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HomeMy WebLinkAbout092711 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 II] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 41000 MAIN STREET SEPTEMBER 27, 2011 — 7:00 PM At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and may continue all other items on which additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M. 6:00 P.M. — The City Council /Temecula Redevelopment Agency will convene in Closed Session in the Canyons Conference Room on the third floor of the Temecula City Hall concerning the following matters: 1) Conference with City Attorney pursuant to Government Code Section 54956.9(a) and (c) with respect to one matter of pending litigation in which the City and the Redevelopment Agency of the City of Temecula will consider whether to file an amicus curiae brief with the Court. The title of the litigation is California Redevelopment Association et al., Petitioners v. Ana Matosantos, as Director, et al. Respondents, California Supreme Court Case No. S194861 (redevelopment termination litigation). 2) Conference with City Attorney pursuant to Government Code Section 54956.9(a) with respect to one matter of pending litigation to which the City is a defendant. The title of the litigation is Eastern Municipal Water District v. City of Temecula, Westside Business Center, et al. defendants, Riverside County Superior Court Case No. RIC 1107937. 3) Conference with City Attorney pursuant to Government Code Section 54956.9(b) and (c) to decide whether to initiate litigation on behalf of the City and the Temecula Financing Authority. With respect to such matter, the City Attorney has determined that based on existing facts and circumstances a point has been reached where there is a significant exposure to litigation involving the City and Authority and a need to determine 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. 1 Next in Order: Ordinance: 11 -07 Resolution: 11 -63 CALL TO ORDER: Mayor Ron Roberts Prelude Music: Bryce Russell Invocation: Rabbi Yitzchok Hurwitz of Chabad of Temecula Valley Flag Salute: Council Member Edwards ROLL CALL: Comerchero, Edwards, Naggar, Washington, Roberts PRESENTATIONS /PROCLAMATIONS Hands 4 Japan Presentation PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the City Council on items that appear within the Consent Calendar or ones that are not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the City Council on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form must be filled out and filed with the City Clerk. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business items on the agenda, a Request to Speak form must be filed with the City Clerk prior to the City Council addressing that item. There is a five - minute time limit for each speaker. 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, 10 minutes will be devoted to these reports. CONSENT CALENDAR 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: NOTICE TO THE PUBLIC 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 2 Action Minutes RECOMMENDATION: 2.1 Approve the action minutes of September 13, 2011. 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Financial Statements for the fiscal year ended June 30, 2011 (City) RECOMMENDATION: 4.1 Receive and file the Financial Statements for the fiscal year ended June 30, 2011; 4.2 Approve an appropriation of $145,000 for Operating Transfers Out in the State Transportation fund and an offsetting $145,000 decrease for Operating Transfer Out in the State Gas Tax fund; 4.3 Approve an appropriation of $50,000 for Operating Transfers Out in the Supplemental Law Enforcement Services Fund (SLESF) budget, and an increase of $50,000 of Revenues in the Supplemental Law Enforcement Services Fund (SLESF). 5 Resolution authorizing the Director of Public Works to certify the Right of Way on projects involving the State of California Department of Transportation RECOMMENDATION: 5.1 Adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO CERTIFY THE RIGHT OF WAY ON PROJECTS AS REQUIRED BY THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION 3 6 Approval of a Drainage Easement and a Temporary Construction Easement for the Citywide Storm Drain Improvements at Calle Fiesta — Project No. PVV10 -07 RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DRAINAGE EASEMENT AGREEMENT AND GRANT OF TEMPORARY CONSTRUCTION EASEMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND REGENT NICOLAS 73, LLC IN CONNECTION WITH THE CITYWIDE STORM DRAIN IMPROVEMENTS — CALLE FIESTA, PROJECT NUMBER PW10 -07 7 Approval of a Conservation Easement for Environmental Mitigation for French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements — Project No. PW02 -11 RECOMMENDATION: 7.1 Approve, in substantially the form attached, the Conservation Easement encumbering APN 961- 440 -007 and of a portion of APN 961- 440 -012 in favor of the Western Riverside County Regional Conservation Authority. 8 Approval of a Conservation Easement for Ronald Reagan Sports Park Desilting Basin Environmental Mitigation Site — Project No. PVV05 -13 RECOMMENDATION: 8.1 Approve the Conservation Easement, in substantially the form attached, for the Ronald Reagan Sports Park Desilting Basin Environmental Mitigation Site — Project No. PW05 -13. 9 Authorization to Purchase a Replacement Backhoe RECOMMENDATION: 9.1 Approve the purchase of a new John Deere Backhoe for the total amount of $113,708.58. 10 Approval of Utility Agreements with Southern California Edison, Verizon, and Eastern Municipal Water District for French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements — Project No. PW02 -11 RECOMMENDATION: 10.1 Approve an agreement with Southern California Edison Company in an amount not to exceed $66,098.79 to relocate utilities for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project; 4 10.2 Approve an agreement with Verizon California Inc. in an amount not to exceed $13,150.23 to relocate utilities for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project; 10.3 Approve an agreement with Eastern Municipal Water District in an amount not to exceed $53,105 to relocate utilities for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project. 11 Approval of Amendment No. 2 to the Professional Services Agreement with Independent Roofing Consultants (IRC) for additional services needed for the Old Town Civic Center — Project No. PW06 -07 RECOMMENDATION: Approve Amendment No. 2 to the Professional Services Agreement with IRC Technologies, Inc., dba Independent Roofing Consultants (IRC) for additional services needed for the Old Town Civic Center — Project No. PW06 -07, in the amount of $1,000. 12 Agreement for Consulting Services between the City of Temecula and RBF Consulting for an Environmental Impact Report (EIR) for the Temecula Creek Inn Specific Plan RECOMMENDATION: 12.1 Approve an agreement for Consultant Services with RBF Consulting in the amount of $268,250 to prepare an EIR for the Temecula Creek Inn Specific Plan. 13 Resolution of the City of Temecula to support the construction of a privately financed NFL stadium in the City of Industry, California (requested by Council Members Comerchero and Naqqar) RECOMMENDATION: 13.1 Adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE CONSTRUCTION OF A PRIVATELY FINANCED STADIUM IN THE CITY OF INDUSTRY, CALIFORNIA 5 14 Agreement for funding the acquisition of open space property (Assessor's Parcel No. 940 - 140 -010 — Alan T. and Patricia S. Oto property) between Western Riverside County Regional Conservation Authority and the City of Temecula RECOMMENDATION: 14.1 Approve the funding agreement for acquisition of open space parcel (Assessor's Parcel No. 940 - 140 -010 — Alan T. and Patricia S. Oto property) between the Western Riverside County Regional Conservation Authority (RCA) and the City of Temecula in the amount of $135,000. 15 Approval of Resolution Designating the City of Temecula as Successor Agency to the Temecula Redevelopment Agency RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING AN ELECTION IN CONNECTION WITH SERVING AS A SUCCESSOR AGENCY UNDER PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH 16 A nonbinding resolution of the City Council declaring its intent to adopt an ordinance to comply with Part 1.9 of Division 24 of the California Health and Safety Code after October 1, 2011, for the establishment of the Alternative Voluntary Redevelopment Program under ABX1 27 RECOMMENDATION: 16.1 Adopt a resolution entitled: RESOLUTION NO. 11- A NONBINDING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING ITS INTENT TO ADOPT AN ORDINANCE TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AFTER OCTOBER 1, 2011, AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH 17 Support of Senate Bill 946 (at the request of Council Member Naggar) RECOMMENDATION: 17.1 Adopt a resolution entitled: 6 RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUPPORT SENATE BILL 946 (STEINBERG) WHICH WILL REQUIRE PRIVATE INSURANCE COMPANIES TO COVER AUTISM TREATMENT 18 Professional Services Agreement for Graphic Art and Marketing RECOMMENDATION: 18.1 Approve a professional services agreement for graphic art and marketing with Ann Howell Design in the amount of $33,619.30; 18.2 Authorize the City Manager to approve additional work not to exceed the contingency amount of $3,362, which is equal to 10% of the agreement amount. * * * * * *** * * * * * * *** * ** RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF THE TEMECULA COMMUNITY SERVICES DISTRICT, THE CITY OF TEMECULA REDEVELOPMENT AGENCY, THE TEMECULA HOUSING AUTHORITY, AND THE TEMECULA PUBLIC FINANCING AUTHORITY * * * * * *** * * * * * * *** * ** 7 TEMECULA COMMUNITY SERVICES DISTRICT MEETING CALL TO ORDER: President Jeff Comerchero ROLL CALL: DIRECTORS: Edwards, Naggar, Roberts, Washington, Comerchero CSD PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Board of Directors on items that appear within the Consent Calendar or ones that are not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the Board of Directors on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form must be filled out and filed with the City Clerk. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or District Business items on the agenda, 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- minute time limit for each speaker. CSD CONSENT CALENDAR 19 Action Minutes RECOMMENDATION: 19.1 Approve the action minutes of September 13, 2011. 20 Financial Statements for fiscal year ended June 30, 2011 RECOMMENDATION: 20.1 Receive and file the Financial Statements for the fiscal year ended June 30, 2011. 21 Amendment of the 2011 -12 Temecula Community Services District Cultural Arts Budget RECOMMENDATION: Next in Order: Ordinance: No. CSD 11 -01 Resolution: No. CSD 11 -09 21.1 Appropriate $250,000 in the fiscal year 2011 -12 Temecula Community Services District Cultural Arts Operating Budget from available Fund Balance for additional Cultural Arts events in Old Town. CSD DEPARTMENTAL REPORT 22 Community Services Department Monthly Report 8 CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT Next regular meeting: Tuesday, October 11, 2011, at 5:30 P.M., for a Closed Session, with regular session commencing at 7:00 PM., City Council Chambers, 41000 Main Street, Temecula, California. 9 TEMECULA REDEVELOPMENT AGENCY MEETING CALL TO ORDER: Chair Person Mike Naggar Next in Order: Ordinance: No. RDA 11 -01 Resolution: No. RDA 11 -10 ROLL CALL: AGENCY MEMBERS: Comerchero, Edwards, Roberts, Washington, Naggar RDA PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Agency Members on items that appear within the Consent Calendar or ones that are not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the Agency Members on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form must be filled out and filed with the City Clerk. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or Agency Business items on the agenda, a Request to Speak form must be filed with the City Clerk prior to the Agency Members addressing that item. There is a five- minute time limit for each speaker. RDA CONSENT CALENDAR 23 Action Minutes RECOMMENDATION: 23.1 Approve the action minutes of September 13, 2011. 24 Financial Statements for the fiscal year ended June 30, 2011 RECOMMENDATION: 24.1 Receive and file the Financial Statements for the fiscal year ended June 30, 2011; 24.2 Approve an increase of $91,000 for tax increment revenues in the Debt Service Fund Budget; 24.3 Approve an appropriation of $458,000 for Pass - Through Agreements in the Redevelopment Agency Debt Service Fund Budget. 10 25 Amendment of 2011 -12 Redevelopment Fund (280) Budget RECOMMENDATION: 25.1 Reduce the fiscal year 2011 -12 Redevelopment Fund (280) Annual Operating Budget appropriations by $331,550. 26 Approval of Initial Recognized Obligation Payment Schedule RECOMMENDATION: 26.1 Adopt a resolution entitled: RESOLUTION NO. RDA 11- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A PRELIMINARY DRAFT OF AN INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH RDA DEPARTMENTAL REPORT 27 Redevelopment Department Monthly Report RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT Next regular meeting: Tuesday, October 11, 2011, at 5:30 P.M., for a Closed Session, with regular session commencing at 7:00 PM., City Council Chambers, 41000 Main Street, Temecula, California. 11 TEMECULA HOUSING AUTHORITY MEETING - no meeting TEMECULA PUBLIC FINANCING AUTHORITY MEETING - no meeting RECONVENE TEMECULA CITY COUNCIL CITY COUNCIL BUSINESS 28 Determination whether the City should participate in the "Alternative Voluntary Redevelopment Program," make the required payments to the State of California and continue redevelopment activities under ABX1 27 RECOMMENDATION: 28.1 Consider the foregoing facts and analysis and determine that the City and Agency will participate in the Alternative Voluntary Redevelopment Program established by ABX1 27; 28.2 Agree to comply with Part 1.9 of Division 24 of the California Health and Safety Code; 28.3 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 11- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH FOR THE ESTABLISHMENT OF THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM UNDER ABX1 27 28.4 Direct staff to prepare and present at a future City Council meeting the recommended adjustments to the City budget necessary to make the required ABX1 27 payment for FY 2011 -12 and a transfer agreement between the City and Agency. DEPARTMENTAL REPORTS 29 Planning Department Monthly Report 30 Economic Development Department Monthly Report 31 City Council Travel /Conference Report — September 2011 32 Public Works Department Monthly Report 13 CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next regular meeting: Tuesday, October 11, 2011, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. NONCE TO THE PUBLIC The agenda packet (including staff reports) will be available for viewing at the Main Reception at City Hall (41000 Main Street, 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.cityoftemecula.orq 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 the Civic Center (41000 Main Street, Temecula — 8:00 — 5:00 PM). In addition, such material will be made available on the City's web — www.citvoftemecula.orq — 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. 