 29, 2009 City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, California 92589-9033 Attention: Ms. Mayra De La Torre Subject: CHANGE ORDER REQUEST NO. 1 PECHANGA PARKWAY PHASE II STREET IMPROVEMENTS PROJECT NO. PW 99-1 TEMECULA, CALIFORNIA Dear Ms. De La Torre: M A T E R I A L S - The attached Change Order Agreement for Professional Services has been prepared to update the status of our geotechnical engineering services. The original contract amount was $125,589 and estimated that approximately 838 field technician hours would be required to complete the project. As of April 19, 2009, a total of 1,321.5 field technician hours have been requested. This total includes 116.5 hours of overtime, weekend and holiday hours. We anticipate that approximately 160 hours of additional field testing will be required prior to completion of the project. The extended construction schedule also requires additional engineering consultation and administrative expenses. See Attachment A for details of the estimated additional services. Any services requested beyond this amount will be provided at additional cost in accordance with the approved Schedule of Fees. We are requesting a $61,838.10 Change Order, for a revised contract amount of $187,427.10. With the EWA of $12,558.90, the agreement authorization totals to $199,986.00. If this meets with your approval, please sign the attached agreement or prepare your own change order and return one copy to our office. Should you have any questions regarding this request, or if we may be of further service, please contact the undersigned at your convenience. Very truly yours, GEOCON INLAND EMPIRE, INC. Kenneth E. CoX Project Engineer KEC:sc Enclosures: Change Order No. 1, Attachment A (2) Addressee 41571 Coming Ploce, Suits 101 ■ Murrieio, Colifornia 92562-7065 ■ Telephone 19511 3042300 ■ Fox (951) 3042392 ATTACHMENT "A" (pg 2 of 2) PECHANGA PARKWAY PH II STREET IMPROVEMENTS PW99-11 GEOCON INLAND EMPIRE, INC. The following is a breakdown of the requested contract increase. All other terms and conditions specified in the original contract shall remain in full force and effect. Task Item Contract Amt As of 4-19-09 Est. after 4-19-09 to 6-30-09 Est. Project Total Less Proposed Technician $ 26,280 $ 137,880 $ 16,000 $ 153,880 $ 127,600 Engineering Consultation $ 11,500 $ 16,417 $ 5,000 $ 21,417 $ 9,917 Laboratory Testing $ 87,809 $ 20,689 $ 4,000 $ 24,689 $ 63,120) Total: $ 125,589 $ 174,986 $ 25,000 EWA No.1 $ 199,986 $12,558.90 $ 74,397 $12,558.90 Requested Amt $187,427.10 $61,838.10 ITEM NO. 13 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Greg Butler, Director of Public Works DATE: May 12, 2009 SUBJECT: First Amendment to the Minor Maintenance Services Contract with Monteleone Contractors for the Emergency Replacement of a Failed Storm Drain Pipe Under Margarita Road, Project No. PW09-05 PREPARED BY: Amer Attar, Principal Engineer, CIP RECOMMENDATION: That the City Council 1. Approve the First Amendment to the Minor Maintenance Services Contract with Monteleone Contractors in an amount not to exceed $123,618.18 for the Emergency Replacement of a Failed Storm Drain Pipe under Margarita Road, just South of Rancho Vista Road; Project No. PW09-05. 2. Approve a contingency of $24,723.64, which is 20% of the amendment amount. BACKGROUND: At around 2:00 AM the morning of Thursday, April 23, 2009, the Public Works maintenance crew was called out by the Police Department to investigate a sink hole that was opening upon Margarita Road, just south of Rancho Vista. Upon arrival it was determined that there was a void beneath the pavement, which caused a portion of the road to collapse. Our maintenance crew diverted traffic around the area and opened a 7'X 8' hole to determine the cause of the collapse. It was observed that a corrugated metal pipe (CMP) exists under the collapsed road. As a temporary measure, to open the full width of the road to traffic, Monteleone, the City's on-call contractor, was asked to fill the hole with aggregate base and cover it with oversized steel plates. Over the next several days examinations of the 42" diameter CMP revealed several bulges, rust and corrosion at the bottom of the pipe, and that the CMP has several holes and cracks. Staff's assessment is that the rust and corrosion occurred over time creating the holes and cracks that allowed the dirt surrounding the pipe to slowly fall inside the pipe and get washed down stream in small unnoticeable amounts as water flowed through the pipe. Over time the transport of the dirt created the voids around the pipe, which in turn caused the road to collapse. The pattern of the bulges and the deformation of the pipe could have been caused by a number of events one of which is the compromised structural integrity of the pipe due to the rust and corrosion. The attached Inspection Report shows photographs of the pipe condition and the outlet. To protect the health, safety and well being of the residents of Temecula and the traveling public, staff has determined that the entire pipe will need to be replaced with a Concrete Reinforced Pipe (RCP) immediately. Since the City has an on-call contract with Monteleone Contractors for minor maintenance services, theywere summoned to the site to give the Cityan estimate for doing all the work involved in replacing the pipe. Monteleone gave the City an estimate of $123,618.18 to do all the work involved in replacing the 42" CMP with a 42" RCP. The estimate and scope of work is attached to the amendment. Staff reviewed the estimate and has determined that the costs are consistent with costs seen on other projects for this type of work. Due to the emergency nature of the work, the City Attorney advised that the work could proceed as soon as practical with the City Council ratifying the amendment at its first opportunity. The replacement work was completed over a period of three nights beginning Wednesday night April 29, 2009. FISCAL IMPACT: Capital Project Reserves programmed for the Localized Storm Drain Improvement Project included in the Capital Improvement Program will be utilized for this emergencywork. Adequate funds are available in the various Project Accounts with a current total balance of $270,000. ATTACHMENTS: 1. First Amendment 2. Margarita Road CMP Pictures 3. Location Map & Project Description FIRST AMENDMENT TO CONTRACT BETWEEN CITY OF TEMECULA AND MONTELEONE CONTRACTORS FOR THE EMERGENCY REPLACEMENT OF A FAILED STORM DRAIN PIPE UNDER MARGARITA ROAD, PROJECT NO. PW09-05 THIS FIRST AMENDMENT is made and entered into as of April 29, 2009 by and between the City of Temecula ("City"), a municipal corporation, and Monteleone Contractors ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with the respect to the following facts and purposes: a. On June 10, 2008, the City and Contractor entered into that certain Contract entitled "City of Temecula Contract for Future Repair, Improvement and Maintenance Upon Real and Personal Property of the City of Temecula, in the amount of Two Hundred Thousand Dollars and No Cents ($200,000.00). b. The parties now desire to increase the payment for services in the amount of One Hundred Twenty Three Thousand Six Hundred Eighteen Dollars and Eighteen Cents ($123,618.18) for the emergency replacement of a failed storm drain pipe under Margarita Road, Project No. PW09-05 and amend the Contract as set forth in this Amendment. 2. Section 1. Term Section 1. TERM. This Contract shall remain and continue in effect until tasks herein are completed, but in no event later than June 30, 2009, unless sooner terminated pursuant to the provisions of this Contract. 3. Section 3.a. PAYMENT. Section 3a., Payment, of the Agreement is hereby amended to read as follows: a. The City agrees to pay Contractor monthly, in accordance with the payment rates and schedules and terms set forth in Exhibit A, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit A other than the payment rates and schedule of payment are null and void. The First Amendment amount shall not exceed One Hundred Twenty Three Thousand Six Hundred Eighteen Dollars and Eighteen Cents ($123,618.18) for the emergency replacement of a failed storm drain pipe under Margarita Road, Project No. PW09-05 for a total Contract amount of Three Hundred Twenty Three Thousand Six Hundred Eighteen Dollars and Eighteen Cents ($323,618.18). 4. Exhibit "A" to the Contract 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. The scope of work is as indicated on Monteleone's estimate and that the work shall be done in accordance with the current (2009) Greenbook, City Standards, prevailing engineering practices, and as directed by the Director of Public Works. 1 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed the day and year first above written. CITY OF TEMECULA Maryann Edwards, Mayor ATTEST: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONTRACTOR MONTELEONE CONTRACTORS 25225 Wolcott Court Wildomar, CA 92595 (951) 677-8308 Attn: Ryan Monteleone BY: (Signature) NAME: (Printed Named) TITLE: BY: (Signature) NAME: (Printed Named) TWO SIGNATURES REQUIRED FOR CORPORATIONS 2 ATTACHMENT A Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Contractor. 3 Monteleone Excavating 25225 Wolcott Ct. Wildomar, CA 92595 Name / Address City of Temecula Attn :Public Works 43200 Business Park Drive Temecula CA 92590 Estimate Date Estimate # 41121`2 0 00 150 Project Description Qty Cost Total Move in And out of equipment 4 450.00 1,800.00 Remove and haul and dispose of existing asphalt pavement 38'X 1 11,500.00 11,500.00 83'X 5.5" (3,154 S.F.) Supply all labor and materials for new asphalt paving 38' X 83' X 3,154 5.75 18,135.50 5.5" (3,154 S.F.) Supply all labor and materials to remove and replace 125 L.F. of 8" 125 44.75 5,593.75 A.C. berm. Supply all material, labor and machinery to remove Existing 85 54,738.93 54,738.93 L.F. of 42" C.M.P and replace with 85 L.F. of 42" R.C.P. (2000 D load rating) Estimate includes. 1. All necessary trench shoring. 2. Night work. (Light tower rentals) 3. Steel trench plates. 4. Street sweeper. 5. Import of sand bedding and class II base. 6. AC cold patch. 7. Asphalt Grinding. 8. Export of spoils and old pipe. Supply all labor, material and machinery to remove and replace and 12,000.00 12,000.00 additional 25 L.F. of 42" CMP and Replace with 42" RCP. Supply all labor, machinery and materials to R & R existing 16,350.00 16,350.00 concrete headwall, CB apron, sidewalk, Curb & Gutter, concrete mow strip, catch basin connection. Supply all labor, machinery and material to remove and replace 1,000.00 1,000.00 plastic fence, grass and misc landscaping as needed. needed Supply all materials, labor and machinery to excavate the silt and 1 2,500.00 2,500.00 Rip-Rap at outlet of pipe, haul the silt away and Re-set the on site rip-rap. (Not including concrete grout) Repair 42" CMP Margarita road at Rancho Vista. Total $123,618.18 City of Temecula Land Development Daily Inspection Report Sheet 1 of 5 Project: Margarita Road Failure Plan No. Date: April 27, 2009 Weather: Overcast Inspected: Grading Erosion Control/SWPPP Street Imp. X Storm Drain X Traffic Control Traffic Signal Utilities R/W Permit Other Attached are photos taken of the re-inspection of the street failure on Margarita south of Rancho Vista. Rust and cracking along the flow line of the pipe does exist. ,r Piping has occurred adjacent to the CMP The outlet area rip rap is totally covered in sediment, which may have been from the void adjacent to the CMP. Public Works Inspector 43200 Business Park Dr. P.O.Box 9033 Temecula California 951-694-6411 ITEM NO. 14 Approvals ,00 xi City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Bob Johnson, Assistant City Manager DATE: May 12, 2009 SUBJECT: First Amendment to agreement between City of Temecula and Cato Geoscience to analyze active aggregate mining operations along the Corona/Temecula 1-15 Corridor for the Santa Margarita Annexation EIR PREPARED BY: Betsy Lowrey, Case Planner RECOMMENDATION: That the City Council approve First Amendment to Agreement for consulting services. BACKGROUND: On March 6, 2007, the City Council adopted a Resolution requesting the commencement of proceedings to annex approximately 4,977 acres southwest of the City of Temecula. Staff subsequently prepared an Initial Environmental Assessment and a Draft Environmental Impact Report (DEIR). Subsequent to preparation of this DEIR, and in response to the significant amount of comments received by the City on the DEIR, a decision was made to revise the DEIR. On August 13, 2008 the City approved a contract with Dr. Kerry Cato of Cato Geoscience, Inc. to provide additional research and studies necessaryto independently analyze the existing and future aggregate resources in the 1-15 corridor between Corona and Temecula. Additional work tasks were performed by Cato Geoscience, Inc. that exceeded the contract including attendance at public hearings and staff meetings. Also, the number and quality of public comments received on the second Draft Annexation EIR prepared by Environmental Science Associates (ESA) made it necessary for Cato Geoscience to participate beyond the scope of the approved contract. Staff has further determined that it is necessary for Dr. Kerry Cato of Cato Geoscience to prepare, participate, and provide expert testimony at the Santa Margarita Annexation hearing at LAFCO scheduled for June 4, 2009. This first amendment to the agreement for consulting services with Cato Geoscience is necessary to allow new work tasks relating to the LAFCO hearing to be completed and to pay for work performed that exceeded the original contract. FISCAL IMPACT: The additional work to be done will result in an additional cost of $12,745 for a total contract amount of $39,855. Adequate funds are available in the Planning Department's 2008-2009 Budget Line Item 001.161.999.5248, Consulting Services. ATTACHMENTS: First Amendment to Agreement for Consultant Services Agreement for Consultant Services dated August 13, 2008 FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND CATO GEOSCIENCE INC CORONA/TEMECULA 1-15 CORRIDOR AGGREGATE STUDY THIS FIRST AMENDMENT is made and entered into as of May 12, 2009 by and between the City of Temecula ("City"), a municipal corporation, and Cato Geoscience Inc ("Consultant'). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with the respect to the following facts and purposes: a. On August 13, 2008, the City and Consultant entered into that certain Agreement entitled "City of Temecula Agreement for Consulting Services, in the amount of $27,110. b. The parties now desire to increase the payment for services in the amount of $12,745; C. Increase the scope of services; and d. Extend the term of the Agreement as set forth in this Amendment. 2. Section 1. TERM. This Agreement shall remain and continue in effect until tasks herein are completed, but in no event later than June 30, 2010, unless sooner terminated pursuant to the provisions of this Agreement. 3. Section 5.a. PAYMENT. Section 5a., Payment, of the Agreement is hereby amended to read as follows: a. The City agrees to pay Consultant monthly, in accordance with the payment rates and schedules and terms set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. The First Amendment amount shall not exceed Twelve Thousand Seven Hundred and Forty Five Dollars ($12,745) for additional consulting services for a total Agreement amount of Thirty-Nine Thousand Eight Hundred and Fifty Five Dollars ($39,855). 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By: Maryann Edwards, Mayor ATTEST: By: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONSULTANT BY: Cato Geoscience, Inc Attn: Kerry Cato, President P O Box 891930 Temecula, CA 92589 Phone: 951-834-2619 (Signature) NAME: (Printed Named) BY: (Signature) NAME: (Printed Named) TITLE: TWO SIGNATURES REQUIRED FOR CORPORATIONS 2 ATTACHMENT A Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Consultant / Vendor / Contractor. the Citv of Costs by Task - Revised 1. Attendance at public meetings A. Planning Commision meeting (Nov 20, 2009) B. City Council meeting (Dec 9, 2008) 2. Attendance at team planning meetings A. September 2 meeting B. November 20 meeting • 3. Replies to DEIR comments A. Reply text and edits 1. Attendance at public meetings - tentative schedules: (preparation, participation, presentation, reouttai, toiiow-up) A. LAFCO meeting (June 4, 2009) $1,200 B. Additional meeting if needed $1,200 totals $2,400 2. Attendance at team planning meetings - (preparation, participation, follow-up) A. May 12 meeting $720 B. May 26 meeting $720 - - . - - . - - . 3. Hearing preparation tasks - (minimal research, preparation, presentation & rebutal, follow-up) A. Power point slides $ 00 B. Misc. (associated research, phone calls) - o,r j 77 Expenses Mileage $85 Expense Subtotals $35 DATE (MM D7 OP In ACORD. CERTIFICATE OF LIABILITY INSURANCE CAT ATOG-1 10/2 33/0/07 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE The Wright Group, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 1600 Broadway, Ste. 1500 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Denver CO 80202 Phone: 303-863-7788 Fax: 303-861-7502 INSURERS AFFORDING COVERAGE NAICIN INSURED INSURERA: Hartford Casualty vn, r nce Co INSURER B'. Beasley vuusance GeV.y, inc Cato Geoscience, Inc. INSURER C. P.O. Box 891930 Temecula CA 92569 INSURER D' INSURER E'. THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS LTR NSIR TYPE OF INSURANCE POLICY NUMBER DATE (MULT I DAM (MMMOtYY) LIMITS GENERAL LUBILITY EACH OCCURRENCE $ 1000000 A X X COMMERCIAL GENERAL LIABILITY 34SBMIH6237 10/24/08 10/24/09 PREMISES (Eaoccurence) 8300000 CLAIMS MADE aOCCUR MEG EXP(My one person) $10000 PERSONAL BADV INJURY $ 1000000 GENERA. AGGREGATE $ 2000000 GENL AGGREGATE LIMITAPPLIES PER J PRODUCTS - COMP/OP AGO $ 2000000 EC LOG POLICY AUT OMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accident) ALL OWNED AUTOS BODILY INJURY $ SCHEDAEDAJTOS (Per person) HIREDAUTOS BODILY INJURY $ NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE $ (Per accident) GARAGE ELABILITV AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY LY-. AGG $ EXCESSNMBRELLALIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE A GGREGATE $ DEDUCTIBLE RETENTION $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY TORY LIMITS ER ANY PROPRIETOR/PARTNERIEXECUTIVE E.L. EACHACCfDENT $ OFFICERIMEMBER EXCLUDED yes E L DISEASE - EA EMPLOYEE 8 S , AL PROVISIONS SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ OTHER 5 Prof. Liability SUAAFBB1483 10/24/08 10/24/09 aggregate 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Certificate holder as additional insured in respects to General Liability. City of Temecula Community Development Tech II Theresa Harris 43200 Business Park Drive Temecula CA 92590 TEME.CUL I SHOULD ANYOF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. T1T~SEPFj$! ATIVE. ~ ACORD IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD CITY OF TEMECULA PLANNING DEPARTMENT MEMORANDUM TO: Shawn Nelson, City Manager FROM: Debbie Ubnoske, Director of Planning DATE: August 13, 2008 SUBJECT: Signature for Agreement- For Cato Geoscience to analyze active aggregate mining operations along the Corona/Temecula 1-15 Corridor resources for the Santa Margarita Area Annexation EIR PREPARED BY: Stephen Brown, Principal Planner RECOMMENDATION: Approve contract for consulting services. BACKGROUND: The number and quality of public comments received on the first Draft Annexation EIR prepared by Albert A. Webb and Associates make it necessary to prepare and recirculate a revised Draft EIR. Staff has determined that an additional focused study is necessary to independently analyze the existing and future aggregate resources in the 1-15 corridor between Corona and Temecula. Cato Geoscience is familiar with the local mining production within the area and is the best choice to prepare this study FISCAL IMPACT: Sufficient funding for the contracts is available in the Planning Department's 2008-09 Budget line item for 001.161.999.5248, Consulting Services. ATTACHMENTS: Attached are two (2) copies each of the Agreements between the City and the above named consulting firms. Please sign where indicated and forward to the City Clerk Department for further processing. RAAnnexation\Santa Margarita Annexation\Contracts\Signature memo Cato Geoscience I-15 resources review.docl ax-,, sL AGREEMENT FOR CONSULTANT SERVICES BETWEEN THE CITY OF TEMECULA AND CATO GEOSCIENCE, INC. CORONA/TEMECULA 1-15 CORRIDOR AGGREGATE STUDY THIS AGREEMENT is made and effective as of August 13 2008, between the City of Temecula, a municipal corporation ("City") and Cato Geoscience, Inc. ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on August 13, 2008, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2009, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the services and tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 3. PERFORMANCE. Consultant shall at all time faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. PAYMENT. a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Twenty Seven Thousand One Hundred Ten Dollars ($27,110) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. The City Manager may approve additional work up to ten percent (10%) of the amount of the Agreement but in no event shall the total sum of the agreement exceed thirty thousand dollars and no cents ($30,000.00) or the amount approved by City Council. Any additional work in excess of this amount shall be approved by the City Council. C. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non disputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of an invoice of any disputed S:TontractACato Geoscienoe\Contract Santa Mang Annex EIR Prep.doc 7 Updated 8128107 fees set forth on the invoice. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of fifty dollars ($50) in such form as approved by the Director of Finance. 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 4. 6. DEFAULT OF CONSULTANT. a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts there from as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. S:\Contracts\Cato Geoscience\Contract Santa Marg Annex EIIt Prep.doc 2 b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, District, and/or Agency, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City, District and/or Agency, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City. 9. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: CG 00 01 11 85 or 881) Insurance Services Office Commercial General Liability form No. . 2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non-owned auto endorsement to the General Liability policy described above is acceptable. 3) Worker's Compensation insurance as required by the Stale of California and Employer's Liability Insurance. If the Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no employees. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1) General Liability: One million ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One million ($1,000,000) per accident for bodily injury and property damage. S:\Contracts\Cato Geoscience\Contract Santa Marg Annex EIR Prep.doc 3) Worker's Compensation as required by the State of California; Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) The City, its officers, officials, employees and volunteers are to be covered as insured's as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. 2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. 4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state: should the policy be canceled before the expiration date the issuing insurer will endeavor to mail thirty (30) days' prior written notice to the City. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Consultant shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. e. Acceptability of Insurers. Insurance is to be placed.with insurers with a current A_M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the S:\ContractslCato Geoscience\Contract Santa Marg Annex EIR Prep.doc 4 City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 11. LEGAL RESPONSIBILITIES. The Consultant shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. 12. RELEASE OF INFORMATION. a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. S:\Contracts\Cato C,eoscience\Contract Santa Marg Annex EIR Prep.doc 5 13. NOTICES. Any notices which either parry may desire to give to the other parry under this Agreement must be in writing and may be given either by (1) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that parry may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. To City via U.S. Mail: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 To City via Courier Service: To Consultant: 43200 Business Park Drive Temecula, California 92590 Attention: City Manager Cato Geoscience, Inc. P O Box 891930 Temecula, CA 92589 Attn: Kerry Cato 14. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant. 15. LICENSES. At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 16. GOVERNING LAW. The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 17. PROHIBITED INTEREST. No officer, or employee of the City of Temecula shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub-contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of Temecula has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, or in the business of the Contractor or Contractor's S:1Contracts\Cato GeoscienceWontract Santa Marg Annex EIIt Prep.doc 6 sub-contractors on this project. Contractor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each parry's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. S:1ContractACato Geoscience\Contract Santa Marg Annex EIR Prep.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY ME U A APPRO D AS TO FOR : Peter M. Thorson, City Attorney CONSULTANT: Cato Geoscience, Inc. P O Box 891930 Temecula, CA 92589 Telephone 951- - ri3 By: Name: Title: /4p sI'Cke n 7' Name: [Signatures of Two Corporate Officers Required] S:\Contracts\Cato Geoscience\Contract Santa Marg Annex EIR Prep.doc 8 _ Shawn D. Nelson, City Manager Exhibit A Temecula Annexation - Major Tasks to be completed Assist in preparation of portions of Temecula Annexation EIR Cato Geoscience will analyze active aggregate mining operations along the Corona/Temecula I-15 corridor. This work will be based on existing information at County offices, new information obtained from the mine operators, and from other published reports, maps, and any other available data, reports, and information readily obtained by Cato Geoscience. While the County office is the local clearing house (lead agency) for the administration of the Surface Mining and Reclamation Act (SMARA) regulations, there is limited or no synthesis of data on any of the Riverside County mines; we discovered this during our previous work for the City. Thus, much effort is focused on synthesizing the data and reports for these specific mines. Where possible Cato Geoscience will obtain interviews with mine owners regarding production data, aggregate reserves, and aggregate markets. Our work will involve limited analysis of site geology and aggregate reserves, but it will not consist of raw data collection in the field or an analysis of detailed exploration data. Our focus is to understand the current resource aggregate production in the Corona/Temecula 1-I5 corridor. As this production and market information is typically considered proprietary we anticipate some operators will not volunteer this information. And in these cases, as best Cato Geoscience can, we will develop an understanding regarding production at that mine based on industry contacts and knowledge of present and future aggregate need. Cato Geoscience is aware that time is of the essence and will perform these tasks on or before August 30,2008. To accomplish these tasks we divide the work into the following subtasks. • Summarize salient characteristics of active aggregate producing mines • Determine the annual production at each mine • Determine the permitted reserves • Estimate the reserves in place that are not permitted • Estimate the destination for the material at each mine. EXHIBIT B PAYMENT RATES AND SCHEDULE Cato Geosdence, Inc. Cost Proposal to Assist in Annexation EIR preparation for the City of Estimated Costs by Task (20080811) Task . costs 1. Preparation A. Aug 7 meeting with City staff and ESA staff $D 1. Analyze active aggregate mining operations along the Corona/Temecula ]-IS corridor A. Identify other feasihle aggregate quarry lomtions 1. summarises lent h ..cteristics of nWe aggregate producing mines $3,160 2. Determine annual production at each mine $3,020 3. Determine permitted reserves $3,340 4. Estimate non-permitted reserves in place $3,440 S. Estimate the destination for material at each mine $3,820 su 'TIr`; e. Field Review 1. Field-checking of mine conditions $0 2. Field checks of Identified wells/water canditom $0 ' df5 C Prepare text and graphics for Annexation OR 1. Prepare text $4,020 2. Prepare graphics $2,600 3. Revise graphics $480 4. Meeting with ESA and City staff to discus report $480 5. Finalize report 1,820 $ , : u. a 1. Expenses- Report graphics and misc. (production) $80 Aerial photos and geologic maps (purchase) $300 Mileage $550 Airfare to Sacramento $0 Per diem $0 Hotel nights $0 _ 5..~:: r5t-'ate::: •'¢--A=t'.:;.. .vim 0 :,~nF"~Y✓1-'.~~"~~p a'Fr - sly :ti S:1Contracts\Cato Geoscience\Contract Santa Marg Annex EIR Prep.doc 10 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Shawn D. Nelson, City Manager DATE: May 12, 2009 SUBJECT: Minor Amendment to Resolution 08-112, Application to Riverside County LAFCO for the Santa Margarita Area Annexation, Confirming that the Annexation is pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING RESOLUTION NO. 08-112, "A RESOLUTION OF APPLICATION BY THE CITY COUNCIL OF THE CITY OF TEMECULA REQUESTING THE LOCAL AGENCY FORMATION COMMISSION TO TAKE PROCEEDINGS FOR THE ANNEXATION OF CERTAIN UNINHABITED TERRITORY DESCRIBED HEREIN AS THE SANTA MARGARITA AREA ANNEXATION COMPRISED OF APPROXIMATELY 4,997 ACRES, LOCATED IMMEDIATELY SOUTHWEST OF THE PRE-EXISTING CITY OF TEMECULA BOUNDARY LINE, WEST OF INTERSTATE 15 AND NORTH OF THE SAN DIEGO COUNTY AND RIVERSIDE COUNTY BOUNDARY TO THE CITY OF TEMECULA AND THE TEMECULA COMMUNITY SERVICES DISTRICT," CONFIRMING THAT THE ANNEXATION IS PURSUANT TO THE CORTESE- KNOX-HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 BACKGROUND: On December 9, 2008, the City of Temecula City Council approved Resolution No. 08-112 requesting the Local Agency Formation Commission to take proceedings for the annexation of uninhabited territory comprising approximately 4,997 acres known as the Santa Margarita Area Annexation Area. The City's Application was accepted and filed by LAFCO and hearing on the Annexation is set for June 4, 2009. LAFCO Staff pointed out to the City Staff that a statement is usually included in the Resolution that the Annexation is pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, commencing with Section 56000 of the California Government Code. The statement is not legally required and the Resolution contains other references to the Act, however, in order to prevent any confusion on the matter Staff recommends that a very minor amendment to Resolution 08-12 be adopted to add the following paragraph to Section 1 of the Resolution: "AA: The City of Temecula City Council desires to initiate a proposal pursuant to the Cortese- Knox-Hertzberg Local Government Reorganization Act of 2000, commencing with Section 56000 of the California Government Code, for the Santa Margarita Area Annexation Area." FISCAL IMPACT: None RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING RESOLUTION NO. 08-112, "A RESOLUTION OF APPLICATION BY THE CITY COUNCIL OF THE CITY OF TEMECULA REQUESTING THE LOCAL AGENCY FORMATION COMMISSION TO TAKE PROCEEDINGS FOR THE ANNEXATION OF CERTAIN UNINHABITED TERRITORY DESCRIBED HEREIN AS THE SANTA MARGARITA AREA ANNEXATION COMPRISED OF APPROXIMATELY 4,997 ACRES, LOCATED IMMEDIATELY SOUTHWEST OF THE PRE- EXISTING CITY OF TEMECULA BOUNDARY LINE, WEST OF INTERSTATE 15 AND NORTH OF THE SAN DIEGO COUNTY AND RIVERSIDE COUNTY BOUNDARY TO THE CITY OF TEMECULA AND THE TEMECULA COMMUNITY SERVICES DISTRICT," CONFIRMING THAT THE ANNEXATION IS PURSUANT TO THE CORTESE-KNOX- HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula restates and reaffirms that in adopting its Resolution No. 08-112 on December 9, 2008, it initiated a proposal pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, commencing with Section 56000 of the California Government Code, for the Santa Margarita Area Annexation Area and, therefore, hereby amends Resolution No. 08-112 to include new paragraph "AA" at the beginning of Section 1 to read as follows: "AA: The City of Temecula City Council desires to initiate a proposal pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, commencing with Section 56000 of the California Government Code, for the Santa Margarita Area Annexation Area." Section 2. The City Clerk shall certify to the adoption of this Resolution. R:/Resos 2009/Resos 09- PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 12th day of May, 2009. Maryann Edwards, 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. 09- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 12th day of May, 2009, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk R:/Resos 2009/Resos 09- 2 TEMECULA COMMUNITY SERVICES DISTRICT ITEM NO. 15 ACTION MINUTES of APRIL 28, 2009 City Council Chambers, 43200 Business Park Drive, Temecula, California TEMECULA COMMUNITY SERVICES DISTRICT MEETING The Temecula Community Services District Meeting convened at 7:46 PM. CALL TO ORDER: President Chuck Washington ROLL CALL: DIRECTORS: Comerchero, Edwards, Naggar, Roberts, Washington CSD PUBLIC COMMENTS There were no public comments. CSD CONSENT CALENDAR 10 Action Minutes:- Approved Staff Recommendation (5-0-0) - Director Comerchero made the motion; it was seconded by Director Roberts; and electronic vote reflected unanimous approval. RECOMMENDATION: 10.1 Approve the action minutes of April 14, 2009. 11 Third Amendment to Contract with Meyer & Associates - pulled off the agenda RECOMMENDATION: 11.1 Approve the third amendment to the agreement with Meyer & Associates in the amount of $27,683.50, plus 10% contingency of $2,768. CSD DEPARTMENTAL REPORT CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS 1 CSD ADJOURNMENT At 7:47 p.m., the Temecula Community Services District meeting was formally adjourned to Tuesday, May 12, 2009, at 5:30 p.m. for a Closed Session with regular session commencing at 7:00 p.m., City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, President ATTEST: Susan W. Jones, MMC City Clerk/District Secretary [SEAL] ITEM NO. 1 6 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: Second Amendment to the Roof Preventive Maintenance Services Agreement with Tremco/Weatherproofing Technologies, Inc. for Fiscal Year 2009-2010 PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors: 1. Approve the Second Amendment with Tremco/Weatherproofing Technologies, Inc. for $27,416.00 to provide preventive roof maintenance services at the various locations and extend the Agreement to June 30, 2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for Preventive Roof Maintenance Services on June 27, 2007. The TCSD received one (1) proposal from Tremco/Weatherproofing Technologies, Inc. A one (1) year Contract with the option of four (4) one-year extensions was awarded to Tremco/Weatherproofing Technologies, Inc., effective August 14, 2007 thru June 30, 2008 in the amount of $50,000.00. Based on staff's recommendation, the Board of Directors approved the First Amendment on June 10, 2008 which authorized the first one (1) year extension in the amount of $29,800.00. The Second Amendment is now being requested to authorize the second one (1) year extension as permitted per original contract. The cost to provide roof preventive maintenance services forfiscal year2009-2010 is $27,416.00.This additional year of service will increase the total contract amount to $107,216.00. In light of the current economic conditions, staff negotiated with Tremco Incorporated, Inc., an 8% reduction of fees without a reduction in services, on all buildings placed under Service Agreement for Fiscal Year 2009-2010 as well as any additional buildings which maybe added to the contract. FISCAL IMPACT: The cost of the roof maintenance services contract is $27,416.00. Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No 2. RASIRE REPORTS ET ALWaintenanceWgenda Repart 2009 - 2010\Tremco 2009 - 2010.doc SECOND AMENDMENT TO AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND TREMCOIWEATHERPROOFING TECHNOLOGIES, INC THIS SECOND AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ("City") and Tremco/Weathreproofing Technologies, Inc. ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On August 14, 2007 the City and Tremco/Weatherproofing Technologies, Inc, entered into an agreement entitled "City of Temecula Agreement to provide roof preventive maintenance services" (Agreement) in the amount of $50,000.00. B. The original Agreement was amended on June 10, 2008 in order to extend the term of the Agreement and increase the payment for additional services in the amount of $29,800.00 C. The parties now desire to increase the payment of the Agreement in the amount of $27,416.00 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The Second Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Twenty Seven Thousand Four Hundred Sixteen Dollars and No Cents ($27,416.00) for the roof preventive maintenance program and services for Fiscal Year 2009-10, for a total contract amount of One Hundred Seven Thousand Two Hundred Sixteen Dollars and No Cents ($107,216.00) for the term of the Agreement, unless additional payment is approved as provided in this Agreement." 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 111111 R:\SIRE REPORTS ET AL\Maintenance\Amendmants 2009 - 2010\Tremco 2 nd Amendment 2009- 2010.