14 CONSENT CALENDAR Item No. 1 Item No. 2 The City Council meeting convened at 7:00 P.M. CALL TO ORDER: Mayor Roberts Prelude Music: Susan Miyamoto Invocation: Pastor Foster of Tue Vine Pentecostal Church Flag Salute: Council Member Edwards ROLL CALL: Comerchero, Edwards, Naggar, Washington, Roberts Absent: Comerchero PRESENTATIONS /PROCLAMATIONS Constitution Week Proclamation PUBLIC COMMENTS The following individuals addressed the City Council: • Kathleen Papadopoulos Hatcher • Mark Margolin • Dave and am Barret • Jim Mitchell • Jerry Burdick -Rutz CITY COUNCIL REPORTS CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. Action Minutes1091311 1 ACTION MINUTES TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 41000 MAIN STREET SEPTEMBER 13, 2011 — 7:00 PM 2 Action Minutes — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 2.1 Approve the action minutes of August 23, 2011. 3 List of Demands — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 11 -61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 City Treasurer's Report as of July 31, 2011 — Approved Staff Recommendation (4 -0- 1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 4.1 Approve and file the City Treasurer's Report as of July 31, 2011. 5 Award a Construction Contract for the Pedestrian /Bicycle Bridge Over Santa Gertrudis Creek for Chaparral High School and City Trail System — Project No. PW05 -11 — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 5.1 Award a construction contract for the Pedestrian /Bicycle Bridge Over Santa Gertrudis Creek to Chaparral High School and City Trail System — Project No. PW05 -11 to Bowcon Company, Inc. in the amount of $601,768.12; 5.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $60,176.81 which is equal to 10% of the contract amount; 5.3 Authorize the payment of the Multi Species Habitat Conservation Plan (MSHCP) fees to the Regional Conservation Authority (RCA), based on the current fee schedule for fiscal year 2011 -12, in an amount not to exceed $10,000. Action Minutes1091311 2 6 Award of a Construction Contract for the Community Recreation Center (CRC) Energy Management and Retrofit — Project No. PVV11 -05 — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Council Member Edwards; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 6.1 Award the construction contract for the CRC Energy Management and Retrofit — Project No. PW11 -05, to Golden Arrow Engineering, Inc., inclusive of the base bid and additive bid 1 parts B & C, in the amount of $342,000 and accept parts D & E unit prices only; 6.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $34,200, which is equal to 10% of the contract amount; 6.3 Authorize the transfer of $31,200 from the Energy Efficiency and Conservation Block Grant (EECBG) account number 131 - 199 - 999 -5250 to the CRC Energy Management and Retrofit account number 210 -190 -152 -5804; 6.4 Authorize the transfer of $30,982 from City Facilities Rehabilitation account number 210 -165- 701 -5804 to the CRC Energy Management and Retrofit account number 210 - 190 - 152 -5804; 6.5 Make a finding that the CRC Energy Management and Retrofit Project is exempt from Multiple Species Habitat Conservation Plan (MSHCP) fees. Wayne Hall addressed the City Council Members with regard to this item. 7 Approval of Purchase and Sale Agreement and Escrow Instructions for acquisition of property rights from Scott Travers (APN 921 - 480 -019) as needed for the proposed Murrieta Creek Bridge and Overland Drive Extension — Project No. PW00 -26 — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO. 11 -62 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE CITY OF TEMECULA AND SCOTT TRAVERS IN CONNECTION WITH THE MURRIETA CREEK BRIDGE AND OVERLAND DRIVE EXTENSION TO DIAZ ROAD — PROJECT NUMBER PW00 -26 Action Minutes1091311 3 8 Acceptance of Improvements and Notice of Completion for Traffic Signal Installation; Rancho California Road at Yukon Road /Asteroid Way — Project No. PW09 -07 — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 8.1 Accept the construction of the Traffic Signal Installation; Rancho California Road at Yukon Road /Asteroid Way — Project No. PW09 -07, as complete; 8.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; 8.3 Release the Materials and Labor Bond seven months after filing of the Notice of Completion if no liens have been filed. 9 Acceptance of Improvements and Notice of Completion for the Citywide Concrete Repairs FY 2009 -10 — Project No. PVV10 -02 — Approved Staff Recommendation (4 -0- 1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 9.1 Accept the construction of the Citywide Concrete Repairs FY 2009 -10 — Project No. PW 10 -02, as complete; 9.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; 9.3 Release the Materials and Labor Bond seven months after filing of the Notice of Completion if no liens have been filed. 10 French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project, Phase II, Design Agreement, T.Y. Lin International — Project No. PW02 -11 — Approved Staff Recommendation (4 -0 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 10.1 Approve an agreement with T.Y. Lin International in an amount not to exceed $10,920,000 to prepare the construction plans, specifications, and estimate for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project, Phase II, and authorize the Mayor to execute the agreement; Action Minutes1091311 4 10.2 Authorize the City Manager to approve Extra Work Authorizations not to exceed the contingency amount of $1,000,000, which is approximately 9% of the agreement amount. 11 Approve the Sponsorship Agreement for the 2011 Temecula Fall Rod Run — Approved Staff Recommendation (3- 0 -1 -1) — Council Member Washington made the motion; it was seconded by Mayor Ron Roberts; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent and Council Member Edwards who abstained. RECOMMENDATION: Approve the Event Sponsorship Agreement for city - support costs in amount up to $59,561.64 for the 2011 Temecula Fall Rod Run and authorize the Mayor to execute the agreement. At 7:40 P.M., the City Council convened as the Temecula Community Services District, the Redevelopment Agency, the Temecula Public Financing Authority, and the Temecula Public Financing Authority. At 7:43 P.M., the City Council resumed with regular business. CITY COUNCIL BUSINESS 16 Employment Agreement for City Manager Designate Bob Johnson - Approved Staff Recommendation (4 -0 -1) — Council Member Naggar made the motion; it was seconded by Council Member Washington; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 16.1 Approve the "City Manager Employment Agreement between Robert Johnson and City of Temecula" effective on January 1, 2012 and authorize the Mayor to execute the Agreement on behalf of the City in substantially the form presented to the Council. 17 School Area Traffic Safety (At the Request of Mayor Pro Tem Washington) - Approved Staff Recommendation and provided direction to staff (4 -0 -1) — Council Member Naggar made the motion; it was seconded by Council Member Washington; and electronic vote reflected unanimous approval with the exception of Council Member Comerchero who was absent. RECOMMENDATION: 17.1 Receive and file the report. Action Minutes1091311 5 CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT At 8:40 P.M., the City Council meeting was formally adjourned to Tuesday, September 27, 2011, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] Action Minutes1091311 6 Ron Roberts, Mayor Item No. 3 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Genie Roberts, Director of Finance DATE: September 27, 2011 SUBJECT: List of Demands PREPARED BY: Pascale Brown, Accounting Manager Jada Shafe, Accounting Specialist RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: ATTACHMENTS: Resolution List of Demands RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager Mf (10L 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. 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 $1,330,120.81 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27th day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A Section 2. The City Clerk shall certify the adoption of this resolution. Ron Roberts, Mayor 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. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27th day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk 09/08/2011 TOTAL CHECK RUN $ 290,835.09 09/15/2011 TOTAL CHECK RUN 632,276.17 09/15/2011 TOTAL PAYROLL RUN: 407,009.55 TOTAL LIST OF DEMANDS FOR 09/27/2011 COUNCIL MEETING: $ 1,330,120.81 DISBURSEMENTS BY FUND: CHECKS: CITY OF TEMECULA LIST OF DEMANDS CITY OF TEMECULA LIST OF DEMANDS 001 GENERAL FUND $ 271,472.69 130 RECOVERY ACT JAG FUNDING 23.95 165 AFFORDABLE HOUSING 5,104.51 170 MEASURE A FUND 12,435.00 190 TEMECULA COMMUNITY SERVICES DISTRICT 234,981.00 192 TCSD SERVICE LEVEL B 77,262.01 194 TCSD SERVICE LEVEL D 1,012.13 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 5,026.05 197 TEMECULA LIBRARY FUND 6,164.09 210 CAPITAL IMPROVEMENT PROJECTS FUND 23,606.80 280 REDEVELOPMENT AGENCY - CIP PROJECT 4,429.19 300 INSURANCE FUND 1,523.88 320 INFORMATION TECHNOLOGY 27,591.66 330 SUPPORT SERVICES 6,331.31 340 FACILITIES 18,354.60 375 SUMMER YOUTH EMPLOYMENT PROGRAM 44.15 472 CFD 01 -2 HARVESTON A &B DEBT SERVICE 49,267.02 473 CFD 03 -1 CROWNE HILL DEBT SERVICE FUND 57,972.99 474 AD03 -4 JOHN WARNER ROAD DEBT SERVICE 3,804.14 475 CFD03 -3 WOLF CREEK DEBT SERVICE FUND 82,048.57 476 CFD 03 -6 HARVESTON 2 DEBT SERVICE FUND 11,026.21 501 SERVICE LEVEL "C "ZONE 1 SADDLEWOOD 54.67 502 SERVICE LEVEL "C "ZONE 2 WINCHESTER CREEK 36.79 503 SERVICE LEVEL "C "ZONE 3 RANCHO HIGHLANDS 2,277.58 504 SERVICE LEVEL "C "ZONE 4 THE VINEYARDS 7.92 505 SERVICE LEVEL "C "ZONE 5 SIGNET SERIES 88.07 506 SERVICE LEVEL "C "ZONE 6 WOODCREST COUNTRY 16.05 507 SERVICE LEVEL "C "ZONE 7 RIDGEVIEW 22.57 508 SERVICE LEVEL "C "ZONE 8 VILLAGE GROVE 149.70 509 SERVICE LEVEL "C "ZONE 9 RANCHO SOLANA 1.16 510 SERVICE LEVEL "C "ZONE 10 MARTINIQUE 6.77 511 SERVICE LEVEL "C "ZONE 11 MEADOWVIEW 4.11 512 SERVICE LEVEL "C "ZONE 12 VINTAGE HILLS 99.95 513 SERVICE LEVEL "C "ZONE 13 PRESLEY DEVELOP. 2,987.78 514 SERVICE LEVEL "C "ZONE 14 MORRISON HOMES 12.28 515 SERVICE LEVEL "C "ZONE 15 BARCLAY ESTATES 10.80 516 SERVICE LEVEL "C "ZONE 16 TRADEWINDS 24.94 517 SERVICE LEVEL "C "ZONE 17 MONTE VISTA 1.86 518 SERVICE LEVEL "C "ZONE 18 TEMEKU HILLS 92.11 519 SERVICE LEVEL "C "ZONE 19 CHANTEMAR 649.98 520 SERVICE LEVEL "C "ZONE 20 CROWNE HILL 134.07 521 SERVICE LEVEL "C "ZONE 21 VAIL RANCH 4,896.56 522 SERVICE LEVEL "C "ZONE 22 SUTTON PLACE 5.62 523 SERVICE LEVEL "C "ZONE 23 PHEASENT RUN 307.78 524 SERVICE LEVEL "C "ZONE 24 HARVESTON 2,355.81 525 SERVICE LEVEL "C "ZONE 25 SERENA HILLS 41.30 526 SERVICE LEVEL "C "ZONE 26 GALLERYTRADITION 1.74 527 SERVICE LEVEL "C "ZONE 27 AVONDALE 5.93 528 SERVICE LEVEL "C "ZONE 28 WOLF CREEK 9,309.83 529 SERVICE LEVEL "C "ZONE 29 GALLERY PORTRAIT 25.58 $ 923,111.26 CITY OF TEMECULA LIST OF DEMANDS 001 GENERAL FUND $ 237,445.71 165 AFFORDABLE HOUSING 7,373.48 190 TEMECULA COMMUNITY SERVICES DISTRICT 106,247.78 192 TCSD SERVICE LEVEL B 389.21 194 TCSD SERVICE LEVEL D 1,612.61 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 1,025.34 197 TEMECULA LIBRARY FUND 1,182.51 280 REDEVELOPMENT AGENCY - CIP PROJECT 6,190.38 300 INSURANCE FUND 1,344.49 320 INFORMATION TECHNOLOGY 23,855.93 330 SUPPORT SERVICES 5,899.65 340 FACILITIES 11,870.80 375 SUMMER YOUTH EMPLOYMENT PROGRAM 214.65 501 SERVICE LEVEL "C "ZONE 1 SADDLEWOOD 86.67 502 SERVICE LEVEL "C "ZONE 2 WINCHESTER CREEK 58.08 503 SERVICE LEVEL "C "ZONE 3 RANCHO HIGHLANDS 68.92 504 SERVICE LEVEL "C "ZONE 4 THE VINEYARDS 12.58 505 SERVICE LEVEL "C "ZONE 5 SIGNET SERIES 139.88 506 SERVICE LEVEL "C "ZONE 6 WOODCREST COUNTRY 25.43 507 SERVICE LEVEL "C "ZONE 7 RIDGEVIEW 35.90 508 SERVICE LEVEL "C "ZONE 8 VILLAGE GROVE 237.49 509 SERVICE LEVEL "C "ZONE 9 RANCHO SOLANA 1.87 510 SERVICE LEVEL "C "ZONE 10 MARTINIQUE 10.76 511 SERVICE LEVEL "C "ZONE 11 MEADOWVIEW 6.55 512 SERVICE LEVEL "C "ZONE 12 VINTAGE HILLS 158.39 513 SERVICE LEVEL "C "ZONE 13 PRESLEY DEVELOP. 33.69 514 SERVICE LEVEL "C "ZONE 14 MORRISON HOMES 19.39 515 SERVICE LEVEL "C "ZONE 15 BARCLAY ESTATES 17.03 516 SERVICE LEVEL "C "ZONE 16 TRADEWINDS 39.59 517 SERVICE LEVEL "C "ZONE 17 MONTE VISTA 3.24 518 SERVICE LEVEL "C "ZONE 18 TEMEKU HILLS 146.80 519 SERVICE LEVEL "C "ZONE 19 CHANTEMAR 78.53 520 SERVICE LEVEL "C "ZONE 20 CROWNE HILL 212.86 521 SERVICE LEVEL "C "ZONE 21 VAIL RANCH 360.41 522 SERVICE LEVEL "C "ZONE 22 SUTTON PLACE 8.92 523 SERVICE LEVEL "C "ZONE 23 PHEASENT RUN 9.45 524 SERVICE LEVEL "C "ZONE 24 HARVESTON 202.70 525 SERVICE LEVEL "C "ZONE 25 SERENA HILLS 65.41 526 SERVICE LEVEL "C "ZONE 26 GALLERYTRADITION 2.94 527 SERVICE LEVEL "C "ZONE 27 AVONDALE 9.45 528 SERVICE LEVEL "C "ZONE 28 WOLF CREEK 298.83 529 SERVICE LEVEL "C "ZONE 29 GALLERY PORTRAIT 5.25 407,009.55 TOTAL BY FUND: $ 1,330,120.81 apChkLst Final Check List Page: 1 09/08/2011 10:47:22AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description 1775 09/02/2011 005460 U S BANK SPY & SS #3 remittance 204,118.93 204,118.93 147570 09/08/2011 004802 ADLERHORST INTERNATIONAL Aug Training & supplies:police K -9 units 283.34 283.34 INC 147571 09/08/2011 013950 AQUA CHILL OF SAN DIEGO Drinking water sys maint:police 26.94 26.94 147572 09/08/2011 001323 ARROWHEAD WATER INC July Bottled water svc:CM 38.67 38.67 147573 09/08/2011 014295 BAUSCH, ADAM ENTERTAINMENT: HOT SUMMER 600.00 600.00 NIGHTS- 147574 09/08/2011 006908 C C & COMPANY INC entertainment:hot summer nights 9/2 275.00 275.00 147575 09/08/2011 004248 CALIF DEPT OF JUSTICE - ACCTING 147576 09/08/2011 001326 CHULA VISTA, CITY OF FINGERPRINTING SRVCS:POLICE- 4,258.00 Credit:billing adj:July Fingerprinting - 256.00 San Diego EE Consortium: Trng fees 1,700.00 147577 09/08/2011 012937 CRITICAL INFORMATION Fire training: Fire 4,829.36 4,829.36 NETWORK 147578 09/08/2011 014209 DOLPHIN SAFARI, INC. Senior Excursion: MPSC 9/13 500.00 500.00 147579 09/08/2011 004192 DOWNS COMMERCIAL Aug Fuel for Cityvehicles:TCSD,CC,IT 186.47 186.47 FUELING INC 147580 09/08/2011 002528 EAGLE GRAPHIC CREATIONS Recognition awards:police explorers INC 147581 09/08/2011 011922 FIRST AMERICAN CORELOGIC Web database subscription:code enf 2,400.00 INC Web database subscription:code enf 236.00 Credit:billing adj:Web database subscr Amount Paid Check Total 4,002.00 1,700.00 120.68 120.68 - 206.00 2,430.00 147582 09/08/2011 004074 FRANCHISE MGMT SERVICES Misc supplies: high hopes pgrm 126.26 126.26 INC 147583 09/08/2011 014326 FROGGYS FOG, LLC Fire training smoke: Sta 73 150.85 150.85 147584 09/08/2011 013552 GANDS PRODUCTIONS LLC Settlement:Country...Merc 9/3 315.00 315.00 Page:1 apChkLst Final Check List Page: 2 09/08/2011 10:47:22AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147585 09/08/2011 007633 GRAPHIC SOLUTIONS LTD Signage:childrens museum 3,560.69 3,560.69 147586 09/08/2011 014402 GROEPPER, BROOKE TCSD instructor earnings 2,093.00 TCSD instructor earnings 1,338.00 TCSD instructor earnings 819.00 TCSD instructor earnings 573.00 TCSD instructor earnings 63.70 TCSD instructor earnings 36.40 4,923.10 147587 09/08/2011 007792 HINTON, BEVERLY L. TCSD instructor earnings 224.00 TCSD instructor earnings 132.00 TCSD instructor earnings 81.00 TCSD instructor earnings 72.00 TCSD instructor earnings 48.00 TCSD instructor earnings 30.00 587.00 147588 09/08/2011 002701 HUB INT'L INSURANCE Aug '11 special events premiums 805.64 805.64 SERVCS INC 147589 09/08/2011 004406 IGOE & COMPANY INC Aug flex benefit plan pmt 215.00 July flex benefit plan pmt 205.00 420.00 147590 09/08/2011 012295 JAMESON MANAGEMENT INC Door maint & repair: Fire Sta 84 204.00 204.00 147591 09/08/2011 014312 KAMM INDUSTRIAL, INC. Equip repair & maint:kawasaki mule 161.63 161.63 147592 09/08/2011 013987 LAW OFFICES OF Mar /Jun /July ROW review - western bypass 2,415.74 2,415.74 147593 09/08/2011 004141 MAINTEX INC Misc supplies:csd maint 321.57 321.57 147594 09/08/2011 000973 MIRACLE RECREATION PLAYGROUND EQUIP:LOMA LINDA 1,045.28 1,045.28 EQUIPMENT PARK 147595 09/08/2011 007564 MURRAYS HOTEL & kitchen supplies: Civic conference 193.76 193.76 RESTAURANT 147596 09/08/2011 002925 NAPA AUTO PARTS Veh repair & maint: Sta 84 123.48 123.48 147597 09/08/2011 003964 OFFICE DEPOT BUSINESS SVS Office Equip: Medics 242.41 DIV Printing srvcs:planning dept 165.18 Misc office supplies:finance dept 151.38 Misc office supplies:pd mall office 54.65 Misc office supplies:pd mall office 9.69 623.31 Paget apChkLst Final Check List Page: 3 09/08/2011 10:47:22AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147598 09/08/2011 012833 PC MALL GOV, INC. qty 100 keyboards: info tech 4,094.50 4,094.50 147599 09/08/2011 000249 PETTY CASH Petty Cash Reimbursement 648.58 648.58 147600 09/08/2011 002176 RANCHO CALIF BUS PKASSOC Oct -Dec bus. park assn dues: City Hall 1,273.98 Oct -Dec bus. park assn dues: Diaz Rd 1,159.32 Oct -Dec bus. park assn dues: FOC 1,051.03 3,484.33 147601 09/08/2011 011853 RANCON COMMERCE CNTR Oct -Dec bus. park assn dues: Fire Stn 73 546.32 546.32 PH2,3 &4 147602 09/08/2011 004584 REGENCY LIGHTING Electrical supplies: library 317.22 Misc supplies:harveston lake 38.37 355.59 147603 09/08/2011 003544 ROBERT SHEA PERDUE REAL Appraisal of Veteran's Park easements 6,600.00 6,600.00 ESTATE 147604 09/08/2011 000277 S & S ARTS & CRAFTS INC Misc supplies:recreation pgrm 206.07 206.07 147605 09/08/2011 005329 SAFE ALTERNATIVE FOR FY 10/11 Sponsorship agrmnt 10,000.00 10,000.00 EVERYONE 147606 09/08/2011 006554 SHAFFER, FRED Entertainment:Hot Smr Nghts 7/29 & 8/19 1,000.00 1,000.00 147607 09/08/2011 009213 SHERRY BERRY MUSIC Jazz @ the Merc 9/1 346.50 346.50 147608 09/08/2011 009746 SIGNS BY TOMORROW Banners:dog house prgrm 109.91 109.91 147609 09/08/2011 000645 SMART & FINAL INC Misc supplies:F.I.T pgrm 330.72 330.72 147610 09/08/2011 000537 SO CALIF EDISON Aug 2- 27- 805 - 3194:42051 Main St 7,219.91 Aug 2 -02- 502 - 8077:43210 Bus pk dr B 55.09 Aug 2 -31- 936 -351 1:46488 Pechanga 44.87 7,319.87 147611 09/08/2011 005786 SPRINT Jul 26 -Aug 25 cellular usage /equip 5,211.72 5,211.72 147612 09/08/2011 011897 TAG /AMS INC Aug DOT random drug testing:HR 130.00 130.00 147613 09/08/2011 000305 TARGET BANK BUS CARD Recreation supplies: Dog House Prgm 309.90 SRVCS Artist Hospitality: Theater 97.15 Misc supplies: CRC 86.60 Misc supplies:F.I.T. pgrm 60.34 553.99 Page:3 apChkLst Final Check List Page: 4 09/08/2011 10:47:22AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor 147614 09/08/2011 003677 TEMECULA MOTORSPORTS LLC 147615 09/08/2011 011736 TEMECULA TROPHY INC Description Veh repair & maint:police Veh repair & maint:police TCSD tennis tournament medals 147616 09/08/2011 005970 TEMECULA VALLEY PLAYERS Advance: Sept '11 Gypsy production 147617 09/08/2011 004274 TEMECULA VALLEY SECURITY Locksmith srvcs: Civic Center 766.40 CENTR locksmith service:Harveston Center 103.00 147618 09/08/2011 014388 TICE INDUSTRIES, INC. Entry door heat handles:PW CIP 1,565.00 147619 09/08/2011 010276 TIME WARNER CABLE Sep high speed internet:30600 Pauba Rd 528.87 Sep high speed internet:42081 Main 51 58.49 587.36 147620 09/08/2011 012725 TRZOP, NICHELLE TCSD Instructor Earnings 2,099.21 TCSD Instructor Earnings 1,478.40 TCSD Instructor Earnings 1,478.40 5,056.01 147621 09/08/2011 009543 VAIL RANCH RESTORATION FY 11/12 Council community srvc funding 500.00 500.00 ASSN 147622 09/08/2011 013647 VICAR OPERATING, INC. VETERINARY SRVCS:POLICE K -9 UNIT 77.16 77.16 147623 09/08/2011 001342 WAXIE SANITARY SUPPLY INC CLEANING SUPPLIES:CRC 147624 09/08/2011 003730 WEST COAST ARBORISTS INC 7/16 -31 tree trimming srvcs:pw maint Grand total for UNION BANK OF CALIFORNIA: Amount Paid Check Total 491.39 321.22 138.11 812.61 138.11 4,000.00 4,000.00 43.64 43.64 1,159.00 1,159.00 290,835.09 Page:4 869.40 1,565.00 apChkLst Final Check List Page: 5 09/08/2011 10:47:22AM CITY OF TEMECULA 56 checks in this report. Grand Total All Checks: 290,835.09 Page:5 apChkLst 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 1776 09/15/2011 010349 CALIF DEPT OF CHILD SUPPORT 1777 09/15/2011 000444 INSTATAX (EDD) 1778 09/15/2011 000283 INSTATAX (IRS) 1779 09/15/2011 000389 NATIONWIDE RETIREMENT SOLUTION 1780 09/15/2011 001065 NATIONWIDE RETIREMENT SOLUTION 1781 09/15/2011 000246 PERS (EMPLOYEES' RETIREMENT) 147625 09/09/2011 010276 TIME WARNER CABLE 147626 09/15/2011 013367 ACTIVE MICRO INC 147627 09/15/2011 009010 ALEXANDER PACIFIC 147628 09/15/2011 012943 ALPHA MECHANICAL SERVICE INC 147629 09/15/2011 004240 AMERICAN FORENSIC NURSES (AFN) 147630 09/15/2011 001947 AMERIGAS 147631 09/15/2011 001323 ARROWHEAD WATER INC 147632 09/15/2011 004262 BIO -TOX LABORATORIES Final Check List Description Support Payment State Disability Ins Payment Federal Income Taxes Payment OBRA- Project Retirement Payment Nationwide Retirement Payment PERS ER Paid Member Contr Payment jul /aug /sep high speed Misc tools & equip: PW Traffic div Electrical repair: Fire Stn #73 HVAC repair /maint: PBSP HVAC repair: TCC Aug Phlebotomy srvcs: TE - Temcula Aug Phlebotomy srvcs: Tem CHP Propane refill: FS #73 July Bottled water svc: Skate park July Bottled water svc: PBSP Drinking water: Theater Drinking water: FOC Drinking water: Children's Museum Drinking water: MPSC Drinking water: TP Library DUI & drug screenings: Police DUI & drug screenings: Police DUI & drug screenings: Police Amount Paid 738.45 23,175.26 78,713.41 2,890.40 11,231.32 134,099.81 679.60 1,798.61 260.00 1,594.85 588.46 423.80 466.18 230.40 19.53 40.22 11.81 35.98 3.83 132.71 3.83 2,241.00 1,060.96 1,047.20 Page: 1 Pagel Check Total 738.45 23,175.26 78,713.41 2,890.40 11,231.32 134,099.81 679.60 1,798.61 260.00 2,183.31 889.98 230.40 247.91 4,349.16 apChkLst Final Check List Page: 2 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor 147633 09/15/2011 003138 CAL MAT 147634 09/15/2011 004248 CALIF DEPT OF July blood alcohol analysis:Police JUSTICE - ACCTING 147641 09/15/2011 005708 CLEAR CHANNEL BROADCASTING INC 147642 09/15/2011 005447 CLEMENTS, BRIAN 147643 09/15/2011 004405 COMMUNITY HEALTH CHARITIES 147646 09/15/2011 010650 CRAFTSMEN PLUMBING & HVAC INC Description Asphalt purch:citywide street repairs Asphalt purch:citywide street repairs Asphalt purch:citywide street repairs Asphalt purch:citywide street repairs Equip repair & maint: PW Traffic div Amount Paid Check Total 1,418.37 449.32 674.59 883.51 1,295.00 147635 09/15/2011 011813 CALIFORNIA VETERINARY July Police K -9 Vet svcs:Astin 550.40 SPCLST Credit billing adj:billing error -28.40 522.00 147636 09/15/2011 004228 CAMERON WELDING SUPPLY July Misc.supplies: MPSC 58.15 Aug Misc.supplies: MPSC 58.15 116.30 147637 09/15/2011 004971 CANON FINANCIAL SERVICES, Aug Copier Lease: Fire Dept 182.55 INC Sep Copier Lease: Civic Center 3,304.99 3,487.54 147638 09/15/2011 000137 CHEVRON AND TEXACO City vehicles fuel: Police Dept 1,823.09 1,823.09 147639 09/15/2011 004931 CHICAGO TITLE COMPANY Title report:PW CIP:apn 920 - 080 -015 500.00 Prelim title report:PW CIP:apn 750.00 1,250.00 147640 09/15/2011 009791 CLARK, MISTY CACEO regis:12 /5- 9:Clark, Misty 108.00 108.00 Advertising:hot summer nights:OT 580.00 Advertising:hot summer nights:OT 1,000.00 1,580.00 Reimb:ICC cert ID #5029809:CIements,B. 95.00 95.00 Community Health Charities Payment 62.00 62.00 147644 09/15/2011 000442 COMPUTER ALERT SYSTEMS Oct -Dec alarm monitoring: Citywide 5,325.00 Battery 12v: City maint yard 43.05 5,368.05 147645 09/15/2011 002945 CONSOLIDATED ELECTRICAL Misc supplies: TCSD maint 359.86 359.86 DIST. Plumbing repair:Old Town Garage 3,100.00 Plumbing services:PW Facilities 1,039.96 Plumbing services: Senior Ctr 155.00 Plumbing repair:OT Prkg garage 245.00 147647 09/15/2011 008810 CROSSTOWN ELECTRICAL & Equip repair & maint: PW Traffic div 363.58 DATA 2,200.00 2,563.58 Page2 3,425.79 1,295.00 4,539.96 apChkLst Final Check List Page: 3 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor 147648 09/15/2011 013560 CROWN BUILDING MAINT CO INC 147649 09/15/2011 010290 CROWNE HILL ELEMENTARY 147650 09/15/2011 003945 DIAMOND ENVIRONMENTAL SRVCS 147657 09/15/2011 004310 FEDEX GROUND INC Description Aug Janitorial srvcs:var city facilities 4,077.02 Aug Janitorial srvcs:Harveston comm rm 365.80 refund:sec dep:pool party:CRC 150.00 Portable restrooms: Veteran's park 52.78 Portable restrooms: Vail ranch park Portable restrooms: Long canyon park Portable restrooms: Riverton park 147651 09/15/2011 004192 DOWNS COMMERCIAL Fuel for City vehicles: B &S FUELING INC Express Mail Service: Police Dept Aug Express Mail Service Express Mail Service: Citywide Amount Paid Check Total 52.78 52.78 52.78 511.21 58.60 1,008.93 81.98 Pages 4,442.82 150.00 211.12 Fuel for City vehicles: PW 308.03 Fuel for City vehicles: Code Enf 433.17 Fuel for City vehicles: TCSD 2,611.44 Fuel for City vehicles: Police 88.09 Fuel for City vehicles: PW Maint 2,092.12 Fuel for City vehicles: PW Indv /npdes 206.95 6,251.01 147652 09/15/2011 004829 ELLISON WILSON ADVOCACY Sep Legislative consulting svcs:cm ofc 3,500.00 3,500.00 LLC 147653 09/15/2011 000164 ESGIL CORPORATION July Plan check srvcs: B &S 149.10 149.10 147654 09/15/2011 003665 EXCEL COMMERCIAL Aug long distance phone svcs 53.64 53.64 147655 09/15/2011 003053 FAGAN, MATTHEW Entertainment:LCC event 5/9 125.00 125.00 147656 09/15/2011 009953 FEDERAL CLEANING JANITORIAL SRVCS:POLICE MALL 625.00 625.00 CONTRACTORS OFFICE- 1,149.51 apChkLst Final Check List Page: 4 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor INC Description 147658 09/15/2011 003347 FIRST BANKCARD CENTER 001264 COSTCO WHOLESALE HP tables:Harveston Center 1,723.99 001264 COSTCO WHOLESALE HP tables:Harveston Center 1,195.99 006952 PAYPAL HP Verisign Payflow Pro Transaction 280.90 011000 SOUTH COAST CONTROLS, HP Time Clock parts:Harveston Lake Prk 124.37 013851 STORM SOURCE, LLC GR appointments plus: Info Tech 20.00 006952 PAYPAL GR Verisign Payflow Pro Transaction 59.95 014429 KAMINSKI'S SPORTS LOUNGE GY rfrshmnts:SDSO Commander mtg 8/8 45.59 & BBQ 147666 09/15/2011 005311 H2O CERTIFIED POOL WATER Pool & fountain maint:citywide 900.00 SPCL. Aug Fountain maint:Town Square 175.00 Amount Paid Check Total 000871 HILTON RR Htl:Metrolink Board Retreat 8/25 -26 46.00 006942 ONTARIO AIRPORT JC Prkg:Natural Resources Hearing 8/23 18.00 3,514.79 147659 09/15/2011 002982 FRANCHISE TAX BOARD SUPPORT PAYMENT 477.38 477.38 147660 09/15/2011 002982 FRANCHISE TAX BOARD SUPPORT PAYMENT 50.00 50.00 147661 09/15/2011 003946 G T ENTERTAINMENT FAM boating regatta:CRC 8/19 250.00 250.00 147662 09/15/2011 013552 GANDS PRODUCTIONS LLC Settlement:Country...Merc 9/10 393.75 393.75 147663 09/15/2011 004890 GOLDEN STATE FIRE Fire sprinkler sys 1,200.00 1,200.00 PROTECTION 147664 09/15/2011 003792 GRAINGER Misc backstage supplies: Theater 647.11 Misc backstage supplies: Theater 29.33 676.44 147665 09/15/2011 013107 GRANT, GLENN ADVERTISING:HOT SUMMER NIGHTS— 1,850.00 1,850.00 Page4 1,075.00 apChkLst Final Check List Page: 5 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor 147667 09/15/2011 000186 HANKS HARDWARE INC Description Misc maint supplies: var park sites Misc supplies:PW Traffic Div Hardware supplies: FS #12 Misc hardware supplies:Civic Ctr Misc hardware supplies: Old Town Misc hardware supplies: Civic Ctr Prkg Misc hardware supplies: Library Misc hardware supplies: CRC Misc hardware supplies:TCSD rec Misc hardware supplies:citywide- Misc hardware supplies: C. Museum Misc hardware supplies: Theater Misc hardware supplies: TCC Misc hardware supplies: CRC Misc hardware supplies: Senior Ctr Misc supplies:PW maint div 147668 09/15/2011 006250 HAZ MAT TRANS INC Sump waste disposal:pw facilities 147669 09/15/2011 002109 HD SUPPLY CONSTR. SUPPLY Misc supplies:pw maint div LTD 147670 09/15/2011 001135 HEALTH POINTE MEDICAL Emp industrial care srvcs:HR GROUP INC 147671 09/15/2011 014167 HELIO POWER, INC. Solar panel maint:parking garage 147672 09/15/2011 003106 HERITAGE SECURITY Aug Security svcs:harveston lake park SERVICES 147673 09/15/2011 014421 HITCH, ANNE refund:cls canc low enroll:beg dance 147674 09/15/2011 000194 IC MA RETIREMENT -PLAN ICMA Retirement Trust 457 Payment 303355 147675 09/15/2011 001573 INLAND EMPIRE FILM FY11 -12 Eco Dev sponsorship COMMISSION 147676 09/15/2011 013695 INLAND EMPIRE SHRED IT Shred srvcs: Records div Shredding srvcs:Police storefronts Shredding srvcs:Police storefronts Shred srvcs: Records div Shred srvcs: Records div 147677 09/15/2011 003296 INTL CODE COUNCIL EC' 07 Bleacher std pdf:Fire Dept Amount Paid Check Total 1,041.79 73.67 319.02 429.46 7.50 11.80 138.24 