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary Approved As to Form: BY: Peter M. Thorson, City Attorney Tremco/Weatherproofing Technologies, Inc. 3735 Green Rd. Beachwood, OH 44122 Phone: (800) 852-6013 Contact Person: Ryan Tolsma BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) ATTACHMENT "A" EXHIBIT B CITY OF TEMECULA PAYMENT RATES AND SCHEDULE PRICING SHEET This new price includes an 8% discount for Fiscal Year 2009-2010 LOCATIONS PRICE PER 2009-2010 CITY HALL, 43200 Business Park $2,374.52 Drive TEMECULA VALLEY MUSEUM, $879.52 28314 Mercedes Street MARY PHILLIPS SENIOR CENTER, $949.44 41845 6th Street CHAPEL OF MEMORIES, 28300 $879.52 Mercedes Street TEMECULA COMMUNITY CENTER, $879.52 28816 Pujol Street TEMECULA CHILDREN'S MUSEUM, $1,978.92 42081 Main Street COMMUNITY RECREATION $3,491.40 CENTER, 30875 Rancho Vista Road FIRE STATION 84, 30650 Pauba $1,532.72 Road MAINTENANCE FACILITY, 43100 $879.52 Business Park Drive FIRE STATION 73, $1,978.92 27415 Enterprise Circle West OLD TOWN COMMUNITY THEATER, 42051 Main Street $6,710.48 TEMECULA VALLEY LIBRARY, $3,041.52 Pauba Road FIELD OPERATION CENTER $1,840.00 43200 Business Park Drive ATTACHMENT "A" EXHIBIT "B" (Continue) ALTERNATE BID ITEMS-For repair or extra work authorized by District MARK-UP ADDED TO CONTRACTOR'S WHOLESALE PRICE OF PARTS & EQUIPMENT % 25 HOURLY RATE PER REGULAR MAN HOUR-8am To 5pm Monday through Friday $93.75* HOURLY RATE PER OVERTIME MAN HOUR-After-hours, Weekends, Holidays, $93.75* etc. *Billed in half day increments, minimum one half day. Contractor's Sign R:\SIRE REPORTS ET AL\Maintenance\Amendmants 2009 - 2010\Tremco 2 nd Amendment 2009- 2010.doc ITEM NO. 17 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: First Amendment with Computer Alert Systems, Inc. PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors: 1. Approve the First Amendment with Computer Alert Systems, Inc. for Alarm Monitoring, Inspection, and Repair Services in the amount of $22,700.00 for Fiscal Year 2009-2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for Alarm Monitoring, Inspection and Repair Services on March 20, 2008. TCSD received three (3) proposals, which were evaluated to determine the qualifications and competitiveness of each Vendor to provide Alarm Monitoring, Inspection and Repair Services. Central Security Services was the lowest bidder, but withdrew their proposal because they could not meet all of the RFP requirement. Computer Alert Systems, Inc. was determined to be the second lowest qualified bidder to provide the required services for Alarm Monitoring, Inspection and Repair Services. A one (1) year Contract with the option of three (3) one-year extension was awarded to Computer Alert Systems, Inc., effective July 1, 2008 thru June 30, 2009 in the amount of $37,700.00. The First Amendment is now requested to authorize the first one (1) year extension as permitted per original contract. The cost to provide alarm monitoring, inspection and repair services for Fiscal Year 2009-2010 is $17,700.00 and an estimated $5,000.00 is being requested for repairs and additional supplemental services. This additional year of service will increase the total contract amount to $60,400.00 FISCAL IMPACT: The cost of the alarm monitoring, inspection and repair services contract is $22,700.00. Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No 1 R:\SIRE REPORTS ET AL\Maintenance\Agenda Repart 2009 - 2010\Computer Alert Systems Inc. 2009-2010.doc FIRST AMENDMENT TO AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND COMPUTER ALERT SYSTEMS, INC. THIS FIRST AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ("City") and Computer Alert Systems, Inc. ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On June 10, 2008 the City and Computer Alert Systems, Inc., entered into an agreement entitled "City of Temecula Agreement to provide alarm monitoring, inspection and repair services" (Agreement) in the amount of $37,700.00. B The parties now desire to increase the payment of the Agreement in the amount of $22,700.00 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The First Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Twenty Two Thousand Seven Hundred Dollars and No Cents ($22,700.00) for alarm monitoring, inspection and repair services for Fiscal Year 2009-10, for a total contract amount of Sixty Thousand Four Hundred Dollars and No Cents ($60,400.00) for the term of the Agreement, unless additional payment is approved as provided in this Agreement." 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 111111 CAProgram Files\Neevia.ComTocument Converter\temp\915761.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary APPROVED AS TO FORM: BY: Peter M. Thorson, City Attorney Computer Alert Systems, Inc. 27570 Commerce Center Dr. Suite 119 Temecula, CA 92590 Phone: (951) 676-6880 Contact Person: Michael C. Lynch BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) CAProgram Files\Neevia.ComTocument Converter\temp\915761.doc EXHIBIT "B" CITY OF TEMECULA PAYMENT RATES AND SCHEDULE PRICING SHEET FACILITY LOCATION Monthly Fee Monthly Fee Yearly Total Fee Per Fire System Security Location Monitoring & System Monitoring & Inspection Monitoring Inspection City Hall, 43200 Business Park Drive $55.00 $40.00 $1,140.00 Maintenance Facility, 43210 Business Park Drive $55.00 $40.00 $1,140.00 Community Recreation Center, 30875 Rancho Vista Road $55.00 $40.00 $1,140.00 Temecula Community Center, 28816 Pujol Street $55.00 $40.00 $1,140.00 Mary Phillips Senior Center, 418456 th Street $55.00 $40.00 $1,140.00 Temecula Valley Museum, 28314 Mercedes Drive $55.00 $40.00 $1,140.00 Temecula Children's Museum, 42801 Main Street $55.00 $40.00 $1,140.00 Old Town Community Theater 42051 Main Street $80.00 $40.00 $1,440.00 Temecula Public Library 30600 Pauba Rd. $100.00 $40.00 $1,680.00 Patricia Birdsall Sports Park 31621 Deer Hollow Way $80.00 $40.00 $1,440.00 Temecula Wedding Chapel, 28300 Mercedes Drive $55.00 $40.00 $1,140.00 CAProgram Files\Neevia.ComTocument Converter\temp\915761.doc EXHIBIT "B" CONTINUED 6t" Street Restroom/Parking Lot, 41952 6t" Street NIA $40.00 $480.00 Police Sub-station, Old Town Front Street NIA $40.00 $480.00 28410 Old Town Front Street, # 105 Field Operations Center 43230 Business Park Drive $80.00 $40.00 $1,440.00 Roripaugh Ranch Fire Station 80.00 $55.00 $1,620.00 Total $17,700.00 ALTERNATE BID ITEMS-For repair or extra work authorized by City MARK-UP ADDED TO VENDOR'S WHOLESALE PRICE OF PARTS & EQUIPMENT 40% HOURLY RATE PER REGULAR MAN HOUR-8am To 5pm Monday through Friday $75.00 HOURLY RATE PER OVERTIME MAN HOUR-After- hours, Weekends, Holidays, etc. $95.00 Company Name: Signature of Authorized Representative: Title: CAProgram Files\Neevia.ComTocument Converter\temp\915761.doc ITEM NO. 18 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2008 SUBJECT: Fourth Amendment to T & T Janitorial Agreement for City Facility Janitorial Services for Fiscal Year 2009 - 2010 PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors approve the Fourth Amendment with T and T Janitorial in the amount of $84,885.96 for Janitorial Maintenance Services at the various locations and extend the Agreement to June 30, 2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for City Facility Janitorial Services on April 14, 2006. The TCSD received six (6) proposals, which were evaluated to determine the qualifications and competitiveness of each Vendor to provide janitorial maintenance services. T and T Janitorial was determined to be the lowest qualified bidder to provide the required janitorial maintenance services. A two (2) year contract with the option of two (2) one-year extensions was awarded to T & T Janitorial effective July 1, 2006 thru June 30, 2008 in the amount of $119,486.88. Based on Staff recommendations the Board of Directors approved the First Amendment on May 22, 2007 in order to increase the payment for additional services at the Temecula Public Library in the amount of $48,965.00. The Second Amendment was approved on January 16, 2008 in order to change the Company name. T & T Janitorial was changed to T & T Janitorial, Inc. The Third Amendment was approved on May 22, 2008 in order to authorize the annual expenditure of $123,625.44 to provide janitorial maintenance services through June 30, 2009. The Fourth Amendment is now requested to extend the term though June 30, 2010 as permitted per the original contract. The cost to provide janitorial services for fiscal year 2009-2010 is $84,885.96. This additional year of service will increase the total contract amount to $376,963.28 In light of the current economic conditions, staff negotiated with T & T Janitorial Incorporated, Inc. a 5% reduction of fees without a reduction in services, on all buildings placed under Service Agreement for Fiscal Year 2009-2010 as well any additional buildings which maybe added to the contract. FISCAL IMPACT: The cost of the janitorial maintenance services contract is $84,885.96. Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No 4. RASIRE REPORTS ET AL\Maintenance\Agenda Repart 2009- 2010\Agenda Report T&T Janitorial 2009-2010.doc FOURTH AMENDMENT TO MAINTENANCE AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND T & T JANITORIAL, INC THIS FOURTH AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ("City") and T & T Janitorial ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On June 13, 2006 the City and Contractor entered into certain agreement entitled "City of Temecula Agreement in the amount of $119,486.88 for Janitorial Maintenance Services" ("Contract"). B. The original Agreementwas amended on May22, 2007 in order to increase the payment for additional services at the Temecula Public Library in the amount of $48,965.00 C. The second Amendment was approved on January 16, 2008 in order to change the Company name. T & T Janitorial shall be changed to T & T Janitorial, Inc., pursuant to the name of said company in December 2007. D. The Third Amendment was approved on May 27, 2008 in order to extend the term of the Agreement and increase the payment for additional services in the amount of $123,625.44 E. The parties now desire to increase the payment of the Agreement in the amount of $84,885.96 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The Fourth Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agree to pay Contractor 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 references as though set forth in full, based upon actual time spend on the above tasks. Any terms in Exhibit B other than payment rates and schedule of payment are null and void. This amount shall not exceed Eighty Four Thousand Eight Hundred Eighty Five Dollars and 961100 Cents (84,885.96) for City's Facilities Janitorial Maintenance Services and, for a total contract amount of Three Hundred Seventy Six Thousand Nine Hundred Sixty Three Dollars and 281100 Cents (376,963.28) for the term of the Agreement unless additional payment or change order is approved as provided in this Agreement" CAProgram Files\Neevia.ComTocument Converter\temp\915755.doc 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 11111 CAProgram Files\Neevia.ComTocument Converter\temp\915755.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary Approved As to Form: BY: Peter M. Thorson, City Attorney T & T Janitorial, Inc. P.O. Box 261401 San Diego, CA 92196 Phone: (858) 336-8837 Contact Parson: Tam Doan BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) CAProgram Files\Neevia.ComTocument Converter\temp\915755.doc ATTACHMENT "A" EXHIBIT "B" CITY OF TEMECULA PAYMENT RATES AND SCHEDULE PRICING SHEET This new price includes an 5% discount for Fiscal Year 2009-2010 FACILITY LOCATION SQ. FT. ADDRESS PRICE TOTAL TOTAL PER PRICE PRICE MONTH PER PER PER. SQ. MONTH YEAR FT. Temecula Community Center 5,900 28816 Pujol St. .114 672.60 8,071.20 Mary Phillips Senior Center 6,148 418456 th St .114 700.87 8,410.56 Temecula Valley Museum 7,200 28314 Mercedes St .114 820.80 9,849.60 Imagination Workshop 7,600 42081 Main St .114 866.40 10,396.80 Temecula Public Library 34,003 30260 Pauba Rdad .114 3,876.36 46,516.20 Harveston Community Room 1,200 28582 Harveston .114 136.80 1,641.60 Drive SUBTOTAL 7,073.83 84,885.96 ADDITIONAL SERVICE ITEMS DESCRIPTION SCOPE OF WORK HOURLY RATE Per Man Per Man Per Man Regular Hour Over Time Holiday Provide Additional General Provide Specified general 8.50 12.75 15.00 Janitorial Maintenance janitorial maintenance services, Services for Special Events such as cleaning office areas, Request by the City kitchens, office or recreation Representative building restrooms, hallways, multipurpose rooms, etc. Contractor's Signature CAProgram Files\Neevia.Com\Document Converter\temp\915755.doc ITEM NO. 19 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: Third Amendment to Prudential Overall Supply Agreement PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors: Approve the Third Amendment with Prudential Overall Supply in the amount of $25,000.00 for Uniform, Floor Mat and Towel Cleaning/Rental Service for Fiscal Year 2009 - 2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for Uniform, Floor Mat, Dust Mop and Towel Cleaning/Rental Services on April 14, 2006. The TCSD received several proposals, which were evaluated to determine the qualifications and competitiveness of their pricing. Prudential Overall Supply was determined to be the lowest qualified bidder for the required services. A two year contract with the option of (3) one- year extensions was awarded to Prudential Overall Supply effective July 1, 2006 thru June 30, 2008 in the amount of $25,000.00. Based on Staff recommendation the Board of Directors approved the First Amendment on May 22, 2007 which authorized a one year extension in the amount of $25,000.00. The Second Amendment was approved on May 27, 2008 which authorized the second one year extension in the amount of $25,000.00. The Third Amendment is now requested to authorize the third and final one (1) year extension, as permitted per original contract. The cost to provide uniform, floor mat, dust mop and towel cleaning/rental services for fiscal year 2009-2010 is $20,521.84 and an estimated $4,478.16 is being requested for additional supplemental services. The current contract is for $75,000.00. The cost to provide services for fiscal year 2009-2010 is $25,000.00. The additional year of service will increase the total contract amount to $100,000.00 FISCAL IMPACT: The cost of the uniform, floor mat and towel cleaning/rental services contract is $25,000.00. Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No 3 R:\SIRE REPORTS ET AL\Maintenance\Agenda Repart 2009 - 2010\Agenda Report Prudential 2009-2010.doc THIRD AMENDMENT TO MAINTENANCE AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND PRUDENTIAL OVERALL SUPPLY THIS THIRD AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ('City") and Prudential Overall Supply ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes A. On July 1, 2006 the City and Contractor entered into certain agreement entitled "City of Temecula Agreement in the amount of $25,000.00 for Uniform, Floor Mat, Dust Mop and Towel Cleaning/Rental Services" ("Contract"). B. The original Agreement was amended on May 22, 2007 in order to extend the term of the Agreement and increase the payment for additional services in the amount of $25,000.00. C. The Second Amendment was amended on May 27, 2008 in order to extend the term of the Agreement and increase the payment for additional services in the amount of $25,000.00 D. The parties now desire to increase the payment of the Agreement in the amount of $25,000.00 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The Third Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000.00) for Uniform, Floor Mat, Dust Mop and Towel Cleaning/Rental Services, for a total contract amount of One Hundred Thousand Dollars and 001100 Cents ($100,000.00)for the term the Agreement, unless additional payment is approved as provided in this Agreement." 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and CAProgram FilesWeevia.Com0ocument Converterltemp1916084.doc year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary Approved As to Form: BY: Peter M. Thorson, City Attorney Prudential Overall Supply P.O. Box 11210 Santa Anna, CA 92711 Phone: (760) 727-7163 Contact Person: Mark Elberan BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) CAProgram FilesWeevia.Com0ocument Converterltemp1916084.doc ATTACHMENT "A" EXHIBIT "B" 2009-2010 PAYMENT SCHEDULE Location CITY HALL CUSTODIAL ITEMS Zty. Size/item Unit Price Weekly Price 3 4x6 mat (charcoal) $2.90 $8.70 3 3x5 mat (teal) $1.80 $5.40 2 24" dust mop $0.66 $1.32 10 3X5 Mat (gray) $1.80 $18.00 20 Towels (blue) $0.10 $2.00 Total $35.42 MAINTENANCE FACILITY 1 4x6 mat (teal) $2.90 $2.90 4 3x5 mat (teal) $1.80 $7.20 1 24" dust mop $0.66 $0.66 10 Towels (white) $0.10 $1.00 Total $11.76 OLD TOWN TEMECULA SENIOR CENTER 3 4x6 mats (charcoal) $2.90 $8.70 1 36" dust mop $0.86 $0.86 4 3X5 mats (charcoal) $1.80 $7.20 20 Towels (blue) $0.10 $2.00 $18.76 TEMECULA COMMUNITY CENTER 3 4x6 mats (blue) $2.90 $8.70 1 3x5 mat (blue) $1.80 $1.80 1 3x10 mat (blue) $3.30 $3.30 1 36" dust mop $0.86 $0.86 20 Towels (white) $0.10 $2.00 $16.66 TEMECULA VALLEY MUSEUM 2 4x6 mat (tan) $2.90 $5.80 1 3x5 mat (tan) $1.80 $1.80 1 24" dust mop $0.66 $0.66 10 Towels (white) $0.10 $1.00 $9.26 Annual $1,841.84 $611.52 $975.52 $866.32 $481.52 CAProgram FilesWeevia.Com0ocument ConverteNemp1916084.doc EXHIBIT "B" CONTINUED COMMUNITY RECREATION CENTER 5 4x6 mat (gray) $2.90 3 3x5 mat (gray) $1.80 2 36" dust mop $0.86 2 48" dust mop $1.26 40 Towels (white) $0.10 $14.50 $5.40 $1.72 $2.52 $4.00 $28.14 $1,463.28 PERFORMING ARTS & MERCANTILE BUILDINGS 10 4x6 mat (gray) $2.90 3 3x5 mat (gray) $1.80 2 36" dust mop $0.86 2 48" dust mop $1.26 50 Towels (white) $0.10 CHILDREN'S MUSEUM 3 4x6 mats (charcoal) $2.90 1 36" dust mop $0.86 4 3X5 mats (charcoal) $1.80 20 Towels (blue) $0.10 PUBLIC LIBRARY 4 4x6 mats (gray) 2 3x5 mats (gray) $2.90 $1.80 $29.00 $5.40 $1.72 $2.52 $5.00 $43.64 $2,269.28 $8.70 $0.86 $7.20 $2.00 $18.76 $975.52 $11.60 $3.60 $15.20 $790.40 FOC 4 3x5 mats (gray) 1 4x6 mats (gray) 1 3x10 mats (gray) 1 48" dust mop 1 36" dust mop 20 Towels $1.80 $2.90 $3.30 $1.26 $0.86 $0.10 $7.20 $2.90 $3.30 $1.26 $0.86 $2.00 $17.52 $911.04 CAProgram FilesWeevia.Com0ocument Converterltemp1916084.doc Total for Facilities $11,186.24 EXHIBIT "B" CONTINUED UNIFORM SERVICE Location Qty. Size/item Unit Price Weekly Price Community Services 12 Workers 60 Dark Brown Pants $0.90 $54.00 Orange or White Shirt Long or Short Sleeve $54.00 "Miscellaneous Fees" Not To Exceed-100 Ball caps $8,10 ea Public Works 13 Workers 65 Dark Brown Pants $0.90 Orange Shirts Long or Short Sleeve "Miscellaneous Fees" Not To Exceed Contingency Fees 10% $58.50 $58.50 ANNUAL TOTAL-CUSTODIAL & UNIFORMS * City has choice of pants-Blue Jeans @ $.75 each per week or Brown pants @ $.50 each per week Company Name: Signature of Authorized Representative: $ 1,865.60 $ 20,521.84 Title: Annual $2,808.00 $810.00 $3,618.00 $3,042.00 $ 810.00 $ 3,852.00 CAProgram FilesWeevia.Com0ocument ConverteNemp1916084.doc ITEM NO. 20 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: Second Amendment to the Elevator Services and Monitoring Agreement with ThyssenKrupp Elevator for Fiscal Year 2009 - 2010 PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors: 1. Approve the Second Amendment with Thyssen Krupp Elevator in the amount of $15,000.00 for Elevator Services and Monitoring for Fiscal Year 2009 - 2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for all City elevators, to provide inspection, monitoring and repair services on April 4, 2007. The TCSD received two (2) proposals, which were evaluated to determine the qualifications and competitiveness of each Vendor to provide elevators maintenance services. ThyssenKrupp Elevator was determined to be the lowest qualified bidder to provide the required services. A one-year contract with an option of two (2) one-year extension was awarded to ThyssenKrupp Elevator effective July 30, 2007 thru June 30, 2008 in the amount of $30,000.00. Based on staff's recommendation the Board of Directors approved the First Amendment on May 27, 2008 which authorized a first one-year extension in the amount of $25,000.00. The second Amendment is now requested to authorize the second one (1) year extension as permitted per original contract. The cost to provide inspection and monitoring services for Fiscal Year 2009 -2010 is $9,960.00 and an estimated $5,040.00 is being requested for repairs and additional supplemental services. This additional year of service will increase the total contract amount to $70,000.00 FISCAL IMPACT: The cost of the elevator maintenance, repair and monitoring services contract is $15,000.00.Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No. 2 R:\SIRE REPORTS ET Al-Waintenance\Agenda Repart 2009 - 2010\Agenda Report Elevator 2009-2010.doc SECOND AMENDMENT TO AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND THYSSENKRUPP ELEVATOR COMPANY THIS SECOND AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ("City") and ThyssenKrupp Elevator Company. ("Contractor"). In consideration of the mutual covenants and conditions setforth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On July 30, 2007 the City and ThyssenKrupp Elevator Company, entered into an agreement entitled "City of Temecula Agreement to provide elevator preventive maintenance services" (Agreement) in the amount of $30,000.00. B. The original Agreement was amended on May 27, 2008 in order to extend the term of the Agreement and increase the payment for additional services in the amount of $25,000.00 C. The parties now desire to increase the payment of the Agreement in the amount of $15,000.00 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The Second Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Fifteen Thousand Dollars and No Cents ($15,000.00) for elevator preventive maintenance and repairservices in Fiscal Year 2009-2010, for a total contract amount of Seventy Thousand Dollars and No Cents ($70,000.00) for the term of the Agreement, unless additional payment is approved as provided in this Agreement." 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 111111 CAProgram Files\Neevia.ComTocument Converter\temp\915756.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary Approved As to Form: BY: Peter M. Thorson, City Attorney ThyssenKrupp Elevator Company 1601 S. Sunkist Street, Suite E Anaheim, CA 92806 Phone: (714) 939-1140 Contact Person: James W. Shurtz BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) CAProgram Files\Neevia.ComTocument Converter\temp\915756.doc ATTACHMENT "A" EXHIBIT "B" CITY OF TEMECULA PAYMENT RATES AND SCHEDULE PRICING SHEET ADDRESS ELEVATOR NAME PRICE PER PRICE LEVATOR LOCATION MONTH PER YEAR City Hall 43200 Business Park Montgomery $150.00 $1,800.00 Drive Model: S411-95 Maintenance Facility 43210 Business Park GMS Elevator/ $150.00 $1,800.00 Drive Elevator Controls Corp. H-800 Temecula Valley Museum 28314 Mercedes Drive Westcon $150.00 $1,800.00 Motion Control Eng. HMC-1000 PHC Community Recreation 30875 Rancho Vista Porch-Lift $120.00 per $480.00 Center Model L0194WL Quarter Temecula Old Town 42051 Main Street Mitsubishi $150.00 $1,800.00 Community Theater Model:HMC-1000 Series PHC Temecula Old Town 42051 Main Street Genesis-Lift $120.00 per $480.00 Community Theater Model: 139737 Quarter Field Operations Center 43230 Business Park Mitsubishi $150.00 $1,800.00 (FOC) Drive Model: HMC-1000- PCH Serial:3233809 Total $9,960.00 ATTACHMENT "A" EXHIBIT "B" CONTINUED CAProgram Files\Neevia.ComTocument Converter\temp\915756.doc DESCRIPTION SCOPE OF WORK PRICE PER ELEVATOR PER MONTH PRICE PER YEAR Monitoring Elevator This monthly fee should Included Included Emergency Phone include cost to re-program phone, repairs and monthly monitoring fee ADDITIONAL SERVICES ITEM! DESCRIPTION SCOPE OF WORK PREMIUM PORTION OF HOURLY RATE ONLY* Premium portion of If City requires work covered overtime hourly rate per by this Maintenance Contract Monday- Friday: $164.00Ihr. per mechanic hr. man for routine to be performed outside of the maintenance and Vendors normal business Saturdays: $164.00 per mechanic hr. emergency repairs hours. The rate shown is the requested by City premium portion of the Sundays & Holidays: $212.00 per mechanic hr. outside of Vendor's overtime rate which would be normal business hours paid by City. Vendor will absorb the straight time portion of the overtime hourly rate. *Premium Portion of the hourly rate is the difference between any overtime rate less "normal straight time hourly rate". DESCRIPTION SCOPE OF WORK HOURLY RATE Normal hourly rate for Hourly rate charged by Vendor work performed by for repairs requested by City Normal slt. rate: $235per mch.hr &$424per team hr Vendor for repairs which are not covered in Overtime rate: $399per mch.hr.& 805per team hr outside the scope of Exhibit A Saturdays rate: $399per mch.hr.& 805per team hr Exhibit A Sundays & Holidays rate: $447 per mch. hr & $805 per team hr. * Team equals Mechanic rate plus helper rate. Contractor's Signature--------------------------- CAProgram Files\Neevia.ComTocument Converter\temp\915756.doc ITEM NO. 21 Approvals City Attorney Director of Finance City Manager TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: May 12, 2009 SUBJECT: First Amendment with Arch Chemicals, Inc. formally Marine Biochemists for Water Management/Maintenance Services for Fiscal Year 2009 - 2010 PREPARED BY: Jerzy Kanigowski, Facility Services Manager RECOMMENDATION: That the Board of Directors: 1. Approve the First Amendment with Arch Chemicals, Inc. formally Marine Biochemist, in the amount of $68,260.00 for Water Management/Maintenance Services at the Harveston Lake Park and Temecula Duck Pond for Fiscal Year 2009-2010. BACKGROUND: The Temecula Community Services Department (TCSD) released a Request for Proposal (RFP) for Water Management/Maintenance Services for Harveston Lake Park and Temecula Duck Pond on March 20, 2008. TCSD received three (3) proposals, which were evaluated to determine the qualifications and competitiveness of each Vendor to provide Water Management/Maintenance Services. Arch Chemicals, Inc. formally Marine Biochemist was determined to have provided the most qualified proposal for the Water Management/Maintenance Services. A one (1) year Contract with option of three (3) one-year extensions was awarded to Arch Chemicals, Inc. effective July 1, 2008 thru June 30, 2009 in the amount of $83,200.00. The First Amendment is now requested to authorize the first one (1) year extension as permitted per original contract. The cost to provide water management/maintenance services for Fiscal Year 2009 - 2010 is $58,260.00 and an estimated $10,000.00 is being requested for repairs and additional supplemental services. This additional year of service will increase the total contract amount to $151,460.00 FISCAL IMPACT: The cost of the water management/maintenance services contract is $68,260.00. Sufficient funds have been included in the proposed Annual Operating Budgets for Fiscal Year 2009 - 2010 in the appropriate expenditure accounts. ATTACHMENTS: 1) Amendment No 1 R:\SIRE REPORTS ET AL\Maintenance\Agenda Repart 2009 - 2010\Arch Chemicals, Inc First Amendment 2009-2010.doc FIRST AMENDMENT TO AGREEMENT BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND ARCH CHEMICALS, INC. formally MARINE BIOCHEMISTS THIS FIRST AMENDMENT is made and entered into as of May 12, 2009 by and between the Temecula Community Services District, a municipal corporation ("City") and Arch Chemicals, Inc formally Marine Biochemists ("Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Amendment is made with respect to the following facts and purposes: A. On May 27, 2008 the City and Arch Chemicals, Inc. formally Marine Biochemist entered into an agreement entitled "City of Temecula Agreement to provide water management/maintenance services" (Agreement) in the amount of $83,200.00. B The parties now desire to increase the payment of the Agreement in the amount of $68,260.00 and amend the Agreement as set forth in this Amendment. 2. TERM. Section 1 of the Agreement is amended to extend the term of the Agreement to June 30, 2010. The First Amendment will take effect on July 1, 2009. 3. PAYMENT. The first paragraph of Section 3, "PAYMENT" of the Agreement is amended to read: "The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B other than the payment rates and schedule of payment are null and void. This amount shall not exceed Sixty Eight Thousand Two Hundred Sixty Dollars and No Cents ($68,260.00) for water management/maintenance and repair services for Fiscal Year 2009-10, for a total contract amount of One Hundred Fifty Thousand Dollars Four Hundred Sixty and No Cents ($151,460.00) for the term of the Agreement, unless additional payment is approved as provided in this Agreement." 4. 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. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 111 111 CAProgram FilesWeevia.Com0ocument Converterltemp1915757.doc IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT BY: Chuck Washington, President ATTEST: BY: Susan W. Jones, MMC City Clerk/Board Secretary APPROVED AS TO FORM: BY: Peter M. Thorson, City Attorney Arch Chemicals, Inc. formally Marine Biochemists 2940 B East La Jolla St. Anaheim, CA 92806 Phone: (714) 632-5253 Contact Person: Bill Thomas BY: NAME: TITLE: BY: NAME: TITLE: (Two Signatures Required For Corporations) CAProgram FilesWeevia.Com0ocument Converterltemp1915757.doc EXHIBIT "B" CITY OF TEMECULA PAYMENT RATES AND SCHEDULE PRICING SHEET PRICE PRICE PER PER DESCRIPTION MONTH YEAR Harveston Lake Park To be serviced three times per $3,975.00 $47,700.00 week (Monday, Wednesday & Friday) Harveston Lake Park To be serviced twice a week $3,300.00 $39,600.00 (Tuesday & Friday) Temecula Duck Pond To be services three times per $880.00 $10,560. week (Monday, Wednesday & Friday) Temecula Duck Pond To be serviced twice a week $600.00 $7,200.00 (Tuesday & Friday) ALTERNATE BID ITEMS - for emergency repairs or extra work authorized by City MARK-UP ADDED TO VENDOR'S WHOLESALE PRICE OF PARTS, EQUIPMENT AND MATERIALS 15% HOURLY RATE PER REGULAR MAN HOUR (8am TO 5pm Monday through Friday $65.00 HOURLY RATE PER OVERTIME MAN HOUR - After-hours, Weekends, Holidays, etc. $95.00 Company Name: Signature of Authorized Representative: Title: CAProgram FilesWeevia.Com0ocument Converterltemp1915757.doc REDEVELOPMENT AGENCY ITEM NO. 22 ACTION MINUTES of APRIL 28, 2009 City Council Chambers, 43200 Business Park Drive, Temecula, California TEMECULA REDEVELOPMENT AGENCY MEETING The Temecula Redevelopment Agency Meeting convened at 7:47 PM. CALL TO ORDER: Chair Person Ron Roberts ROLL CALL: AGENCY MEMBERS: Comerchero, Edwards, Naggar, Washington, Roberts RDA PUBLIC COMMENTS There were no public comments. RDA CONSENT CALENDAR 12 Action Minutes - Approved Staff Recommendation (5-0-0) - Agency Member Edwards made the motion; it was seconded by Agency Member Washington; and electronic vote reflected unanimous approval. RECOMMENDATION: Approve the action minutes of April 14, 2009. RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT At 7:48 p.m., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, May 12, 2009, 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 Ron Roberts, Chairperson ATTEST: Susan W. Jones, MMC City Clerk/Agency Secretary [SEAL] ITEM NO. 23 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick Richardson, City Planner DATE: May 12, 2009 SUBJECT: Opposition to Senate Bill 93 (Kehoe) Redevelopment: Payment for Land or Buildings RECOMMENDATION: City staff recommends approval of letter of opposition to Senate Bill 39 (Kehoe) be drafted and sent to Senator Kehoe, as well as, our local legislators. BACKGROUND: On January 22, 2009 State Senator Kehoe (D - San Diego) introduced legislation in response to what she viewed as an inappropriate use of funds to construct public facilities that were not inside or contiguous to a redevelopment project area. This bill was amended on April 28, 2009 and in its current form would make the following major changes to the use of redevelopment funds to finance publicly owned facilities: The findings required to be made in connection with facilities both inside and outside the redevelopment project area would be subject judicial challenge. These findings are very subjective (e.g. "no other reasonable means of financing" the facilities) and inherently difficult to prove, requiring in some cases the proof if a negative. This challenge would lead to increased litigation and cause delay and increased costs for public projects that will leverage private investment and create jobs 2. The provision of housing for low and moderate income would be eliminated as an alternative to a finding that the public facilities would assist in the elimination of blight. This could prohibit agencies from funding public facilities that are needed for an affordable housing project such as flood control improvements or a community center. 3. For public facilities located outside a redevelopment project area, the agency would need to undertake costly, duplicative, and time consuming surveys of blighting conditions in order to prove that significant blight remains in the project area. Under current law, blight studies must be performed before the redevelopment plan is adopted. Once the redevelopment plan is adopted, the project area is conclusively deemed to be a blighted area. (Health & Safety Code § 33368.) Additional blight studies are presently not required unless certain redevelopment plan amendments are proposed which could enlarge the project area or extend the time limits on the redevelopment plan. The requirement to perform additional blight surveys will lead to litigation, delays and increased costs. 4. Undercurrent law, redevelopment plans adopted prior to the effective date of the legislation creating Section 33445 (October 1, 1976) do not have to show that the public facilities to be financed from redevelopment funds were provided for in the redevelopment plan. SIB 93 would eliminate this exemption. This would triggerthe need to amend redevelopment plans adopted before this requirement was included in the law, again creating costly delays of important public projects. 5. SIB 93 contains no grandfather clause to cover project commitments that might be made prior to the new law's effective date. It could adversely affect the ability of redevelopment agencies to complywith existing contractual obligations made to developers and other public agencies. If SB 93 is passed in its current form itwould make itvery difficultforthe Temecula Redevelopment Agency to fund any public projects. Therefore staff is recommending that the City Council oppose SIB 93 and direct staff to draft a letter of opposition to SIB 93. The League of California Cities and California Redevelopment Association are working with Senator Kehoe to try to amend the language in SIB 93. However, if the negotiations do not produce satisfactory amendments, the League will be requesting that all cities oppose this legislation with great vigor. The Senate deadline for moving bills off of the Senate floor is June 5t" FISCAL IMPACT: Potential significant cost to Agency due to delayed projects, and requirements to find "substantial evidence" of blight above and beyond that which was recognized by the Redevelopment Plan. Also there is potential for litigation as a result of the possibility that the Agency will not be able to honor commitments of contracts already in progress. ATTACHMENTS: None TEMECULA PUBLIC FINANCING AUTHORITY ITEM NO. 24 MINUTES OF A REGULAR MEETING OF THE TEMECULA PUBLIC FINANCING AUTHORITY JULY 22, 2008 A regular meeting of the City of Temecula Public Financing Authority was called to order at 7:44 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula. ROLL CALL PRESENT: ABSENT: 5 AUTHORITY MEMBERS: Comerchero, Edwards, Roberts Washington, Naggar 0 AUTHORITY MEMBERS: None Also present were Executive Director Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. TPFA CONSENT CALENDAR 26 Minutes RECOMMENDATION: 26.1 Approve the minutes of May 13, 2008. 27 Authorization of Special Tax Lew in Community Facilities District No. 03-1 (Crowne Hill) RECOMMENDATION: 27.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 08-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-1 (CROWNE HILL) R AMinutes.tpfa\072208 28 Authorization of Special Tax Levy in Community Facilities District No. 01-2 (Harveston) RECOMMENDATION: 28.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 08-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 01-2 (HARVESTON) 29 Authorization of Special Tax Lew in Community Facilities District No. 03-6 (Harveston II) RECOMMENDATION: 29.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 08-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-6 (HARVESTON II) 30 Authorization of Special Tax Levy in Community Facilities District No. 03-2 (Roripaugh Ranch RECOMMENDATION: 30.