213.18 137.60 23.68 259.18 640.53 44.34 53.81 17.75 335.09 3,746.64 1,392.20 1,392.20 50.07 50.07 25.00 25.00 1,490.00 1,490.00 656.00 656.00 80.00 80.00 4,835.38 5,000.00 15.00 15.00 15.00 15.00 50.00 17.24 17.24 Pages 4,835.38 5,000.00 110.00 apChkLst Final Check List Page: 6 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147678 09/15/2011 005454 ISLAMIC CENTER OF refund:sec dep:CRC 150.00 150.00 147679 09/15/2011 004119 J T B SUPPLY COMPANY INC Traffic light supplies: PW Traffic div 1,327.48 1,327.48 147680 09/15/2011 003046 K F R O G 95.1 FM RADIO ADVERTISING:HOT SUMMER NIGHTS— 1,220.00 1,220.00 147681 09/15/2011 014312 KAMM INDUSTRIAL, INC. Automotive upholstery svc: 99 -046 chevy 269.38 269.38 147682 09/15/2011 013802 KAUFMAN CONSULTATION Irrigation tests: redhawk comm park 1,382.50 1,382.50 147683 09/15/2011 012945 LABELLE- MARVIN INC MATERIAL TESTING SRVCS:SLURRY 12,435.00 12,435.00 SEAL- 147684 09/15/2011 003726 LIFE ASSIST INC Medical supplies: Medics 115.18 Medical supplies: Medics 178.08 293.26 147685 09/15/2011 013769 LIGHTSQUARED LP July Satellite Phone Svc: Fire 147.50 147.50 147686 09/15/2011 013188 LINFIELD CHRISTIAN SCHOOL refund:sec dep:pool party:CRC 150.00 150.00 147687 09/15/2011 004813 M & J PAUL ENTERPRISES INC Entertainment: Hot Summer Nights 975.00 975.00 147688 09/15/2011 003782 MAIN STREET SIGNS Misc signs:PW Maint 678.83 678.83 147689 09/15/2011 004141 MAINTEX INC Misc supplies:csd maint 1,517.12 1,517.12 147690 09/15/2011 014431 MARTLAND, BETTE B TCSD Instructor Eamings 336.00 336.00 147691 09/15/2011 000944 MCCAIN TRAFFIC SUPPLY INC Traffic signal equip:pw traffic 3,056.88 3,056.88 147692 09/15/2011 006571 MELODYS AD WORKS INC. SEP MARKETING & PROMO 3,500.00 3,500.00 SRVCS:OLD TOWN 147693 09/15/2011 012580 MINUTEMAN PRESS Correction Notices: B &S Dept. 300.04 300.04 147694 09/15/2011 000973 MIRACLE RECREATION playground equip: var parks 25.02 25.02 EQUIPMENT Pages apChkLst Final Check List Page: 7 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147695 09/15/2011 001868 MIYAMOTO - JURKOSKY, SUSAN TCSD Instructor Eamings 191.70 A. TCSD Instructor Eamings 226.80 TCSD Instructor Eamings 218.40 TCSD Instructor Eamings 98.00 734.90 147696 09/15/2011 002925 NAPA AUTO PARTS City veh repair & maint: Stn 84 70.50 70.50 147697 09/15/2011 008528 NICHOLS, MELBURG & JUL ENG SRVCS:CIVIC CENTER 775.63 775.63 ROSETTO 147698 09/15/2011 009337 NOLTE ASSOCIATES INC Jul eng dsgn srvcs:ped bridge 286.50 286.50 147699 09/15/2011 002139 NORTH COUNTY TIMES Aug advertising:PW /Pln /City Clerk 977.76 Aug advertising:FIT 5K /10K run event 508.04 1,485.80 147700 09/15/2011 002139 NORTH COUNTY TIMES Annual subscr:Planning 124624 144.00 144.00 147701 09/15/2011 014427 NUNEZ, DEBRA refund:sec dep:hary ctr:MPR 200.00 200.00 147702 09/15/2011 003964 OFFICE DEPOT BUSINESS SVS Misc office supplies:finance 244.69 DIV Misc office supplies:finance 2.07 Misc office supplies:finance 28.49 275.25 147703 09/15/2011 014051 PACE, ALTON N. & WAN DA J. REFUND:ENG GRAD DEP:LD10 -003GR 1,500.00 1,500.00 147704 09/15/2011 005573 PALOMA ELEMENTARY PTA refund:sec dep:pool party:CRC 150.00 150.00 147705 09/15/2011 004538 PAULEY EQUIPMENT Addl chrgs /equip rental:Code Enf 5.00 5.00 COMPANY 147706 09/15/2011 012833 PC MALL GOV, INC. Misc supplies:info tech 519.60 519.60 147707 09/15/2011 013418 PENWORTHY COMPANY, THE Books:library 976.60 976.60 147708 09/15/2011 010338 POOL & ELECTRICAL Misc supplies:city fountains 4.63 PRODUCTS INC Pool supplies & chemicals:citywide 233.97 Pool supplies & chemicals:citywide 173.67 Pool supplies & chemicals:citywide 52.45 464.72 147709 09/15/2011 003155 PRICE CHOPPER INC wristbands for tcsd special events 179.64 179.64 147710 09/15/2011 012904 PRO ACTIVE FIRE DESIGN Aug plan check srvcs:fire prevention 5,930.23 5,930.23 Page:7 apChkLst Final Check List Page: 8 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147711 09/15/2011 014379 PROFESSIONAL IMAGE Street banner pgrm:eco dev 1,928.33 1,928.33 ADVERTISING 147712 09/15/2011 005075 PRUDENTIAL OVERALL SUPPLY 147713 09/15/2011 004529 QUAID TEMECULA HARLEY - DAVIDSON 147714 09/15/2011 014426 RAEL, HEATHER refund:sec dep:mtg rm a/b:CRC 147715 09/15/2011 000262 RANCHO CALIF WATER DISTRICT 147716 09/15/2011 000907 RANCHO TEMECULA CAR WASH 147717 09/15/2011 000271 RBF CONSULTING Aug floor mat & towel rentals:civic 546.56 Aug uniform/flr mat/twl rental:citywide 1,004.15 1,550.71 City veh repair& maint:Police 2,596.29 2,596.29 Aug water meter- comm:28640 Pujol St 7.38 150.00 150.00 Aug var water meters:Fire Stns 737.54 Aug various water meters:TCSD 3,080.97 Aug var water meters:TCSD & PW 2,305.00 Aug Floating meter- comm: PW 196.11 Aug var water meters:TCSD svc lev C 61,305.82 67,632.82 Aug city veh detailing srvcs:police CAP 63.00 63.00 JUL ENG SRVCS: I- 15/SR -79 ULT. 11,224.35 11,224.35 INTRCHG 147718 09/15/2011 002412 RICHARDS WATSON & May 2011 legal services 560.00 GERSHON Mar 2011 legal services 4,715.10 5,275.10 147719 09/15/2011 003698 RIVERSIDE CO ECONOMIC Real propertysrvcs:french vly pkwy 880.04 880.04 147720 09/15/2011 000406 RIVERSIDE CO SHERIFFS Explorer Academy '11 7/31-8/5 5 1,175.00 1,175.00 DEPT 147721 09/15/2011 000406 RIVERSIDE CO SHERIFFS Driver's Tmg:CAP 9/13 -14/11 736.00 736.00 DEPT 147722 09/15/2011 001097 ROADLINE PRODUCTS INC MISC MAINT SUPPLIES:PW MAINT 1,678.04 1,678.04 147723 09/15/2011 014423 ROGERS, KEN refund:sec dep:hary ctr:MPR 100.00 100.00 147724 09/15/2011 008739 ROSE CITY LABEL Promo items:fire prevention 392.39 392.39 147725 09/15/2011 005329 SAFE ALTERNATIVE FOR Council Comm Srvc Funding 1,000.00 1,000.00 EVERYONE Pages apChkLst 09/15/2011 10:34:08AM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 147726 09/15/2011 014428 SAUCEDO, LESLIE 147727 09/15/2011 009164 SCHRADER, HEIDI 147728 09/15/2011 008529 SHERIFFS CIVIL DIV- CENTRAL 147729 09/15/2011 008529 SHERIFFS CIVIL DIV- CENTRAL 147730 09/15/2011 009213 SHERRY BERRY MUSIC 147731 09/15/2011 009746 SIGNS BYTOMORROW 147732 09/15/2011 000645 SMART & FINAL INC 147733 09/15/2011 000537 SO CALIF EDISON Final Check List CITY OF TEMECULA (Continued) Description refund:sec dep:CRC ee computer purchase prgm SUPPORT PAYMENT SUPPORT PAYMENT Jazz © the Merc 9/8/11 PUBLIC NOTICE POSTINGXX0124: PLANNING Signage: redhawk community park PUBLIC NOTICE POSTING XX0199: PLAN PUBLIC NOTICE POSTINGXXPMND: PLP PUBLIC NOTICE POSTING XX0121: PLAN PUBLIC NOTICE POSTING XX0119: PLAN PUBLIC NOTICE POSTING XX0009: PLAN PUBLIC NOTICE POSTING XX0211: PLAN PUBLIC NOTICE POSTING XX0082: PLAN BANNER FOR 9/11 REMEMBRANCE Misc supplies:aquatics pgrm Jul -Aug 2 -10- 331 - 2153:28816 Pujol St Aug 2 -02- 351 - 5281:30875 rncho vista Aug 2 -20- 798- 3248:C. Museum Sep 2 -33- 777 - 1950:40135 Village Rd Aug 2 -28- 171 - 2620:40820 Winchester Aug 2 -30- 066 - 2889:30051 Rncho vista Aug 2 -30- 608- 9384:28582 Harveston Aug 2 -25- 350 - 5119:45602 Redhawk Aug 2 -29- 657- 2563:42902 Butterfield Aug 2 -29- 479 - 2981:31454 Tem pkwy TCi Aug 2 -29- 974 - 7899:26953 Ynez LS -3 Aug 2 -01- 202- 7603:TCSD Arterial STLT Sep 2 -01- 202- 7330:var LS -1 Allnite Aug 2 -31- 031 - 2590:28301 Rncho calif Aug 2 -31- 419 - 2659:26706 Ynez rd TCi Aug 2 -00- 397- 5059:Comm Svc Utl Aug 2 -05- 791 - 8807:31587 Tem pkwy LS3 147734 09/15/2011 012652 SOUTHERN CALIFORNIA Sep gen usage:0141,0839,2593,9306 Amount Paid 400.00 2,000.00 200.00 100.00 210.00 53.88 103.68 444.30 592.40 53.88 53.88 148.10 148.10 148.10 319.16 150.31 3,262.75 9,231.63 2,145.50 646.55 1,373.45 22.14 762.99 22.53 182.46 98.72 188.01 28,930.27 76,983.00 38.18 85.37 7,735.47 9,212.53 Page: 9 Check Total 400.00 Page9 2,000.00 200.00 100.00 210.00 2,065.48 150.31 140,921.55 511.02 511.02 apChkLst Final Check List Page: 10 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 147735 09/15/2011 000293 STADIUM PIZZA INC Refreshments:aquatics pgrm event 169.99 169.99 147736 09/15/2011 014430 STAPLETON, SILVER Rmb:CMOA tmg 8/10 -12 pd mounted 100.00 100.00 units 147737 09/15/2011 013331 STUDENT OF THE MONTH Council Community Service Funding 1,500.00 1,500.00 PRGM, INC 147738 09/15/2011 000305 TARGET BANK BUS CARD Misc supplies:children's museum 62.21 62.21 SRVCS 147739 09/15/2011 012265 TEMECULA ACE HARDWARE MISC HARDWARE SUPPLIES:CSD 6.77 C/O MAINT MISC HARDWARE SUPPLIES:CSD MAIN1 12.35 MISC HARDWARE SUPPLIES:CSD MAIN1 4.84 23.96 147740 09/15/2011 000168 TEMECULA FLOWER CORRAL Sunshine Fund 67.83 Wreath for 9/11 Remembrance 188.56 256.39 147741 09/15/2011 013184 TEMECULA LUISENO refund:sec dep:pool party:CRC 150.00 150.00 147742 09/15/2011 004274 TEMECULA VALLEY SECURITY Locksmith srvcs:crc 140.11 140.11 CENTR 147743 09/15/2011 000319 TOMARK SPORTS INC Tennis courts: various park sites 814.62 814.62 147744 09/15/2011 003031 TRAFFIC CONTROL SERVICE Misc supplies:PW Traffic 1,068.02 INC credit:safety equip/barricades:PW Mntc - 139.26 SAFETY EQUIP /BARRICADES:PW MNTC 139.26 1,068.02 147745 09/15/2011 014422 TVUSD refund:sec dep:pool party:CRC 150.00 150.00 147746 09/15/2011 014424 TVUSD refund:sec dep:pool party:CRC 150.00 150.00 147747 09/15/2011 014425 TVUSD refund:sec dep:pool party:CRC 150.00 150.00 147748 09/15/2011 014413 U.S. DEPARTMENT OF SUPPORT PAYMENT 753.21 753.21 EDUCATION 147749 09/15/2011 007766 UNDERGROUND SERVICE Aug undrgrnd svcs alert tickets:PW 216.00 216.00 ALERT 147750 09/15/2011 000325 UNITED WAY United Way Charities Payment 63.00 63.00 Page:10 apChkLst Final Check List Page: 11 09/15/2011 10:34:08AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor 147751 09/15/2011 014094 URBAN CROSSROADS, INC. 147752 09/15/2011 005574 VAIL ELEMENTARY PTA Description Aug consulting srvcs:maravilla proj Aug consulting srvcs:maravilla proj refund:sec dep:pool party:CRC 657.48 5,226.10 150.00 147753 09/15/2011 004261 VERIZON Sepxxx -1341 general usage:Theater 342.68 Sep xxx -9661 general usage 40.44 Sep xxx -1941 gen usage:pta cd ttacsd 37.06 Aug xxx -0049 gen usage:Comerchero, J. 36.90 Aug xxx -3979 gen usage:PD mall fax line 84.00 Sep xxx -7530 general usage:Library 480.17 Sep xxx -0590 gen usage:TCC alarm 82.31 Sep xxx -5180 gen usage:79S brig ctr 4044 1,144.00 147754 09/15/2011 004789 VERIZON Sep Internet svc:SW DSL:PD:Jones, C. 39.95 39.95 147755 09/15/2011 012292 VIAMEDIA INC Aug advertising:hot summer nights 1,920.00 1,920.00 147756 09/15/2011 007208 VINCES SPAGHETTI EXPRESS Refreshments:high hopes event 9/16 499.94 499.94 147757 09/15/2011 006248 WALKER, JESSICA TCSD Instructor Eamings 455.00 455.00 147758 09/15/2011 003730 WEST COAST ARBORISTS INC Tree trimming srvcs:library 382.50 382.50 Grand total for UNION BANK OF CALIFORNIA: Amount Paid Check Total 632,276.17 Pagel 1 5,883.58 150.00 apChkLst Final Check List Page: 12 09/15/2011 10:34:08AM CITY OF TEMECULA 140 checks in this report. Grand Total All Checks. 632,276.17 Page:12 Item No. 4 Approvals City Attorney Director of Finance City Manager (10L CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Genie Roberts, Director of Finance DATE: September 27, 2011 SUBJECT: Financial Statements for the Fiscal Year Ended June 30, 2011 PREPARED BY: Pascale Brown, Accounting Manager RECOMMENDATION: That the City Council: 1. Receive and file the Financial Statements for the fiscal year ended June 30, 2011. 2. Approve an appropriation of $145,000 for Operating Transfers Out in the State Transportation fund and an offsetting $145,000 decrease for Operating Transfer Out in the State Gas Tax fund. 3. Approve an appropriation of $50,000 for Operating Transfers Out in the Supplemental Law Enforcement Services Fund (SLESF) budget, and an increase of $50,000 of Revenues in the Supplemental Law Enforcement Services Fund (SLESF). BACKGROUND: The attached Financial Statements reflect the unaudited activity of the City of Temecula for the fiscal year ended June 30, 2011. Please see the attached Financial Statement footnotes for an analytical review of financial activity for each of the various Funds. The recommendation above includes adjustments to the State Transportations, State Gas Tax and Supplemental Law Enforcement Services Fund (SLESF) Funds. The State of California Controller approved the State Gas Tax Swap in March 2010 which required Proposition 42 State Transportation funds received in fiscal year 2009 -10 to be spent by the end of fiscal year 2010 -11. If monies were not spent by fiscal year 2010 -11, any remaining funds plus interest are required to be returned to the State. Therefore, the remaining Proposition 42 State Transportation funds must be transferred to offset qualifying costs made in fiscal year 2010 -11. The increase in Supplemental Law Enforcement Services Fund (SLESF) revenues and appropriations are due to allocations to the City from the State at higher than anticipated levels. These funds are transferred to the General Fund to reimburse it for qualifying Police expenditures. FISCAL IMPACT: A fiscal summary of the City of Temecula funds are as follows: General Fund - Fiscal year ending June 30, 2011, General Fund Operating Revenues over Expenditures were $6,877,649. This is primarily due to the $2.9 million settlement to the General Fund for the theater litigation, $457,000 higher than budgeted sales tax due to increased demand for general consumer goods and automobiles, $379,000 FEMA reimbursements for prior year storm damages, $185,000 from the Indian Gaming Special Distribution Fund for police services, $800,000 savings in REST contributions due to savings in TCSD operations as a result of $500,000 in legal costs reimbursed from the theater settlement and utility cost savings as a result of a mild summer which led to a decrease in water usage. Additional expenditures savings were realized in Public Works and Planning departments due to routine street maintenance repairs and transportation planning grant expenditures that have been reprogrammed from fiscal year 2010 -11 to be spent in fiscal year 2011 -12. State Gas Tax Fund - Fiscal year ending June 30, 2011, budgeted fund balance versus actual increased in the Gas Tax Fund by approximately $768,000 primarily due to fewer qualifying costs incurred by the Public Works Department that are reimbursable from Gas Tax revenues. This resulted in less money being transferred out to reimburse Public Works for expenditures. State Transportation Fund - Fiscal year ending June 30, 2011, budgeted fund balance versus actual decreased approximately $145,000 due to transferring all available amounts to the General Fund to reimburse Public Works for qualifying costs. Development Impact Fund - Fiscal year ending June 30, 2011, budgeted fund balance versus actual increased approximately $4.9 million in the Development Impact Fee Fund primarily due to various capital projects financed by this revenue source being reprogrammed to fiscal year 2011 -2012. AB 2766 Fund - Fiscal year ending June 30, 2011, budgeted fund balance versus actual increased $620,000 in the AB 2766 Fund primarily due to various capital projects financed by this revenue source being reprogrammed to fiscal year 2011 -2012. Measure A Fund - Fiscal year ending June 30, 2011, budgeted fund balance versus actual increased $5.5 million in the Measure A fund primarily due to various capital projects financed by this revenue source being reprogrammed to fiscal year 2011 -2012. Debt Service Fund- Certificates of Participation - Fiscal year ending June 30, 2011, budgeted fund balance versus actual increased approximately $387,000 in the Certificates of Participation (COP) Debt Service Fund primarily due to the City not paying off a portion of the Civic Center COPs as originally programmed. ATTACHMENTS: Combining Balance Sheet as of June 30, 2011 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual for the Fiscal Year Ended June 30, 2011 Combining Statement of Net Assets as of June 30, 2011 Combining Statement of Revenues, Expenses and Changes in Net Assets for the Fiscal Year Ended June 30, 2011 Statement of Net Assets - Fiduciary Fund as of June 30, 2011 Statement of Changes in Fiduciary Net Assets for the Fiscal Year Ended June 30, 2011 CITY OF TEMECULA Combining Balance Sheet as of June 30, 2011 And Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual for the Fiscal Year Ended June 30, 2011 And Combining Statement of Net Assets as of June 30, 2011 And Combining Statement of Revenues, Expenses and Changes in Net Assets for Fiscal Year Ended June 30, 2011 And Statement of Net Assets - Fiduciary Fund as of June 30, 2011 And Statement of Changes in Fiduciary Net Assets for the Fiscal Year Ended June 30, 2011 (Unaudited) Prepared by the Finance Department ASSETS: General Fund Cash and Investments $ 34,444,104 $ 701,392 $ Receivables 11,349,823 Gas Tax Fund CITY OF TEMECULA COMBINING BALANCE SHEET as of June 30, 2011 State Transport. Fund DIF Fees Fund - $ 4,967,364 $ Energy Recovery Efficiency CDBG JAG Fund Conserv. Fund Grant 310,258 12,580 13,535 57,223 16,258 Due from Other Funds 79,084 - - - - - Advances to Other Funds 1,242,095 - - - - - Deposits 79,592 Inventory 3,058 TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: $ 47,197,756 $ 1,011,650 $ - $ 4,979,944 $ 13,535 $ 57,223 $ 16,258 Due to Other Funds $ - $ - $ - $ - $ 4,548 $ 57,223 $ 16,258 Other Current Liabilities 11,471,978 - - 17,659 8,987 - - Deferred Revenue 3,647,464 - - - - - - TOTAL LIABILITIES 15,119,442 - - 17,659 13,535 57,223 16,258 FUND BALANCES: Reserved 1,820,153 2,674 Designated 30,258,161 1,011,650 4,962,285 Undesignated (2,674) TOTAL FUND BALANCES 32,078,314 1,011,650 4,962,285 NOTE: Balances are unaudited 1 $ TOTAL LIABILITIES and FUND BALANCES $ 47,197,756 $ 1,011,650 $ - $ 4,979,944 $ 13,535 $ 57,223 $ 16,258 ASSETS: Cash and Investments $ 615,421 $ - $ 8,424,175 $ 14,163,864 $ 795,527 $ 64,111,847 Receivables 25,318 74,536 385,826 962,945 943 13,209,245 Due from Other Funds - 148,830 227,914 Advances to Other Funds - 1,242,095 Deposits 79,592 Inventory 3,058 TOTAL ASSETS $ 640,739 $ 74,536 $ 8,810,001 $ 15,275,639 $ 796,470 $ 78,873,751 LIABILITIES AND FUND BALANCES LIABILITIES: Due to Other Funds Other Current Liabilities Deferred Revenue TOTAL LIABILITIES FUND BALANCES: $ AB2766 Fund Reserved - Designated 640,739 U ndesignated - TOTAL FUND BALANCES 640,739 NOTE: Balances are unaudited CITY OF TEMECULA COMBINING BALANCE SHEET as of June 30, 2011 SLESF Fund Measure A Fund - $ 74,536 $ - $ - $ - $ 152,565 - 527,112 - 12,025,736 - - - 3,647,464 - 74,536 - 527,112 15,825,765 2 8,810,001 8,810, 001 Capital Project Fund 2,872,590 11,875,937 Debt Service Fund 796,470 14,748,527 796,470 TOTAL 5,491,887 57,558,773 (2,674) 63,047,986 TOTAL LIABILITIES and FUND BALANCES $ 640,739 $ 74,536 $ 8,810,001 $ 15,275,639 $ 796,470 $ 78,873,751 CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND for the Fiscal Year Ended 6/30/2011 Annual Amended Budget Total Percentage Activity of Budget REVENUES: Sales Tax - State $ 18,166,874 $ 18,624, 314 103% Sales Tax - Triple Flip 6,470,853 6,470,853 100% Franchise Fees 3,073,423 3,219,085 105% Motor Vehicle In Lieu - State 811,085 473,637 58% (1) Motor Vehicle In Lieu - Triple Flip 5,940,244 5,940,244 100% Property Tax 5,047,371 4,992,093 99% Property Tax Relief (Homeowner) 73,844 73,793 100% Property Transfer Tax 496,607 433,290 87% (2) Transient Occupancy Tax 2,154,541 2,168,748 101% Vehicle Code Fines 692,641 729,369 105% Development Services: Building & Safety 1,272,445 1,295,002 102% Fire 400,845 611,543 153% (3) Land Development 645,647 896,511 139% (4) Planning 1,100,049 593,619 54% (5) Public Works- NPDES 3,276 4,541 139% Police 633,712 554,250 87% Advertising 31,950 25,810 81% (6) Bids and Proposals 11,220 2,610 23% Business Licenses 325,380 288,878 89% GASB 31 Fair Market Value on Investment (243,024) (245,299) 101% Investment 361,800 314,164 87% (7) Investment Interest RDA Loan Repayment 238,633 238,633 100% Grants 125,912 210,627 167% (8) Lease /Rental Income 12,000 22,637 189% (9) Miscellaneous 7,163 34,778 486% (10) Operating Transfers In State Gas Tax 2,664,009 1,907,438 72% (11) State Transportation 55,000 199,880 363% (12) AB3229 COPS 100,000 149,555 150% (12) Recovery from Prior Year Expense 47,524 Settlement 2,879,175 (13) Reimbursements: Financing 168,000 175,000 104% CIP 2,203,314 2,120,354 96% RDA 110,000 110,000 100% Other 59,920 648,073 1082% (14) TOTAL REVENUES $ 53,214,734 $ 56,210,729 106% NOTES: (1) The variance is primarily due to State budget trailer bill SB 89 approved as part of the FY11 -12 State budget, which eliminated the direct allocation of MVL revenues to local governments. (2) The variance is primarily due to a decrease in the number of property sales than originally projected. (3) The variance in Fire is primarily due to the timing of development activities and the issuance of permits. (4) The variance in Land Development is primarily due to hospital on -site improvements and the timing of development activities. (4) The variance in Fire is primarily due to the timing of development activities and the issuance of permits (5) The variance in Planning is primarily due to revenues based on reimbursements for qualifying transportation planning grant expenditures, as well as the timing of development activities and the issuance of permits. (6) Revenues for panel rentals as of June 30, 2011 have not been received yet. (7) The variance is primarily due to a continued decline in LAIF and bond investment interest rates. (8) The variance is primarily due to monies received from FEMA for costs incurred related to the December 2010 storms. (9) The variance is primarily due to monthly rent received from Richards, Watson, and Gershon from their lease of floor space at the Civic Center. (10) The variance is primarily due to FY2008 -09 and FY2009 -10 Community Service funding obligations recorded in prior year were subsequently cancelled. (11) The variance in Operating Transfers In is primarily due to less qualifying costs incurred by Public Works to be reimbursed from Gas Tax revenues. (12) The variance is due to State allocation to the City at higher than anticipated levels and the remaining of Proposition 42 to be spent by June 30, 2011. (13) The variance is due to settlements received for Theater construction project. (14) The variance is primarily due to monies received from the Indian Gaming Special Distribution Fund for police services in the amount of $185,000 and FEMA reimbursement of $379,000. 3 EXPENDITURES: TOTAL EXPENDITURES (excluding transfers) Revenues Over /(Under) Expenditures Annual Amended Budget CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND for the Fiscal Year Ended 6/3012011 Year-to-Date Activity City Council $ 431,769 $ 395,405 $ 395,405 92% Community Support 137,150 129,878 129,878 95% City Manager 1,344,917 1,341,835 1,341,835 100% Economic Development 921,144 781,048 13,308 794,356 86% City Clerk 1,155, 053 1,104,368 1,104,368 96% City Attorney 951,300 906,667 906,667 95% Finance 2,222,777 2,134,051 41,192 2,175,243 98% Human Resources 573,429 539,305 539,305 94% Planning 1,577,922 1,241,364 6,078 1,247,442 79% (1) Building & Safety 2,406,570 2,167,678 2,167,678 90% Land Development 1,278,637 1,261,480 1,261,480 99% Public Works 4,471,370 3,822,203 3,822,203 85% (2) CIPAdministration 2,203,314 2,175,423 2,175,423 99% Police 21,222,874 20,926,405 79,263 21,005,668 99% Fire 4,262,578 4,160,971 4,160,971 98% Animal Control 434,160 344,083 344,083 79% (3) Non - Departmental 6,673,977 5,900,916 5,900,916 88% (4) 52,268, 941 49, 333,080 139,841 49, 472,921 95% 945,793 6,877,649 Other Financing Sources (Uses): Transfers Out (23,132,853) (15,373,801) 66% Revenues Over /(Under) Expenditures and Other Financing Sources (uses) (22,187,060) (8,496,152) Special Item- CFD CFD 88 -12 Bond Call (4,774,841) (4,769,968) Net Change in fund balances (26,961,901) (13,266,120) Beginning Fund Balance as of 7/01/2010 45,344,434 45,344,434 Ending Fund Balance as of 6/30/2011 $ 18,382,533 $ 32,078,314 Year-to-Date Encumbrances Activity and Encumbrances NOTES: (1) The variance in Planning is due to transportation planning grant expenditures that have not been incurred. (2) The variance in Public Works is due to a large portion of Routine Street Maintenance repairs that have been reprogrammed to fiscal year 2011 -12. (3) The variance in Animal Control is due to cost sharing agreement for new sheltering services were less than anticipated. (4) The variance is due to a reduction of REST contribution from General Fund to TCSD Operations. 4 Percentag e of Budget 100% REVENUES: Section 2103 - 2107 $ 2,585,985 $ 2,597,046 100% TOTAL REVENUES 2,585,985 2,597,046 100% Other Financing Sources (uses): Transfers Out Revenues Over /(Under) Other Financing Sources (uses) CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GAS TAX FUND for the Fiscal Year Ended 6/30/2011 Annual Total Percentage of Amended Activity Budget Budget (2,664,009) (1,907,438) 72% (1) (78,024) 689,608 Beginning Fund Balance as of 7/01/2010 322,042 322,042 Ending Fund Balance as of 6/30/2011 $ 244,018 $ 1,011,650 NOTES: (1) The variance in Operating Transfers In is primarily due to less qualifying costs incurred by Public Works to be reimbursed from Gas Tax revenues. 5 Other Financing Sources (uses): Transfers Out Revenues Over /(Under) Other Financing Sources (uses) Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STATE TRANSPORTATION FUND for the Fiscal Year Ended 6/30/2011 Annual Amended Budget Total Percentage of Activity Budget REVENUES: Investment Interest $ 6,744 $ 4,478 66% (1) TOTAL REVENUES 6,744 4,478 66% (1,334,835) (1,479,715) 111% (2) (1,328,091) (1,475,237) 1,475,237 1,475,237 $ 147,146 $ NOTES: (1) The variance is primarily due to a continued decline in LAIF and bond investment interest rates. (2) The variance is primarily due to Proposition 42 funds that must be used by June 30, 2011. 6 REVENUES: CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEVELOPMENT IMPACT FUND for the Fiscal Year Ended 6/30/2011 Annual Amended Budget Open Space $ 155,803 $ 191,446 123% Investment Interest 42,439 0% Quimby 22,050 0% Street Improvements 2,433,315 1,049,247 43% Traffic Signals 355,782 161,494 45% Parks 459,237 558,266 122% Corporate Facilities 197,713 165,400 84% Fire Protection 162,985 144,816 89% Library 157,110 197,857 126% Public Art 7,451 7,020 0% Police 105,322 86,534 82% TOTAL REVENUES 4,056,768 2,604,519 64% (1) Other Financing Sources (uses): Transfers Out (8,402,561) (1,998,910) 24% (2) Revenues Over /(Under) Other Financing Sources (uses) (4,345,793) 605,609 Beginning Fund Balance as of 7/01 /2010 4,356,676 4,356,676 Ending Fund Balance as of 6/30/2011 $ 10,883 $ 4,962,285 NOTES: (1) The variance in Development Impact Fee revenues is due to a continued decline in building activity and the delay of planned developments. (2) The expenditure variance is due to DIF funded Capital Improvement Projects that have been awarded but have not started during this fiscal year. 7 Total Percentage of Activity Budget STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL RECOVERY ACT JAG FUNDING for the Fiscal Year Ended 6/30/2011 Revenues Over /(Under) Expenditures Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 $ CITY OF TEMECULA Annual Year to Date Total % of Amended Activity Encumbrances Activity Budget Budget REVENUES: Grant Revenue $ 96,655 $ 23,517 $ $ 23,517 (1) TOTAL REVENUES 96,655 23,517 - 23,517 EXPENDITURES: Operating Expenditures 96,655 23,517 2,674 26,191 27% (1) TOTAL EXPENDITURES 96,655 23,517 2,674 26,191 27% $ NOTES: (1) Police have yet to be invoiced from Riverside County Sheriffs Department for qualifying overtime operations for Mall Patrol and Youth Court JAG funded programs. 8 Revenues Over /(Under) Expenditures and Other Financing Sources (uses) CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ENERGY EFFICIENCY CONSERVATION GRANT for the Fiscal Year Ended 6/30/2011 Annual Amended Budget YTD Total Percentage Activity Activity of Budget REVENUES: Grant Revenue $ 940,700 $ 197,217 $ 197,217 21% (1) TOTAL REVENUES 940,700 197,217 197,217 21% EXPENDITURES: Operating Expenditures 346,124 11,183 11,183 3% (1) TOTAL EXPENDITURES 346,124 11,183 11,183 3% Revenues Over /(Under) Expenditures 594,576 186,034 Other Financing Sources (uses): Transfers Out (594,576) (186,034) 0% (2) Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 NOTES: (1) Revenues are based on reimbursements for qualifying grant project expenditures. (2) Construction of the Citywide Adaptive Traffic Light Synchronization System was awarded on August 2010. The CRC Retrofit project is in design stage. 9 Revenues Over /(Under) Other Financing Sources (uses) Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT for the Fiscal Year Ended 6/30/2011 Annual Amended Budget REVENUES: Grant Revenue $ 1,444,860 $ 468,997 32% (1) TOTAL REVENUES 1,444,860 468,997 32% EXPENDITURES: Other Outside Services 57,793 44,607 77% (1) TOTAL EXPENDITURES 57,793 44,607 77% Revenues Over /(Under) Expenditures 1,387,067 424,390 Other Financing Sources (uses): Transfers Out (1,387,067) (424,390) 31% (1) NOTES: (1) Revenues are based on reimbursements for eligible project expenditures. The Temecula Community Center Expansion Phase II Renovation was completed in October 2010. The Old Town Gymnasium design is nearly complete. City staff is working with the Riverside County Flood Control with regard to the design and land acquisition. This project is estimated to be complete by the end of fiscal year 2013. 