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 08-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-2 (RORIPAUGH RANCH) R AMinutes.tpfa\072208 31 Authorization of Special Tax Levy in Community Facilities District No. 03-3 (Waif Creek) RECOMMENDATION: 31.1 Adopt a resolution entitled: RESOLUTION NO. TPFA 08-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 03-3 (WOLF CREEK) MOTION: Agency Member Edwards moved to approve the Consent Calendar. Agency Member Roberts seconded the motion and electronic vote reflected approval with the exception of Agency Member Comerchero who abstained on Item Nos. 28 and 29. ADJOURNMENT At 7:45 p.m., the Temecula Public Financing Authority Meeting was formally adjourned. Michael S. Naggar, Chairman ATTEST: Susan W. Jones, MMC City Clerk/Agency Secretary [SEAL] RAMinutes.tpfa\072208 3 ITEM NO. 25 Approvals City Attorney Director of Finance City Manager TEMECULA PUBLIC FINANCING AUTHORITY AGENDA REPORT TO: Executive Director/Authority Members FROM: Peter Thorson, City Attorney DATE: May 12, 2009 SUBJECT: Consideration of the adoption of an Amended and Restated Acquisition Agreement enabling the City of Temecula to construct certain Public Improvements for Roripaugh Ranch, including Butterfield Stage Road and Murrieta Hot Springs Road, with proceeds of the Community Facilities District No. 03-02 (Roripaugh Ranch) Bonds. PREPARED BY: Peter Thorson, City Attorney RECOMMENDATION: That the Board of Directors: 1. Adopt a resolution entitled: RESOLUTION NO. TPFA 09- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "AMENDED AND RESTATED ACQUISITION AGREEMENT BY AND BETWEEN THE TEMECULA PUBLIC FINANCING AUTHORITY AND ASHBY USA, LLC" DATED AS OF MAY 12, 2009 RELATING TO COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) SUMMARY: The Developer of the Project, Ashby USA, is unable to complete the public improvements required for the Project. The proposed Amended and Restated Acquisition Agreement ("Agreement") will enable the City to proceed with construction of Butterfield Stage Road and Murrieta Hot Springs Road required for the Roripaugh Ranch Project using the proceeds of the Roripaugh Ranch Community Facilities District Bonds. The debt service on the Bonds is paid with Special Taxes paid by the property owners within Roripaugh Ranch. Several contractors and consultants who worked on these public improvements have filed stop notices and lawsuits against the Developer, as well as the City and the Authority, seeking payment for the work performed. Although the City is not responsible for these claims, the Agreement provides for the payment of their invoices with funds that would otherwise be due to the Developer. The Public Works Department is working towards the actual construction of Butterfield Stage Road and Murrieta Hot Springs Road. There are several right of way acquisition issues that are yet to be resolved. Once the contractors and consultants are paid under the proposed Agreement, they will be able to provide the work product needed to complete plans and specifications. Time estimates are never accurate on this Project because there are so many problems and so many different parts that must be coordinated. However, the best estimate at this time is that a significant portion of the work could go out to bid by late 2009 or early 2010. BACKGROUND: Rorinauah Ranch Proiect On November 26, 2002, the City Council approved the Roripaugh Ranch Specific Plan (SP 11) which provides a specific plan for 804.7 acres consisting of the development of a maximum of 2,015 dwelling units, but is currently planned for 1,745, 110,000 square feet of neighborhood commercial retail space, a 12 acre elementary school site, and a 20-acre middle school site, a 19.7 acre sports park (Planning Area 27), a 5.1 acre neighborhood park (Planning Area 6), a fire station site and fire station (Planning Area 32), and 202.7 acres of natural open space, flood control improvements to Santa Gertrudes Creek and Long Valley Wash, and on-site and off-site public infrastructure improvements ("Project"). On December 17, 2002 the City Council also approved a Development Agreement for the Project ("Development Agreement") thatvests authorized land use requirements for the Project, provides for certain development fee credits based on Developer's construction of designated public improvements, and conditions the issuance of building permits on the completion of designated public improvements necessary to mitigate the impacts of the development. CFD Bonds for Public Improvements On April 27, 2006, the Temecula Public Financing Authority issued $51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch), 2006 Special Tax Bonds ("Bonds"). The Community Facilities District comprises the area of the Roripaugh Ranch Specific Plan. The proceeds of the Bonds were to finance the construction of certain designated public improvements to mitigate impacts of the Project. The debt service on the Bonds is paid for with Special Taxes levied on the property within the Roripaugh Ranch Specific Plan. Several deficiencies in the Official Statement made by the Developer were noted shortly after the Bonds were issued. Other than the initial disbursement of the costs of issuance and reimbursement of fire station costs and a small portion of Murrieta Hot Springs Road, no disbursements have been made for the Public Improvements. City Construction of Priority Public Improvements (Butterfield Stage Road and Murrieta Hot Springs Road) On May 13, 2008, the City Council and Authority Board approved the City's use Bond Proceeds to complete and/or construct certain Public Improvements required bythe Development Agreement but was not completed. The following Public Improvements are expected to be constructed and/or completed by the City ("Priority Public Improvements"): (1) Butterfield Stage Road--complete full-width improvements from Murrieta Hot Springs Road to the south project boundary at Planning Area 32, including construction of two full-width bridges within and over Santa Gertrudes Creek and Long Valley Wash; (2) Butterfield Stage Road--construct full width improvements from southern project boundary at Planning Area 32 south to La Serena Way (3) Murrieta Hot Springs Road--complete full-width improvements from east of Pourroy Road at the northern project boundary to the Butterfield Stage Road; (4) Intersection of Pourroy Road and Murrieta Hot Springs Road-construct/install traffic signal; (5) South Loop Road--construct southerly half-width in front of fire station (Planning Area No. 32) including a portion Storm Drain line J; (6) Nicolas Road--construct full improvements from Butterfield Stage Road to the western project boundary; and (7) Nicholas Road--construct 40-foot improvements 450 feet east of the existing Nicolas Road/Calle Girosol intersection to the western project boundary. The Priority Public Improvements include the basic arterial road improvements for the Project. Comments by representatives of the various lenders that have taken over portions of the Phase I properties, new owners, potential purchasers/merchant builders suggest that coordination and funding of the construction of the Priority Public Improvements bythese parties in the absence of a viable master developer will be difficult. The difficulty in completion of the various Public Improvements could adversely impact the time of issuance of certain blocks of building permits pursuant to the schedule set forth in the Development Agreement. A substantial portion of the Public Improvement component of the requirements for issuance of up to 500 building permits would be fulfilled bythe City's completion of the Priority Public Improvements; provided, however, issuance of building permits will require fulfillment of all applicable requirements of the Development Agreement and conditions of approval of the specific land use entitlements. DISCUSSION OF TERMS OF AMENDED AND RESTATED ACQUISITION AGREEMENT The proposed revisions to the Acquisition Agreement are: City is authorized to construct and complete the designated Priority Public Improvements (principally Butterfield Stage Road and Murrieta Hot Springs Road) and mayconstruct other public improvements authorized by the Bond Documents if it elects to do so. City's costs to construct the Priority Public Improvements will be paid directly with Bond proceeds. The portions of the Priority Public Improvements that have been partially constructed can be paid for even though the improvement has not been completed. Appropriate amounts have been deducted for the costs of bringing the partially completed improvements into working order. Approximately $16.3 million will be paid to contractors, lienholders and Ashby USA for the work completed to date. A. Of this amount approximately $8.4 million will be paid directly to contractors and consultants who worked on the Public Improvements authorized by the CFD and have now sued the City and Authority or who have filed stop notices with the City and the Authority. The contractors and consultants will be paid only for the costs of their invoices and not for attorney fees or interest. Each will sign a settlement agreement that releases the City and the Authority from further liabilities but will allow them to pursue any further remedies they may have against Ashby USA. B. The remainder of this amount will be "paid" to Ashby USA and AmTrust Bank, however, the City will make this payment through an "interpleader action" that is essentially a court supervised escrow. This will enable all parties who have claims against Ashby USA on this Project to make their claims and argue over who has priority for the funds without the involvement of the City or the Authority in those complicated proceedings. We anticipate that the contractors and consultants who are paid the amount of their invoices by the City will claim their attorney fees and interest in this action. These claimants are currently litigating the distribution of the $2.5 million in surplus foreclosure proceeds from the Bank of the West's foreclosure of a portion of the Roripaugh Ranch property. C. All of the City or Authority's legal fees in connection with the contractor and consultant law suits will be paid from these funds. Such fees have so far been paid from the penalties collected from payment of delinquent Special Taxes. This provision provides that they will be paid with funds otherwise due to Ashby USA. Ashby USA must payall delinquent Special Taxes and file required Semi-Annual Disclosure Reports prior to the payments being made unless the Authority waives this requirement. The Authority is not obligated to "remarket" the Bonds, confirming that this cannot be accomplished given the financial condition of Ashby USA. If Ashby USA, or its successors, undertake the construction of any public improvements not constructed by the City, Ashby USA must have performance and labor and material bonds for the work even if sufficient Bond Proceeds are available to reimburse Ashby USA for such costs. Ashby USA and AmTrust Bank release the City and the Authority from any liability that they might claim through the date of the revised Acquisition Agreement and agree not to seek damages against the City or Authority for allegations of a breach of the revised Acquisition Agreement in the future. This updates similar provisions in the March 2007 revisions to the Acquisition Agreement. Other administrative provisions to implement these terms. The terms of the original Acquisition Agreement and Supplement No.1 to the Acquisition Agreement along with these changes have been combined into an "Amended and Restated Acquisition Agreement." As a practical matter, this makes it easier to administer the Acquisition Agreement than having to reference three separate agreements. FISCAL IMPACT: None. The costs of construction of the Priority Public Improvements will be paid for by the proceeds of the Bond Issue. Debt service for the Bond Issue is paid for with a Special Tax levied on the owners of the Roripaugh Ranch Project land. The City's attorneyfees and professional services fees are paid from the proceeds of the Bond Issue as well. ATTACHMENTS: TPFA Resolution No. 09- Redline version of Amended and Restated Acquisition Agreement showing changes from the original Acquisition Agreement as modified by Supplement No. 1 to Acquisition Agreement. RESOLUTION NO. TPFA 09- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY APPROVING APPROVING THAT CERTAIN AGREEMENT ENTITLED "AMENDED AND RESTATED ACQUISITION AGREEMENT BY AND BETWEEN THE TEMECULA PUBLIC FINANCING AUTHORITY AND ASHBY USA, LLC" DATED AS OF MAY 12, 2009 RELATING TO COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors of the Temecula Public Financing Authority hereby approves that certain agreement entitled "Amended and Restated Acquisition Agreement by and Between the Temecula Public Financing Authority and Ashby USA" dated as of May 12, 2009 with such changes in said documents as may be mutually agreed upon by the parties, the Executive Director, Bond Counsel, and City Attorney as are in substantial conformance with the form of such agreements as presented to the Authority. The Chairman is hereby authorized to execute said Agreements on behalf of the Authority. Section 2. The Executive Director (or his designee), is hereby authorized, on behalf of the Authority, to take all actions necessary and appropriate to carry out and implement the Agreements and to administer the Authority's obligations, responsibilities and duties to be performed under the Agreements. Section 3. The Authority Secretary shall certify the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority this 12th day of May, 2009. Maryann Edwards, Chairperson ATTEST: Susan W. Jones, MMC City Clerk/Board Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Temecula Public Financing Authority, do hereby certify that the foregoing Resolution No. TPFA 09- was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority at a meeting thereof held on the 12th day of May, 2009, by the following vote: AYES: BOARD MEMBERS Edwards, Comerchero, Naggar, Roberts, Washington NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: Susan W. Jones, MMC City Clerk/Board Secretary (.;uint & ilunnr3i; i1_P &MARKED TO SHOW CHANGES FROM ACQUISTION AGREEMENT AND SUPPLEMENT NO. I TO MARCH 26, 2009 VERSION A_t'V1ENDED AND RES'rATED ACQUISITION AGREEMENT I Deleted -POST CLOSING* !Deleted: by and between the TEMECULA PUBLIC FINANCING AUTHORITY and ASHBY USA, LLC " MA, 01 r, I SAErll 2009 { Deleted: March 1, 2006 Dated as of _ _ Relating to: Temecula Public Financing Authority Community Facilities District Noe 03-02 (Roripaugh Ranch) Deleted: ¶ *T its document reflects the provisions of the Acquisition Agreement, dated as of March 1, 2006, as amended and supplemented by Supplement No.1 to Acquisition Agreement, dated as of March 6, 2007, each between the Temecula Public Financing Authority and Ashby USA, l.l_C 4 Deleted: ]10095 20009-01v_i023l ~4 TABLE OF CONTENTS 05 ,ARTICLE I DEFINITIONS Section 1.01. Definitions .......1 ARTICLE 11 RECITALS Section 2.01. The CFD 7 Section 2.02. The Development . ............7 Section 203. The Facilities 7 Section 2.04. The Financing 7 Section 2.05. The Bonds ............7 Section 2.06. No Advantage to Authority Construction ............7 Section 2.07. Actions Subsequent to the Issuance of the Bonds ............8 Section 2.08. Agreements.......- 8 ARTICLE III FUNDING Section 3.01. Bond Proceeds; Improvement Fund 9 Section 3.02. Priority for Use of Amounts in the Improvement Fund ..........10 Section 3.03. City Election to Construct Facilities ..........12 Section 3.04. Letters of Credit ..........13 Section 3.05. Procedure for Disbursement of Funds in Satisfaction of Payment Requests 2 Through 8 and Future Payment Requests ..........16 ARTICLE IV CONSTRUCTION OF FACILITIES Section 4.01. Plans ..........19 ,l Section 4.02. Duty of Developer to Construct ..........19 Section 4.03. Relationship to Public Works; Bidding Requirements ..........19 Section 4.04. Independent Contractor; No Joint Venture ..........21 Section 4.05. Performance and Payment Bonds ..........21 Section 4.06. Contracts and Change Orders. - 21 Section 4.07. Time for Completion 22 ARTICLE V ACQUISITION AND PAYMENT Section 5.01. Inspection 23 Section 5.02. Agreement to Sell and Purchase Facili ties 23 Section 5.03. Payment Requests 23 Section 5.04. Processing Payment Requests 24 Section 5.05. Payment - .......................................24 Section 5.06. Restrictions on Payments 25 Section 5.07. Acquisition of Additional Facilities 29 Section 5.08. Defective or Nonconforming Work 29 -i- Deleted: z Section 10. 14. Conflicts With Irrevocable Instructions or Assignment Agreement- ....48 Section 10.15. Amendment.._ _...48 Section 10.16. 056 Counterparts........._ ....48 11 Section 10.17. Governing Law. - . ..49 Section 10.18. Effective Date ....49 EXHIBIT A DESCRIPTION OF FACILITIES ELIGIBLE FOR ACQUISITION FROM THE DEVELOPER EXHIBIT B DISCRETE COMPONENTS OF FACILITIES AND RELATED BUDGETED COSTS EXHIBIT C FORM OF PAYMENT REQUEST EXHIBIT D PRIORITY FOR FUNDING OF FACILITIES IEXHIBITL SxfP m EXHIBIT f AI T ;f t I I c B AND PRIORITY LIEN CLAIMS -54 E -iii- THIS X%H NDFD AND Rl ~l.',l i I'D ACQUISITION AGREEMENT (the "Acquisition Agreement"), dated as of Aa f Hril is by and between ( ) the Temecula Public Financing t10~, Authority, a joint exercise of powers authority organized and existing under the laws of the State of California (the "Authority"), for the Authority's Community Facilities District No. 03- 02 (Roripaugh Ranch) (the "CFD"); and (ii) Ashby USA, LLC, a California limited liability ( company (the "Developetr ftij<i arnends and rresstat s the. Prior Acquisition A~vreeinent and i SuITleni nt >Wo. I tlreretU~s such terms arts defined herein). ARTICLE I DEFINITIONS Section 1.01. Definitions. The following terns shall have the meanings ascribed to them in this Section 1.01 for purposes of this Acquisition Agreement. Unless otherwise indicated, any other terns, capitalized or not, when used herein shall have the meanings ascribed to them in the Fiscal Agent Agreement (as hereinafter defined). "Acceptable Title" means title to land or interest therein, in form acceptable to the Director of Public Works, which title or interest is free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, but subject to any exceptions determined by the Director of Public Works as not interfering with the actual or intended use of the land or interest therein. Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an "Acceptable Title" if: (i) such offer is necessary to satisfy a condition to a tentative or final parcel map, (ii) such offer is in a form acceptable to the Director of Public Works, (iii) the Director of Public Works has no reason to believe that such offer of dedication will not be accepted by the applicable public agency, and (iv) the Developer commits in writing not to allow any liens to be imposed on such property prior to its formal acceptance by the applicable public agency. 01 "Acceptance Date" means the date the City Council of the City (or other public entity which is to own a Facility) takes final action to accept dedication of or transfer of title to a Facility. "Account Party" means the property owner that provides a Letter of Credit to secure the payment of Special Taxes on property the Account Party or its affiliates own in the CFD. "Acquisition Agreement" means this Amended and Restated Acquisition Agreement, together with any Supplement hereto. "Act" means the Mello-Roos Community Facilities Act of 1982, Section 53311 et seq. of the California Government Code, as amended. "Actual Cost" means the substantiated cost of a Facility or a Discrete Component, which costs may include: (i) the costs (evidenced by payments to parties unrelated to the Developer, or, in the event that the Developer avails itself of the provisions of Section 4.03(C), determined by reference to the written contract to be entered into with the Developer as referenced in said Section) incurred by the Developer for the construction of such Facility or Discrete Component, -1- Deleted. March 1, 2046 Deleted. " SIR q (ii) the reasonable costs incurred by the Developer in preparing the Plans for such Facility or Discrete Component and the related costs of design, engineering and environmental evaluations of the Facility or Discrete Component, (iii) the fees paid to governmental agencies for obtaining permits, licenses or other governmental approvals for such Facility or Discrete Component, (iv) professional costs incurred by the Developer associated with such Facility or Discrete Component, such as engineering, architecture, landscape architecture, legal, accounting, inspection, construction staking, materials testing and similar professional services; and (v) costs directly related to the construction and/or acquisition of a Facility or Discrete Component, such as costs of payment, performance and/or maintenance bonds, and insurance costs related to Facilities (including costs of any title insurance required hereunder, but not including the cost of any insurance described in Section 7,02 of this Acquisition Agreement). Actual Cost may include an amount not in excess of five percent (5%) of the cost described in clause (i) of the preceding paragraph in respect of any construction, project management or other similar fee payable to the Developer or any party related thereto. Actual Cost shall not include any financing fees, costs or charges, or any interest, cost of carry or other similar charges. "Affiliate" means any entity with respect to which fifty percent (50%) or more of the ownership or voting power is held individually or collectively by any of the Developer and any other entity owned, controlled or under common ownership or control by or with, as applicable, the Developer, and includes the managing member of any entity that is a limited liability company, and includes all general partners of any entity which is a partnership. Control shall mean ownership of fifty percent (50%) or more of the voting power of or ownership interest in the respective entity. "Authority " means the Temecula Public Financing Authority, a joint exercise of powers agency duly created and existing under the laws of the State. "Bonds means the Temecula Public l rnancmg Aulhorut< C ommunrttr Facilities District (i2nripaugh_ Ranch 200 'Sp cialTTax Bonds, issued by the. Authority under the previsions of the Act and the Fiscal Agent Agreeni.cnt. "Budgeted Cost" means the estimated cost of a Facility or Discrete Component as shown on Exhibit B hereto. "Build-Out" means, when making calculations pursuant to Section 3.05 as to one or more parcels of property, or otherwise for purposes of clause (viii) in the definition of "Letter of Credit" in Section 1.01, the assumption that the property contains the number, size and type of homes projected in the development plans used by the Tax Consultant in connection with its email regarding "Letter of Credit Calculations" dated February 14, 2006, which report was used to calculate the initial stated amounts of the letters of Credit to be delivered to the. Fiscal Agent on the Closing Date by the Developer and another landowner in the CFD, which assumption nay be adjusted from time to time based upon actual completed construction of homes in the District (as reported in connection with requests to reduce the amount of any Letter of Credit by or on behalf of an Account Party or as otherwise known by the Tax Consultant). , CFD means the Temecula Public Financing Authority L.ominunit), Facilities District No. 03-02 (Roripaugh Ranch), created,by the Board of Directors of the Authority under the Act. -2- Deleted: "Bonds" means anv indebtedness incurred the proceeds of which are to be used to pay all or a portion of the Purchase Prices of the Facilities, which indebtedness is repayable from special taxes levied pursuant to the Act in the CFD. ¶ Deleted: "Buyback" means an offer by the Authority or by the Developer, provided to all then owners and beneficial owners of Series 2006-A Bonds, to purchase the Series 2006-A Bonds from the then owners and beneficial owners of the Series 2006-A Bonds at a purchase price of not less than the outstanding principal of the Series 2006-A Bonds together with accrued interest thereon to the date of purchase, and the purchase price of any Series 2006-A Bonds requested to be so purchased by such owners will be funded with moneys provided by or on behalf of the Developer and/or with amounts in the Improvement Fund pursuant to Section 5.117; Deleted: , or to be created, X06 "City" means the City of Temecula, California. ~r ~ °Citc' Attc7rncw'° ineauis the attorney, or tirin of altornti a, see -vsngr in than capacity of City Attorn-ev (01- the City;. itN- Improve.nients" Shall nit>.an those. facilities identified in Exhibit t. hereto, and anv additional Facilities designated in a notice to the Authorih. and the I)e eloper as described in Seeti€>n 3,03A. of this Acquisition Agreement. - - - "City- \1anaI4er" means the person actin,&in the capacity as Cite \Ianager of the City. losing Date" means Apt ii 277, 2006, beint~ thr. date of issuance of the Bonds. "Conditions of Approval" means the conditions of approvals and mitigation measures imposed in connection with the granting of the land use entitlements for the development of land in the CFD, and any subdivision improvement, development or other agreement with the City relating to the development of the land in the CFD or the installation of the Facilities; acid including, but not limited, to the Roripa11 Ranch Specific Plan, approved by the City_ on Noveniber 26, 2002, as adopted and as thereafter amended, and the Prcannexation and Developnient ;\g,reeinent entered into as of Dtcember I7, 2002, between the City and the Developer, and all c)perating nieniorandunr thereunder and all amendments thereto. "County" means the County of Riverside, California. "Developer" means Ashby USA, LLC, a California limited liability company, and its successors and assigns to the extent permitted under Section 10.07 hereof. "Director of Public Works" means the Director of Public Works of the City, or his written designee acting as such under this Acquisition Agreement. "Discrete Component" means a functional segment or component of a Facility that the Director of Public Works has agreed can be separately identified, inspected and completed, and be the subject of a Payment Request hereunder. The Discrete Components of the Phase 1 Facilities are shown on Exhibit B hereto. Notwithstanding the foregoing, the Discrete Components shalt include work done or c( sts ex ended by the Dev eloper ielatiti e tv a City Iniproveinent for which the . Director of Public Works has appr( ved payanent as described in Section 3.0313. "District-wide Maximum Special Taxes" means the maximum Special Taxes that can be levied on all property in the District assuming Build-Out of all property. "Facilities" means the public facilities described in Exhibit A hereto which are eligible to be financed by the CFD. "Fiscal Agent" means the entity acting as fiscal agent under the Fiscal Agent Agreement, or anv successor thereto acting as fiscal agent under the Fiscal Agent Agreement. -3- .0 or VNII :'Fiscal Agent Agreement" means the agreement by that name, dated ?s 4 Vlareh 1, 2C)0, between the Authority and the Fiscal Agent, providing for, among other matters, the issuance of the ,J3onds and the establishment of an Improvement Fund, as atrtt~nde>d and ' Deleted: Series 2006-A supplemented by `,uppleme•ntal A~~e>emtnt No, Ito l ~>e fl .-'<ont Agreement, dated as ofMav 1, 2008, between the Authority and the Fiscal ARenL and as it may be Further amended or supplemented from time to time to accordance with its tc F nis. "Fiscal Year" means the twelve-month period extending from July 1 in a calendar year to June 30 of the succeeding year, both dates inclusive. "Improvement Fund" means the acquisition account within the fund by that name established by Section 4,02(A) of the Fiscal Agent Agreement. "Letter of Credit" means a standby letter of credit, which is: (i) in-evocable during its term; (ii) in a form and with draw provisions satisfactory to the Treasurer of the Authority and the initial purchaser of the Bonds; (iii) for the benefit of the Fiscal Agent; (iv) issued by a federal or state chartered bank or other financial institution reasonably acceptable to the Treasurer of the Authority and the initial purchaser of the )fonds, which bank's or institution's unsecured debt obligations are rated at least "A-" or better by Moody's or S&P; (v) at the time of delivery thereof to the Fiscal Agent for purposes of this Acquisition Agreement, accompanied by one or more opinions addressed to the Fiscal Agent and the Authority to the effect, singly or together, that the Letter of Credit is a legal, valid and binding obligation of the provider thereof, enforceable against the provider thereof in accordance with its terms, except as limited by applicable reorganization, insolvency, liquidation, readjustment of debt, moratorium or other similar laws affecting the enforcement of rights of creditors generally as such laws may be applied in the event of a reorganization, insolvency, liquidation, readjustment of debt or other similar proceeding of or moratorium applicable to the provider thereof and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); (vi) for a term of at least one year, effective from no later than the date it is QaIR,~Ni delivered to the Fiscal Agent, and any Letter of Credit provided in substitution for any then outstanding Letter of Credit shall be for a tenn of at least one year commencing not later than the expiration date of the term of the prior Letter of Credit; (vii) for the account of any entity other than the City, the Authority, the CFD or any other governmental entity; (viii) in a stated amount equal to two years estimated expected annual Special Taxes to be levied on the County Assessor's parcels to which it pertains (assuming Build-Out of such parcels) and (ix) not secured, as to the reimbursement of any draws thereon, by any property located in the CFD, or if so secured, any such security shall be expressly subordinate to the lien of the Special Taxes. A standby letter of credit may be accompanied by a confirming letter of credit for the purposes of satisfying the requirements in clause (iv) above; and if a confirming letter of credit is provided, the legal opinion referred to in clause (v) above shall be with respect to the confirming letter of credit and not the related Letter of Credit. "Parcel Liens" means, with respect to any parcel or parcels of real property in the CFD, sum of: (i) the aggregate principal amount of all Bonds of the CFD then outstanding allocable to such parcel or parcels based upon the portion of the debt service payable on the Bonds of the CFD frorn the special taxes levied (or that, but for capitalized interest on the Bonds, could be levied) on such parcel or parcels in the then annual Fiscal Year, plus (ii) the aggregate principal amount of any fixed assessment liens on the parcel or parcels, plus (iii) a portion of the -4- Deleted Series 2006-A Deleted: Series 2006-A Erg aggregate principal amount of any and all other community facilities district bonds then outstanding and payable at least partially from special taxes to be levied on such parcel or 03~ parcels (the "Other District Bonds") equal to the aggregate principal amount of the Other District Bonds multiplied by a fraction, the numerator of which is the amount of special taxes levied for the Other District Bonds on such parcel or parcels, and the denominator of which is the total amount of special taxes levied for the Other District Bonds on all parcels of land against which the special taxes are levied to pay the Other District Bonds (such fraction to be determined based upon the maximum special taxes which could be levied in the year in which maximum annual debt service on the Other District Bonds occurs), based upon information from the most recent available Fiscal Year. "Parcel Value" means the market value, as of the date of the appraisal described below and/or the date of the most recent County real property tax roll, as applicable, of parcels of real property in the CFD identified by an Account Party (the "Identified Parcels"), which Identified Parcels are (i) owned by the applicable Account Party or its Affiliates, (ii) are subject to the levy of the special taxes in the CFD, and (iii) are not delinquent in the payment of any special taxes then due and owing, including with respect to the Identified Parcels the value of the then existing improvements and any facilities to be constructed or acquired with any amounts then on deposit in the Improvement Fund, all as determined with respect to the Identified Parcels by reference to (A) an appraisal (or an update to a prior appraisal) performed within six (6) months of the date the Treasurer expects to submit documents to the Fiscal Agent under the Fiscal Agent Agreement with respect to a reduction of a Letter of Credit by reason of an increase in the Parcel Value by an MAI appraiser (the "Appraiser") selected by the Authority, or (B), in the alternative, the assessed value of all the Identified Parcels and improvements thereon as shown on the then current County real property tax roll available to the Treasurer of the Authority. It is expressly acknowledged that, in determining a Parcel Value, the Authority may rely on an appraisal to determine the value of some or all of the Identified Parcels and/or the most recent County real property tax roll as to the value of some or all of the Identified Parcels. Neither the Authority nor the Treasurer of the Authority shall be liable to any other Qs,, person or entity in respect of any appraisal provided for purposes of this definition or by reason of any exercise of discretion made by any Appraiser pursuant to this definition. "Payment Request" means a document, substantially in the form of Exhibit C hereto, to be used by the Developer in requesting payment of a Purchase Price. "Phase 1 Facilities" means the Facilities shown in Exhibit B hereto proposed to be acquired with all or a portion of the proceeds of theponds Deleted Series 2006-A "Plans" means the plans, specifications, schedules and related construction contracts for the Facilities and/or any Discrete Components thereof approved pursuant to the applicable standards of the City or other entity that will own, operate or maintain the Facilities when completed and acquired. As of the date of this Acquisition Agreement, the City standards for construction incorporate those set forth in the Green Book, Standard Specifications for Public Works Construction (SSPWC), adopted by Public Works Standards, Inc., as modified by any applicable City Special Provisions. "t'ixu .k(gl,lisilion Agi•ooment" means the Acquisition Agreement, dated as of March 1, 2006, bets: t,eii 11w \ulho it.v, for the CFD, acrd the Developer. -5- Deleted: "Remarketing" "Purchase Price" means the amount paid by the Authority for a Facility and/or any means the repurchase of the Discrete Components thereof determined in accordance with Article V hereof, being an amount Series 2006 A Bonds from the . , equal to the Actual Cost of such Facility or Discrete Component, but subject to the limitations then owners thereof, and the offer and sale of any Series 2006- and reductions provided for in Article V. A Bonds repurchased (or of a series of Bonds the net proceeds "Risk Manager" shall mean the person acting in the capacity of Risk Manager for the of which would be used, along citv with amounts in the. . Improvement Fund if and to the extent such net proceeds were "State" means the State of California. insufficient, to refund any Series 2006-A Bonds repurchased) to "Supplement" means a written document amending, supplementing or otherwise such owners or to such other modifying this Acquisition Agreement and any exhibit heretgr persons and/or entities as the Authority shall determine; provided that the annual debt "Supplement No. I" means Supplement No. "l to icfmisttion Agreement dated as of service on the Series2006 A 'latch b )007 between the Authorit for the. CFD, and he cyel0 er ~ ~ Bonds following the remarketing j shall not be greater than the "Tax Consultant" means David Taussig & Associates, Inc. or another independent r' annual debt service on the Series 2006-A Bonds prior to the financial or tax consultant retained by the Authority or the City for the purpose of computing,'. remarketing (it being the Special Taxes. acknowledged that, should the j yield on the Series 2006-A Bonds I need to be increased to complete 1 the remarketing, either (i) the principal of the Series 2006-A Bonds following the remarketing will be less than the principal amount of the Series 2006-A Bonds prior to the remarketing or (ii) the remarketing proceeds will be less than the amount oft l l Deleted: "Series 2006-A cox"a ;Bonds" means the first series of 1 Bonds issued by the City for the 1 CFD under the Fiscal Agent Agreement. Deleted: , including any amendments Deleted the list Deleted: Facilities in Exhibit A, any amendments to Deleted: list of Facilities Deleted their Budgeted Costs and Discrete Components in Exhibit B, and/or Deleted: addition to Exhibit B of additional Facilities (and Budgeted Costs and Discrete Components) to be financed with the proceeds of the Bonds deposited in the hrnprovem4 roi -6- ARTICLE II RECITALS Section 2.01. The CFD. The Board of Directors of the Authority ,jtas established the ( Deleted: is undertaking CFD under the Act for the financing of, among other things, the acquisition, construction and 1 proceedings to establish = installation of public facilities identified in the proceedings to form the CFD, which include the Facilities listed in Exhibit A hereto. Section 2.02. The Development. The Developer, together with other entities, is developing land located within the CFD. Section 2.03. The Facilities. The Facilities are within or in the vicinity of the CFD, and the Authority and the Developer will benefit from a coordinated plan of design, engineering and construction of the Facilities and the development of the land that is located within the CFD. The Developer acknowledges that the inclusion of Facilities in Exhibit A hereto in no way, in itself, obligates the Authority to lase. any proceeds of the Bonds to finance the Facilities or implies that the Authority has in any way engaged the Developer to construct the Facilities, except as specifically provided in this Acquisition Agreement. The Facilities which are the subject of acquisition from the Developer under this Acquisition Agreement are only the Facilities listed in Exhibit B hereto (and othe:rti4tse described in Sections 3.02C_ and E. hereof, as such Exhibit may be amended and/or supplemented by any Supplement, and this Acquisition Agreement shall in no way, by itself, obligate the Developer to construct the Facilities except for those Facilities listed in Exhibit Be Section 2.04. The Financing. The Developer and the Authority wish to finance the acquisition, copl5truc tion and installation of some of the Facilities and the payment therefor by entering into this Acquisition Agreement for the acquisition of the Facilities and payment for Discrete Components thereof as shown in Exhibit B hereto (as it may be amended and supplemented) with a portion of the proceeds of the Bonds on deposit in the Improvement ' Fund., Deleted: issue - - Deleted: { Deleted: Deleted: is proceeding with the authorization and issuance of Deleted: all or Deleted: Authority to issue any Bonds, or the Deleted: financed Section 2.05. The Bonds. The Authority s issued the Bonds for the CFD under the Act and the Fiscal Agent Agreement, the proceeds of which Bonds shall be used, in part, to finance the acquisition of a portion of the Facilities as €xlalicit1v set Ic~rth ~~3 this 1<quasitaon Agreerne.nt. The execution by the Authority of this Acquisition Agreement in no way obligates the City to acquire any Facilitiesrona the Dcvc>lope,r with proceeds of,lhe Bands, except the Facilities listed in Exhibit B hereto which are to be acquired subject to the terms and conditions set forth in this Acquisition Agreemenir Section 2.06. No Advantage to Authority Construction. The Authority, by its approval of this Acquisition Agreement, has determined that it will obtain no advantage from undertaking the construction by the Authority directly of the Facilities (other than the conui tion or construction, as applicable, of th City Im tocements), and that the provisions of this Acquisition Agreement require that,ftnGv Facilities ,pr, Dtsctete Corp ments thereof to be- constructed by the Developer be so constructed by the Developer as if they had been constructed under the direction and supervision of the Authority. The Developer hereby -7- Deleted: anv Deleted: issued Deleted: T As more fully described in Section 3.04, it is contemplated that the Bonds will be issued in more than one series, with the first series expected to be issued in the principal amount of $57,250,000 on or about April 27, 2006, and subsequent series to be issued in such principal amounts and on such date as determined by the Authority consistent with the provisions of Section 3.04 Deleted: the Deleted: be represents that it has experience in the supervision of the construction of public facilities of the character of the Facilities. Section 2.07. wxctions Subsc1qu of to the Issuance of the Bonds, `~ubsecluent to the sale and issuance of the Bonds the, Auth:)#7f gas ac3 ~,,c-rcl that some` of the information t<~~<li I tile Doxeloper in they CIt}dial `4atein ,;il o"i' l to 1rtarket the Bore {s nrai have been in cCurate t nd r coniplet_c:, and the Authwit,, 101 thh• i-I O aild the 1)e\-eloperentered Supplernent \O. I amending and supplernenting the Prior Acquisition A~;re°ement Supplement No. 