10 Total Percentage of Activity Budget REVENUES: AB 2766 Investment Interest EXPENDITURES: Other Outside Services TOTAL EXPENDITURES Revenues Over /(Under) Expenditures Other Financing Sources (uses): Transfers Out Ending Fund Balance as of 6/30/2011 CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TOTAL REVENUES AB 2766 FUND for the Fiscal Year Ended 6/30/2011 Annual Amended Budget Revenues Over /(Under) Other Financing Sources (uses) (521,248) 99,102 Beginning Fund Balance as of 7 /01/2010 541,637 541,637 $ 20,389 $ 640,739 11 Total Percentage of Activity Budget $ 116,085 $ 113,568 98% 6,042 5,534 92% 122,127 119,102 98% 13,199 10,000 76% 13,199 10,000 76% 108,928 109,102 (630,176) (10,000) 2% (1) NOTES: (1) The Capital Projects Pedestrian Bicycle Bridge and Santa Gertrudis Creek are in the design stage and the Temecula Park and Ride project has not yet started. CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND(SLESF) for the Fiscal Year Ended 6/30/2011 Other Financing Sources (uses): Transfers Out (100,000) (149,555) 150% (1) REVENUES: AB 3229 - COPS $ 100,000 $ 149,555 150% (1) TOTAL REVENUES 100,000 149,555 150% Revenues Over /(Under) Other Financing Sources (uses) Annual Amended Budget 12 Beginning Fund Balance as of 7/01/2010 - - Ending Fund Balance as of 6/30/2011 $ $ NOTES: Total Percentage of Activity Budget (1) Revenue allocation from State is based on City population. Amount received was higher than anticipated. STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MEASURE A for the Fiscal Year Ended 6/30/2011 REVENUES: Measure "A" Investment Interest TOTAL REVENUES EXPENDITURES: Operating Expenditures TOTAL EXPENDITURES Revenues Over /(Under) Expenditures Other Financing Sources (uses): Transfers Out Revenues Over /(Under) Expenditures and Other Financing Sources (uses) Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 CITY OF TEMECULA Annual Amended Budget $ 1,917,000 $ 2,211,045 $ 83,607 76,451 2,000,607 2,287,496 1,212,713 660,507 660,507 54% (2) 1,212,713 660,507 660,507 54% 787,894 1,626,989 (4,892,734) (177,625) 0% (3) (4,104,840) 1,449,364 7,360,637 7,360,637 $ 3,255,797 $ 8,810,001 NOTES: (1) Revenues are derived from sales taxes. Retail sales have been stronger than anticipated due to increases in general consumer goods and auto sales. (2) Citywide Slurry Seal and Concrete repairs have been reprogrammed to fiscal year 2011 -12. (3) The French Valley Parkway Phase I project is currently in Design. The plans, specifications, and estimates are expected to be complete by the end of fiscal year 2013. The French Valley Parkway Phase I project and the Pavement Rehabilitation will be carry forward to fiscal year 2011 -12. 13 YTD Activity Encumbrances Total Percentage Activity of Budget $ 2,211,045 115% (1) 76,451 91% 2,287,496 114% REVENUE: STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - ___ BUDGET AND ACTUAL CAPITAL IMPROVEMENT PROJECTS FUND for the Fiscal Year Ended 6/30/2011 Operating Transfers In Grants Senate Bill 821 Reimbursements Reimbursements - TUMF Investment Interest TOTAL REVENUE EXPENDITURES: Citywide Adaptive Traffic Light Synchronization -Phase I Citywide Adaptive Traffic Light Synchronization -Phase II Nicolas Valley Assessment District Liefer Road Open Space Acquisition Phase II Road and Storm Drain Repair at Rancho California Road Reconstruction at Jedediah Smith Rd. Slurry Seal at Paloma Del Sol and Temeku Hills Old Town Police Storefront Temecula Police Station Tenant Improvement Old Town Sound System Retrofit Pechanga Parkway Mitigation Structural Seismic Retrofit Buildings Murrieta Creek Bridge / Overland Extension to Diaz Abbott Corporation Roadway Improvements Medians and Parkway Citywide Closed Caption Television Install -State Route 79 South Pechanga Winchester Rd. / State Route 79 North Corridor Beautification Old Town Infrastructure Projects - Civic Center Old Town Infrastructure - Parking Structure, Office and Retail Pavement Rehabilitation Program - Citywide Account Number CITY OF TEMECULA Annual Amended Budget $ 44,347,515 6,045,396 2,705,787 18,047,224 71,145,922 14 Year -to -Date Activity $ 19,018,645 $ 1,816,916 4,000,000 419,660 3,933,548 105,813 29, 294, 582 165 -501 647,936 576,646 165 -503 278,265 178,408 165 -504 22,985 165 -509 200,000 140,113 165 -510 95,411 57,416 165 -511 678,854 659,691 165 -512 625,616 423,258 165 -513 440,000 257,538 165 -514 100,000 57 165 -515 85,800 24,967 165 -516 621,711 39,868 165 -517 130,000 - 165 -602 3,328,161 97,833 165 -620 750,000 - 165 -622 361,048 134,589 165 -635 179,984 115,300 165 -638 486,790 375,941 165 -643 516,421 284,999 165 -644 694,810 234,122 165 -655 4,747,915 793,256 Encumbrances Total Activity % of Budget 62,032 74,679 22,639 35,909 60,808 701 13,442 80,562 40,685 46,934 21,572 $ 19,018,645 1,816,916 4,000,000 419,660 3,933,548 105,813 29, 294, 582 638,678 99% 253,087 91% 22,639 140,113 98% 70% 57,416 60% 659,691 97% 423,258 68% 293,447 67% 57 85,775 40,569 97,833 43% 30% 16% 22% 0% 41% (1) 100% 7% 0% 3% 0% 37% 134,589 128,742 72% 456,503 94% 325,684 63% 281,056 40% 814,828 17% CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - T AND ACTUAL CAPITAL IMPROVEMENT PROJECTS FUND - continued for the Fiscal Year Ended 6/30/2011 EXPENDITURES - contd : Account Annual Year -to -Date % of Number Amended Activity Encumbrances Total Activity Budget Budget Pavement Rehabilitation - STPL Project 165 -657 695,652 25,767 25,767 4% Western Bypass Bridge Over Murrieta Creek 165 -660 226,985 88,099 48,686 136,785 60% Interstate -15 / State Route 79 South Ultimate Interchange 165 -662 1,530,288 1,073,518 112,580 1,186,098 78% Flashing Beacons 165 -670 22,401 13,958 1,315 15,273 68% Temecula Pkwy Striping Modification from 1 -15 to Pechanga Pkwy 165 -676 247,446 922 922 0% Traffic Signals- Meadows Parkway at Pauba 165 -678 229,030 11,802 4,599 16,401 7% Traffic Signals- Rancho California and Yukon 165 -679 279,663 154,679 121,852 276,531 99% Traffic Signal Equipment Installation 165 -712 60,092 - - 0% Citywide Storm Drain Improvements 165 -715 406,268 199,788 500 200,288 49% French Valley Pkwy/I-15 Over - Crossing and Improvements- Phase 1 165 -719 2,998,280 1,093,025 26,879 1,119,904 37% Butterfield Stage Road Extension Beltway Project 165 -723 10,013,089 355,156 92,213 447,369 4% French Valley Pkwy/I-15 Over - Crossing and Improvements- Phase 11 165 -726 14,703,842 3,156,839 162,802 3,319,641 23% Murrieta Creek Improvements 165 -735 50,000 - - 0% Pedestrian /Bicycle Bridge Over Santa Gertrudis Creek to CHS 165 -738 1,295,713 91,302 4,130 95,432 7% Santa Gertrudis Creek Pedestrian /Bicycle Trail Extension 165 -739 266,580 2,591 150,410 153,001 57% Fire Station Roripaugh Ranch 165 -741 584,312 300,819 300,819 51% Main Street Bridge Over Murrieta Creek 165 -743 6,851,156 102,625 15,837 118,462 2% Erosion Control Margarita Long Canyon 165 -746 49,935 12,932 - 12,932 26% Temecula Park and Ride 165 -747 35,024 18,988 3,219 22,207 63% Old Town Civic Center -Phase 11 165 -751 14,710,606 13,295,202 1,140,770 14,435,972 98% Redhawk Park Improvements 190 -144 948,534 935,563 2,105 937,668 99% Reclaimed Water Irrigation Retrofit 190 -150 500,000 0% Neighborhood Park Security Lighting 190 -151 40,000 29,844 - 29,844 75% CRC Energy Management Retrofit 190 -152 344,576 7,625 5,200 12,825 4% Library Parking Lot Expansion 190 -153 400,000 43,549 - 43,549 11% Margarita Road Right -of -Way Enhancements 190 -154 132,782 22,100 214 22,314 17% 15 STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - T AND ACTUAL CAPITAL IMPROVEMENT PROJECTS FUND - continued for the Fiscal Year Ended 6/30/2011 EXPENDITURES - contd : CITY OF TEMECULA Account Annual Year -to -Date % of Number Amended Activity Encumbrances Total Activity Budget Budget Water Slide Replacement CRC Pool 190 -156 150,000 12,446 3,029 15,475 10% Play Structure Retrofit at Various Parks 190 -179 27,000 10,002 10,002 37% Old Town Gymnasium 190 -186 1,256,941 293,444 69,441 362,885 29% Ronald Reagan Sports Park Channel Silt Removal and Desilting Pond 190 -187 383,951 111,327 128,140 239,467 62% Roripaugh Ranch Open Space Trails 190 -195 9,626 - - - 0% Temecula Community Center Expansion 190 -197 628,598 626,719 1,562 628,281 100% Temecula Children's Museum Refurbish 190 -675 29,452 13,126 16,325 29,451 100% TOTAL EXPENDITURES 75,099,529 26,196,940 $ 2,872,590 $ 29,069,530 39% (2) Revenues Over /(Under) Expenditures (3,953,607) 3,097,642 Beginning Fund Balance as of 7/01/2010 11,650,885 11,650,885 Ending Fund Balance as of 6/30/2011 $ 7,697,278 $ 14,748,527 NOTES: (1) The variance in revenues is primarily due to several funded Capital Improvement projects where reimbursement for eligible expenditures have not yet been made during this fiscal year. (2) The variance in expenditures is primarily due to several major Capital Improvement projects that are currently in design stage and construction have not yet been awarded for the projects. 16 STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET _________ ACTUAL CERTIFICATES OF PARTICIPATION - DEBT SERVICE FUND -2008 for the Fiscal Year Ended 6/30/2011 REVENUES: Investment Interest Transfers In EXPENDITURES: TOTAL REVENUES Trustee Fees Debt Service Principal Debt Service Interest NOTES: TOTAL EXPENDITURES Revenues Over /(Under) Expenditures and Other Financing Sources (uses) Beginning Fund Balance as of 7/01/2010 Ending Fund Balance as of 6/30/2011 CITY OF TEMECULA Annual Year to Date Total % of Amended Activity Encumbrances Activity Budget Budget $ 1,055 $ 5,535 $ $ 5,535 7,951,319 1,574,431 1,574,431 20% (1) 7,952,374 1,579,966 - 1,579,966 20% 3,600 3,400 3,400 94% 7,200,000 440,000 - 440,000 6% (1) 1,133,888 1,133,888 - 1,133,888 100% 8,337,488 1,577,288 - 1,577,288 19% (385,114) 2,678 793,792 793,792 $ 408,678 $ 796,470 (1) The variance is primarily due early payoff of the Certificate of Participation (COP) debt obligation has been postponed for this fiscal year. 17 LIABILITIES: COMBINING STATEMENT OF NET ASSETS as of June 30, 2011 ASSETS: Cash and Investments Receivables Prepaid Assets Property, Plant, and Equipment (net of accumulated depreciation) Insurance Fund Vehicles and Equipment Fund 671,431 TOTAL ASSETS 943,167 1,659,500 LIABILITIES AND NET ASSETS Current Liabilities Capital Leases Payable TOTAL LIABILITIES NET ASSETS: TOTAL NET ASSETS NOTE: Balances are unaudited 516,108 CITY OF TEMECULA Information Technology Fund Support Facilities Services Fund Fund $ 621,979 $ 984,939 $ 789,026 $ 403,016 $ 303,821 $ 3,102,781 1,707 3,130 4,915 1,073 1,599 12,424 319,481 - - 319,481 18 144,302 99,994 938,243 516,108 204,123 504,083 305,420 43,592 125,906 204,123 169,498 81,864 TOTAL 915,727 4,350,413 845,687 125,906 81,864 971,593 $ 427,059 $ 1,659,500 $ 734,120 $ 334,585 $ 223,556 $ 3,378,820 COMBINING STATEM_E_NT_OF_REV_EN_UES, E_X_PE_NSE_S,_and_CHA_NGES IN NET ASSETS INTERNAL SERVICE FUNDS for the Fiscal Year Ended 6/30/2011 REVENUES: Investment Interest Charges for Services TOTAL REVENUES EXPENSES: Salaries and Wages Operating Expenses Interest Depreciation Net Assets as of June 30, 2011 Insurance Fund $ 6,719 $ 9,567 $ 4,585 $ 3,264 $ 1,755 $ 25,890 863,996 35,790 2,139,454 429,482 833,361 4,302,083 870,715 45,357 2,144,039 432,746 835,116 4,327,973 61,119 882,758 TOTAL EXPENSES 943,877 CITY OF TEMECULA Vehicles and Information Equipment Technology Fund Fund Support Facilities Services Fund Fund TOTAL - 1,233,962 245,185 406,209 1,946,475 - 704,505 100,388 398,442 2,086,093 - 14,098 - 14,098 260,938 184,838 45,181 - 490,957 260,938 2,123,305 404,852 804,651 4,537,623 Revenues Over /(Under) Expenses (73,162) (215,581) 20,734 27,894 30,465 (209,650) Net Assets as of July 01, 2010 500,221 1,875,081 713,386 306,691 193,091 3,588,470 $ 427,059 $ 1,659,500 $ 734,120 $ 334,585 $ 223,556 $ 3,378,820 19 CITY OF TEMECULA STATEMENT OF NET ASSETS - Fiduciary Fund CALIFORNIA EMPLOYEE RETIREE BENEFIT TRUST FUND as of June 30, 2011 ASSETS: Cash and Investments $ 4,177,806 TOTAL ASSETS 4,177,806 LIABILITIES: Accounts Payable NET ASSETS: TOTAL LIABILITIES Held in Trust for Retiree Benefits TOTAL NET ASSETS NOTE' Balances are unaudited 20 CERBT FUND 4,177,806 4,177,806 $ 4,177,806 ADDITIONS CONTRIBUTIONS: Employer Investment Earnings TOTAL CONTRIBUTIONS DEDUCTIONS: CITY OF TEMECULA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS - Fiduciary Fund CALIFORNIA EMPLOYEE RETIREE BENEFIT TRUST FUND for the Fiscal Year Ended 6/30/2011 Benefits 286,804 TOTAL DEDUCTIONS 286,804 TOTAL ADDITIONS Net Assets as of 7/1/2010 3,315,668 Net Assets as of 6/30/2011 $ 4,177,806 21 CERBT FUND $ 327,039 821,903 1,148, 942 Item No. 5 TO: FROM: DATE: SUBJECT: PREPARED BY: RECOMMENDATION: CITY OF TEMECULA AGENDA REPORT City Manager /City Council Greg Butler, Director of Public Works / City Engineer September 27, 2011 Resolution Authorizing the Director of Public Works to Certify the Right of Way on Projects Involving the State of California Department of Transportation Amer Attar, Principal Engineer Avlin R. Odviar, Senior Engineer — CIP That the City Council adopt a resolution entitled: RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager (10L A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO CERTIFY THE RIGHT OF WAY ON PROJECTS AS REQUIRED BY THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION BACKGROUND: The Department of Public Works routinely develops transportation projects on portions of interstate highways (e.g. French Valley Parkway Interchange, I- 15 /SR- 79S Interchange) and on local streets and roads that involve state or federal funds administered by the State of California, Department of Transportation (Caltrans) (e.g. Pechanga Parkway Street Improvements). Under these circumstances, the development activities such as design, environmental clearance, right of way, and construction are subject to Caltrans' requirements, practices, and procedures. The Caltrans Right of Way Manual (Manual) establishes the procedures for carrying out right of way functions. Per the Manual, when right of way activities are performed by the City's staff or consultants, the certification of the right of way for the project shall be carried out by the City. The certification declares that the City has or will have possession of the property interests needed for the project and that the right of way activities were performed in accordance with the applicable laws. The Manual further requires that the City adopt a resolution authorizing execution of the certification for each project. Alternatively, the City may adopt a resolution giving blanket authority to a responsible official, such as the Director of Public Works. Certifications by this official will then be recognized and acceptable to Caltrans. The subject resolution authorizes the Director of Public Works to certify the right of way on projects as required by Caltrans. Adoption of this resolution will streamline the approval process. FISCAL IMPACT: resolution. ATTACHMENTS: Resolution 11- There is no fiscal impact associated with adoption of this that: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO CERTIFY THE RIGHT OF WAY ON PROJECTS AS REQUIRED BY THE STATE OF CALIFORNIA, DEPARTMENT OF TRANSPORTATION THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Findings. The City Council hereby finds, determines, and declares A. The City of Temecula develops and constructs transportation projects on highways and local streets and roads which may use state or federal funds administered by the State of California, Department of Transportation (Caltrans). B. Section 17.08.03.00 of the Caltrans Right of Way Manual requires that a Local Public Agency which performs right of way activities on a portion of a state highway or on a project which involves state or federal funds shall certify the right of way for the project. C. The purpose of Right Of Way Certification is to declare that real property interests have been or are being secured, and physical obstructions, including buildings, utilities, and railroads have been or will be removed, relocated, or protected as required for the construction, operation, or maintenance of the project. D. The Right Of Way Certification verifies that right of way activities were conducted in accordance with applicable policies and procedures. E. Section 17.08.14.11 of the Caltrans Right of Way Manual states that a Local Public Agency may adopt a resolution giving the Director of Public Works a blanket authority to execute Right Of Way Certifications. F. Authorizing the Director of Public Works to certify the right of way on projects will expedite the processing of Caltrans project certification and authorization to advertise. Section 2. Approval. The Director of Public Works is hereby authorized to certify the right of way on projects as required by the State of California, Department of Transportation (Caltrans). Section 3. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27th day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27th day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Item No. 6 TO: FROM: DATE: PREPARED BY: RECOMMENDATION: CITY OF TEMECULA AGENDA REPORT City Manager /City Council Greg Butler, Director of Public Works /City Engineer September 27, 2011 Approvals City Attorney Director of Finance City Manager Sief OtoL Approval of a Drainage Easement and a Temporary Construction Easement for the Citywide Storm Drain Improvements at Calle Fiesta, Project Number PW10- SUBJECT: 07 Amer Attar, Principal Engineer Steve Charette, Associate Engineer That the City Council adopt a resolution entitled: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DRAINAGE EASEMENT AGREEMENT AND GRANT OF TEMPORARY CONSTRUCTION EASEMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND REGENT NICOLAS 73, LLC IN CONNECTION WITH THE CITYWIDE STORM DRAIN IMPROVEMENTS — CALLE FIESTA, PROJECT NUMBER PW10 -07 BACKGROUND: The proposed Calle Fiesta Storm Drain project will consist of extending an existing City storm drain pipe across a private property an additional 250 feet and thereby eliminating an existing eroded private slope condition. The current discharge point of the storm drain pipe (located at the northern terminus of Calle Fiesta road) has caused extensive erosion of an existing natural slope located on a private property, APN 919 - 350 -020, owned by Regent Nicolas 73, LLC (Owner). The proposed storm drain extension will carry storm water from existing Calle Fiesta street runoff to the base of the natural slope and eliminate the current eroded slope condition. Installation of storm drain improvements across private property necessitates acquiring a drainage easement on behalf of the City. Acquisition of the easement will be achieved by entering into a Drainage Easement Agreement with the Owner. The agreement grants the City the right to install, own and maintain the storm drain improvements within a defined 20 -foot wide easement and specifies the mutual benefits to both the City and the Owner. The attached Drainage Easement Agreement describes the rights and responsibilities of both parties (City and the Property Owner) with respect to City's proposed installation of the storm drain improvements within the owner's property. The City will also need a temporary construction easement to allow for adequate work area within a portion of Regent Nicolas 73, LLC property to allow construction crews sufficient room to construct the storm drain improvements. The attached Grant of Temporary Construction Easement Agreement grants the City temporary use of a portion of the Owner's property within a defined 100 - foot wide easement necessary to construct the storm drain improvements. FISCAL IMPACT: There is no fiscal impact associated with the approval of this resolution. ATTACHMENTS: 1. Resolution No. 11 -_ 2. Drainage Easement Agreement 3. Grant of Temporary Construction Easement Agreement 4. Project Description 5. Project Location THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: that: RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DRAINAGE EASEMENT AGREEMENT AND GRANT OF TEMPORARY CONSTRUCTION EASEMENT AGREEMENT BETWEEN THE CITY OF TEMECULA AND REGENT NICOLAS 73, LLC IN CONNECTION WITH THE CITYWIDE STORM DRAIN IMPROVEMENTS — CALLE FIESTA, PROJECT NUMBER PW10 -07 Section 1. Findings. The City Council hereby finds, determines, and declares A. The Citywide Storm Drain Improvements - Calle Fiesta Storm Drain Extension, Project Number PW10 -07 ( "Project ") would install a 24" diameter storm drain pipe (and appurtenances), two hundred fifty (250) feet in length, within a privately - owned parcel located north of Calle Fiesta road. The purpose of the Project is to carry storm water runoff originating from Calle Fiesta road to a point of low energy discharge at the base of natural slope located on said private property. D. On August 02, 2010, the City duly filed a Notice of Determination for this Project in accordance with Section 21152 of the Public Resources Code. In approving the Categorical Exemption, the City found that the Project will not have a significant effect on the environment. The City approved the Project for solicitation of bids on March 22, 2011. C. The Project would require the acquisition of a drainage easement and a temporary construction easement for the construction of certain improvements on property owned by Regent Nicolas 73, LLC. Specifically, the Project would require that Regent Nicolas 73, LLC grant to the City an approximate 5,008 square foot drainage easement for public access purposes and all uses necessary or convenient thereto. As part of the Project, the City would construct improvements in the 5,008 square foot drainage easement area, including, but not limited to storm drain pipe, manholes and energy dissipater. Pursuant to the Temporary Construction Easement Agreement, Regent Nicolas 73, LLC would grant to the City a right of entry on the real property owned by the Regent Nicolas 73, LLC that is described in the Temporary Construction Easement Agreement to facilitate the City's construction of the Project. The nature and scope of activities reasonably necessary to facilitate the City's construction of the Project may include, but are not limited to, the demolishing existing rip rap and headwalls, and the installation of storm drain pipes, manholes and inlets, junction structures, backfill and compaction of eroded gullies, erosion control, hydro seeding and re- establishment of a survey property corner monument. Section 2. Drainage Easement Agreement. Based on the findings set forth in this Resolution, the City Council hereby approves the Drainage Easement Agreement between the Regent Nicolas 73, LLC and the City of Temecula. Section 3. Grant of Temporary Construction Easement Agreement. Based on the findings set forth in this Resolution, the City Council hereby approves the Grant of Temporary Construction Easement from the Regent Nicolas 73, LLC. Section 4. City Manager's Authority. The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and convenient to carry out and implement the Drainage Easement Agreement and the Grant of Temporary Construction Easement Agreement, and to administer the City's obligations, responsibilities and duties to be performed under said Drainage Easement Agreement and the Grant of Temporary Construction Easement Agreement. Section 5. Environmental Analysis. The environmental effects of the acquisition of the above real property interests and construction of the proposed drainage improvements were studied as part of the determination of a Categorical Exemption status adopted for the proposed Project. The findings made by the City in connection with the adoption of the Categorical Exemption are the appropriate findings for the acquisition of the Drainage Easement and Temporary Construction Easement and proposed storm drain improvements. Pursuant to the criteria of Section 15304 of the CEQA Guidelines, City staff concluded that the Project would not have a significant effect on the environment and was Categorically Exempt under Section 15304 Class 4f (Minor trenching and backfilling where the surface is restored). These environmental findings are the appropriate findings with respect to the proposed acquisitions of the Subject Property Interests. Section 7. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27th day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] Ron Roberts, Mayor 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. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27th day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Recording Requested by and when recorded return to: CITY OF TEMECULA Attention: Susan W. Jones, MMC City Clerk 41000 Main Street Post Office Box 9033 Temecula, CA 92589 -9033 Assessor's Parcel No. 919 - 350 -020 IX] Portion Documentary Transfer Tax $0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE This Instrument is for the benefit of the City of Temecula and is exempt from Recording Fees (Govt. Code § 27383), Filing Fees (Govt. Code § 6103), and Documentary Transfer Tax (Rev & Tax Code § 11922). DRAINAGE EASEMENT AGREEMENT This Drainage Easement Agreement ( "Agreement ") is made and entered into between Regent Nicolas 73, LLC, a Delaware limited liabilit company ( "GRANTOR ") and the City of Temecula, a municipal corporation ( "CITY ") as of 2011. WHEREAS, GRANTOR is the record fee owner of the real property, which is an approximate 20.65 -acre vacant parcel located at the northerly terminus of Calle Fiesta Road, in the City of Temecula, County of Riverside and is identified as Riverside County Tax Assessor's Parcel Number 919 - 350 -020 ( "larger parcel "); and WHEREAS, the CITY wishes to construct certain storm drainage improvements in connection with the Calle Fiesta Storm Drain Expansion CIP Project (PW10 -07) ( "Project ") on an approximate 5,008 square foot (0.12 acre) portion of the larger parcel that are in the public interest and that will also benefit the larger parcel. NOW THEREFORE, in consideration of the mutual promises contained herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, GRANTOR and the CITY agree as follows: 1. The undersigned GRANTOR hereby grants and conveys to the City of Temecula, a municipal corporation, in the County of Riverside, State of California, and to its successors and assigns, a perpetual non - exclusive drainage easement and right -of -way upon, through, under, over and across an approximate 5,008 square foot (0.12 acre) portion of the larger parcel that is described on Exhibit "A" hereto and depicted on Exhibit `B" hereto, and which is referred to below as the "Subject Property", for the installation, construction, maintenance, repair, replacement, reconstruction, and inspection of a drainage system including a pipeline and any and all structures and appurtenances incidental thereto designed to convey stormwater runoff through the subsurface of the Subject Property, together with the right to have and hold said easement and right -of -way unto itself and unto its successors and assigns forever and to convey said easement, or any portion thereof, to other public agencies for the purposes set forth in this Agreement. Exhibits "A" and "B" are incorporated herein by this reference. 2. The CITY will construct on the Subject Property, at its sole cost and expense, an approximate 24 -inch underground pipeline and any necessary structures and appurtenances incidental thereto in connection with the extension of the existing 18 -inch storm drain pipe located on the larger parcel. The CITY will construct and extend the 24 -inch pipeline approximately 250 lineal feet to a low point of energy discharge at the base of the existing slope on the larger parcel consistent with the plans for the Project to minimize erosion on the larger parcel. The CITY will place any necessary fill and /or rip -rap as an energy dissipater in the area of the Subject Property to minimize erosion in said area. 3. The CITY, its successors and assigns, will be responsible for maintaining and keeping in good repair, at their sole cost and expense, the above described improvements and shall have continued access to the Subject Property for the purposes of inspecting, operating, maintaining and keeping in good repair the above described works of improvement. 4. The parties agree that the construction of the approximate 24 -inch underground pipeline and related improvements and appurtenances may benefit the larger parcel because said improvements may accommodate storm water runoff resulting from future development on the larger parcel by GRANTOR. 5. The parties also agree that the construction of the 24 -inch underground pipeline and related improvements and appurtenances pursuant to the Project will benefit the larger parcel by reducing the velocity of the storm water from Calle Fiesta Road and said improvements will minimize erosion from stormwater in the area of the Subject Property. 6. GRANTOR will not construct buildings or structures, install trees or bushes, or otherwise obstruct in any fashion whatsoever the use of said easement and right -of -way by the CITY, its successors or assigns without the express written consent of the CITY as demonstrated by issuance of an Encroachment Permit issued by the CITY; provided, however, GRANTOR shall have the right to construct roads, sidewalks, and landscaping (other than trees and bushes) within the Subject Property. The City accepts this Easement with the knowledge that GRANTOR has or intends to develop the larger parcel, and the CITY agrees to exercise its rights under this Agreement in such manner as to not unreasonably interfere with GRANTOR's development of the larger parcel. 