'I - - contemplated that the Fronds would be repurchased from the then owners of the Bonds and , subsequently remarketed, either imniediatelt-, or at a later elate, to new investors by means of a new disclosure document, The Authority aild the Developer have now agreed that any such repurchase and remarketing is infeasible Vjv n the current status of the development of the land in the CFD and the financial m ark( is sYenerally, and now desire to enter into this Acquisition Agreement to provide for the acquisition with funds in the hnprovement Fund of certain of the Facilities or Discrete Components thereof from the Developer, to allow, for the Citt° to construct the Citw Improvements and pay the costs thereof from amounts in the Improvement Fund and to otherwise provide for matters related to the foregoulg. Section 2,08. Agreements. In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Authority and the Developer agree that the foregoing recitals, as applicable to each, are true and correct and further make the agreements set forth herein. -8- Deleted. Agreements ARTICLE III FUNDING ,,Section 3.01. and Proceeds; inrprovemerrt Fund. On the. losing Date, a portion of , the,net procceds of the Bonds wero deposited to an Acquisition Account (defined andjeferred to herein as the improye.ment Fund), andlret proceeds of the Bonds were also deposited to a City -Account, an FAWN D -'Account and a Public 1`i or-f:s Adrninistration Account- Only amounts deposited to the tnrproveir~ent Fund are subject to the provisions of this Acquisition Agreement. None of the Authority, the CitN- or the CFD shall have any, obhl ation whatsoever to the Ieveloper except to use amounts, if arty, available in the linprovernent Ftind to pay the osts of the acquisition of Facilities pnd Discrete Components thereof from ~ De eloper_ and then only upon the ter~rns and. subject to the prvc iscons of this Acquisition Agreement. Antotrnis in the Improvement Fund shall be held, invested, reinvested and disbursed as =d in the Fiscal Agent Ayreernent. 4loneys in the lnrprovemett fund shah be - - - - awn therefrorn in accordance with the provision,; of the Fiscal Agent Agreement and the ble nrovisions hereof for navment of all or a portion of the costs of construction and/or acdcrisition of the, Faeilitics (in(ludinlTpavment of the Purchase Price of Discrete C ompinen.ts thereof), all ,a5 herein pro% idod. I he Developer agrees that the fAuthorit alone shall direct the tnvestnient of the ninnies on deposit in the funds and accounts established by orpursuant to the Fiscal Agent Agreement, incindinf; the Improvement Fund, and that the Developer has no right whsatsoever to direct iriv strnerits under the Fiscal Agent A-greerment. The Authority shall have no responsibtlriv whatsoever to the Developer under this Ae quisidon Agreement, the Prior Acquisition :Agreement, any of the Conditions of Approval, or any otherivise applicable lavn,~with respect to any investment of funds made under the Fiscal Agent Agreement, including any loss of all or a portion of the principal invested or any penalty for liquidation of an investment. Any such loss may diminish the amounts available in the Improvement Fund to pay the Purchase Price of { Facilities and Discrete Components hereunder. The Developer further acknowledges that the obligation of any owner of real property in the CFD, including the Developer to the extent it owns any real property in the CFD, to pay special taxes levied in the CFD is not in anv way dependent on: (i) the availability of amounts in the Improvement Fund to pay for all or any portion of the Facilities or Discrete Components thereof hereunder, or (ii) the alleged or actual misconduct of the Authority in the performance of its obligations under this Acquisition Agreement, the Fiscal Agent Agreement, any developer agreement or amendment thereto or any other agreement to which the Developer and the City or the Authorih, are signatories. The Developer acknowledges that any lack of availability of amounts in the Improvement Fund to pay the Purchase Price of Facilities or any Discrete Components thereof shall in no way diminish any obligation of the Developer with respect to the construction of or contributions for public facilities required by the Conditions of Approval. -9- Deleted: Deleted: Authority Proceedings- The Authority shallconduct all iwcessary proceedings under Deleted: Act for the formation Deleted: CFD Deleted: the issuance, sale Deleted: delivery of Bonds for the CFD; provided, however, tha t nothing herein shall be construed as requiring the Authority to issue the Bonds or any portion thereof. Upon the written request of the Developer, the Deleted: the Authority staff shalt meet regarding the amount, timing and other material aspects of the Bonds, but the legal proceedings and the principal amount, interest rates, terms and conditions and timing of the sale of the Bonds shall be in all respects ti Deleted: approval of the Board of Directors of the 4 1 Authority. ¶ Section 3.02. Series 2006-A Bonds. The .Authority, in eorinection with this Acquisition Agreement, is proceeding with the issuance and delivery of the Series 2006-A Bonds for the CFD. 1 The Authority shall not be a Deleted: Purchase Price i Deleted: or any Deleted except Deleted: amounts on deposit in the Improvement Fund on or after the closing date of the Series 2006-A Bonds. 'Me Authority makes no warranty, express or implied, that the proceeds of the Bonds deposited and held in the Improvement Fund, and I Deleted: investment earnings thereon deposited to the j Improvement Fund, will be 1 sufficientfor pal-ment of tlii -fir ~~r: ;ciection_3.02. Priority for Use of amounts in the Improves-tent Fund _.lmounts in the Deleted, Section 3.04. lntt~rovt ineiml l'uipd shall he use°d for flit' fCi1EC~se ifl~; Iurposes in the tolltivcing order` or lpriorih~: [Intentionally Deleted.]!i A. Qwiin Disbursements, It is he=reby acknowledoed that, prior to the Closing Date, Section 3.05. Letters of Credit. 0 - t, Prior to the issuance of the Series the De=veloper submitted to the Authority, a Pav innt Re L est NV_ 1, and, on fhe_Closing Dale, ~ 2006-A Bonds, the Developer the Authoritt' withdrew 5348,43-5.4(i front the improvement Fund and remitted such aniountto shall provide or cause to be Ohio `iavin s Bank now known as ytitrust hank) on behalf of the Developer, which ainount provided to the Fiscal Agent for elpresentod payme t and 4itisfaction by the Authority of 1'mvntent Request No. I (being c2 eaChoWneTOflandandFts r - - Affiliates (a) that are projected by reinflourseinn of t casts of the Developer associated with M.Urrieta Plot Sprins~7 Rei id being the Tax Consultant Bonds to be Facility la. and lb. in Exhibit B). On the Closing Date, the City, also remitted to Ohio Sia,ings subject to l0°~ormore of the - - Bank, on behalf of the Developer V-)J 0,000.00 withdrawn front the C mtv Act ount established expected annual special tax levy i T 9 untie" . the Fiscal .ent Agreement, to reimburse the De,velen pct for advances made b it €or the in the CFD (assuming Build-Out) following the issuance of the cost-of construe=tion ofya toe station. Series 2006-A Bonds, and (b) that j own land in a planning area and B. Payment Request No, 2. C7iE or about )uh' 2, 2005, tit, (}~,ve.IoFier submitted to the either (i) the then Parcel Value of Authority a Payment Request No. 2 for pay ne>nf of the Discrete C Mlp nnenis comprised of (a) ; such land is less than three times ~ the Parcel Liens for such land or , the Bridge (vita. C,ertrudis Crossing) component of Yac Flity' 2b in l:SXhibit 15, and ~13) the_ Bridge - 11 1 - (ii) there are conditions pr ecederit I ( i E Th D ` 2 A om, l ollev lity ose hvo _ t05Si71 t()r13 C>ItEnt of Fac C in xhibit B. iscrete Components 1 to the issuance ofbulding ha-,_0 ~ f 569.00, respectively, for all aggregate ! permits for all lots to be Costs $6,675, 902.0 r, I eted a n e'tc d l E;,t€)()o pl ~ g 'u-bliC 4,Vorks has rev sewed Payment Request ~ developed in such planning area, g The Di of I ect No. 2, and the Authority is willing to disburse the aggregate of the Budgeted Costs for these. i as such conditions are set forth in t14 c ` Discrete Cd)m orme nt5 in pay rtlE'2tt of the Purchase Price for Such Discrete Coin PQnerttS, the Preannexation and I Development Agreement, dated upon satisfaction of the. requirements, and subject to. the provisions, Set forth in Section :3.03A. i as of December 1.7, 2002, by and and 13, horeo€. between the Ci tv and the Developer as amended (the 7 "Conditions'). It is hereby C_ Payment. Ree nest No. 8. On or about ttly 30, 008, the Developer submitted to the l _ . acknowledged that, as of the date ,Authority- Pavment Request. No. 5 for the payment of certain costs related to the acqu Fsilion of j of issuance of the Series 2006-A right-of-way for Discrete Components 2c., 2d and 2e, (cis described in the Prior Agreement), for Bonds, none of the other entities an agan-ate request of $1,225,325,95. The Director of Public 14torks has reviewed Pavne it that own property in the CFDis - - _ - - _ Reeleiest NO. 8, and the ,Authority> is vvAlin to disburse such amount in avtrlent of the an "Affiliate of the Developer. - Each Letter of Credit delivered to Pi ireizci4E ['rice of the respective real rct ere' rigtits on p_ aicels of land as Eontcm1pia€ed lp1 > the Fiscal Agent shall be t P a% meet Request No. 8, upon satisfaction of the requiremcnts_and subject to the provisions, se I accompanied by a written 'oi tit in ection 3.05A. and C. hereof. The Authority hereb4 dee ins for kill purposes of this certificate from the provider - - - AcyuFSition Ateement the real Tr( I?eta rights c')n~atccls of land contemplated by Payment thereof or the Account Party Request No 8 as "Discrete Components," ~ which identifies the County of - Riverside Assessor's parcels in the CFD to which such letter of D. City Improvements, The City has FaS advised the Developer and the Authority that it credit pertains.1 will undertake the canletion of the Facilities listed in Exhibit l hereto and referred to herein 1f a the initial "City Improvements" The initial City lmprovements include basic arterial i A Letter of Credit provided to the _ _ . Fiscal Agent shall be subject to roadway improvements necessary for the development of the land in the CFD, and variocis li draw by the Fiscal Agent (i) in landowners, their lenders and current and prospective merchant builders have inforined the I the amount of any special taxes Authority that coordination and funding of the construction of these City hptprove rents by levied by the CFDon any of the Scxcly~parties rather than b), the Developer WOUld ire difficult and could odvcr•sely impact the ! "parcels in theCFD€owhich the perrnit5 for development ocCUrrinin they CFD Letter of Credit pertains" (as tinme of issuance of certain blocks Of liUildii1 _ and adversely affect the ability of ttu Fco1rer ~ in ? such hrase%sdefacedaithenext _ the CF D to generate spec uml irate s for the _ paragraph) which are delinquent; nient of the delft service on the Bonds; and these City Improvements inC?udE, F~~v1 roads across or (ii) in whole if the Letter of ini> nth,r area of the CiT) and outside Of the boundaries of the CPD that can mare efficiently be Credit (or the confirming letter of construoed by the City'. Aniouitts in the linprovenient fund shall be withheld and disbursed i credit if one is provided -IO- &V to pat-- the , OMS of ',Lich City Improvements as dest ribed in Section 3-03 hereof. Pursuant to ~;eCtion 3.030., S22,771,820.00 shall be withheld and disbursed for such City Irnprovenrents, sUbjt~c t to rr-rc reascs anzl~ or decreases in such amount as described in 5ectivn 3.03C- 1.- Pa~,rnent Kerc~trests ;has. 3 ihrou~h '3~he Dcvelc~>cr has submitted to t17e WuthcrrittiPayme>nt Request NO,- 3 4, 5 h and 7 Hie Director of Public Works has reviewed such PaV meet Request', and has determined that while the work covered by the Payment Requests m r~ hac,e been completed, some of the %,vork for "Rich payment has been requested has deteriorated or is not in an acceptable condition. Accordingly, the .Anthonty is "pilling to disburse for each such Payni€ nt Req_uest, an amount equal to the lesser of (i) the budgeted amount for the applicable Discrete Components as set forth in Exhibit B to the Prior Acquisition Agrceme_nt or err} the Actual Costs of the applicable Discrete Components that have been verified bt th€r Director of Public: Work,,, less ti~ ith n spect to all such Payment Requests 58}t1,tt00.t)0 (tieing an amount estimated h;th(~ of Public Works as necessary: to t by the Dev (eJoher into an acceptable condition. Based on the forei oiny;, the is Nvilling to disburse in respect of Payment Request Los. 3 throoph 7, uf,on 17 for Request No. 3, $405,832,08 for Pavinent Request No. $1,194,422.00 for Payment Request No. 5 $535,1350.45 for Payment Request No. b and $2,349,139.64 for Payment Request No. 7, less a withhold amount of $840,000.00 in respect of such Payment Requests. To the extent that the Director of Public Works subsequentlsvdc €e relines that the - - - - - - - - - - - - - - - per has proceeded with reasonable diligence to take, and has taken, all necessary actions e .f .f .i e~ ~ • i . F f f~. . in connection with its construction and/or completion of the City Improvements (as described in Section 3030.) or, with respect to grading weak, the grading work has been returned to an acceptable condition, and only to the extent such work is so useable or has been so returned to an acceptable condition , the Director of Public k-Forks shall so advise the. Authorit-. The Authority, following re-e41( of tyre determination of the Director of Public Works, is willing to disburse the $840,(f)0.00 held back from PaV went bequest Nos 3 through 7 as described above, funds from. the lmproyeinent Ftuid ti pm satisfaction of the requirements, and subject to d2>rovisions, set forth in Section 3.05A. - and D. hereof. If, hhowever, the Director of Public Works determines that Developer has failed to use reasonable diligence to take, arid or has not taken, all necessary actions such that the work on the Discrete Component-,, contemplated by Payment Request Nos. 3 thio_u 13 7 was not fully useable bv_the CitV or was not returned to and is in an acceptable t;andition, the Director of Public Works will so advise the Developer and the Developer will have no right or claim to any of_thc $840,1300.00 withheld from Pavrnetit Request Nos. 3 thl'OLIolt 7. F. Additional City [mprovements. Upon any designation by the City of order of the Cite for such additional City Itnnrovements as described in Sec tlon 3.£13. G Future Developer Payn.ent Request,. Amounts in the Improvement Fund, after satisfaction of all of the demands described in subhai-figraphs A throut+ F above, shall be. used -11- to pay costs of the Facilities indicated as Priority A in Uxhibit l) hereto. When all costs of the 1'riorit~' \ facilities and all costs of any Cite Improvements have been paid in full, as determined by, the Director of Public: V orks, anv rentairung amounts in the Improvement Fund n ay be cisM to pav the Purc hose Prices of Facilities and Discrete Components thereof indicated as Priority li on (_xhibit l) hereto, li Othc r Notwithstanding the foregoin,&prov isions of this Section 3.02, the Authority, the purposes described in sub F and G of the this Section :3.02. Section. 303 C itv FIec ion to Construct Facilities City Option to Construct. ~,0twithstanding, II1 is c v isio of this A(qui.=_ition -fit rr- rln.ent to the conb.,dr the City has advised the Authority tfl,lt it will construct, orfinish the tonstruction of, the Facilities described in Exhibit 1', and referred to in this Acquisition Ag r,-ement as the "City Improvements." 'T'he City may, in its sole and absolute discretion, by written notice to the Authority and the Facilities described in any such notice shall constitute additional Cih, Improvements under this A quisition Agreement, B. No Further Developer Activities; l'ayrnents to Developer. The Developer immediately shall cease any- acquisition or construction Activities related to the City Improvements listed in Exhibit E and, as soon as practicable following receipt of any written notirn front the described in the second sentence of Section 3.03A, any farther acquisition or construction activities related to anv Facilities in anv such notice that the Citv has dote r m fined to c eEistruct or complete, exec t that the Developer shall promptly complete any V%"ork in progress Subject to arty contracts theretofore awarded for work related to such Facilities and the Developcr shall complete any other tasks necessary for the City to obtain the value of the work performed (as directed by the Director of Public. Works m vvritiny to the Developer). The Authority shall date of this Acquisition Agreement (with respect to City Improvements described in Fvhibit E) or prior to the termination of work as described in the pre ceding _,(with respect io_ any - - - _ a y Cit Improvements de signaled by the Cite follovvincy the effective date of this Acc uisition Agreement). The Authorit-,__xill_pay the Purchase_Price_of anv-F<acilities (and anti' related I?rscrete ComT~onents) that have becorne Crt hnpre>venents in accordance with the provisions _t.02 and. 3.05 hereof), but of n this Ace uis __itiort as3r c cnme_rt_t _Ou.__.lu.drrtg but not limited - to, - Sc clo ions, payment will be Winde for any partially completed Facility of Discrete Component only to the extent that the Dir nor of Public Works determines that the wvork done by the Developer provided value (or, with respect to_gra_ding_cyork, the grading yyork has been returned to an acceptable condition), the Developer cooperates with the City as reasonably requested in connection with the construction of such Cite lmprov>einent, and Only in compliance with the provisions of Section 3.05D. below. For example, it is not expected that the Authority will pay- for a °rou It grading' Discrete Component if the work clone has eroded to the point where - significant remedial grading is necessary to place the land in the carne condition as it was when the rough grading had initially- been c omhleted,unless such remedial grading has bcc n completed by the Developer to the slat sl ac Linn of the Director of Public Works. The Devcloq)er -12- GRIND, 5 01, agreed to cooperate with tln City in connection 'CV id th.' k ornp etion of the CithImpiocolonts, as reasom,.bly reque,;ted l1v the City; and, at its e+w n cxprn5e, to bring the F'a ilrtic~s or Discrete Components which it has prex~iously completed (indudrnggrading) into a oo ndition acceptable f(}r requisition d dtlterc err red [IN the Dire( for of €'uhlic Works. I 'he Cite shall be r;iibiled to use )table= condition if the Developer fails to do X51 V C Reservation of Funds Agreement for City= Improvements. The Authoritv shall withhold in the Improvement Fund sufficient funds to pay the estimated costs of the, City Irnlmovernents, is determined by the Cite f1`01-11 tune to time. The City has deterrnined as of the - 1 11 I'll, .1 - effective date of this Acquisition A.r€ement, that the amounLs shown in Exhibit F hereto are the estimated costs for the City finprovenients listed in Fxhibrt F The City bV written notice to the Authority and the tJevelzer, rnav increase or des rease the amount to be withheld in the - - Improvement Fund for such City, Improvements if it determines, in it's sole and absolute judgment, that the costs of the City Irnprov°ements have changed, and the City may from time to time desi~lrtate. additional funds to be vvithheld in the Inrprov c,rnent Fund in tonne( tion with the designation of additional City Improvements as described in Section 103A. Any amount in the Irnprovernent Fund to be withheld as described in this lie ction .03C. Shall not be available topat%-the Purchase Price of Fa.crlrties or Discrete Components under the provisions of Article V of this Acquisition Agreement. - - - - Upon receipt of a Fw-ritten request of the Director of Public Works requesting payment for costs related to a Cite Improvement, the .Authority shall cause funds to be withdrawn from the lnnpiroventent hund to satisfy, Such request, and the anurunt so withdrawn shall reduce any related withhold for the related C rtv Improvement described in theme ecedrng_paraUaph. I3 No Liability for City Improvements. VVhile the Cjty has advised the Authority that it expects to use reasonable diligence to complete [he City- Improvements the Crtv'shall have no liability or obligation whatsoever to the Developer or any other person or entity, with respect to the City Improvements or the constru.ction thereof. (a )_that were projected by the Tax Consultant, on the Closing, Date _ to be sublcct to 10% or more of the expected annual special tax levy- in the C FD (assuming Build-Out) followrinp, the issuance of the Bonds, and (b that owned land in avlanrung area and either (i) the then Parcel Value of such land was less than three dines the Parcel Liens for such land, or ii there were conditions p eced.errt to fly issuance of buildinf _ycrmits for all lots to be developed in such planning area, as suc11 conditions are set forth in the 1'r eannexation and Development Agreennent, dated as of December 17, 2002, by and between the City,- and the Developer as amended (the "Conditions"). A Letter of Credit provided to the Fiscal Agent is subject to draw by the Fiscal Agent (i) in the amount of anv special taxes levied by the CFD on anv of the "parcels in the CFD to which provided with a Letter of Credit) expires prior to the date on which it is eligible for release in whole; a, &e m.ibed below and a replacement Letter of Credit (which may include a confirming lette l t.rf credit) 5a1isCV the criteria described in the definition "Letter of Credit" in Section -13- Q M nM ~ IN 14 t 0, is not delivered to than Fiscal Agrnt at least 5D davs prior to such expiration date; (iii) in kt hole ifthe rating of the uwwo ured debt obligations of the provider of the totter of Credit have been reduced tci HM3 or its ecluiy alent or loiver by Moody's Investor's Service or Standard k- Poor's Ratings C,rotip Of a €onfirmin£3 letter of credit has been delivered together with a r crvidinhe confirnrirzletter c f <_red e ~1aiu7unts c~r~sw~°n on and Letter of Credit pursuant to tIle Ilre€edingclause i) svill be d(.wseted to the special tax fund toi the CFD Bonds and used for the purposes of such fund, and amounts drawn on any, Letter of Credit pursuant to the preceding clause (ii) or (iii) will be held in the resery-e fund for the CFD Bonds and drawn upon, with the pros eels c s the draw deposited to the 5pecial Tax Fund, for the CFI Bonds, in - the amount of any de Iinque.nt special taxes levied in the C FD with resp ce to theme eels in the CFD to which the Letter of ~1eLA eriains, or released or reduced to the same. extent the (orrespondino I Ptter of Credit would have been released or reduced as described in the sue ce•rdin} par~a~ rahh of this Section 3.05. The Authority will cause the fiscal Agent to reduce the amount available to be drav"n on a letter of credit frorn time to time, but not more than once every six €nonths(commencing no sooner than six months after the closing date for the initial series of the Bonds), upon the presentation to the'Treasurer_of the Authority of a written estimate as to the expected annual spacial taxes that may be levied on parcels in the CFD to which the Letter of Credit pertains, assurn:ry Build-OW (the `14aximum Amount°). In calculating the %Maxiinum Amount (fund for sentence of the second followving paragraph), the that are, at the time of Build- Parcel Value is more than three times the Parcel Liens, and are not subject to Conditions which Conditions ap ply e to all lots to be develvj rn the Manning area in which the parcels are located; (c} subject to a separate Letter of Credit, as described below; or f~ owned by individual homeo% ne.rs If the Nlaxnnum Amou.n.t, multiplied by two herein the "Revised Letter of Credit, then Letter of Credit by the difference between the current stated arnoruzt of Letter of Credit provider the Credit sale of property to an Owner (1) that will own, together with its on such varcels in the CFL3 to Value of such land is Tess than three times the Parcel Liens for to be developed in such planning area; unk~ss the necw° property owner provides evidence that the new owner has posted its own letter of Credit securing the payment of special taxes to be levied by the. CFD on such property. Notwithstanding any provision of this paragraph to the -14- were initially- identified by the m contrarv, the word "Conditions" when used in [laisl~aa°agraph mans the conditions precedent to the issuance of building permits for all lots to he developed in the applicable planning, area, as such conditions are set forth in the Preannexation and Devc 1opment Agreement, dated as Of I?ecenabcr 17, 2002, betiveen the City and the Developer, as in effetct can tile dates of issuance,, of the ponds, whether or not the Citv later vvoia:ed or deferred some of such conditions as a precedent to pproc idin building pk marts pith the purpose and tfect that a Letter of t r e d t will not He sub ect to release by reason of tile rsretv,sions of clause (bj of the second sentence of this paragraph until the infrastructure improvements described in such Preannexation and Development Al rcement as conditions precedent for the releas:" of the applicable building Permits have been completed. The Authority hereby a(kno%,J, ,s , that the provisions of paral r IL~hL pith respect to the property saarchased, rnt letter of credit their r eld by the Fiscal 1pent Pertaining in whole c+r-ira part to the property- so purchased shill be subject to reduction by the amount available to be drawn on the letter of credit so provided by such purchaser; and (ii) if a-purchaser of property in the CFD is unaffiliated with the Account Party for any letter of credit then held by the Fiscal Afentpeltaining to the propertt~ so purchased, and the conditions - - described in clause (a) of the second senterice of this Section 05 are satisfied, the letter of credit so held by the Fiscal AAgent shall he subject to reduction so that the renaauring amount available to be drawn on such letter of credit is as required by clause - (viii) of the definitions of Letter of Credit" in Section 1.01 with the parcels so purchased not to be considered as parcels to which such Letter of Credit pertains. The Authority will cause the Fiscal Agent to release any Letter of Credit or portion thereof upon receipt of a replacement letter of credit which satisfies the criteria in the definition of "Letter of Credit" in Section 1.03 and with a face amount equal to the amount of the Letter of Credit to be so released (as such face amount may be reduced pursuant to the preceding paragraph). The Fiscal Agent ass aw~ in the Fiscal Agent Agreement to release, or reduce the amount available to be drawn on, a Letter of Credit upon receipt of written direction from the - Treasurer of the Authority to the effect that (1)(a) the then aggregate Parcel Value of the parcels in a planning area of the CFD identified by an Account Party and described in such written direction (the "Identified Parcels"), to which the Letter of Credit pertains, is at least three times the Parcel Liens, and (1)(b) the Conditions (as defined in the first paragraph of this Section 3.05) to the issuance of building permits for all of the Identified Parcels have been satisfied; or (11) if the Identified Parcels are subject to less than 10% of the expected annual special tax levy in the CFD (assuming Build-Out). The Treasurer shall review appraisals (or updates to prior appraisals) submitted to the Treasurer of the Authority by or on behalf of an Account Party that are conducted by an appraiser and in a form acceptable to the Treasurer of the Authorityto determine if any Letter of Credit is to be released or reduced and, if so, shall so advise the Fiscal Agent in writing. Promptly following receipt of written direction from the Treasurer of the Authority,, as to a Letter of Credit, the Fiscal Agent Agreement dnegs the Fiscal Agent to complete and deliver to the applicable Letter of Credit provider the appropriate certificates and annexes to the subject Letter of Credit to effectuate the release or reduction of such Letter of Credit. In connection with anv such reduction, the amount available to be drawn on the applicable Letter of Credit shall be reduced by an amount equal to two times the expected annual Special Taxes that may be levied on the Identified Parcels (assuming Build-Out of such -15- I Deleted will agree Deleted. will direct parcels) specified in the written direction of the 'T'reasurer of the Authority described above (however, in any event, the Letter of Credit shall be released if the conditions referenced in clause (II) of the first sentence of this paragraph have been satisfied). 66 '141 The Authority will cause to be remitted to the provider of any Letter of Credit which has been drawn upon in respect of delinquent special taxes levied by the CFD, the amount of any such delinquent special taxes, less any costs or administrative expenses incurred in connection with the delinquency or the related draw on the Letter of Credit, not to exceed in any event the amount so drawn on the Letter of Credit and received by the Fiscal Agent, when and if such delinquent special taxes are collected by the CFD. Section 3.05.Procedure for Disbursement of Funds in Satisfaction of Payment Requests iaroia h R -Artd Future Payment Requests. Fhr Authority will withdraw aniounts from the Improvement 1,11nd to pay Payment Request Nos. 2 through S heretofore submitted I'V the hevclcsper (tIi "Pending t'ay meat Requests'), or anv future Pu.\;rent Request submitted by the Developer, subjer.t to the provisions of 4ection 3,02, and the conditions Precedent and in the amounts described in `auction 3.02 and below: - - - (i) Amtrust Bank fformerly known as Ohio Savings' Bank) has ex -sly -Pre ed in writingthis Acquisiticin Agrre.ement, int ludiii but not limited to the ...a -c }r,:- Q-4:.... 'ar -A '1 4......} rx.,..r, r..,., ---A }i-.- 4.. }e., 4i...4 in the Assignment and Agreement (Roripaugh Stanch) dated as of April 20, 2006 A. Conditions to 1>isbun;t nlent for any €'aynrent I:e que'st. The Authoritt small not be oblrg fired to, and ti,, ill not, disburse any funds in the Improvement fund to satish any of thr Pending Payrnelit IZc'qucsts or any other additional Patinent Pe.cluest subniittcd 1 the Dc vale, per until each of the Eriflosn in condrrions have been satisfied, as determined bti the Citv Manager foLlowing,c onsultatron with the. City Attorney: of (n) the Developer has tiled alt documents required of it under the per Continuing Disc losul'e Afire e nient dated as of Match 1, 2006, bewo-en tht, Developer, the E~is<al Agent and the Dissemination Agent named therein; and (iii) the Developer has paid all special taxes levied by the. CFD on Der eloper in the CFD: B. 14 taxes levied by they C'I'D on nroverty owned of Funds in Pavnient of Pavnient Request No. 2. Upon Request No. 2, 8,400,471.00, with said amount (together with the S6 (82.183, l7 sit se rib, el in c of Iron 3.W; D. to be disbursed in the follow its atnnuntS, and they foflrtit irr,~, c,rdt: r c ~ io~it~-; -I6- -aM OFF (i) to the parties, iii the. amounts and in accord ano, ti it h the orders of the, Carurt set forth in the Attachment Orders referenced in kxhiliit t' hereto or served on the City prior to the tender of a payment, as determined by the City Manager capon consultati< a v, ith the Citj Attorne t_; (ir) to the parties and in the amounts necessary` to disc;hargc the lien,, described in Fxhibit F thereto, as determined by the City Manager upon c911sultation with the. Director of Public IVcwks and the City %ttornev (the City to provide written notice to tho Developer of any amount to be paid pursuant to this clause fii). that is not already- listed in Exhibit l prior to naakinp any such pay inenf not listed in Fxhrbit Fj,, (iii) to aray other party- that has filed a claim upon the City°, the Authority or the CID for work performed on orabout the property located in the CFD, to the extent such claim is valid and unsatisfied, as determined by the City written notice to the Developer of anv such c:lairn provisions of this clause (iii)), or, alternatively, in the discretion of the City _ Manager following consultation with the Director of Public Works and the City Attorney, any or all of such amounts may be paid (x) to Arntrust Bank to the extent it establishes that it has paid such claims and.. they have been rcleasc~d, or (y) to a Court estahhshed esc rvw under _arr inu,rple id. r action filed in th. SupeilorCourt toresolve such clainis; (iv) to the law- firm of Richards Watson 8t Gershon as required by Section 8.02B. below; and (y) to Arntrust Bank, Las :required by the Assiy tment Agreement described in Section. 3.05A. above. The Authority agrees, upon submission ll< A intrust Bank of a written request to the - - Authority, to remit any ,payment others, vise to be made to Arntrust Bank under clauses (iii)(x) err abov c to_a snlglepariv identified hr Amtrust Bank in such written request. C. plic_ation of Funds in Payment of Pay naent Request No. 8. Upon satisfaction of the conditions set forth in Section 3.05A., and Vrovision by the Developer of evidence satisfactory to the Director of public ,forks in his sole discretion to the effect _ ----_----_I that any and all promises nnade by the Developer, or any Affiliate of the Developer, or ant representative: or agent of the Developer or any such Affiliate to anti owner of anv interest in am of the parcels of land for which payment is to be made pursuaeit to Pavrnent Request No. 8 have been fully and coiiapletely perforrneg and satisfied, the .Authority will cause to be dishursed from the Improvement Fund, in full and coil. Mete satisfaction of Payment Request No. 8~, `1,22,323.%, with said amount to be disbursed in the arnounts and the order of priority described in clauses (i) through (v) of `Section 3.051',. above. -17- *47 a 1). Application of Funds in Pavrnen€ of Parent I:~rquest Nos 3 l hrough 7. e - _ Upon satisfaction of the conditions set forth in 1,ection 3.05A., the Authority will cause. Lo bra disbursed from the Improvement Fund, in satisfaction of Pavinent h'e€luFst Nos. 3 throw rh 7, SO,682,483.17, 4ti ith said amount to be disbr}rsed ill OW aImountls and the order of priority described in clauses (i) through (rr) of c~c tum C}'li rI o) L:. Upon satrsf action of tilt conditions set forth in Section 3.05A., and to the extent that the Director of Public Works determines that the Discrete Components for which payment was requested in Payment Request Nos. 3 through 7 are in an acceptable Condition jinc'Iuding any nes(essary remedial ur,~djng) and that th,- C ttN will obtain the Value of the. work performed the Authority will cause to be do hur:scd from the amounts and the order of P. Application of Funds in Pa}'anent of Future _Pat°mecat Rc,gLwsts. Upon satisfaction of the conditions set forth in Section 3.05ft., anc• Pavrne nt. 'iZhClue,st (other than a Prior Payment Request, cchich is suhjeit to applicable provismns of pamgymphs 305A. through 3.05D. above) shall be processed in actordame with the provisions of article V of this Acquisition A reernent, and will he suble .t to all ether applicable provisions of this Acquisition 0 1eement. -L8- ARTICLE IV a CONSTRUCTION OF FACILITIES ,,Section 4.01. Plans. To the extent that it has not already done so, the Developer shall cause Plans to be prepared for the Facilities listed in Exhibit B. The Developer shall obtain the written approval of the Plans in accordance with applicable ordinances and regulations of the City and/or the public entity that will own and operate the Facilities. Copies of all Plans shall be provided by the Developer to the Director of Public Works upon request therefor, and, in any event, as built drawings and a written assignment of the Plans for any Facility listed in Exhibit B shall be provided to the City prior to its acceptance of the Facility. Deleted: Section 4.02. Duty of Developer to Construct. All Facilities to be acquired hereunder specified in Exhibit B hereto, as amended from time to time, shall be constructed by or at the direction of the Developer in accordance with the approved Plans and the Conditions of Approval. The Developer shall perform all of its obligations hereunder and shall conduct all operations with respect to the construction of Facilities in a good, workmanlike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons utilizing their best efforts in the performance of comparable work and in accordance with generally accepted practices appropriate to the activities undertaken. The Developer shall employ at all times adequate staff or consultants with the requisite experience necessary to administer and coordinate all work related to the design, engineering, acquisition, construction and installation of the Facilities to be acquired from the Developer hereunder. The Developer shall be obligated: (i) to construct and cause conveyance to the City (or other applicable governmental agency) all Facilities and Discrete Components thereof listed in Exhibit B hereto, and (ii) to use its own funds to pay all costs thereof in excess of the Purchase Prices thereof to be paid therefor hereunder, except as may otherwise expressly provided in the Conditions of Approval., Deleted: The Developer shall not be relieved of its obligation to construct each Facility and Discrete Component thereof listed in Exhibit B hereto and convey each such Facility to the City in accordance with the terms hereof, even if, (i) because of the limitations imposed by Section 5.06 hereof, the Purchase Price for such Discrete Component or Facility is less than the Actual Cost, or cost to the Developer, of such Discrete Component or Facility, or (ii) there are insufficient funds in the Improvement Fund to pay the Purchase Prices thereof, and, in any event, this Acquisition Agreement shall not affect any obligation of any owner of land in the CFD under the Conditions of Approval with respect to the public improvements required in connection with the development of the land within the CFD., Section 4.03. Relationship to Public Works; Bidding, Requirements. The following shall apply to all contracts applicable to the Facilities and any Discrete Components thereof acquired with funds withdrawn from the Improvement Fund: A. General. This Acquisition Agreement is for the acquisition of the Facilities and payment for Discrete Components thereof listed in Exhibit B hereto from moneys in the Improvement Fund and is not intended to be a public works contract. The -19- ;Deleted: Authority and the Developer agree that the Facilities are of local, and not state-wide concern, and that the provisions of the California Public Contract Code shall not apply to the construction of the Facilities. The Authority and the Developer agree that the F Developer shall award all contracts for the construction of the Facilities and the Discrete Components thereof listed in Exhibit B hereto and that this Acquisition Agreement is necessary to assure the timely and satisfactory completion of such Facilities and that compliance with the Public Contract Code with respect to such Facilities would work an incongruity and would not produce an advantage to the Authority or the CFD., r %Ai B. Bidding_ P~qcedures. Notwithstanding the foregoing, the Developer shall award all contracts for construction of the Facilities and any Discrete Components thereof listed in Exhibit B, and materials related thereto, by means of a bid process consistent with this Section 4.03 B. or otherwise acceptable to the Director of Public Works, in each case consistent with applicable City regulations. The Developer shall establish a list of written criteria acceptable to the Director of Public Works (including experience, ability to perform on schedule and financial ability) to determine qualified contractors for any contract. Such general contractors shall comply with any applicable City regulations. Formal bids shall be requested from those entities on the list of qualified contractors., Deleted: Deleted: --I The Developer shall prepare bid packages, including engineering reports and estimates, for each of the Facilities (or any specific Discrete Components thereof to be separately bid), and shall submit such packages to the Director of Public Works, reasonably in advance of the anticipated bid, for review. Upon agreement by the Director of Public Works and the Developer on the content of such bid packages and a schedule of bid prices, plus an acceptable margin of variance, the Developer may proceed to take bids on the applicable Facilities (or Discrete Components). At the reasonable request of the Developer, the Director of Public Works shall also meet with the qualified general contractors to discuss the requirements of the particular contract to be bid. Bids for each Facility or Discrete Component shall be submitted to the Director of Public Works prior to the time and date prescribed for bid opening. If a bid is within the constraints of the approved bid package, the Developer shall, award the applicable contract to the lowest responsible bidder. If all bids are in excess of the bid parameters, the Developer shall obtain the consent of the Director of Public Works prior to awarding the contract. Upon written request of the Director of Public Works, the Developer shall provide an analysis of bids for construction and materials for the Facilities or applicable Discrete Components, indicating how the winning bid was determined and how it was consistent with the applicable bid package. The Developer shall promptly publish notice of the award of any contract in such paper as the Director of Public Works shall specify. C ~~c heduli The Developer shall develop or cause to be developed_and shall maintain or cause to be maintained a schedtdo, tisni„ the critical path method, for the construction of the Facilities to be acquired hr reu«cler. I he Developer shall provide the Director of Pubhi 'Norks with complete copies of tik, schedule and each update to the schedule for the Director's review. -20- Deleted: It the Developer would like the option to proceed under the provisions of Section 4.03 C. below, the bid documents shall expressly disclose the rights of the Developer to elect to perform or have its agent perform the work with a specific reference to Section 53329.5 of the Act. Deleted: , subject to the provisions of Section 4.03 C. below Deleted: Develaver's Election to Perform Work. Notwithstanding the provisions of Section 4.03 B. above, and in j accordance with Section 53329.5 } of the Act, if at the time bids ""'asV D Periodic yleetings. Froiil time to time to Bpi cted to be at least ttcrv two - - VVO-eks) at the request of the Director of Public Works, representatives of the Dt'veloper Deleted: received for any particular Facility or Discrete shall inee4t and (onfer with Cit)staff, consultants and conh,actors regarding anatters, Component the Developer owns, arising hereunder vvith respect to the Facilities, Discrete Components and the progress three-fourths of the area of lands in c 'nstruc ting and adc~ulrin the samd and is to drn other matter related to the in the CFD taxed or liable to be lacilitios or this ACQUisition-Agreement the Developer ,hall advise the Director of - - - - - - - - - tared forpurl70Se50ffheCC17D, the Developer or a designated I hh( I orks in advance- of anv coordination and sche dulim, meetings to he lield with agent thereof (who shall provide Contractors relating to the Facilities, in the Urdinai'a course of pet fortnanCe of an - [ the Director of Public Works svith individual contract. The Director of Public lVorks or tlhe Director of Public` Work's a written declaration under designated representative shall hale the light to be present at such meetings and to - r penalty of pe> ury in form i acceptable to the Director of meet anal confer with individual Conh,wlors if deemed advisable b[ the Director of !Public Works to the effect that the 1'labile Works to resolve disptate4 dri 7r t nst rC the pioper c omple,tion of the Facilities. Developer so owns such }and and, if applicable, that such other "Section 4.04. Independent Contractor; No Joint Venture. in pe rforinirw this entity is such an agent), the Acquisition Agreement, the Developer is an independent contractor and not the agent or - - Developer or its designated agent i may, within 10 days after the e irnplo%.-ee of the Authorit the City or the CFD. ..lone of the Authority, the City or the CFD ~ publication of the notice of the shall be responsible for making any payments directly or otherwise to any contractor, E award of the contract, elect ( ~5l subcontractor, agent, consultant, employee or supplier of the Developer. Deleted: bid of the bidder to whom the contract was awarded. The Developer herebie acknowledges and agrees that the Citr the Authority and the I and all work done under the f l'D, on the one hand, and the Develolper, on the other, are lot joint venturers or Partners in i contract shall be subject to all _ the construction, _ ,icclciisition, and/or installation of the Facilities or the Discrete Components, provisions of this Acquisition A reement oth th th and nothinc; in U his Acquisition Agree. lent shall be construed. as inir4ving any sort of joint g er an e f61 ~ eilture or partnership relationship between the Ctty author ltti and/or the CFD and the z Deleted- any election under _ ~ Developer or any other enlityv involved in the construction, acquisition and/or installation of the preceding sentence, and shall l promptly provide written notice any of She Facilities of 3iscreteTC--poneitts,- to the bidder to whom the ,5ection 4.05. Performance and Payment Bonds. '1 ht Dev doper agrees to Comply with t , contract was awarded of its all applicable performance and phyment bonding requirements of the Authority (and other I election to perform applicable public entities and/or ..public utilities). with re:`spect_ to the Can St'ru Ct.iot'i of the, ~ Deleted. work, and that the .Facilities listed. in Exhibit B hereto. Although. not odle:rwtse required under applicable law, services performance and. p8f'i nt. bonds, in a form, acceptable to the Director of Public V of ks which , ;Deleted: such winning bidder narne the Authority and the City as ol .frees, shall be required of the Developer for aliv specific will no longer be required. The _ _ Facility of Discrete Component not completed as of the effective date of this Acquisition. Developer (and its agents) may Agreement, at the time the Developer initiates construction activities related thereto. only avail itself Deleted: the foregoing - _ - Section 4.06. Contracts and Change Orders. The Developer shall be responsible for ` provisions of this Section 4.03 C. if the bid documents for the entering into all contracts and any supplemental agreements (commonly referred to as "change respective Facility or orders") required for the construction of the Facilities listed in Exhibit B hereto, as amended F ~ Deleted Component from time to time, and all such contracts and supplemental agreements shall be submitted to expressly disclosed its right to do the Director of Public Works. Prior approval of supplemental agreements by the Director of so, as required by the second Public Works shall only be required for such change orders which in any way materially alter paragraph of Section 4A3 B. the quality or character of the subject Facilities, or which involve an amount greater than : above. $5,000.00. The Authority expects that such contracts and supplemental agreements needing Deleted: T prior approval by the Director of Public Works will be approved or denied (any such denial to rDeletes: If the Developer be in writing, stating the reasons for denial and the actions, if any, that can be taken to obtain elects not to perform the work ' later approval) within ten (10) business days of receipt by the Director of Public Works thereof. and not to enter into a written Any approval by the Director of Pubhc Works of a supplemental agreement shall in no way contract for that work within 10 affect the Budgeted Costs listed in Exhibit B for any related Facility or Discrete Component but ' days of publication of the notice of the award of the contracC7~ - 21-AS to the extent that it increases the Actual Cost of a Facility or Discrete Component, such increased cost may be payable as part of the Purchase Price of the related Facility or Discrete O Component as provided in Section 5.06A. hereof. Section 407. Time for Completion. The Developer,~vilj use reaspiwatwlE cfiligk n~e to . Complete thr Ph ws ' 1 F'Ic iliuos that !wave not been completod as of tlwc d at . of this Acquisition Agreement, ~Qj 5` Q -22- Deleted: agrees Deleted: is for the benefit of the Authority and the Developer and, therefore, the Developer represents that it reasonably expects to complete the Phase 1 Facilities and to have requested payment for the Phase T Facilities under this Acquisition Agreement within thirty-six (36) calendar months from the date of the closing of the Series 2006-A Bonds x ARTICLE V ACQUISITION AND PAYMENT Section 5.01. Inspection. No payment hereunder shall be made by the Authority to the Developer for a Facility or Discrete Component thereof until the Facility or Discrete Component thereof has been inspected and found to be completed in accordance with the approved Plans by the City or other applicable public entity or utility. The Authority shall cause the Cite to make periodic site inspections of the Facilities to be acquired hereunder; provided that in no event shall the Authority incur any liability for any delay in the inspection of any Facilities or Discrete Components. For Facilities to be acquired by other public entities or utilities, the Developer shall be responsible for obtaining such inspections and providing written evidence thereof to the Director of Public Works, The Developer agrees to pay all inspection, permit and other similar fees of the City applicable to construction of the Facilities, subject to reimbursement therefor as an Actual Cast of the related Facility. Deleted: Section 5.02. Agreement to Sell and Purchase Facilities. The Developer hereby agrees to sell the Facilities listed in Exhibit B hereto to the City (or other applicable public agency that will own a Facility), and the Authority hereby agrees to use amounts in the hnprovetnent Fund to pay tyre Purchase Prices thereof to the Developer, subject to the terms and conditions hereof. The Authority shall not be obligated to finance the purchase of any Facility until the Facility is completed and the Acceptance Date for such Facility has occurred; provided that the Authority has agreed hereunder to make payments to the Developer for certain Discrete Components of Facilities expressly shown in Exhibit B hereto, as it may be supplemented by any Supplement. The Developer acknowledges that the Discrete Components have been identified for payment purposes only, and that the City (or other applicable public agency that will own a Facility) shall not accept a Facility of which a Discrete Component is a part until the entire Facility has been completed. The Authority acknowledges that the Discrete Components do not have to be accepted by the City (or other applicable public agency that will own a Facility) as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until the Discrete Component has been completed in accordance with the Plans therefor, as determined by the Director of Public Works. In any event, the Authority shall not be obligated to pay the Purchase Price for any Facility or Discrete Component except from the moneys in the Improvement Fund. Section 5..03. Payment Requests. In order to receive the Purchase Price for a completed Facility or Discrete Component, inspection thereof under Section 5.01 shall have been made and the Developer shall deliver to the Director of Public Works: (i) a Payment Request in the form of Exhibit C hereto for such Facility or Discrete Component, together with all attachments and exhibits required by Exhibit C and this Section 5.03 to be included therewith (including, but not limited to Attachments 1 and 2 to Exhibit C), and (ii) if payment is requested for a completed Facility, (a) if the property on which the Facility is located is not owned by the City (or other applicable public agency that will own the Facility) at the time of the request, a copy of the recorded documents conveying to the City (or other applicable public agency that will own the Facility) Acceptable Title to the real property on, in or over which such Facility is located, as described in Section 6.01 hereof, (b) a copy of the recorded notice of completion of such Facility (if applicable), (c) to the extent paid for with the proceeds of the Bonds, an assignment to the CFD of any reimbursements that may be payable with respect to the Facility, such as public or -23- private utility reimbursements, and (d) an assignment of the warranties and guaranties for such Facility, as described in Section 6.05 hereof, in a form acceptable to the Authority. Section 5.04. Processing Payment Requests. Upon receipt of a Payment Request (and all accompanying documentation), the Director of Public Works shall conduct a review in order to confirm that such request is complete, that such Discrete Component or Facility identified therein was constructed in accordance with the Plans therefor, and to verify and approve the Actual Cost of such Discrete Component or Facility specified in such Payment Request. The Director of Public Works shall also conduct such review as is required in his discretion to confirm the matters certified in. the Payment Request. The Developer agrees to cooperate with the Director of Public Works in conducting each such review and to provide the Director of Public Works with such additional information and documentation as is reasonably necessary for the Director of Public Works to conclude each such review. For any Facilities to be acquired by another public entity or utility, the Developer shall provide evidence acceptable to the Director of Public Works that such Facilities are acceptable to such entity or utility. Within ten (10) business days of receipt of any Payment Request, the Director of Public Works expects to review the request for completeness and notify the Developer whether such Payment Request is complete, and, if not, what additional documentation must be provided. If such Payment Request is complete, the Director of Public Works expects to provide a written approval or denial (specifying the reason for any denial) of the requestpithin 30 days of its submittal. If a Payment Request seeking reimbursement for more than one Facility or Discrete Component is denied, the Director of Public Works shall state whether the Payment Request is nevertheless approved and complete for any one or more Facilities or Discrete Components and any such Facilities or Discrete Components shall be processed for payment under Section 5.05 notwithstanding such partial denial. If multiple payment requests are submitted simultaneously, the Developer shall designate the order in which they are to be reviewed. Section 5.05. Payment. Upon approval of the Payment Request by the Director of Public Works, the Director of Public Works shalt sign the Payment Request and forward the same to the City's Director of Finance. Upon receipt of the reviewed and fully signed Payment ` Request, the City's Director of Finance shall, within the then current City financial accounting payment cycle but in any event within thirty (30) days of receipt of the approved Payment Request, cause the same to be paid by the Fiscal Agent under the applicable provisions of the Fiscal Agent Agreement, to the extent of funds then on deposit in the Improvement Fund. Any approved Payment Request not paid due to an insufficiency of funds in the Improvement Fund, shall be paid promptly following the deposit into the Improvement Fund of proceeds of any investment earnings or other amounts transferred to the Improvement Fund under the terms of the Fiscal Agent Agreement. The parties hereto acknowledge that the Facilities and Discrete Components that are the subject of the Payment Requests submitted when there are insufficient proceeds will be inspected and reviewed by the Director of Public Works as set forth in this Article V and that such Payment Requests will be reviewed by the Director of Public Works and, if appropriate, submitted in the manner set forth in Sections 5.03, 5.04 and 5.05, and (ii) the payment for any Payment Requests approved in the preceding marcher will be deferred until the date, if any, on which there are sufficient amounts in the Improvement Fund to make such payment, at which time the Director of Public Works will forward the approved Payment Requests to the City's Director of Finance, who will then arrange for payment from the Fiscal Agent in the manner set -24- _ Deleted. f forth above. At all times, the construction of the Facilities is made with the expectation that such Facilities will be purchased by the Authority (but solely from amounts available in the Improvement Fund), and that the conveyance of such Facilities to the City (or any other party "-A w that will own the same) prior to receipt of the Purchase Price for such Facilities shall not be construed as a dedication or gift, or a waiver of the obligation hereunder to pay the Purchase Price for such Facilities. Notwithstanding any other provisions of this Acquisition Agreement, no further payments of the Purchase Prices of Facilities will be made after March 1, 2016. The Purchase Price paid hereunder for any Facility or Discrete Component shall constitute payment in full for such Facility or Discrete Component, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Facility or Discrete Component, as specified in the Plans. Section 5.06. Restrictions on Payments. Notwithstanding any other provisions of this Acquisition Agreement, the following restrictions shall apply to any payments made to the Developer under Sections 5.02 and 5.05 hereof: A. Amounts of Payments. Subject to the following paragraphs of this Section 5.06, payments for each Discrete Component or Facility will be made only in the amount of the Purchase Price for the respective Discrete Component or Facility; however, if the Actual Cost exceeds the Budgeted Cost for a Discrete Component or a Facility, the excess shall be borne by the Developer until such time as a Budgeted Cost for another Discrete Component or Facility is greater than the Actual Cost therefore, in which event the savings shall be applied to reduce any excess of Actual Cost over Budgeted Cost previously paid for any Facility or Discrete Component by the Developer. Any savings attributable to the Actual Cost being less than Budgeted Cost which are not disbursed under the previous sentence to cover unreimbursed Actual Costs or as otherwise consented to by the Developer shall be carried forward to be credited against future cost overruns, or costs related to supplemental agreements (change orders), or if not needed for either of the foregoing purposes, to be disposed of as provided ut the Fiscal Agent Agreement for excess monies in the Improvement Fund., Deleted: Nothing herein shall require the Authority in any event (i) to pay more than the Actual Cost of a Facility or Discrete Component, (ii) to make any payment beyond the available funds in the Improvement Fund, or (iii) to pay for any roadway improvements that are not generally accessible to the public (i.e. behind gates that impede the free flow of traffic). The parties hereto acknowledge and agree that all payments to the Developer for the Purchase Prices of Facilities or Discrete Components are intended to be reimbursements to the Developer for monies already expended or for immediate payment by the Developer (or directly by the Authority) to third parties in respect of such Facilities and/or Discrete Components. No payment shall be made for the Purchase Price of any Discrete Component if (i) the Developer fails to fully provide any information requested pursuant to the second sentence of Section 8.01G. related thereto, or (ii) if the Authority or the City detennines that the provisions of Section 8.01G. hereof were violated in connection with the work -25- related to such Discrete Component and such violation has not been remedied to the satisfaction of the City Attornev. B. joint or Third Party Payments. The Authoritv may make any payment jointly to the Developer and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to arty such third party, if the Developer so requests the same in writing (including, but not limited to, any financial institution providing financing to the Developer or any Affiliate thereof} or as the Authority otherwise determines such joint or third party payment is necessary to obtain lien releases. the foregoing, in the event that the City, the CFD and/or the by any ec:ntractor, subcontractor, supplier or other entity; that has or allegedly has, -111 1 - provided any labor or materials for any Facility or Discrete Component for which the Developer has submitted a payneent request, unless and until the Developer provides an unqualified lien release from each such entity in a form acceptable to the City Attorney, the Authority, at its sole and exclusive option, nta either (i) recFuare the filing of an interpie,eder or similar action in Superior Court with rFspei-t to payments for such _ _ Facilitv or Discrete Component and make payment to an escrow subject to approval of disbursement by the Court; or (ii) make payments directly- to the entity or entities that have filed liens or as otherwise demonstrated to the reasonable satisfaction of the City Attorne<< that they are owed amounts to respect of the resixctive_lacility or District Copmonc nts, up to the amount of such lien or amount owed. 7 ire provisions of this Section 3.06C. shall prevail over am, assiminient, or purported assignment, by the Dc velope r of its rights to payment under this Acquisition Agreement or under the Prior Acquisikon Agreement, including any assigpnront to any lending institution, other than rth respec t to the payments described in Beefier 3.02B. be- - C. Withholding Payments. The Authority shall be entitled, but shall not be required, to withhold any payment hereunder for a Discrete Component or a Facility if the Developer or any Affiliate is delinquent in the payment of ad valorem real property taxes, special assessments or taxes, or special taxes in each case as levied on property located in the CFD. In the event of any such delinquency, the Authority shall only make payments hereunder, should any be made at the Authority's sole discretion, directly to contractors or other third parties employed in connection with the construction of the Facilities or to any assignee of the Developer's interests in this Acquisition Agreement (and not to the Developer or any Affiliate), until such time as the Developer provides the Director of Public Works with evidence that all such delinquent taxes and assessments have been paid. The Authority shall withhold payment for any Discrete Component or Facility (i) constituting land oi- an interest in land, or (ii) constructed on land not previously dedicated or otherwise conveyed to the City, until Acceptable Title to such land is conveyed to the Cihl or other public entity that will own the respective Facility, as described in Article VI hereof. -26- Ts The Authority shall withhold payment for any Facility or Discrete Component identified as a Priority B item in Exhibit D hereto until the Director of Public Works has determined that all costs of (e) the CitY Impro ement.s, and (ii) items identified as Priority A in Exhibit D, in each casts have been paid in full. The Authority shall be entitled to withhold any payment hereunder for a Discrete Component that is the subject of a Payment Request until it is satisfied that any and all claims for labor and materials have been paid by the Developer for the Discrete Component that is the subject of a Payment Request, or conditional lien releases have been provided by the Developer for such Discrete Component. The Authority, in its discretion, may waive this limitation upon the provision by the Developer of sureties, undertakings, securities and/or bonds of the Developer or appropriate contractors or subcontractors and deemed satisfactory by the Director of Public Works to assure payment of such claims. The Authority shall be entitled to withhold payment for any Facility hereunder to be owned by the City (or the final Discrete Component of any such Facility) until: (i) the Director of Public Works determines that the Facility is ready for its intended use, (ii) the Acceptance Date for the Facility has occurred and the requirements of Section 6.01, if applicable to such Facility, have been satisfied, and (iii) a Notice of Completion executed by the Developer, in a form acceptable to the Director of Public Works, has been recorded for the Facility and general lien releases conditioned solely upon payment from the proceeds of the Bonds to be used to acquire such Facility (or final Discrete Component) have been submitted to the Director of Public Works for the Facility. The Authority hereby agrees that the Developer shall have the right to post or cause the appropriate contractor or subcontractor to post a bond with the City to indemnify it for any losses sustained by the City or the Authority because of any liens that may exist at the time of acceptance of such a Facility, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director of Public Works. The Authority shall be entitled to withhold payment for any Facility (or the final Discrete , Component of any such Facility) to be owned by other govenlmental entities, until the Developer provides the Director of Public Works with evidence that the governmental entity has accepted dedication of and/or title to the Facility. If the Director of Public Works determines that a Facility is not ready for intended use under (i) above, the Director of Public Works shall so notify the Developer as soon as reasonably practicable in writing specifying the reason(s) therefor. Nothing in this Acquisition Agreement shall be deemed to prohibit the Developer from contesting in good faith the validity or amount of any mechanics or matenalmans lien nor limit the remedies available to the Developer with respect thereto so long as such delay in performance shall not subject the Facilities or any Discrete Component thereof to foreclosure, forfeiture or sale. In the event that any such lien is contested, the Developer shall only be required to post or cause the delivery of a bond in an amount equal to twice the amount in dispute with respect to any such contested lien, so long as such bond is drawn on an obligor and is otherwise in a form acceptable to the Director of Public Works. -27- y .21 D. Retention. The Authority shall withhold in the Improvement Fund. (ikt.he nrou}nt c': t i,tl fined by the Director of Public t%orks as ne(essarr to coomPlete any- C.itV l ~icryEts~s ntsL_r~ Lich arrjqunt-as of the drtt 01 cXecution of this _ couisition rc e t e nt 3,5. x5 shown in l xhibit F hereto, but rnay_ be adiustecl from time to time by the 1 )irettus of Public V+Iori s upon written notice to the Developer to the effect that the costs of theme City Improvements have increased or decreased is a.p plie rhle front what hid-tart u,eislti' t3e.cn estimated by the Director of Public Works. and the amount of anv such inc-rease_o decrease: or additional Facilities or Discrete Components have become City Imprcvenients as described in Section 303)anst_the estimated costs of am such. adcfitignp) Cite Improvenents- and iii an amount equal to ten percent (10%) of the Purchase Price of each Facility or Discrete Component (not constituting Cit-v hnprovements) to be paid hereunder, that is not the stihJrc. t of a I'end_inf,, Payment ; Heist®fl. . preceding c`hrcise (r,) shah he required for Facilities or Discrete Components described in the Pendinf, Payment Recluests. Any such retention described in clause (i) of the preceding sentence with respect. to a specific: City Improvement will be released, and the amount released will be available to make pav ments for Facilities and Discre te Components under this :Vgrisition Agreement, urn a determination ht the Director of Public Works that all costs related to the respective City Imprommmnt have been paid in full, with the amount so released to be the amount oC the rihhh( able retention less all costs related to the respective City Improvements, Any_sud, retention desi gibed in clause (ii) of the first sentence of this Section 5.06D will be released to the Developer upon final completion and acceptance of the related Facility and the expiration of a maintenance period consistent with applicable City policy thereafter (currently a one year warranty period for any landscaping, and upon receipt of a maintenance bond acceptable to the Director of Public Works to remain in effect for one year as to other Facilities). Notwithstanding the foregoing, the Developer shall be entitled to payment of Deleted: any such retention described in clause ri of the fir st sentence of this Section 5.06D upon the completion and acceptance of a Facility or Discrete Component, if a maintenance or warranty bond is posted in lieu thereof in accordance with Section 6.06 hereof. i\lso,, no Deleted. Payment of any retention described in clause GO of the first sentence of this Section 5.06D shall apply if retention shall also be contingent the Developer proves to the Director of Public Work's satisfaction that the Developer's upon the availability of monies in contracts for the Facilities (or Discrete Components) provide for the same ten pe=rcent the Improvement Fund therefor. No retention (10% .retention as herein provided, so that the Purchase Price paid for the Facility or - - - - - ' Discrete Component is at all times net of the required retention. Payneent or release of any retention described in this Section 5.06D, in any event, shall also be contingent upon the availability of monies in the Improvement Fund therefor. _ E. Frequency. Unless otherwise agreed to by the Director of Public Works, no more than one Payment Request shall be submitted by the Developer in any calendar month. F. Rght-of-Wav. Payments for any right-of-way described in Exhibit B hereto shall be based upon appraisals of the respective land to be acquired in a form acceptable -28- to the Director of Public Works, or upon such other basis as the Director of Public Works shall, io leas so[e ~tnd ahsolut(' discretion, determine is appropriate in the circumstances. £ Deductions From Patifnents there shall b deducted from an pavinent o0ih vi,,c clue to the Developer hereunder any ainount oekmg to Itic bards Watson R i Gershon in accordance with the provisions of Section 8,02B. Section 5.07. Acquisition of Additional Facilities. If the construction and acquisition of all the Facilities theretofore listed in Exhibit B have been completed and the Purchase Prices (including any retentions described in 5.06D. above) with respect thereto have been paid, and funds remain on deposit in the Improvement Fund, the Authority and the Developer may designate in a Supplement hereto, Facilities (and/or Discrete Components thereof) to be constructed and acquired with such remaining funds to be selected from the list of Facilities in Exhibit A. Section 5.08. Defective or Nonconforming Work. If any of the work done or materials furnished for a Facility or Discrete Component listed in Exhibit B are found by the Director of Public Works to be defective or not in accordance with the applicable Plans: (i) and such finding is made prior to payment for the Purchase Price of such Facility or Discrete Component hereunder, the Authority may withhold payment therefor until such defect or nonconformance is corrected to the satisfaction of the Director of Public Works, or (ii) and such finding is made after payment of the Purchase Price of such Facility or Discrete Component, the Authority and the Developer shall act in accordance with the City's standard specification for public works construction (which are set forth in the Green Book, Standard Specifications for Public Works Construction (SSPWC), by Public Works Standards, Inc., as modified by applicable City Special Provisions. Section 5.09. Modification of Discrete Components. Upon written request of the Developer, the Director of Public Works shall consider modification of the description of any Discrete Component. Any such modification shall be subject to the written approval of the Director of Public Works, and shall not diminish the overall Facilities listed in Exhibit B to be provided by the Developer hereunder (in a material way such that the change invalidates any of the assumptions used in the appraisal conducted to sell the Bonds). It is expected that any such modification will be solely for purposes of dividing up the work included in any Discrete Component for purposes of acceptance and payment, for example:;(i) separation of irrigation and landscaping from other components of a Discrete Component, (ii) modifications to allow for payment for roadway improvements prior to completion of the top course of paving, or (iii) division of utility construction by utility work orders. In most instances, the Director of Public Works will only approve modifications for payment purposes when there will be an unusual period of time between the completion and acceptance of such divided work or to better implement the phasing of the overall construction of the Facilities; but no such circumstances shall this Section in any way obligate the Director of Public Works to approve such modification., Section 5.10. EMWD Acquisition Facilities. Notwithstanding any other provision of this Acquisition Agreement, the Purchase Price for any EMWD Acquisition Facility shall be the respective "value" of such Facility as determined pursuant to Section 7(b) of the Joint Community Facilities Agreement - EMWD, dated as of January 1, 2005 (the "EMWD -29- Deleted: - Deleted. Deleted: Agreement"), among the Eastern Municipal Water District, the Authority and the Developer, and such Facilities shall be constructed and accepted in accordance with the EMWD Agreement. l - The Developer agrees to notify the Authority in writing promptly following the date on which it will no longer submit any Payment Request relative to the EMWD Acquisition Facilities pursuant to the EMWD Agreement. Following receipt of such notice, the Authority shall direct the Fiscal Agent to close any EMWD Account established under the Fiscal Agent Agreement and to transfer any remaining amounts on deposit therein as provided in the Fiscal Agent Agreement. Section 5.11. Right of City to Make Withdrawals From Improvement Fund. The Developer acknowledges that the City may,av;jlhdraw or cause to be~w €t1ldr~rw n amounts from " the Improvement Fund for pay"nrent to the City as necessary to pay costs of the CityK the Authority or the CH) (i) for any City lnilwovement consistent with the provisions of Sections 3.02 and 3.03, (ii) in the event that the construction of the Facilities is substantially delayed, (iV) in the event that the plans for or any other aspect of such construction are substantially altered without the consent of the City, or Qv) otherwise in the amount of any costs that the Director of " Public Works determines that the City has incurred or reasonably expects to incur in connection with the performance of the obligations of the City (including the Director of Public Works) under this Acquisition Agreement that, in the case of the preceding clauses (ii), (iii) and (iv), were not funded at the time of issuance of )the Bonds from the proceeds of ~hc Bonds deposited to a Public Works Administration Account created under the Fiscal Agent Agreement and specifically to be used for such purpose- The City shall give written notice of the amount of any such expected transfer for a purpose described in any of clauses ii), (iii qr (iv) of the piecedii1g " sc ntence and the purpose(s) thereof to the Developer, prior to implementing a _transfer from the Iniprovernent Fund to the Public l,Vorks Adi-ministration. Account for such a purpose. The Developer acknowledges that any transfer described in the f irst sentence of this 5cx tion 5.11 will reduce the amount available to pay the Purchase Prices of the Facilities and Discrete Components thereof hereunder. Notwithstanding the foregoing, subject to the provisions of Section 4.02 of the Fiscal Agent Agreement as originally executed or as it may- thereafter be amended in accordance with its terms, amounts maybe withdrawn from the Improvement Fund, at the written direction of an Authorized Officer (as defined in the Fiscal Agent Agreemen4n the amount of airy special taxes levied by the CFD which are delinquent, prior to any draw on any Letter of Credit in respect of such delinquency (as described in the second paragraph of Section 3 , and prior-to.. any draw on amounts in the Reserve Fund (as defined in the Fiscal Agent Agreement), and any amount so withdrawn from the Improvement Fund shall be deposited to the Bond Fund established under the Fiscal Agent Agreement and used to pay debt service on the)'3ond~, The Authority shall provide written notice to the Developer of any withdrawal from the Improvement Fund for the purpose described in the preceding sentence. Any use of funds in use of such fund; The Developer acknowledges that any transfer of funds from the Improvement Fund described in this paragraph will reduce the amount available to pay the Purchase Prices of the Facilities and Discrete Components thereof hereunder. -30- Deleted: transfer Deleted. transferred Deleted: Deleted. Deleted: iii Deleted: any series of T Deleted: such Deleted: second preceding Deleted: not ~P Deleted: until the requirements of clauses (i) and (ii) of Section 5.12 have been satisfied, except (i) Deleted: 05 Deleted: Series 2006-A Deleted: ; (ii) to pay the purchase price of any Series 2006-A Bonds in connection with any Remarketing or Buyback; and (iii) to pay any costs incurred by the Authority or the City in connection with any Deleted: clause (i). The Authority agrees to provide written notice to the Developer of its intent to so withdraw funds from the Improvement Fund for the purposes described in the preceding clauses fii) Deleted: and (iii) not less than five days in advance of a withdrawal for any such purposes, and will reduce the amount of the withdrawal by the amount of any funds unconditionally advanced by the Developer to the Authority for such purposes during such five day period. Any use of funds in the Improvement Fund for purposes described in clauses (i), (ii) and (iii) of the first sentence of this paragraph shall be on a basis senior to any use of such funds for the purposes described in clauses (viii) and (ix) of the second traragrauh Deleted: 03 5c_._- ction 5.12. Additional H slt c=ions on Disbursements_ From fmproyelnent Fund. r- _ . Deleted: Not-withstandino anv other provi--ion of this Acquisition Agreen llt to the contran', the Authority shalt have no obligation it'hatsoeve r to use atnourlts in. tho i7T provernent Fund LO _ ' ; Deleted: The Authority, in its sole and absolute discretion may honor Payrnent Requests kin'til the conditions hreL(fde It described in egion 305,A_ have been ' - ' , ~ ' effect a Remarketing on such satisfied. I fte 11tovis-sons of_this 4c'c non 1.12 shall in no ~v f €€nit atty_ cvithd€ awals tt oin thi' terms and conditions as it may lntptt)b`E inE nt 1, and for the' purposes cfe Se ribed in `_x-,coons 5. 11, 6r to pat costs related to end' determine, and may use amounts C its! hnprc€cente €tt tas described in Sections 3.02 and 3 03)„ in the Improvement Fund to pay costs related thereto (as described in clauses (ii) and (iii) of the first i sentence of the preceding paragraph), in the event that (i) the Authority provides written notice to the Developer of its intent to effect Remarketing and, within 30 days after receipt of such notice the Developer fails to provide (A) an irrevocable letter f of credit from a financial institution acceptable to the Authority in an amount equal to the then outstanding principal amount of the Series 2006-A Bonds and six months accrued I interest thereon, less any amount then on deposit in the Improvement Fund, (or such lesser amount as the Authority, i in its discretion, determines to be i necessary to complete a Buyback), which letter of credit i allows for draws as necessary to i complete a Buyback-, or (B) in the discretion of the Authority an f irrevocable commitment from a E financial institution acceptable to the Authority in form and substance acceptable to the Authority, to provide a lett~r Ri 1 Deleted: the second sentence of the preceding paragraph in the circumstances described in the preceding sentence, prior to a withdrawal of amounts in the Improvement Fund under the provisions of this paragraph. the Developer acknowledges that any transfer of funds from j the Improvement Fund described in thi paragraph will reduce the j amount available to pay the Purchase Prices of the Facilities and Discrete Components thereof hereunder.T i Section 5.12. Additional Restrictions on Disbursements 1 From Improvement Fund. f91~ -31- y W ARTICLE VI OWNERSHIP AND TRANSFER OF FACILITIES _w Section 6.01. Facilities to be Owned by the City - Conveyance of Land and Easements to City. Acceptable Title to all property on, in or over which each Facility to be acquired by the City will be located, shall be deeded over to the City by way of grant deed, quitclaim, or dedication of such property, or easement thereon, if such conveyance of interest is approved by the City as beiuhg a sufficient interest therein to permit the City to properly own, operate and maintain such Facility located therein, thereon or thereover, and to permit the Developer to perform its obligations as set forth in this Acquisition Agreement. The Developer agrees to assist the City in obtaining such documents as are required to obtain Acceptable Title. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Facility (or the last Discrete Component thereof) and shall be evidenced by recordation of the acceptance thereof by the City Council or the designee thereof. Section 6.02. Facilities to be Owned by the City - Title Evidence. Upon the request of the City, the Developer shall furnish to the City, with respect to Facilities to be acquired by the ( Deleted: a preliminary title City and not previously dedicated or otherwise conveyed to the City; a prelimtYUhrstitle. (report for land report for land for review and approval at least fifteen (15) calendar days prior to the transfer of Deleted: _ Acceptable Title to a Facility to the Cit3',and (ii) a written certification to the effect that the L?evctoper is not aware of and phonnises or other arrangements with or for the benefit of the 9y n€ r or any _+1eFyiq s owner of the respective land to be cone eh ed and there are no known. impediments to the conveyance of such land to the City. The Director of Public Works shall approve the preliminary title report unless it reveals a matter which, in the judgment of the City, could materially affect the City's use and enjoyment of any part of the property or easement covered by the preliminary title report. In the event the City does not approve the preliminary title report, the City shall not be obligated to accept title to such Facility and the Authority shall not be obligated to pay the Purchase Price for such Facility (or the last Discrete Component thereof) until the Developer has cured such objections to title to the satisfaction of the City. Section 6.03. Facilities Constructed on Private Lands. If any Facilities to be acquired are located on privately-owned land, the owner thereof shall retain title to the land and the completed Facilities until acquisition of the Facilities under Article V hereof. Pending the completion of such transfer, the Developer shall not be entitled to receive any payment for any such Facility- or the last Discrete Component thereof. The Developer shall, however, be entitled to receive payment for Discrete Components (other than the last Discrete Component) upon making an irrevocable offer of dedication of such land in form and substance acceptable to the Director of Public Works. Notwithstanding the foregoing, upon written request of the Director of Public Works before payment for any Discrete Component of such a Facility, the Developer shall convey or cause to be conveyed Acceptable. "Title thereto in the manner described in Sections 6.01 and 6.02 hereof. Section 6.04. Facilities Constructed on City Land. If the Facilities to be acquired are on land owned by the Authority, the Authority shall cause the City to grant to the Developer a license to enter upon such land for purposes related to the construction (and maintenance -32- pending acquisition) of the Facilities. The provisions for inspection and acceptance of such Facilities otherwise provided herein shall apply. _ Section 6.05. Facilities to be Acquired by Other Public Agencies. With respect to any Facility to be acquired by a public entity other than the City, the Developer shall comply with such entities rules and regulations regarding title and conveyance of property, and provide the Director of Public Works with evidence of such compliance, prior to the payment of the Purchase Price for any such Facility (or the last Discrete Component thereof). Section 6.06. Maintenance and Warranties. The Developer shall maintain each Discrete Component in good and safe condition until the Acceptance Date of the Facility of which such Discrete Component is a part. Prior to the Acceptance Date, the Developer shall be responsible for performing any required maintenance on any completed Discrete Component or Facility. On or before the Acceptance Date of the Facility, the Developer shall assign to the Authority all of the Developer's rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Facility. The Developer shall maintain or cause to be maintained each Facility to be owned by the City (including the repair or replacement thereof) for a period of one year from the Acceptance Date thereof, or, alternatively, shall provide a bond reasonably acceptable in form and substance to the Director of Public Works for such period and for such purpose (specifically, a one-year maintenance period for landscaping improvements, and for the posting of a warranty bond to remain in effect for one year as to other Facilities), to insure that defects, which appear within said period will be repaired, replaced, or corrected by the Developer, at its own cost and expense, to the satisfaction of the Director of Public Works. During any such one-year period, the Developer shall commence to repair, replace or correct any such defects within thirty (30) days after written notice thereof by the Authority, the City or other public entity that took ownership of the respective Facility to the Developer, and shall complete such repairs, replacement or correction as soon as practicable. After such one-year period, the City (or other public entity that has accepted title to the Facility) shall be responsible for maintaining such Facility. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Facilities to be acquired by the City shall be delivered to the Director of Public Works as part of the transfer of title. -33- ARTICLE V11 x INSURANCE; RESPONSIBILITY FOR DAMAGE Section 7.01. Liability Insurance Requirements. The Developer shall provide to the Director of Public Works evidence of insurance and endorsements thereto on forms acceptable to the Risk Manager within 10 working days of execution by it of this Acquisition Agreement. The Developer shall procure and maintain for the duration of this Acquisition Agreement the following minimum insurance coverage and limits against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work covered by this Acquisition Agreement by the Developer, its agents, representatives, employees or subcontractors: (a) Premises, operation and mobile equipment. (b) Products and completed operations. (c) Explosion, collapse and underground hazards. (d) Personal injury. (e) Contractual liability. (f) Errors and omissions for work performed by design professionals. COVERAGE PER OCCURRENCE Commercial General Liability (Primary) Umbrella Liability (Over Primary, if required) Business Auto Workers' Compensation/ Employers' Liability Errors and Omissions ISO FORM CG 00 0111 85 or 88 Rev. $2,000,000 GL 00 011185 or 88 Rev. $1,000,000 CA 00 01 06 92 $1,000,000 Statutory $1,000,000 $1,000,000 Combined single limit per occurrence shall include coverage for bodily injury, personal injury, and property damage for each accident and a five million dollar ($5,000,000) general aggregate. Insurance shall be placed with insurers that are admitted to the State of California and with an AM Best's Rating of no less than A:VII. The Developer shall furnish to the Risk Manager certificates of insurance and endorsements on forms specified by the Risk Manager, duly authenticated, giving evidence of the insurance coverage required in this contract and other evidence of coverage or copies of policies as may be reasonably required by the Risk Manager from time to time. Each required insurance policy coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after fifteen (15) days written notice by certified mail, return receipt requested, has been given to the Risk Manager. Liability coverage shall not be limited to the vicarious liability or supervising role of any additional insured nor shall there be any limitation with the severabihty clause. Coverage shall contain no limitation endorsements and there shall be no endorsement or modification limiting -34- I the scope of coverage for liability arising from pollution, explosion, collapse, underground property damage or employment related practices. art Any Any umbrella liability, coverage shall apply to bodily injury/ property damage, personal injury/ advertising injury, at a minimum, and shall include a "drop down" provision providing primary coverage above a maximum $25,000.00 self-insured retention for liability not covered by primary polices not covered by the umbrella policy. Coverage shall be following form to any other underlying coverage. Coverage shall be on a "pay on behalf" basis, with defense costs payable in addition to policy limits. There shall be no cross policy exclusion and no limitation endorsement. The policy shall have starting and ending dates concurrent with the underlying coverage. All liability insurance shall be on an occurrence basis. Insurance on a claims made basis will be rejected. Any deductibles or self-insured retentions shall be declared to and approved by the Risk Manager. The insurer shall provide an endorsement to the City eliminating such deductibles or self-insured retentions as respects the Authority, and its consultants, and each of its Boardmembers, officials, employees and volunteers. All subcontractors employed on the work referred to in this Acquisition Agreement shall meet the insurance requirements set forth in this Section 7.02 for the Developer. The Developer shall furnish certificates of insurance and endorsements for each subcontractor at least five days prior to the subcontractor entering the job site, or the Developer shall furnish the Risk Manager an endorsement including all subcontractors as insureds under its policies. Neither the City nor the Authority shall be liable for any accident, loss, or damage to the work prior to its completion and acceptance, and the Developer shall save, keep and hold harmless the Authority, the City and their consultants, and each of their Boardmembers, Councilmembers, officers, officials, employees, agents and volunteers from all damages, costs or expenses in law or equity that may at any time arise or be claimed because of damages to property, or personal injury received by reason of or in the course of performing work, which may be caused by any willful or negligent act or omission by the Developer or any of the Developer's employees, or any subcontractor. The cost of insurance required by this subsection shall be born by the Developer and its subcontractors and no compensation for purchasing insurance or additional coverage needed to meet these requirements will be paid for by the Authority. In the event that any required insurance is reduced in coverage, canceled for any reason, voided or suspended, the Developer agrees that the Authority may arrange for insurance coverage as specified, and the Developer further agrees that administrative and premium costs may be deducted from any deposits or bonds the Authority may have, or from the Improvement Fund. A reduction or cancellation will be grounds far termination of this Acquisition Agreement and will cause a halt to payment for any work on the Facilities until the insurance is reestablished. -35- 01 Liability policies shall contain, or be endorsed to contain the following provisions: (a) General Liability and Automobile Liability: The Authority, the City and their respective consultants, and each of their Boardmembers, Councilmembers, officers, officials, employees and volunteers shall be covered as additional insureds using ISO form CG 00 01 11 85 or 88 as it respects: liability arising out of activities performed by or on behalf of the Developer; products and completed operations of the Developer' premises owned, occupied or used by the Developer, or automobiles owned, leased, hired or borrowed by the Developer. The coverage shall contain no special limitations on the scope or protection afforded to the Authority, the City and their respective consultants, and each of their respective Boardmembers, Councilmembers, officers, officials, employees, or volunteers. The Developer's insurance coverage shall be primary insurance with respect to the Authority, the City and their respective consultants, and each of their respective Boardmembers, Councilmembers, officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Authority, the City and their respective consultants, and each of their respective Boardmembers, Councilmembers, officers, officials, employees and volunteers shall be excess of the Developer's insurance and shall not contribute with it. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Authority, the City, and their respective consultants, and each of their respective Boardmembers, Councilmembers, officers, officials, employees, and volunteers. The Developer's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. V6 MR; , I v t (b) Workers' Compensation and Employer's Liability: The Developer and all Deleted: subcontractors shall have workers' compensation for all employees in conformance with the requirements in Section 3700 of the Labor Code. (c) Error and Omissions Liability: The Developer and all subcontractors who 1 Deleted: are design professionals shall have and maintain errors and omissions insurance. Section 7.02. Responsibility for Damage. The Developer shall take and assume all responsibility for the work performed as part of the Facilities constructed pursuant to this Acquisition Agreement. The Developer shall bear all losses and damages directly or indirectly resulting to it, to the Authority, to the City, and their respective consultants, and their respective Boardmembers, Councilmembers, officers, employees and agents, or to others on account of the performance or character of the work, unforeseen difficulties, accidents of any other causes whatsoever. The Developer shall assume the defense of and indemnify and save harmless the Authority, the City, and their respective consultants, their respective Boardmembers, Councilmembers, officers, employees, and agents, from and against any and all claims, losses, -36- b. damage, expenses and liability of every kind, nature, and description, directly or indirectly arising from the performance of the work, and from any and all claims, losses, damage, expenses, and liability, howsoever the same may be caused, resulting directly, or indirectly from the nature of the work covered by this Acquisition Agreement, to the fullest extent permitted by law and regardless (except as provided in the next sentence) of responsibility for any negligence. In accordance with Civil Code section 2782, nothing in this Section 7.02 shall require defense or indemnification for death, bodily injury, injury- to property, or any other loss, damage or expense arising from the sole negligence or willful misconduct of the Authority, the City, and their respective consultants, and their respective Boardmembers, Councilmembers, agents, servants or independent contractors who are directly responsible to the Authority or the City, or for defects in design furnished by such persons. Moreover, nothing in this Section 7.02 shall apply to impose on the Developer, or to relieve the Authority or the City from, liability for active negligence of the Authority, the City, or their respective consultants or their respective Boardmembers, Councilmembers, officers, employees or agents as delineated in Civil Code Section 2782. Any relief for determining the Authority's or the City's sole or active negligence shall be determined by a court of law. The Authority does not, and shall not, waive any rights against the Developer which it may have by reason of the aforesaid hold harmless agreements because of the acceptance by the Authority or the City, or deposit with the Authority by the Developer of any insurance policies described in Section 7.01. The aforesaid hold harmless agreement by the Developer shall apply to all damages and claims for damages of even kind suffered, or alleged to have been suffered by reasons of any of the aforesaid operations of the Developer, or any subcontractor, regardless of whether or not such insurance policies are determined to be applicable to any of such damages or claims for damages. No act by the City, or its representatives in processing or accepting any plans, in releasing any bond, in inspecting or accepting any work, or of any other nature, shall in any respect relieve the Developer or anyone else from any legal responsibility, obligation or liability it might otherwise have. -37- ARTICLE V111 REPRESENTATIONS, WARRANTIES AND COVENANTS Section 8.02. Representations, Covenants and Warranties of the Developer. The Developer represents and warrants for the benefit of the Authority as follows: A. Organization. The Developer is a limited liability company duly organized and validly existing under the laws of the State of California, is in compliance with all applicable laws of the State, and has the power and authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated. S. Authori . The Developer has the power and authority to enter into this Acquisition Agreement, and has taken all action necessary to cause this Acquisition Agreement to be executed and delivered, and this Acquisition Agreement has been duly and validly executed and delivered by the Developer The Developer needed the consent of Anitrust Bank and consent from no other; person of entity, before executing this Acquisition_ greennc Flt and the Dever>_per has obtained such requiredconsent. C. Binding Obliiyation. This Acquisition Agreement is a legal, valid and binding obligation of the Developer, enforceable against the Developer in accordance with its terms, subject to bankruptcy and other equitable principles. D. Compliance with Laws. The Developer shall not with knowledge corrunit, suffer or permit any act to be done in, upon or to the lands of the Developer in the CFD or the Facilities in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covenant, condition or restriction now or hereafter affecting the lands in the CFD or the Facilities. E. Requests for Payment. The Developer represents and warrants that (i) it will not request payment from the Authority for the acquisition of any improvements that `..5. _ are not part of the Facilities, and (ii) it will diligently follow all procedures set forth in this Acquisition Agreement with respect to the Payment Requests. F. Financial Records. Until the date which is one year following the date of the final acceptance of the Facilities, the Developer covenants to maintain proper books of record and account for the construction of the Facilities and all costs related thereto. Such accounting books shall be maintained in accordance with generally accepted accounting principles, and shall be available for inspection by the Authority or its agent at any reasonable time during regular business hours on reasonable notice. G. Prevailu2&Wad. The Developer covenants that, with respect to any contracts or subcontracts for the construction of the Facilities listed in Exhibit B to be acquired from the Developer hereunder, it will assure complete compliance with any applicable law or regulation for the payment of prevailing wages. The Developer shall provide, at the written request of the Director of Public Works, evidence satisfactory to the Director of Public Works that the Developer has complied with the provisions of this -38- F 3 w, Section 5.01G. with respect to any Facilities or Discrete Components thereof to be funded under this Acquisition Agreement. H. Plans. The Developer represents that it has obtained or will obtain approval of the Plans for the Facilities listed in Exhibit B to be acquired from the Developer hereunder from all appropriate departments of the City and from any other public entity- or public utility from which such approval must be obtained. The Developer further agrees that the Facilities listed in Exhibit B to be acquired from the Developer hereunder have been or will be constructed in full compliance with such approved plans and specifications and any supplemental agreements (change orders) thereto, as approved in the same manner. 1. Land Owners. The Developer agrees that in the event that it sells any land owned by it within the boundaries of the CFD other than to an individual prospective homeowner, the Developer will (i) notify the Authority within 30 days of the sale, in writing, identifying the legal name of and mailing address for the purchaser, the applicable County Assessor's parcel Number or Numbers for the land sold and the acreage of the land sold, (ii) notify the purchaser in writing prior to the closing of any such sale of the existence of this Acquisition Agreement and, in general, the Developer's rights and obligations hereunder with respect to the construction of and payment for the Facilities, and (iii) notify the purchaser (including for purposes of this clause (iii) any prospective homeowner buying property from the Developer) in writing of the existence of the CFD and the special tax lien in connection therewith, and otherwise comply with any applicable provision of Section 53341.5 of the Act. J. Additional Information. The Developer agrees to cooperate with all reasonable written requests for nonproprietary information by the original purchasers of the Bonds or the Authority related to the status of construction of improvements within the CFD, the anticipated completion dates for future improvements, and any other matter material to the investment quality of the Bonds. K. Continuitnz Disclosure. The Developer agrees to comply with all of its obligations ~ risirur front and after the execution of this Acquisition Agreement under the. Continuiniz Disclosure Aft rcvnient executed by it (and referenced in Section connection with the offering and sale of any L. Ownership By Affiliates. The Developer agrees to provide to the City's Finance Director on the date of issuance of the Bonds, on (or within five (5) business days of) July 1 of each year so long as the Bonds are outstanding and the Developer or any Affiliate thereof owns property in the CFD, and on any other date upon three business days notice from the City's Finance Director, a written list of all Affiliates of the Developer which own or control the ownership of land located within the CFD, or which have options on land witlhin the CFD, indicating the parcels of land by County Assessor's Parcel number of all such land so owned or optioned. M. Allocation of Sales Taxes to _Authority. The Developer shall use reasonable efforts, with respect to any construction contract for a contract price of $5,000,000 or more and related to any construction by the Developer within the geographical -39- Deleted! any continuing disclosure agreement ~h, boundaries of the City, to have the installing contractor obtain a sub-permit from the California Board of Equalization under the Bradley-Burns Uniform Local Sales and Use Tax law for the job site on which the work is to be performed. 15 Section 8.02. Indemnification and Hold Harmless. A. In. Gz nt~ra1, The Developer shall assume the defense of, indemnify and save harmless the Authority, the City and the District, members of the governing board of the Authority and of the City Council of the City, their officers, officials, employees and agents and each of them, from and against all actions, damages, claims, losses or expense of every type and description to which they may be subjected or put, by reason of, or resulting from (i) the breach of any provision of this Acquisition Agreement by the Developer~_ii the Developer's or any other entity's negligent Deleted. , design, engineering and/or construction of any of the Facilities acquired from the Developer hereunder (iii) the Developer's non-payment under contracts between the Developer and its Deleted: , consultants, engineer's, advisors, contractors, subcontractors and suppliers in the provision of the Facilities, in(4udirlg but not limited to am claim, lien or action arly siu h entity against the City, the Authority or the CFD for money or darna.-.s (it iv) any claims of persons employed by the Developer or its agents to construct the Facilities. Notwithstanding the foregoing, no indemnification is given hereunder for any action, damage, claim, loss or expense directly attributable to the intentional acts or negligence of the Authority, the CFD or the City, or their respective Boardmembers, Councilmembers, officers, officials, directors, employees or agents hereunder. No provision of this Acquisition Agreement shall in any way limit the Developer's responsibility for payment of damages resulting from the operations of the Developer, its agents, employees or its contractors. The Developer shall assume the defense of (with counsel satisfactory to the Authority), indemnify and save harmless the Authority, the City and the CFD, members of the governing board of the Authority and of the City Council of the City, their officers, officials, employees z and agents and each of them, from and against all actions, damages, claims, losses or expense 3 of every type and description to which they may be subjected or put, by reason of, or resulting from, any alleged or actual material misstatements or omissions of facts necessary to make the statements with respect to the development of the land in the CFD, the Developer or any merchant builders developing land in the CFD not misleading under the circumstances made in any disclosure materials published by the Peveloper in connection with the Bonds. Heisted Authority or the Notwithstanding the foregoing, no indemnification is given hereunder for any action, damage, Deleted. any Remarketing or claim., loss or expense directly attributable to the intentional misstatements of material facts or i Buyback material omissions in any such disclosure materials with respect to the Authority or the City. The Developer shall assume the defense of (with counsel satisfactory to the Authority), indemnify and save harmless the Authority, the City and the CFD, members of the governing board of the Authority and of the City Council of the City, their officers, officials, employees and agents and each of them, from and against all actions, damages, claims, losses or expense of every type and description to which they may be subjected or put, by reason of, or resulting from (a) any material misstatements or omissions of material facts necessary to make the statements therein not misleading under the circumstances in which they were made in the section of the Official Statement dated April 13, 2006 with respect to the J3onds entitled Deleted: Series 2006-A "Property Ownership and Development;" (b) the omission from such Official Statement of the -40- OEM matters set forth in the Authority's Release No. 1 dated June 1, 2006 or in its Release No. 2 with respect to the fonds dated June 23, 2006; and (c) any action, losses or damages arising; out of or resulting from any claim, lawsuit or action by Ohio Savings Bank or any m censor :hereto or assigyne(c thereo€ in anv wav related to the development of the land in the CFD, the Fonds, the Prior Acquisition lgree me nt Supplement No 1 or this Acquisition Agreeinen~ other than any action, losses or damages directly attributable to the intentional acts or gross negligence of the Authority, the CFD or the City, or their respective Boardmembers, Councilmembers, officers, officials, or employees. In the event that the Developer fails to discharge its obligations under any of the - fore&ain_g_zrovisions of this Section 8.02, the Authority shall he entitled, follm in&YLrior written notice of such failure to the Developer, to draw upon funds in the Imjrj ov enivnt Fund as it deem necess an f.ar talc- defense indemnity or hold harmless otherwise to be provided by the Developer ILe,n,un.vlei. B. Existing, Litigation. I he Developer has accepted the City's, the Authority's ;and the Districts respective tenders of defense and irldenrnification for liabilities arising out Ia,v-suits filed against thean prior to the execution of this Acquisition Agreement, including but not limited to the following: On September 18, 2007, R.J. Noble Co., filed an actimi in the Riverside Countv Si rior Court, R'l. Noble t? 1slatY r , i 1J, C, e1c. al., be rrino case number R IC 480922; On October 27, 2007, Riverside Construction filed an action in the Riverside County `,up€Tior Court Riverside , Construction, Inc v A151z. r>at Lt ir1L-LC r lc, ak, be_aritat; case number RIC 4179; - - - - - On November-21.,-.2007, 'Utah Pacific Construction Co., filed an action in the, Riverside County Su error Con t ! Jldh Py,-ifie C'onsh,uction Co Ashby LISAI L LC etc. a" bearua&case number RIC483802_ On April 22, 2008, Park West t.andsca e, 1:n filed an action in the Riverside Countverior Court I'ar1, !,'Vest Construction, Inc, v. ,9s in UPS A LTC', e tc nt art bearing case nunrber RIC 497856; On August 13, 2008, Klaer Brittain, Inc:. filed an action in the Riverside County Superior Court, entitled Kfrai~r Brithan Inc. v. City co 7c tl rca!a ch t '11 bearing case number RIC 506084; and On October 7, 2008, Pacific Uti.lih, Installation, Inc. filed an action in the Riverside County 7aa >ntrtlcd PO ific Hit,'1:,r Ire htli:atcoat, (rr y. Ci of pE retie Court f,_. Terrec.`ulat <tcl et al., bearinq,,_case, nuni[wr RIC. 510t)3() (collectivrely the "Contractor Actions"). _ The Developer has agreed to the Cit}, s District's and Authoritv's appointment of the lavt° €irni nt I~i~ 1~artls, l't <atson Gershon as independent counsel for their respective defense in the C'ow ract~„' :O"holl_'. -41- ' Deleted: Series 2006-A Deleted: Series 2006-A Bonds, Deleted: or any Reinarketing or Buyback " lb $ a The Dove lopor f urthc that Richards Watson ck Gershon's incurring of all defense fee", and costs in the Conta.utor ALtions as of the elate of execution of this Ac~uisition Agreement have been reasonablk- borne, As the Cite has paid for the defense of the Contractor Actions against the C'iti~, District and they Authority, they Developer agrees that those attorney's and such to Developer under this Acquisition eats are less than the full amount of or if there are no such unreimbursed amount maN- be drawn f osn funds in the fill Irroveanent I und. [Richards INatson a C lvrsholl hx, iei% i4,~d the Authority that, as of March 25, 20N, it had incurred defense fees - 1 14~ -42- AZAR ARTICLE IX F. TERMINATION ,S4e€tion_9.01. Termination of Funding Obligations Unless otherwise. ct mid to in vvriting by the parties hereto, the provisions of ;Articles tV and l% of this Acquisition Avreetment shall tertminato on Deccinber 7, 2013; and, from and after such date, the ;1uEhority shall have no feather obligation to pay the l'uichase r'rice of any facilities or Discrete ComLionents thereof. hereunder. Section 9.02. Mutual Consent. This Acquisition Agreement may be terminated by the mutual, written consent of the Authority and the Developer, in which event the Authority may let contracts for any remaining work related to the Facilities not theretofore acquired from the Developer hereunder, and use all or any portion of the monies in the Improvement Fund to pay for same, and the Developer shall have no claim or right to any further payments for the Purchase Price of Facilities or Discrete Components hereunder, except as otherwise may be provided in such written consent. Section 9.03. Authority Election for Cause. The following events shall constitute grounds for the Authority, at its option, to s a-jend payments to the Developer hereunder nas pao ided in the second succeeding paraj,,raph, or-terminate this Acquisition Agreements - is described in the succeeding paragraph, in each case without the consent of the Developer: (a) The Developer shall voluntarily file for reorganization or other relief under any Federal or State bankruptcy or insolvency law. (b) The Developer shall have any involuntary bankruptcy or insolvency action filed against it, or shall suffer a trustee in bankruptcy or insolvency or receiver to take possession of the assets of Developer, or shall suffer an attachment or levy of execution not described in clause. -1 of the first paragraph of Exhibit b hereto to be made against the property it owns within the CFD unless, in anv of such cases, such circumstance shall have been terminated or released within thirty (30) days thereafter. Deleted: Section 9.01. No Bonds. If, for any reason, the :'Authority does not issue the Series 2006-A Bonds for the CFD by December 31, 2006, this Acquisition Agreement shall terminate and be mill and void and of no further effect.4; I. Deleted: , (c),rollowing the completion of the construction of the City Improvements identified in hxhibit F hereto and any additional City Improvements identified in any notice by the Citv to the Authority and the Developer described in Section 3.03A., the Developer shall fail, fora period of ne hundred twenty _ 120 consecutive da_s, to undertake substantial work related to the construction of the Facilities listed in Exhibit B that have not theretofore been completed, other than for a reason specified in Section 9.04 hereof, (d) The Developer shall breach any material covenant or default in the performance of any material obligation hereunder. (e) The Developer shall transfer any of its rights or obligations under this Acquisition Agreement without the prior written consent of the Authority. -43- Deleted. The Developer shall abandon j Deleted: Facilities listed in I Exhibit B. Failure j Deleted: ninety (90 Deleted: , shall constitute a~ noninclusive example of such j j abandonment ~MAA (f) The Developer shall have made any material misrepresentation or omission in any written materials furnished in connection with the ~)evcloper Continuing Disclosure Avree nient, dated as of March ~1, 2006, between the developer, [lie Fiscal A yentand the Dissemination .,\venL narned tbeacin. (g) The Developer or any of its Affiliates shall at any time challenge the validity of the CFD, or any of the Bonds, or the levy of special taxes within the CFD, other than on the grounds that such levy was not made in accordance with the terms of the Rate and Method of Apportionment of the Special Taxes for the CFD. (h) The Developer elects to perform or have its agent perform work under the provisions of Section 4.03 C., but fails to continue the work with diligence to completion, as described in the second paragraph of Section 4.03 C. jf any such event occurs, the Authority shall give written notice of its knowledge thereof to the Developer, and the Developer agrees to meet and confer with the Director of Public Works and other appropriate City staff and consultants within ten (10) days of receipt of such notice as to options available to assure timely completion of the Facilities listed in Exhibit B. Such options may include, but not be limited to the termination of this Acquisition Agreement by the Authority. If the Authority elects to terminate this Acquisition Agreement, the Authority shall first notify the Developer (and any mortgagee or trust deed beneficiary specified in writing by the Developer to the Authority to receive such notice) of the grounds for such termination and allow the Developer a minimum of thirty (30) days to eliminate or mitigate to the satisfaction of the Director of Public Works the grounds for such termination. Such period may be extended, at the sole discretion of the Authority, if the Developer, to the satisfaction of the Authority, is proceeding with diligence to eliminate or mitigate such grounds for termination. If at the end of such period (and any extension thereof), as determined solely by the Authority, the Developer has not eliminated or completely mitigated such grounds, to the satisfaction of the Authority, the Authority may then terminate this Acquisition Agreement. Notwithstanding the foregoing provisions of this paragraph, if an event described in clause (a), (R-00, (b) or (i) of the preceding paragraph occurs, the Authority need not comply with any of the foregoing provisions of this paragraph and may, in its sole and absolute discretion, immediately terminate this Acquisition Agreement upon twenty (20) days prior written notice to the Developer of such termination. Notwithstanding the foregoing para1h, so long as any event listed in any of clauses (a) through and including (h) above has occurred, notice of which has been given by the Authority to the Developer, and such event has not been cured or otherwise eliminated by the Developer, the Authority may in its discretion cease making payments for the Purchase Price of Facilities or Discrete Components under Article V hereof. Nothing n-€ this Section 9.03 shall in any way prohibit the Authority, the Cihor the CFD fro"tra drawing funds froru the littpi(weinent Fund fot anti- of the purposes described to Section 5.11 or in the lost porn-raph ol 1-e itc,n .t)~. Section 9.04. Force Majeure. Whenever performance is required of a party hereunder, that party shall use all due diligence and take all necessary measures in good faith to perform, but if completion of performance is delayed by reasons of floods, earthquakes or other acts of -44- Deleted: any preliminary official statement, official statement or bond purchase contract used in connection with Deleted: sale Deleted: Bonds, or in connection with any i Remarketing or any Buyback Deleted: (i) The Authority determines that it will be unable to complete a Remarketing or a Buyback on terms fully acceptable to the Authority by October t, 2007 or such later date as is acceptable to the Authority in its sole discretion.¶ T, s God, war, terrorist attacks, civil commotion, riots, strikes, picketing, or other labor disputes, damage to work in progress by casualty, or by other cause bevond the reasonable control of the party (financial inability excepted), then the specified time for performance shall be extended by the amount of the delay actually so caused. The Developer hereby acknowledges and agrees that any alleged or actual misstatements or omissions in the Official Statement for the fonds `Deleted: Remarketing, dated April 13, 2006, or any other events occurring between the date of issuance of the j3onds 11 Buyback or and March 6, 2007, do not constitute an event of the character described in the preceding Deleted: Series 2006-A sentence that would allow for any delay in any specified time for performance of any obligation 1 Deleted: Series 2006-A of the Developer under this Acquisition Agreement. Section 9.05. Survival of Certain Provisions, The provisions of Sections 3.Q 7.02, 8.02 R Deleted: 05 and 10.01 of this Acquisition Agreement shall survive the termination of this Acquisition Agreement, and the obligations of the Developer under said Sections shalt remain in effect following any such termination. Deleted. and for so long as i the Developer or any Affiliate thereof owns any property in the CFD -45- bd j ARTICLE X (qpf of MISCELLANEOUS Section 10.01. Limited Liability of Authority. The Developer agrees that any and all obligations of the Authority arising out of or related to this Acquisition Agreement are special and limited obligations of the Authority and the Authority's obligations to make any payments hereunder are restricted entirely to the moneys, if any, in the Improvement Fund and from no other source. No member of the Authority's Board of Directors, or Authority staff member, employee or agent shall incur any liability hereunder to the Developer or any other party in their individual capacities by reason of their actions hereunder or execution hereof. Section 10.02. Excess Costs. The Developer agrees to pay all costs of the Facilities that it is obligated to construct pursuant to Section 4.02 in excess of the moneys available therefor in the Improvement Fund. Section 10.03. Audit. The Director of Public Works and/or the City's Director of Finance shall have the right, during normal business hours and upon the giving of two (2) business days prior written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer in to any of the Facilities, and any bids taken or received for the construction. thereof or materials therefor. Section 10.04. Attorney's Fees. In the event that any action or suit is instituted by either party against the other arising out of this Acquisition Agreement, the party in whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorneys' fees. Section 10.05. Notices. Any notice, payment or instrument required or permitted by this Acquisition Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered, or transmitted by telecopy or facsimile transmission (which shall be immediately confirmed by telephone and shall be followed by mailing an original of the same within twenty-four hours after such transmission), or seventy-two hours following deposit of the same in any United States Post Office, registered or certified snail, postage prepaid, addressed as follows: Authority or CFD: Temecula Public Financing Authority 43200 Business Park Drive Temecula, California 92590 Attention: Director of Public Works Developer: Ashby USA, LLC 470 E. Harrison Street Corona, California 92879-1314 Each party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other party. -46- R Section 10.06. Severability. If any part of this Acquisition Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Acquisition Agreement shall be given effect to the fullest extent possible. Section 10.07. Successors and Assigns. This Acquisition Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Acquisition Agreement shall not be assigned by the Developer without the prior written consent of the Authority, which consent shall not be unreasonably withheld or delayed. In connection with any such consent of the Authority, the Authority may condition its consent upon the acceptability of the relevant experience and financial condition of the proposed assignee, the assignee's express assumption of all obligations of the Developer hereunder, and/or upon any other factor which the Authority deems relevant in the circumstances. In any event, any such assignment shall be in writing, shall clearly identify the scope of the rights and/or obligations assigned, and shall not be effective until approved in writing by the Authority. Any assignment consented to by the Authority shall release the Developer from its obligations and liabilities under this Acquisition Agreement to the extent so assigned. Notwithstanding the foregoing, the Developer may assign its rights to payment hereunder, without the prior consent of the Authority, to any financial institution providing financing to the Developer or an Affiliate of the Developer. Section 10.08. Other Agreements. The obligations of the Developer hereunder shall be those of a party hereto and not as an owner of property in the CFD. Nothing herein shall be construed as affecting the Authority's or the Developers rights, or duties to perform their respective obligations, under other agreements, use regulations or subdivision requirements relating to the development of the lands in the CFD. This Acquisition Agreement shall not confer any additional rights, or waive any rights given, by either party hereto under any development or other agreement to which they are a party. Section 10.09. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Acquisition Agreement by the other party, or the failure by a party to 61,56, exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Acquisition Agreement thereafter. Section 10.10. Merger. No other agreement, statement or promise made by any party or any employee, officer or agent of any party with respect to any matters covered hereby that is not in writing and signed by all the parties to this Acquisition Agreement shall be binding. Section 10.11. Parties in Interest. Nothing in this Acquisition Agreement, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or entity other than the Authority, the CFD, the City, and the Developer any rights, remedies or claims under or by reason of this Acquisition Agreement or any covenants, conditions or stipulations hereof; and all covenants, conditions, promises, and agreements in this Acquisition Agreement contained by or on behalf of the Authority or the Developer shall be for the sole and exclusive benefit of the Authority, the C1=D, th(I City, and the Developer. The City is an intended third party beneficiary of this Agreement. No provision of this Acquisition Agreejn -,nt Shall in any way be Construed to provide any right whatsoever to any contractor, subconh,ac t . ar, Supplier or -47- ( other party inv-olvedin the acquisition, construction or inaintonance of anv of the Facilities or Discrete Componentsthoretof, against the Authority, the City or the C-11), including but not Iimited to anv right to pain nt or daTnage>s of anv° nature, in late or iii equitV, Section 18.12. No Obligation to Restructure or Refund Bonds. 1'hF provisions of this Acecuisition Agreement sho-1 in no way obligate the Authority to restTt€cture or refund the Bonds, or to expend anv of its ovv n funds in connection s,vith the CFF)Notwithstoridmi7 the - - - - for-ecloing, the _-Nuthority may., in its sole and absolute discretion determine at anv time to issue - - bonds the net proceeds of v hieh are used to refund any outstanding Bonds (the term "refund" as used in this sentence, and the term "refunding as used in the next sentence, ini ludes trny~ Purchase in lieu of redermition of anv Bonds). The Develoner shall have no rivht whatsoever to Section 10.13. ZeFelse of Liak?ili ; Urnitation on Future Actions. The Developer fully-_ and complete]}" releases the Citv, the Authority and the CFD, and their respective Boardinembers, Counc ilme,nflvfs, off€ce.rs, ~nrh(nr ees, attorneys and agents, from any liabilitt- V~ hatsoey,er for an, grid ill ~iaions or inaction, known or unknown,-up to the date of execution by the Developer of this Acquisition Agreement, relating to the Bonds, any breach or alleged breach of an),- of the terms of the Fiscal Agent grce.m nt or the Prior Acquisition Agreement (its originally exticuted ar~d as amt>nded and supplemented by Supplement No. 1), or anv other aiatter related to the Bonds. Any action by the 1kyeloper or any of its successors or assic;ns breach or default or alleged breach Acquisition Apre.entent, Supplement No 1 the Original Agreement, the Fiscal agent Agreement or the Bonds, shall be limited to an action for specific performanc,e,_declaratory r relief, writ of mandate, or similar remedies to compel. Authority, Ciq,, or CFI) s compliance with such entity in respect thereof, and it) no event shall anv Board member, Councilmernber, officer or ernPloye=.e of the Authorih,, the Cite or the CFD be personallyliablee with respect to any such matters An.v such action shall be filed in the approtlij ate court within one_(j) year f ronr the date of the action by the Authority, the Cih, or the CH) that is being challen od. Deleted: Amendment. This Acquisition Agreement maybe amended, from time to time, by written Supplement hereto and executed by both the Authority and the Developer. Deleted: Counterparts. This Acquisition Agreement may be executed in counterparts, each of which shall be deemed an original. Section 10.14. pConflicts With Irrevocable Instructions or As% g!jI Agreement. In Deleted: Governing Law ; the event of any conflict bet, ven the provisions of Sections 3.82 or 185 of this Acquisition Agreement and the provisions of the Irrevocable Instructions of the Dt v elo rer to the Citv and 11- A__tr._.._.-'a.._ Ax I...,_..,_,.2 A._..Lf _i I t.. tL- ._f _..7 ...C eI- T]___],., _ .f the" AssTS~nTrr+ slTail p'O ail. Section 1€1.15. Amendment. This Acquisition Agreement may be amended from time to time, bye Written Supl)len wnt heie>to and executed by both the Authority and the Developer. Section 10.16. Counterparis. 1-his ?cquisition Agreement inay be executed in counterparts, each of tv hit h shall be de nwd ~nr original. -48- Ski Section 10.17._ Governin&-ezw. The provisions of this Acquisition Agreement shall be governed by the laws of the State of California applicable to contracts made and performed in such State. s Section 10.18. Effective Date. I his A(gLli ,ition ,~~rr eineart shall ketolne effectnvti. and c oisftioii . b.rt )nnt and SEippleinF pit Vo 1 shall z ease_to be effective, on the cla the Prior Aci ' . on which tho Authorittiend the Developi=r have both execrated this Acyuisitioti Agee nient. - I GO -49- a~ c , crig IN WITNESS WHEREOF, the parties have executed this Acquisition Agreement as of the day and year first-above written. By: "Clue forgoing Anj nd,, and Restated Acquisition Agreement is hereby consented to, incluctinR but not limited to the __proti isions of Sections 102, 303 and 3.05 By its execution below, Amtrust Bank hereby agrees that, in the event of awn conflict between the _pjCjNj,ions o 1:tlis Amended and Restated Acquisition \gre( mcnt and the provisions of the As4i r7ri~citt anal Agreement, elated as of April 20, 2006, between Ashby t-SA LLC and Ohio Savings Bank, the provisions of this Amended and Restated Acquisition Agreement shall prevail. ANITRUST BANK Date of Execution: -50 TEMECULA PUBLIC FINANCING AUTHORITY, for and on behalf of the TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH), Executive Director ASHBY USA, LLC By: Ashby Development Company, Inc., a California corporation, Managing Member By: - - Justin K. Ashby, President Deleted: and, to the extent formed as contemplated by the provisions hereof, the OVERLAY { CFD Deleted- By: . USA Investment Partners, LLC, a Nevada limited liability company, ¶ its Member!E By: USA Commercial Mortgage Company, a Nevada corporation,] Its non-Member Manager¶ Deleted: i Deleted: By Jo 200 sseah D. Iiln wski President( .01J1 009517 ,AMENDED AND 13 5"IATEL3 ACQLIISITION AGIZFI:'d1EN Deleted: OTHER PROVISIONS OF EXHIBIT A SUPPLEMENT NO. I TO ACQUISITION AGREEMENT:11 ;r DESCRIPTION OF FACILITIES ELIGIBLE FOR Section 4. Nip Obli a . n to ACQUISITION FROM THE DEVELOPER Restructure. 13on is 1lie provisions of this Supplement No. 1 shall in no c%av obligate the 1. Murrieta Hot Springs Road Authority to restructure the Series 2006 A Bonds, or to expend any of its own funds in Murrieta Hot Springs Road (MHSR) from the Westerly Boundary Line of Tract 24661 - connection with the District.n (existing end of pavement) to Butterfield Stage Road: Section 5. Release of Liability, Improvements include for full right-of-way with 2:1 slopes, paving, curb and grading I Limitation on Future Actions. j "rhe Developer fully and gutter, median curb, sidewalk, street lights, signing and striping, traffic signal(s) completely releases the City, the h i d h D d A landscaping, irrigation, storm drain, concrete slope protection, sewer and water or ty an t istrict, an ut e i ;their res ective Boarctmembers pipelines, and other appurtenant improvements necessary to complete MHSR. p , Cauncilmembers, officers, 2. Butterfield State Road employees and agents, from any 1 liability whatsoever for any and all actions or inaction, known or Butterfield Stage Road (BSR) from the Northerly tract boundary to Rancho California unknown, up to the date of Road: execution by the Developer of this Supplement No. 1, relating to i the Series 2006-A Bonds, any Improvements include grading full right-of-way with 2:1 slopes, paving, curb and ;breach or alleged breach of any gutter, median curb, sidewalk, street lights, traffic signal(s), signing and striping, of the terms of the Fiscal Agent landscaping, irrigation, storm drain, concrete slope protection, bridges over Santa I Agreement or the Original Gertrudis Creek, and Long Valley Channel, sewer and water pipelines, and other Agreement, or any other matter appurtenant improvements necessary complete Butterfield Stage Road. related to the Series 2t)o6 A Bonds. Any action by the Developer or any of its 3. Nicolas Road successors or assigns arising j from the obligations of the 3a Nicolas Road BSR to the Easterly Metropolitan Water District (MWD) R/W: Authority, the City or the District, or any actions or inaction or anv breach or default Improvements include grading right-of-way with 2:1 slopes, paving, asphalt berms, b d t id lk h lt th lit il f t t li ht l d i or alleged breach or default, by such entit wa 3 an in an an gu ter, s ewa , asp a pa , sp ra ence, s ree g s, an scap ng, cur y y y y, irrigation, storm drain, underground sewer and water pipelines, and other appurtenant related to this Supplement No. 1, improvements necessary to complete Nicolas Road. the Original Agreement, the Fiscal Agent Agreement, the Series 2006-A Bonds, any 3b Nicolas Road from the Easterly MWD R/W to Liefer Road including construction of Remarketing or any Buyback, Calle Garisol realignment to Nicolas Road: shall be limited to an action for specific performance, declaratory Improvements include grading partial right-of-way (40' travel way) with 2:1 slopes, 3 relief, writ of mandate, or similar ? remedies to compel Authority, paving, asphalt berms, curb and gutter, sidewalk, asphalt path, utility relocations, traffic City or District's compliance with detour, split rail fence, street lights, signing and striping, landscaping, irrigation, sewer, j the terms of this Memorandum storm drain, bridge over Santa Gertrudis Creek (including channel lining and transition and no monetary damages shall structure to bridge), access road, exit structure and other appurtenant improvements be incurred by any such entity in necessary to complete Nicolas Road, respect thereof; and in no event ;shall any Boardmember, Couneilmember, officer or ml Exhibit A Page 1 b 3c Nicolas Road Sewer Pipeline from Liefer Road to Joseph Road: "i Improvements include installing a 15" main line sewer including street re-pavement, _ traffic detour and other appurtenant improvements necessary to complete Nicolas Road Sewer pipeline. 3d Nicolas Road and North General Kearny Road intersection signalization: Improvements include signalization of intersection, striping, traffic control and other appurtenant improvements necessary to complete the signalization. 3e Nicolas Road and Winchester Road intersection widening and signal modification: Improvements include modifications to existing traffic signal, storm drain, paving, curb and gutter, median curb, bus turn-out, striping, traffic control and other appurtenant improvements necessary to complete the intersection and signal modifications. 4. Calle Chapos Calle Chapos from BSR to Walcott Lane: Improvements include grading half right-of-way width plus twelve feet with 2:1 slopes, paving, AC dike, storm drain and other appurtenant improvements necessary to complete Calle Chapos. 5. Long Valley Channel Long Valley Channel from the Westerly R/W of BSR to the Easterly Project Boundary: Improvements include grading of channel, flow-by detention basin, construction of drop structures, trapezoidal channel lining, transition structures to Butterfield Stage Road Bridge, rip-rap, grading and paving of access roads, fencing- and other appurtenant improvements necessary to complete Long Valley Channel. 6. Santa Gertrudis Creek Santa Gertrudis Creek from the Habitat Area to the exit channel at MWD R/W: Improvements include a flow-by detention basin, headwalls, trapezoidal channel lining and transition structures; grading, fencing and paving for access roads; desilting and detention basins, rip-rap protection, rip-rap dissipaters, berms, grading of exit structure and other appurtenant improvements necessary to complete Santa Gertrudis Creek. Exhibit A Page 2 ~s2, Environmental Mitigation Mitigation for the Long Valley Channel and Santa Gertrudis Creek improvements j . a 101 Creation of 8.2 acres of habitat within open space to include grading, access road, electrical service, irrigation, plant and seed installation and other appurtenant improvements necessary to complete resource agency conditioned environmental mitigation for the Long 'galley Channel and Santa Gertrudis Creek improvements. 8. Sports Park Sports Park at the SE corner of the intersection of North Loop Road and Butterfield Stage Road: Construct 19.7-acre Sports Park including grading, parking, building, lighting landscaping, irrigation, playing fields, basketball courts, children's play area, equipment with a useful life of five (5) years or more and other appurtenant improvements necessary to complete the Sports Park. 9. Fire Station Site GradinZ Roripaugh Ranch Fire Station site grading Improvements include site grading and other appurtenant improvements necessary to provide a rough graded fire station site. 10. North Loop Road North Loop Road from BSR to Gate House East of BSR (Public Section only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, North Loop Road Bridge: and other appurtenant improvements necessary to complete the public segment of the North Loop Road East of BSR. 11. South Loop Road South Loop Road from BSR to Gate House East of BSR (Public Section only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete the public segment of the South Loop Road East of BSR. Exhibit A Page 3 12. RorjpauQh Valley Road~A Street I Roripaugh Valley Road Grading and Street Improvements from Murrieta Hot Springs Road to Butterfield Stage Road: Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete Roripaugh Valley Road between Murrieta Hot Springs Road and Butterfield Stage Road. 13. Fiesta Ranch Road B Street Fiesta Ranch Road Grading and Street Improvements from Roripaugh Valley Road to Nicolas Road: Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, stornt drain, sewer and water pipelines, and other appurtenant improvements necessary to complete Fiesta Ranch Road between Roripaugh Valley Road and Nicolas Road. 14. Neighborhood Park Neighborhood Park at the SW corner of the intersection of Murrieta Hot Springs Road and Roripaugh Valley Road (A Street): Construct 5.1-acre Neighborhood Park including grading, parking, restroom building, lighting, landscaping, irrigation, open grass area, basketball court, children's play area, equipment with a useful life of five (5) years or more and other appurtenant improvements necessary to complete the Neighborhood Park. Exhibit A Page 4 E s~ AMENDED AND RESTATED ACQUISITION AGREEMENT EXHIBIT B DISCRETE COMPONENTS OF PHASE I FACILITIES AND RELATED BUDGETED COSTS Facility Discrete Segment MLIRRIETA HOT SPRINGS ROAD la_ Murrieta I4ot Springs Rd from W. Bndry of Tr 29661 to N_ Bndry of Tr 29661 lb. Murrieta Hot Springs Rd from N. Bndry of Tr 29661 to Westside of MWD ROW- 2,300' lc. Murrieta I lot Springs Rd from Westside of MW1) ROW to Butterfield Stage Rd- 1,500' Rough Grading %25,614 Deleted: .40 Finish Grading 57,87(~ Water $84,23$ Deleted: .45 Streets 1281, { Deleted: .33 K)4118-L2 Deleted: 494 !Deleted. .45 'Deleted: $611,854 Rough Grading $602,129 Finish Grading $83,817 Storm Drain $284,593 Water $323,772 Streets 49729 Deleted: 408 - D leted: Landscape/Irrigatio n Deleted: $115,854 c rill Rough Grading $396,050 - - 1 Finish Grading $64,973 Storm Drain $423,636 Sewer $23,810 Water $209,522 Streets % $058 Deleted: 931 r _ Deleted $40149 187 01.9 Deleted: Landscape/Irrigatio TOTAL FOR MURRIETA HOT SPRINGS ROAD ~4,~4G3,441 n _ _ Deleted: $2,089,197 i Deleted: $5,014,444 I& 1b. and 1c__i4p. dLAJ1 of the _Q' wrete Deleted: Page Exhibit B <~~.fe l ~~~i BUTTERFIELD STAGE ROArY' 2a. Butterfield Stage Rd from North R.O.W. of Murrieta I lot Springs Rd to North ROW of Nicolas Road-2,300` Rough Grading 51,478,326 to Grading $177,095 Deleted: Finish Water $203,025 ?b, Butterfield Stage Rd from Nicolas Rd, to Deleted: Streets 550' South of Nicolas Rd-550' Deleted: $7,127,442 Rough Grading $176,869 I . axle Grading 521,744 [13- Sewer $68,737 Deleted: - Finish Water $134,109 a- 4 ~14 tnd ttitx. Gcrtru<Lis C, 5 Deleted Streets (-Fos-sing), $7,077,381 Deleted $242,534 2c Butterfield Stage Rd from 550'S/ of 1 Deleted: Bridge(Sta. Gertrudis Nicolas Rd to Sly Bndry Line-1,910` Crossing) Rough Grading $950,554 Deleted $6,675,0902 irte Grading $88,019 Sewer $176,054 ~ I15 Water - $155,728. Deleted: Finish Bridge (Long Valley %1,724,569 - Crossing) 16 S,1094,924 l_ 17 2d €1 t L t 0 T . ~ Deleted Landscape/Imgatio o 1230'N/of tmr a.Sere i i Way- Tract 29513 to n 2,1(t _A ltut C anniF) ~ a - - 1 Deleted: $130,371 Butterfield Stage Rd from~0 N! of I _a $0 Deleted: t $4,551,255 Serena Way to,700'Sj ofj_,a_Serena Way- Deleted: _ - 2d - ti 91MY ~Deleted_ S/Bndry 2f. Butterfield Stage Rd from 700'S/ of Deleted: Tract 295 033 I JaSerena to Chemin Chnet 1/_2 Width- ' 1230'N 2,620 Deleted: / Rough Grading $777,529 Deleted: La Finish Grading $129,000 Deleted: 2,110'(50% within Storm Drain $160,768 „County) Streets $1,822,880 Landscape/Irrigation $0 D 1g $3,051,999 eleted: LaSerena all of the t~iscrett Conxlx:nent Iinat~tt tear= ~ naisxtti'r 1 2c nd ?e c~thcr thin ~s s}}cry n abox~itas b a z~ . subsnnlEd ints,>,,,C itv tntprovement SeQm nU, ?,5 , 2:., 2t_ 2d, and ?r ,f Deleted. Page Exhibit B rf~~_ 2 2g- Butterfield Stage Rd from Chemin to Rancho California Road from existing paving to easterly ROW-2600' Rough Grading $167,221 Finish Grading $37,234 Storm Drain $0 Streets $980,200 Landscape/Irrigation $0 $1,184,655 TOTAL FOR BUTTERFIELD STAGE RD: .fi1Fs269,4t15 _ t Deleted: $26,393,674 3 NICOLAS ROAD 3a. Nicolas Road from Butterfield Stage Road to MWD ROW-1200' Rough Grading $267,136 Finish Grading $32,677 Storm Drain $357,774 Sewer $143,684 Water $62,922 Streets $570,691 Landscape/Irrigation $59,298 $1,494,183 3bl. Nicolas Road from MWD ROW to 450' East of Calle Girasol-2,400' Rough Grading $38,431 Finish Grading $71,009 Storm Drain $67,505 Sewer $502,112 Streets $446,715 Landscape/Irrigation $0 $1,125,772 3b2. Nicolas Road from 450' East of Calle Girasol to E. ROW Liefer Rd-1,180' Rough Grading $113,498 Finish Grading $97,193 Storm Drain $0 Sewer $14,788 Streets $221,721 Bridge(Sta. Gertrudis $2,854,797 Crossing) Landscape/Irrigation $0 $3,432,998 SUBTOTAL FOR NICOLAS ROAD (new): fi 6tlQ,f7fi,..-_ . {Deleted: $6,052,953 Deleted: Page Exhibit B 3c Nicolas Road Trunk Sewer from 190'1^/ of Leifer Rd to Joseph Rd-2,'770' Sewer t Streets 3d Nicolas Road Co North General Kearney Signalized Intersection Signalization 1 5 6 3e Nicolas Road @ Winche-iter Road Intersection Widening and Signal Modification $547,757 $0 5547,757 $219,896 $219,896 Intersection Mods $3,259,093 $_3,259,093 TOTAL NICOLAS ROAD: 510,62"1,4.54. Deleted: 079,699 CALLE CHAPOS-" Calle Chapos from Butterfield Stage Rd to Walcott Lane-500' (Deleted: $23835 _ _ (Deleted: Rough Grad r a 'LONG VALLEY CHANNEL_ Long Valley Channel from MWD ROW to Easterly Project Boundary SANTA GERTRUDIS CREEK CHANNEL 6a. Santa Gertrudis Creek from Habitat Area to North Loop Road f Deleted: $11,940 f Deleted. Finish Gradi TOTAL FOR CALLE CHAPOS: SP Deleted: $98,428 Deleted Storm Drain IIeleted: $117,359 Deleted: Streets TOTAL FOR LONG VALLEY CHANNEL $7,685,939 ° Deleted( 251,562 Segment $1,736,244 Subtotal 6b. Santa Gertrudis Creek from North Loop Road to MWD Segment $1,406,978 Subtotal Il ut tltt Ury rc tc C orn,;,l ~~tEnt h tic14ett n- Faulity_ No. 4 ha:; b(ct n substimeil into CCitN, 1"2r(v ment,15i t , T Deleted: Page ~i Exhibit B TOTAL FOR SANTA GERTRUDIS CREEK: $3,143,222 ,9 12 13 FIRE STATION SITE GRADING Fire Station Site Grading PA32 TOTAL FOR FIRE STATION GRADING: - _ - n $144,63, j Deleted: .12 .12 RORIPAUGH VALLEY ROAD (A Street Roripaugh Valley Road Grading and Street Improvements from Mlurrieta Hot Springs Rough Grading $707,311 Road to Butterfield Stage Road Finish Grading $56,692 Storm Drain $530,129 Sewer $69,612 Water $192,732 Streets $460,665 Landscape/irrigation $22,082 TOTAL FOR RORIPAUGH VALLEY ROAD (A STREET) FIESTA RANCH ROAD (B Street) Fiesta Ranch Road Grading and Street Improvements from Roripaugh Valley Road to Nicolas Road $2,039,223 Rough Grading $406,555 Finish Grading $38,349 Storm Drain $25,683 Sewer $106,506 Water $156,915 Streets $326,280 Landscape/ Irrigation $44,118 TOTAL FOR FIESTA RANCH ROAD (B STREET) $1,104,406 OVERALL TOTAL: 1442,926,692. _ i Deleted: $55,862,312 Deleted: Exhibit S AMENDED AND. RESTATED ACQUISITION AGREEMENT EXHIBIT C GE FORM OF PAYMENT REQUEST PAYMENT REQUEST NO. The undersigned (the "Developer"), hereby requests payment in the total amount of $ for the Facilities (as defined in the Amended and Restated Acquisition Agreement, dated as ofr_Tl ~ ,f it 2009, between the Temecula Public Financing Authority (the 'Authority"), I neletea: March 1, 2006 for and on behalf of the_.'Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch), and the Developer), or Discrete Components thereof (as described in Exhibit B to that Agreement), all as more fully described in Attachment 1 hereto. In connection with this Payment Request, the undersigned hereby represents and warrants to the Authority as follows: 1. He(she) is a duly authorized officer of the Developer, qualified to execute this Payment Request for payment on behalf of the Developer and is knowledgeable as to the matters set forth herein. 2. To the extent that this payment request is with respect to a completed Facility, the Developer has submitted or submits herewith to the City of Temecula (the "City") as-built drawings or similar plans and specifications for the items to be paid for as listed in Attachment 1 hereto with respect to any such completed Facility, and such drawings or plans and specifications, as applicable, are true, correct and complete. To the extent that this payment request is for a Discrete Component, the Developer has in its construction office a marked set of drawings or similar plans and specifications for the Discrete Components to be acquired as listed in Attachment 1 hereto, which drawings or plans and specifications, as applicable, are current and show all changes or modifications which have been made to date. 3. All costs of the Facilities or Discrete Components thereof for which payment is requested hereby are Actual Costs (as defined in the Agreement referenced above) and have not been inflated in any respect. The items for which payment is requested have not been the subject of any prior payment request submitted to the Authority. 4. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested. 5. There has been compliance with applicable laws relating to prevailing wages for the work to construct the Facilities or Discrete Components thereof for which payment is requested. 6. The Facilities or Discrete Components thereof for which payment is requested were constructed in accordance with all applicable City or other governmental standards, and Exhibit C Page 1 in accordance with the as-built drawings or plans and specifications, as applicable, referenced in paragraph 2 above. 7. The Developer is in compliance with the terms and provisions of the Acquisition Agreement and no portion of the amount being requested to be paid was previously paid. 8. The Purchase Price for each Facility or Discrete Component (a detailed calculation of which is shown in an Attachment 2 hereto for each such Facility or Discrete Component), has been calculated in conformance with the terms of Section 5.06 of the Acquisition Agreement. 9. Neither the Deg=eloper nor any Affiliate (as defined in the Acquisition Agreement) is in default in the payment of ad valorem real property taxes or special taxes or special assessments levied in the CFD (as defined in the Acquisition Agreement), except as follows: I herebv declare under penalty of perjury that the above representations and warranties are true and correct. DEVELOPER: ASHBY USA, LLC By Authorized Representative of the Developer Date: AUTHORITY: Payment Request Approved for Submission to the Director of Finance of the City of Temecula By: Date: Director of Public Works Exhibit C Page 2 AT'T'ACHMENT 1 EXHIBIT C [list here all Facilities or Discrete Components thereof for which payment is requested, and attach support documentation] Exhibit C-1 Page 3 ATTACHMENT 2 EXHIBIT C CALCULATION OF PURCHASE PRICE [Use a separate sheet for each Facility or Discrete Component for which payment is being requested] 1. Description (by reference to Exhibit B to the Acquisition Agreement) of the Facility or Discrete Component 2. Actual Cost (list here total of supporting invoices and/or other documentation supporting determination of Actual Cost): $ 3. Budgeted Cost: $ 4. Permitted Addition to Budgeted Cost (to the extent, and only to the extent, that Actual Cost exceeds Budgeted Cost), consisting of Savings (Actual Costs less than Budgeted Cost) carried forward from prior acquired Facilities/ Discrete Components (see first paragraph of Section 5.06A) and not previously applied to cover cost overruns (Actual Costs greater than Budgeted Cost) on previously acquired Facilities: $ 5. Subtractions from Purchase Price: A. Holdback for Lien releases (see Section 5.06(C) of the Acquisition Agreement) $ B. Retention (see Section 5.06(D) of the Acquisition Agreement) $ 6. Total disbursement requested (amount listed in 3, plus amount, if any, listed in 4 (total of amounts in 3 and 4 not to exceed amount listed in 2), less amounts, if any, listed in 5) $ Exhibit C-2 Page 4 j A MENDEL) A"tiL)_i ESTA;TERACQUISITION AGREEMENT EXHIBIT D PRIORITY FOR FUNDING OF FACIL ITIES",' Priority A funded by proceeds ofAw J3onds, subject to the prir5rit;t <=t, it ion 3 2 of thu Amended and Rcstatecl Deleted: first series of bonds cduz,iiion AWcee,ment_ issued by Priority B- Bond funding only available after all priority A facilities complete. Deleted: CFD Facility Priority No. Description ABudget w B - Budget _ " 1_ MURRIETA HOT SPRINGS ROAD A a~ 4e3,941 $0 (Deleted: $5,0I9,944 2 BUTTERFIELD STAGE ROAD A r l n,2r =t ti_5 $0 j Deleted: $26,393,679 3 NICOLAS ROAD B $o $10,f227,15 I E Deleted: 079,699 4 CALLE CHAPOS $0 l -1 Deleted: B eleted. 251,562 5 LONG VALLEY CHANNEL A $7,685,939 $0 6 SANTA GERTRUDIS CREEK CHANNEL A $3,143,222 $0 7 ENVIRONMENTAL MITIGATION B $0 $1,030,706 8 COMMUNTFY SPORTS PARK B $0 $5,645,611 9 FIRE STATION SITE GRADING A $144,638 $0 10 NORTH LOOP ROAD B So $2,223,285 11 SOUTH LOOP ROAD B $0 960,449 12 RORIPAUGH VALLEY ROAD (A Street) B $0 2,039,223 13 FIESTA RANCH ROAD (B Street) B $0 $1,104,406 14 NEIGHBORHOOD PARK B $0 $1,516,655 i OV ERALL TOTAL $+54.303.396 $81...07145 525,147 789 I 20 l Exhibit D Page 1 ANNE DEf)A' I)RES'I S_l~EI7 ACQUISITt()' 1C;i{lI~.t _i 2M,;. EXHIBIT E a g LIT-` IMPIRC)0't.1II:NTS e acilih' I stimated Cost so. nt~iit t7escriltfiir~n to! rompltte t, t4( !ttAiVI A kit)T SPRINGS ROAI) Murrieta la, an5 Rd from W. Puilrv vf'I r 2~h6a_I:o_N. l ~ S(, 3,f1Gi) i i ? i 111. ri to Ilia 5111 1114S Rd +it,nt N- I idr,~ at.I r ' 9bt~1..a;) lei St,iy_t~ l .I',ti,Sf?t? f at I) LZ-(,L~t1Cl' f c. MUrrieta Hot S'il ltm Slat ttt}xr4 jti EbtSHIB of iluttC rfil ld `ita e ltd-l 7t)ft' I BUFFERFIELD STAGE ROAD a. Butterfield Stag Rd from North RC?W of Mun-iota HotSprin„s ~1~763;i0F) l.d to ?fit}rth ROW of Nicolas Rani 2 3OCI 2h. Butterfield 5taf; ltd fr~in i~ rc E to Rd to s?{I 5,outh of Nicola'.. S1,696,370 _ Rd-550' 2c F3utterfiekt SEage Rd ffrcap »4Oyc of Nicolas Rd, to Sly,Bndr _S;84 3E Q I irse 1,9 1Q' ct 24533 to 123YIN, of e d o 2d, B fr tt 5 i,070 l I l tit) lh ting urmty than C a o) . 2e, butte rfic ld Stake Rd- fr__111 t 3C1'N I (if La Serena ,tL av to La S31i)64.0 0 ~ Scxena le 7,9:301 £ MLLE CHAK)S Calle Chapos from Butterfield Stave Rd to ttialcott Lane-500' ?t Ei 50l} lete the above-listed City lmprotrerttertts total estimated cast to canmp 72,T~ 1 t 2(} Exhibit E Page 1 et =4F a AMENDED AND RFSTATED ACQUISITION AGREEMENT EXHIBIT 1 ATTACHMENT ORDERS AND PRIORITY LIEN CLAIMS The follovvnly,_are the "Attachment Orders relerertced in Section 3.05 of the Amended and Restated :lccluisition ;\hreemont: ( Park nest claim for $7-55,383,(,.)4 for work related to items not tonstituting Facilities, and 2. anv other order of atta( hment of a court of relevant jUrisdiction served upon the CitN, the ,Aathorit~7 or the CFD in anyway pertaining to work performed in, on or about, or of benefit to, the ro ~ertg located within the CFD, in addition to the for_e,oin The follo>,ving are the "Priority Lien Claims" referenced m Section 3.05 of the Amended and Restated Acquisition Agreement: 1. Rierside C~onstrvction $5,189,004.03` for work and materials associated with the construction of the Butterfield `.stage Road bridge crossings of `,anta tJectrudrs Creek & Long Valley Trash (l~acditirs 2b & 2i as described in Exhibit B); 2. RJ Noble. Constnu:tion $260,391.8,51 for work and materials associated with the construction of the street improvements of "hrrrieta Hot Springs Road (Facilities la, It), R lc. as described in FFxhibit B~; 3. Utah Pacific $335,849.15 for work and materials associated with the sewer and water imprOVemeILS for Murrieta Hot Springs Road, Butterfield. Stye _1Z2id, Nicolas Road (Facilities I a 'I b, Le .a, 2b, 2c, 3a, 31)1, 3b2, 3c); 4. KIP 38,852.80 for work and materials associated with the CAN,, maintained storm drain. improvements for 1lurrieta I -Jot Springs Road,. Butterfield Stage Road tN,- Nicolas Road (Facilities Ib, lc, 2a, 2b, 2c 3a, 31b1); 5. Conteclr $848,532.24 for furnishing materials associates{ with the construction of the Butterfield c 6. John Byerlt= ' 153,459.43 . Deleted: D ExMbit,F Page 1 0 ~s "S for furnishiiW €>cotechnicil materials testing associated with they vradinif for Murrieta Ilot' prmEs Road, Butterfield Staae Road and Nicolas Road (Fatilitics I a, III, E c, 21). 2b, 2c, & 1a); 7. [)avid Evans Associates 5260,045.87 for turnishi#w en&i1jeering design services associated v id the a_adiaag tar Murrieta fl.ot Springs Road, Buttirf;eld `?tage Road and Nicolas Road (Facilities to 1 h, 7 c 2a 2b, 2e , 2d, 2e 2f, 2g, & 3a); 8- VA Consulting $289,539.20 for furni,~hiniy engineerint, design and construction staking- servi es associated as ath the grading for Murrieta I-lot Sdarirags Road Butterfield Stage Road and Nicolas Road (FaiilitieS 1a ib, Ic 2a, 2b 2c, 2d 7c, 2f, 2p & 3a_ 9. Anderson Drilling $106,87/0.55 for work and materials associated with the construction of Butterfield Stage. Road bridge crossings of Santa tier trudis Creek & Lon, V allery° Wash Facilities 2b k- 2cc, as described in Ethibit B ; and 10. anv other lien filed with the City, the Authority or the CFD by any entity for 0111-NI foregoing. in * I'xeludes legal fe es.and interest, whictiRive a tit 3c„Construction is also claiming. Exhibit,l Page 2 Deleted: D ~ 040, Page 5: _113 Deleted Carolya Aatoai o 4/2112009 11c1 AN "Remarketing" means the repurchase of the Series 2006-A Bonds from the then owners thereof, and the offer and sale of any Series 2006-A Bonds repurchased (or of a series of Bonds the net proceeds of which would be used, along with amounts in the Improvement Fund if and to the extent such net proceeds were insufficient, to refund any Series 2006-A Bonds repurchased) to such owners or to such other persons and/or entities as the Authority shall determine; provided that the annual debt service on the Series 2006-A Bonds following the remarketing shall not be greater than the annual debt service on the Series 2006-A Bonds prior to the remarketing (it being acknowledged that, should the yield on the Series 2006-A Bonds need to be increased to complete the remarketing, either (i) the principal of the Series 2006-A Bonds following the remarketing will be less than the principal amount of the Series 2006-A Bonds prior to the remarketing or (ii) the remarketing proceeds will be less than the amount of the repurchase price of the Series 2006-A Bonds and, in either case, the difference will be funded with amounts in the Improvement Fund, as described in Section 5.11). A Remarketing may involve all or a portion of the outstanding Series 2006-A Bonds, and may be done on the basis of an optional tender of the Series 2006-A Bonds, all as determined by the Authority in its discretion. addition to Exhibit B of additional Facilities (and Budgeted Costs and Discrete Components) to be financed with the proceeds of the Bonds deposited in the Improvement Fund. investment earnings thereon deposited to the Improvement Fund, will be sufficient for payment of the Purchase Price of all of the Facilities. The Developer agrees to assist the Authority in the preparation of any disclosure document or continuing disclosure agreement deemed necessary by the Authority to issue each series of the Bonds, including but not limited to the submission of information reasonably requested by the Authority's disclosure counsel, any appraiser or any market absorption consultant in connection with the preparation of disclosure materials for the sale of each series of the Bonds, and the provision of such continuing disclosure obligations, certifications and legal opinions as may be reasonably required by the underwriter of each respective series of the Bonds. The Developer hereby agrees to cooperate with the Authority in connection with any Remarketing or Buyback as may be reasonably requested by the Authority, including but not limited (i) providing such information as is requested by the Authority, or by any appraiser, absorption consultant, bond underwriter or disclosure counsel, in order to prepare an absorption analysis, an appraisal and a disclosure document with respect thereto, all in form acceptable to the Authority; (ii) obtaining such information as is requested by the Authority, or by any appraiser, absorption consultant, bond underwriter or disclosure counsel, from KB Horne Coastal or other merchant builders of land in the CFD, in order to prepare an absorption analysis, an appraisal and a disclosure document with respect thereto, all in form acceptable to the Authority; (iii) providing such certifications and legal opinions as are reasonably requested or otherwise customary in the marketing of tax-exempt land secured community facilities district bonds with regard to the information described in the preceding clause (i); (iv) if -1- requested by the Authority, and even though it acknowledges that it is not a party to or an intended third party beneficiary of, the Fiscal Agent Agreement, provide its consent to any amendments to the Fiscal Agent Agreement determined by the Authority as necessary to facilitate and complete a Remarketing or a Buyback; and (v) paying of the costs of the Authority and the City, and their attorneys, financial advisors, and other consultants related to the Remarketing or Buyback, as further provided in the Deposit Agreement between the Authority, for itself and for the CFD, and the Developer, as executed by the Authority on March 6, 2007. Developer acknowledges and agrees that a successful Remarketing or Buyback will require significant information from the merchant builders of land in the CFD and their full cooperation in providing such information. Notwithstanding the foregoing or any other provision of this Acquisition Agreement, nothing in this Acquisition Agreement shall require the Authority to undertake, assist in or complete any Remarketing or Buyback. Section 3.03. Bond Proceeds. The proceeds of the Bonds shall be deposited, held, invested, reinvested and disbursed as provided in the Fiscal Agent Agreement. A portion of the proceeds of the Bonds will be set aside in the Improvement Fund. Moneys in the Improvement Fund shall be withdrawn therefrom in accordance with the provisions of the Fiscal Agent Agreement and the applicable provisions hereof for payment of all or a portion of the costs of construction and/or acquisition of the Facilities (including payment of the Purchase Price of Discrete Components thereof), all as herein provided. It is hereby acknowledged that the proceeds of the sale of the Series 2006-A Bonds will not be sufficient to fund the Purchase Prices of all of the Facilities. Accordingly, available Series 2006-A Bond proceeds will be used by the Authority to make deposits under the Fiscal Agent Agreement as necessary to fund the following in the following order of priority: (i) the costs of issuance of the Bonds; (ii) the reserve fund for the Bonds in the amount required by the Fiscal Agent Agreement; (iii) capitalized interest for the Bonds for a term determined by the underwriter for the Bonds, the Authority's financial advisor and the Authority Treasurer as appropriate in the circumstances; (iv) an amount necessary to reimburse the Developer for amounts advanced by it for a fire station pursuant to the Conditions of Approval (being a total of $3,100,000 as of the date of this Acquisition Agreement); (vi) an amount to pay administrative expenses for the CFD during the capitalized period as determined by the Authority Treasurer; (vi) an amount necessary to discharge outstanding assessment liens on the property in the CFD; (vii) amounts to be deposited to the Public Works Administration Account, the City Account and the EMWD Account, in that order, under and as such terms are defined in the Fiscal Agent Agreement as determined by the Treasurer following consultation with the Developer; (viii) remaining amounts shall be used to pay costs of the Facilities indicated as Priority A in Exhibit D hereto, except that, as to Facility No. 2 (as to which it is acknowledged that the Developer has expended at least $3,000,000.00 towards the construction thereof as of the date of issuance of the 2006 Bonds), up to $2,923,025.60 of the Purchase Price for such Facility shall not be disbursed to the Developer unless and until the Director of Public Works determines that the amounts to remain on deposit in the Acquisition Account following such disbursement will be sufficient to pay the Purchase Prices of all of the Priority A Facilities in Exhibit D not theretofore paid to the Developer; and (ix) when all costs of the Priority A Facilities have been paid in full, as determined by the Director of Public Works, for Facilities indicated as Priority B on Exhibit D hereto. The Developer acknowledges that the Authority will deposit $1,000,000, plus an amount equal to ten percent (10%) of any net Bond proceeds available to pay the Purchase Prices of Facilities that are in excess of $42,000,000 (being an -2- amount equal to $1,000,000 plus $62,710) into the City Account under the Fiscal Agent Agreement to pay for improvements other than those listed on Exhibit A thereto and that any amount so deposited will not be available to pay for the Purchase Prices of Facilities under this Acquisition Agreement. Notwithstanding the foregoing provisions of this paragraph and of the preceding paragraph, the Authority may use amounts on deposit in the Improvement Fund for the purposes described in Section 5.11, on a basis senior to any use of such funds for the purposes described in clauses (viii) and (ix) of the second sentence of this paragraph. The Developer agrees that the Authority alone shall direct the investment of the funds on deposit in the funds and accounts established by or pursuant to the Fiscal Agent Agreement, including the Improvement Fund, and that the Developer has no right whatsoever to direct investments under the Fiscal Agent Agreement. The Authority agrees to consider, in preparing the Fiscal Agent Agreement, provisions which allocate investment earnings on funds held thereunder during the period of construction of the Facilities to the Improvement Fund. The Authority shall have no responsibility whatsoever to the Developer Section 3.04. [Intentionally Deleted.] Section 3.05. Letters of Credit. Prior to the issuance of the Series 2006-A Bonds, the Developer shall provide or cause to be provided to the Fiscal Agent for each owner of land and its Affiliates (a) that are projected by the Tax Consultant Bonds to be subject to 10% or more of the expected annual special tax levy in the CFD (assuming Build-Out) following the issuance of the Series 2006-A Bonds, and (b) that own land in a planning area and either (i) the then Parcel Value of such land is less than three times the Parcel Liens for such land, or (ii) there are conditions precedent to the issuance of building permits for all lots to be developed in such plarming area, as such conditions are set forth in the Preannexation and Development Agreement, dated as of December 17, 2002, by and between the City and the Developer as amended (the "Conditions"). It is hereby acknowledged that, as of the date of issuance of the Series 2006-A Bonds, none of the other entities that own property in the CFD is an "Affiliate" of the Developer. Each Letter of Credit delivered to the Fiscal Agent shall be accompanied by a written certificate from the provider thereof or the Account Party which identifies the County of Riverside Assessor's parcels in the CFD to which such letter of credit pertains. A Letter of Credit provided to the Fiscal Agent shall be subject to draw by the Fiscal Agent (i) in the amount of any special taxes levied by the CFD on any of the "parcels in the CFD to which the Letter of Credit pertains" (as such phrase is defined in the next paragraph) which are delinquent; or (ii) in whole if the Letter of Credit (or the confirming letter of credit, if one is provided with a Letter of Credit) expires prior to the date on which it is eligible for release in whole as described below and a replacement Letter of Credit (which may include a confirming letter of credit) satisfying the criteria described in the definition "Letter of Credit" in Section 1.03 is not delivered to the Fiscal Agent at least 5 days prior to such expiration date; (iii) in whole, if the rating of the unsecured debt obligations of the provider of the Letter of Credit have been reduced to BBB or its equivalent or lower by Moody's Investor's Service or Standard & Poor's Ratings Group (if a confirming letter of credit has been delivered together with a Letter of Credit, the foregoing rating criteria shall be applied to the ratings of the institution ~l providing the confirming letter of credit). Amounts drawn on any Letter of Credit pursuant to Elk, -3- the preceding clause (i) will be deposited to the special tax fund for the CFD Bonds and used for the purposes of such fund, and amounts drawn on any Letter of Credit pursuant to the preceding clause (ii) or (iii) will be held in the reserve fund for the CFD Bonds and drawn upon, with the proceeds of the draw deposited to the Special Tax Fund, for the CFD Bonds, in the amount of any delinquent special taxes levied in the CFD with respect to the parcels in the CFD to which the Letter of Credit pertains, or released or reduced to the same extent the corresponding Letter of Credit would have been released or reduced as described in the succeeding paragraph of this Section 3.05. The Authority will cause the Fiscal Agent to reduce the amount available to be drawn on a letter of credit from time to time, but not more than once every six months (commencing no sooner than six months after the closing date for the initial series of the Bonds), upon the presentation to the Treasurer of a written estimate as to the expected annual special taxes that may be levied on parcels in the CFD to which the Letter of Credit pertains, assuming Build-Out (the "Maximum Amount"). In calculating the Maximum Amount (and for purposes of the first and last sentences of the prior paragraph and clause (11) of the first sentence of the second following paragraph), the term "parcels in the CFD to which the Letter of Credit pertains" shall mean the parcels in the District which were initially identified by the applicable Account Party as being the subject of the respective Letter of Credit less any parcels that are, at the time of calculation, (a) owned by a party unaffiliated with the applicable Account Party, so long as the maximum Special Taxes levied on such parcels (assuming Build-Out) is less than 10% of the District-wide Maximum Special Taxes, (b) in a planning area whose Parcel Value is more than three times the Parcel Liens, and are not subject to Conditions which Conditions apply to all lots to be developed in the planning area in which the parcels are located; (c) subject to a a separate Letter of Credit, as described below; or (d) owned by individual homeowners. If the Maximum Amount, multiplied by two (herein, the "Revised Stated Amount"), is less than the current stated amount of the applicable Letter of Credit, then the Treasurer shall provide written direction to the Fiscal Agent to reduce the applicable Letter of Credit by the difference between the current stated amount of the Letter of Credit and the Revised Stated Amount of the Letter of Credit. Promptly following receipt of such written direction from the Finance Director, the Fiscal Agent shall complete and deliver to the applicable Letter of Credit provider the appropriate certificates and annexes to the subject Letter of Credit to effectuate the reduction of the stated amount of such Letter of Credit. Notwithstanding the foregoing, a Letter of Credit shall not be reduced if the reason for the reduction is the sale of property to an owner (I) that will own, together with its Affiliates, property responsible for 10% or more of the expected annual Special Taxes that may be levied on such parcels in the CFD (assuming Build- Out), and (II) that will own land in a planning area and either (x) the then Parcel Value of such land is less than three times the Parcel Liens for such land, or (y) there are Conditions precedent to the issuance of building permits for all lots to be developed in such planning area; unless the new property owner provides evidence that the new owner has posted its own Letter of Credit securing the payment of special taxes to be levied by the CFD on such property. Notwithstanding any provision of this paragraph to the contrary, the word "Conditions" when used in this paragraph means the conditions precedent to the issuance of building permits for all lots to be developed in the applicable plaiu-ting area, as such conditions are set forth in the Preannexation and Development Agreement, dated as of December 17, 2002, between the City and the Developer, as in effect on the date of issuance of the Series 2006-A Bonds, whether or not the City later determines to waive or defer some of such conditions as a precedent to providing building permits, with the purpose and effect that a Letter of Credit will not be -4- subject to release by reason of the provisions of clause (b) of the second sentence of this paragraph until the infrastructure improvements described in such Preannexation and Development Agreement as conditions precedent for the release of the applicable building permits have been completed. The Authority hereby acknowledges that the provisions of clauses (a) and (c) of the second sentence of this paragraph allow that: (i) if a purchaser of property in the CFD provides a letter of credit of the character described in the preceding paragraph with respect to the property so purchased, any letter of credit then held by the Fiscal Agent pertaining in whole or in part to the property so purchased shall be subject to reduction by the amount available to be drawn on the letter of credit so provided by such purchaser; and (ii) if a purchaser of property in the CFD is unaffiliated with the Account Party for any letter of credit then held by the Fiscal Agent pertaining to the property so purchased, and the conditions described in clause (a) of the second sentence of this Section 3.05 are satisfied, the letter of credit so held by the Fiscal Agent shall be subject to reduction so that the remaining amount available to be drawn on such letter of credit is as required by clause (viii) of the definitions of "Letter of Credit" in Section 1.01 with the parcels so purchased not to be considered as parcels to which such Letter of Credit pertains. received for any particular Facility or Discrete Component the Developer owns three- fourths of the area of lands in the CFD taxed or liable to be taxed for purposes of the CFD, the Developer or a designated agent thereof (who shall provide the Director of Public Works with a written declaration under penalty of perjury in form acceptable to the Director of Public Works to the effect that the Developer so owns such land and, if applicable, that such other entity is such an agent), the Developer or its designated agent may, within 10 days after the publication of the notice of the award of the contract, elect to perform the work and enter into a written contract to do the whole work at prices not exceeding the prices specified Page 21: [s] Deleted Carolyn antonio 4/21/2009 11:33:00 AK- -bid of the bidder to whom the contract was awarded, and all work done under the contract shall be subject to all provisions of this Acquisition Agreement other than the requirement that the contract work be awarded to and performed by the lowest responsible bidder. The Developer shall advise the Director of Public Works page at t7elata cac~lyn` Antann , 4 f2oo9 13s'33s€}U°" if the Developer elects not to perform the work and not to enter into a written contract for that work within 10 days of publication of the notice of the award of the contract (as evidenced by its failure to provide the written notices described in the second preceding sentence within such 10 day period), or if the Developer (or its agent, as applicable) fails to commence the work within 15 days after the date of the written contract entered into by the Developer (or its agent) and the Authority and to continue that work with diligence to completion, as determined by the Board of Directors of the Authority, a contract shall be entered into by the Authority, on behalf of the CFD with the original bidder to whom the contract was awarded at the prices specified in his or her bid. D. Scheduling. The Developer shall develop or cause to be developed and shall maintain or cause to be maintained a schedule, using the critical path method, for the construction of the Facilities to be acquired hereunder. The Developer shall provide the Director of Public Works with complete copies of the schedule and each update to the schedule for the Director's review. Q-: -5- r E. Periodic Meetings. From time to time (expected to be at least every two weeks) at the request of the Director of Public Works, representatives of the Developer shall meet and confer with City staff, consultants and contractors regarding matters arising hereunder with respect to the Facilities, Discrete Components and the progress in constructing and acquiring the same, and as to any other matter related to the Facilities or this Acquisition Agreement. The Developer shall advise the Director of Public Works in advance of any coordination and scheduling meetings to be held with contractors relating to the Facilities, in the ordinary course of performance of an individual contract. The Director of Public Works or the Director of Public Work's designated representative shall have the right to be present at such meetings, and to meet and confer with individual contractors if deemed advisable by the Director of Public Works to resolve disputes and/or ensure the proper completion of the Facilities. Section 4.04. Independent Contractor. In performing this Acquisition Agreement, the Developer is an independent contractor and not the agent or employee of the Authority, the City or the CFD. None of the Authority, the City or the CFD shall be responsible for making any payments directly or otherwise to any contractor, subcontractor, agent, consultant, employee or supplier of the Developer. Section 4.05. Performance and Payment Bonds. The Developer agrees to comply with all applicable performance and payment bonding requirements of the Authority (and other applicable public entities and/or public utilities) with respect to the construction of the Facilities listed in Exhibit B hereto. Performance and payment bonds shall not be required of the Developer to the extent moneys are available in the Improvement Fund to pay the Purchase Price of a Facility (and consistent with the Budgeted Costs therefore shown in Exhibit B and the limitations expressed in Section 5.06 hereof); provided that all contractors and/or subcontractors employed by the Developer in connection with the construction of Facilities listed in Exhibit B hereto shall provide a labor and materials and performance bonds which name the Authority and the City as additional insureds. The Authority, in its sole and absolute discretion, may effect a Remarketing on such terms and conditions as it may determine, and may use amounts in the Improvement Fund to pay costs related thereto (as described in clauses (ii) and (iii) of the first sentence of the preceding paragraph), in the event that (i) the Authority provides written notice to the Developer of its intent to effect Remarketing and, within 30 days after receipt of such notice the Developer fails to provide (A) an irrevocable letter of credit from a financial institution acceptable to the Authority in an amount equal to the then outstanding principal amount of the Series 2006-A Bonds and six months accrued interest thereon, less any amount then on deposit in the Improvement Fund, (or such lesser amount as the Authority, in its discretion, determines to be necessary to complete a Buyback), which letter of credit allows for draws as necessary to complete a Buyback; or (B) in the discretion of the Authority an irrevocable commitment from a financial institution acceptable to the Authority in form and substance acceptable to the Authority, to provide a letter of credit as described in the preceding clause (A) at least one business day prior to the dissemination to the owners of the Series 2006-A Bonds of any documents related to a Remarketing or Buyback, or (ii) the Authority and the Developer, in the Authority's reasonable determination and discretion, fail to agree on the terms of a Buyback by October 1, 2007. The Authority need not provide the notice -6- Page 31: 191 Deleted Carolyn Antonio 4/21/2049 11:33:00 AM the second sentence of the preceding paragraph in the circumstances described in the preceding sentence, prior to a withdrawal of amounts in the Improvement Fund under the provisions of this paragraph. The Developer acknowledges that any transfer of funds from the Improvement Fund described in this paragraph will reduce the amount available to pay the Purchase Prices of the Facilities and Discrete Components thereof hereunder. Section 5.12. Additional Restrictions on Disbursements From Improvement Fund. Notwithstanding any other provision of this Acquisition Agreement to the contrary, the Authority shall have no obligation whatsoever to use amounts in the Improvement Fund to honor Payment Requests until (i) a Remarketing or Buyback, on terms fully acceptable to the Authority, has been completed and all costs related thereto have been paid, and (ii) the Developer has satisfied the thresholds for the issuance of all building permits under the Conditions of Approval for all units to be constructed in the territory of the CFD, as such units are described in any disclosure documents used in connection with the Remarketing or Buyback. The provisions of this Section 5.12 shall in no way limit any withdrawals from the Improvement Fund for the purposes described in Sections 5.11. OTHER PROVISIONS OF SUPPLEMENT NO.1 TO ACQUISITION AGREEMENT: Section 4. No Obligation to Restructure Bonds. The provisions of this Supplement No. 1 shall in no way obligate the Authority to restructure the Series 2006-A Bonds, or to expend any of its own funds in connection with the District. Section 5. Release of Liability, Limitation on Future Actions. The Developer fully and completely releases the City, the Authority and the District, and their respective Boardmembers, Counciimembers, officers, employees and agents, from any liability whatsoever for any and all actions or inaction, known or unknown, up to the date of execution by the Developer of this Supplement No. 1, relating to the Series 2006-A Bonds, any breach or alleged breach of any of the terms of the Fiscal Agent Agreement or the Original Agreement, or any other matter related to the Series 2006-A Bonds. Any action by the Developer or any of its successors or assigns arising from the obligations of the Authority, the City or the District, or any actions or inaction or any breach or default or alleged breach or default, by any such entity, in any way related to this Supplement No. 1, the Original Agreement, the Fiscal Agent Agreement, the Series 2006-A Bonds, any Remarketing or any Buyback, shall be limited to an action for specific performance, declaratory relief, writ of mandate, or similar remedies to compel Authority, City or District's compliance with the terms of this Memorandum and no monetary damages shall be incurred by any such entity in respect thereof; and in no event shall any Boardmember, Councilmember, officer or employee of the Authority, the City or the District be personally liable with respect to any such matters. Any such action shall be filed in the appropriate court within one (1) year from the date of the action by the Authority, City or District that is being challenged. YSection Break (Next Page) s- -7- -4 0 ACQUISITION AGREEMENT Page 1: [111 Deleted Carolyn Antonio 4/21/2009 11:33.00 AM $2,318,893 Page 2: [121 Deleted Carolyn Antonio 4/21/2009 1i 33:00 AM Storm Drain $879,736 Page 2-1-1131 Deleted Carolyn Antonio 4/21120-0,9::14 -00 AM Landscape/ Irrigation $150,124 $4,0-17,748 Storm Drain $510,156 Landscape/ Irrigation $14,955 $7,844,217 Page ;2s C36]. Deleted CarolynAntoizlo. 4/21/200911: 33: 00 AM Storm Drain $581,815 Streets $744,143 2e. Butterfield Stage Rd from 1230'N/ of La Serena Way to 700'5/ of La Serena Way- 1,930' (Westerly 1/2 completed by Shea Homes) Rough Grading $1,016,801 Finish Grading $117,092 Storm Drain $183,351 Water $0 Streets $1,451,391 Landscape/ Irrigation $0 $2,975,171 $2,768,635 Page 1: [2(►1 Deleted Carolyn Antonio 4/21/2009 11.33:00 AM OVERALL TOTAL: $67,239,018 $42,387,422 $24,851,596 Rough Grading $760,345 Finish Grading $122,315 Storm Drain $434,265 Water $0 Streets $1,658,246 Landscape/ Irrigation $0 -8- COUNCIL BUSINESS ITEM NO. 26 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Aaron Adams, Assistant City Manager DATE: May 12, 2009 SUBJECT: Establishment and Appointment of Subcommittee Temecula 2030: A Quality of Life Master Plan PREPARED BY: Tamra Middlecamp, Senior Management Analyst RECOMMENDATION: That the City Council: 1. Establish a Quality of Life/Temecula 2030 Master Plan Subcommittee to interview/hire consultant to facilitate the Quality of Life Master Plan process, establish Blue Ribbon Committee, participate in the Quality of Life Master Plan process, review and approve final Quality of Life Master Plan report prior to City Council review; 2. Appoint two (2) Council Members to serve on this Subcommittee. BACKGROUND: In 2007/2008, the City of Temecula embarked in a process to begin an Economic Development Strategic Plan. The Economic Development Subcommittee of Council Members Washington and Roberts led this effort and scope of work to develop an updated Economic Development Strategic Plan for the City. However, in large part due to the input of the Economic Development Subcommittee, it was determined that a traditional approach to an economic development strategic plan would not accomplish the true goal and vision needed forthe City. As discussions continued it was apparent that the scope of the work should be expanded to include much more than just economic development. It was then decided that a Quality of Life/Temecula 2030 Master Plan was a more appropriate planning tool for the City. The Subcommittee will ultimately determine the formal name for this process. The Quality of Life/Temecula 2030 Master Plan will not be considered by the City Council's Standing Committees, only by this subcommittee. This project will afford outsiders opportunities to weigh in, through focus groups, on what Temecula should become and/or how Temecula should sustain key characteristics. This project will afford the full City Council to provide valuable input. As was suggested by Council Member Washington, this project will also include a "Blue Ribbon Committee" of industry professionals. This process will ultimately play a significant role in the City's General Plan, annual operating budgets, and annual Capital Improvement Project budgets. The end result should be a tool that is re-visited every year as our community evolves and changes. The proposed Quality of Life Master Plan will be the "road map" which will define the City's long-term goals in a variety of areas, including but not limited to sustainability of quality of life, continual maintenance of public infrastructure, public safety, higher education, business retention and attraction, economic development, and fiscal stability. The City of Temecula has issued a Request for Proposals in order to hire a consultant to assist in the preparation of the Quality of Life Master Plan. In addition, a Blue Ribbon Committee will be formed comprised of professionals in various fields along with valuable stakeholders within the community. The Quality of Life Master Plan will be tailored specifically for the City of Temecula and its citizens and will utilize studies such as the recent demographic information from Dr. Husing, Claritas, and True North, the Youth Master Plan, Cultural Arts Master Plan, Parks Master Plan, Old Town Visioning, and the City's Sustainability Program. Potential key elements that will be focused upon in the Plan may include but are not limited to Business Attraction and Retention, Cultural Arts, City Fiscal Stability, Higher Education, Open Space, Recreational Opportunities, Public Safety, and Transportation/Circulation. City staff envisions that the scope will be further defined with the valuable input of the consultant, the Quality of Life Master Plan Subcommittee, the Blue Ribbon Committee, and the community through focus groups at various venues within the City. It is anticipated that the Plan will take approximately a year to complete. Status updates on the development of the Plan will be provided to the City Council and the community on a regular basis. Below is a general timeline of the Plan: June 2009: It is anticipated that a consultant will be selected in June 2009. Consultant contract and agreement goes to City Council. July 2009: City Council, Quality of Life Master Plan Subcommittee, and staff work together to create a list of individuals for possible appointees to the Blue Ribbon Committee. Once the committee has been established, all will work together to further define the scope of work for the Plan. July 2009 - December 2009: Staff begins to convene with consultant and Blue Ribbon Committee on specific Quality of Life Master Plan elements. Start of committee work, establishing working focus groups, and community outreach. January 2009 - June 2009: Continue working with Consultant, Blue Ribbon Committee, and the community. June/July 2009: Quality of Life Master Plan is presented at City Council. FISCAL IMPACT: There is no financial impact associated with the formation of the Subcommittee for the Quality of Life Master Plan. The Quality of Life Master Plan is anticipated to take a year to complete. ATTACHMENTS: None