7. GRANTOR hereby reserves and retains the right to otherwise use the surface and the subsurface of the Subject Property, to the extent that the use is not incompatible with the CITY's use thereof, in such manner as GRANTOR shall deem proper, including, without limitation, the right to allow other utility lines to be installed under, across and within the Subject Property, provided those utility lines do not materially interfere with the installations of the City. In its performance of the work which the City is authorized to perform hereunder, the CITY shall use its best efforts to avoid causing any damage to, or interference with, any improvements on or 11086/0693/1373230v1 -2- within the Subject Property (including, without limitation, any other utility lines installed under, across, or within the Subject Property). 8. The CITY will have the right but not the obligation to remove any buildings, structures, trees bushes or other obstruction that interfere with the right of the CITY to use said easement and right -of -way. 9. Prior to commencing any work hereunder, the CITY shall require its contractor for the Project to maintain in force until all such work is complete, a policy or policies of commercial general liability insurance providing coverage in connection with work performed hereunder. The minimum limit of coverage of such policy or policies shall be in the amount of not less than a combined single limit for bodily injury and property damage of One Million Dollars ($1,000,000.00) annual aggregate. Such policy or policies of insurance shall (i) be primary to and not contributory with other insurance, if any, maintained by GRANTOR (whose insurance shall be considered excess insurance only), and (ii) name GRANTOR as an additional insured thereunder. The CITY shall additionally require its contractor to waive any right of subrogation that its insurers may have against GRANTOR or its successors and assigns. 10. The CITY shall indemnify, defend and protect GRANTOR and its affiliates and their respective officers, directors, employees, successors, and assigns (collectively, the "Grantor Parties ") and hold the Grantor Parties harmless from and against any and all claims, proceedings, loss, cost, damage, causes of action, liabilities, injury or expense (collectively, "Claims ") arising out of the gross negligence or willful misconduct of the CITY in connection with the construction, installation, use, operation, maintenance, repair, or replacement of the storm drain improvements hereunder. 11. The CITY shall keep the Subject Property free from any liens arising out of any work performed or material furnished relating to this Agreement. The CITY shall, within thirty (30) days following the imposition of any such lien, cause such lien to be released of record by posting of a bond reasonably satisfactory to GRANTOR in form and substance. 12. The CITY agrees that it will, from time to time, upon request of GRANTOR, allow the relocation of the Subject Property upon the following terms and conditions: (a) Such relocation is of such a nature to permit the use and operation of the CITY'S facilities at the same level of service as existed before the date of the relocation; (b) GRANTOR and the CITY shall have executed and recorded in the Official Records of Riverside County, California, an agreement that terminates this Agreement and contains the grant of a new easement from GRANTOR to the CITY for the relocated easement using an agreement that is in form and substance substantially similar to this Agreement; and (c) GRANTOR has agreed to pay the costs relating to the CITY's relocation of the Subject Property, including but not limited to, the costs for the relocation and construction of new storm drain improvements, any related affected facilities, reasonable costs related to acquisition of any new easements necessary for the requested relocation of the Subject Property, and associated utilities. I1086/0693/1373230v4 -3- • 13. GRANTOR acknowledges and agrees that the above consideration, including the CITY's construction on the Subject Property of the storm drainage improvements in connection with the Project, is the full and complete consideration for GRANTOR's conveyance to the CITY of the drainage easement on the SUBJECT PROPERTY described on Exhibit "A" and depicted on Exhibit `B" hereto, and specifically includes, but is not limited to, consideration for this drainage easement on the Subject Property, claims arising in connection with or out of the CITY's acquisition of this drainage easement on the Subject Property, claims for severance and other damages, inverse condemnation, de facto taking, or any other damages of every kind and nature suffered by GRANTOR by reason of the conveyance to the CITY of this drainage easement on the Subject Property, or the Project for which GRANTOR is conveying said drainage easement for the Project, and all costs and expenses whatever in connection therewith. 14. This Agreement is a voluntary agreement and GRANTOR, on behalf of GRANTOR's successors and assigns, fully releases the CITY, its officials, counsel, employees, and agents, from all claims and causes of action by reason of any damage that GRANTOR has sustained, or may sustain, as a result of the CITY's efforts to acquire this drainage easement on the Subject Property or any preliminary steps thereto. 15. GRANTOR hereby agrees to cooperate with the CITY in obtaining either a partial reconveyance or a subordination agreement from any beneficiaries under deeds of trust recorded against the larger parcel in connection with the drainage easement on the Subject Property. 16. The CITY will record this Agreement in the Official Records of the County of Riverside when the CITY accepts the Agreement pursuant to a Certificate of Acceptance. 17. Miscellaneous Terms. a. Governing Law. This Agreement will be governed by and interpreted under the laws of the State of California. b. Severability. If any provision of this Agreement is for any reason held to be invalid, illegal or unenforceable by any court of competent jurisdiction, the validity of the other provisions of said Agreement will in no way be affected thereby. c. Headings. Headings are provided for convenience only and are not to serve as a basis for interpretation or construction of this Agreement or as evidence of the intention of the parties. d. No Drafting Presumption. GRANTOR and the CITY agree that each party has reviewed this Agreement and that each party has had the opportunity to have its counsel review and revise this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply in the interpretation of this Agreement or any amendments or exhibits thereto. e. Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and as a complete and final statement of the terms and conditions of that agreement, and will supersede any and all prior agreements or understandings relating to the same subject matter. 11086/0693/1373230v1 -4- f. Amendments. No addition to, amendments to, or modification of any provision of this Agreement will be effective unless set forth in writing by GRANTOR and the CITY, or their respective successors and assigns. g. Attorneys Fees. If either party hereto incurs attorneys' fees in order to enforce, defend or interpret any of the terms, provisions or conditions of this Agreement because of a breach of said Agreement by the other party, the prevailing party, whether by suit, negotiation, arbitration or settlement will be entitled to recover reasonable attorneys' fees from the other party. h. Counterparts. GRANTOR and the CITY may execute this Agreement in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. i. Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. j. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties hereto, to any person or entity other than the parties hereto. IN WITNESS WHEREOF, the GRANTOR and the CITY have entered into this instrument as of the date set forth above. Dated: JJy -2 7 , 2011 GRANTOR: REGENT NICOLAS 73, LLC A Delaware limited liability company ,}►.t -f-h* r Zed c J itaf 11 11086/0693/1373230v1 -5- Dated: , 2011 GRANTEE CITY OF TEMECULA, A municipal corporation By: Ron Roberts, Mayor Attest: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney 11086/0693/1373230v1 -6- STATE OF CALIFORNIA ) COUNTY OF RI- �ER-SIDELoS Prrvyki S , before me, cYV Vc e, t.-; . CLY3111..,, , a Notary Public, personally appeared . !'u who proved to me on the basis of satisfactory evidence td be the person(s) whose name( -s-} is /aFe- subscribed to the within instrument and acknowledged to me that he/sl th y executed the same in hisillerAileir authorized capacity(.is), and that by his /her/their signature(-s) on the instrument the person()), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. IGNATURE OF NOTARY 11086/0693/1373230v1 -7- ALL - PURPOSE ACKNOWLEDGMENT MELISSA E.8.00KMAN Commission #F 1662118 Notary Public - California Los Angeles County My Comm. Expires Au 21.2013 (Seal) Dated: 11086/0693/1373230v1 -8- CITY OF TEMECULA Office of the City Clerk 41000 Main Street P.O. Box 9033 Temecula, CA 92589 -9033 CERTIFICATE OF ACCEPTANCE OF DRAINAGE EASEMENT (Govt. Code § 27281) (Assessor's Parcel Number 919- 350 -020) This is to certify that the approximate 5,008 square foot (0.12 acre) drainage easement on the real property identified as Riverside County Tax Assessor's Parcel Number 919 - 350 -020 granted to the City of Temecula, a municipal corporation, pursuant to the attached Drainage Easement Agreement, is hereby accepted under the authority of the City Council of the City of Temecula and the City of Temecula consents to the recordation thereof by its duly authorized officer. , 2011 CITY OF TEMECULA By: Greg Butler Director of Public Works /City Engineer ATTEST: By: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney Being that certain portion of land situated in the City of Temecula, County of Riverside, State of California, being that portion of Parcel 4 as shown on Parcel Map No. 9783 filed in Book 54, Page 45, of Parcel Maps, in the Office of the County Recorder, of said County, included within a strip of land 20.00 feet wide, 10.00 feet on each side of the described centerline: COMMENCING at an angle point in the southerly line of said Parcel 4, said angle point also being the northern most corner of Lot 272 of Tract No. 3883, in Book 63, pages 1 through 35, inclusive, of maps, in the Office of the County Recorder, of said County; Thence along said southerly line South 68 °52'05" East a distance of 212.24 feet to a point, said point also being the TRUE POINT OF BEGINNING; Thence leaving said southerly line North 21 °03'09" East a distance of 194.67 feet to the beginning of a tangent curve concave southerly with a radius of 10.00 feet; Thence easterly along said curve through a central angle of 31°55'03" with an arc length of 5.57 feet; Thence leaving said curve North 33 °58'45" East a distance of 50.00 feet to the POINT OF TERMINATION. The sidelines of said strip are to be lengthened or shortened to meet the southerly line of said Parcel 4. Contains: 5,008 sq. ft. 0.12 acres, more or less Subject to all covenants, rights, rights -of -way, and easements of record. EXHIBIT "B" attached and hereto by this reference made apart hereof. This was prepared by me or under my direction. Kris R. Winchak, L.S. 6240 Exhibit "A" Legal Description Storm Drain Easement in Favor of City of Temecula l` 7 — f'( Date January 27, 2011 Sheet 1 of 1 N0. DELTA RADIUS LENGTH Cl 31 °55'03" 10.00' 557' L 1 /133 °58'45 "E 50.00' EASEMENTS LEGEND P.D.C. POINT OF COMMENCEMENT T.P.O.B. TRUE POINT OFBEGINNING P.O.T. POINT OF TERMINATION RECORD OWNER: Regent Nicolas 73. LLC 11990 an Vicente. Suite 200 Los Angeles, California 90049 A.P.N. 919- 350-020 PREPARED BY City of Temecula P.O. Box 9033 41000 Main Street Temecula, Califomia 92589 -9033 INDICATESA 25' WIDE EASEMENT FOR DRAINAGE PURPOSES PER INSTRUMENT NO. 210495 RECORDED MAY 24. 1994. D.R. INDICATESA 30' WIDEE4S'EMENT FOR EQUESTRIAN PURPOSES AS SHOWN ON TRACT 3883 RECORDED MB 63/ 1 -35. INDICATE SAN EASEMENT FOR PUBLIC UTILITY PURPOSES ASSHOWNON TRACT 3883 RECORDED MB 63/ 1- 35. DATA TABLE CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS STORM DRAIN EASEMENT EXHIBIT "B" SHEET 1 0F2 l 1 / P.O.C. TM 3883 N N MB63/ 1 -35 ■ LOT 271 \ 1 / LOT 270 ��`/ / s , ' / LOT 272 LOT 276 LOT 275 PARCEL 4 PM 9783 PMB54/45 b " / * N. • N N J N N \ N N 1 N LOT 4 T..P.0.8. 20.00' 10.00' 10.00' i b / q � \� / LOT 2 1 TM 21821 \ MB 233 /58-61 , P.O.T. PARCEL 4 PM 9783 PMB54/45 • RECORD OWNER: Regent Nieolas 73, LLC 11990 an Vicente, Suite 200 Los Angeles, California 90049 A.P.N. •9 19- 350-020 PREPARED BY: City of Temeeula P.O. Box 9033 41000 Main Street Temeeula, California 92589 -9033 DRAWN BY C. I/lahas DATE 09/15/10 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS STORM DRAIN EASEMENT EXHIBIT "B" DIEET2OF2 Recording Requested by and when recorded return to: CITY OF TEMECULA Attention: Susan W. Jones, MMC City Clerk 41000 Main Street Post Office Box 9033 Temecula, CA 92589 -9033 Assessor's Parcel No. 919 - 350- 020 [X] Portion Documentary Transfer Tax $0.00 This Instrument is for the benefit of the City of Temecula and is exempt from Recording Fees (Govt. Code § 27383), Filing Fees (Govt. Code § 6103), and Documentary Transfer Tax (Rev & Tax Code § 11922). This Grant of Temporary Construction Easement Agreement ( "TCE Agreement ") is entered into between Regent Nicolas 73, LLC, a Delaware limited liability company "GRANTOR ") and the City of Temecula, a municipal corporation ( "CITY ") as of 211- 2011. SPACE ABOVE THIS LINE FOR RECORDER'S USE GRANT OF TEMPORARY CONSTRUCTION EASEMENT AGREEMENT WHEREAS, GRANTOR is the record fee owner of the real property, which is an approximate 20.65 -acre vacant lot located at the northerly terminus of Calle Fiesta Road, in the City of Temecula, County of Riverside, State of California, and is identified as Assessor's Parcel Number 919- 350 -020 ( "larger parcel "); and WHEREAS, concurrently with this TCE Agreement, GRANTOR and the CITY are entering into a Drainage Easement Agreement by which GRANTOR is conveying to the City an approximate 5,008 square foot (0.12 acre) drainage easement on the larger parcel in connection with the City's construction of the Calle Fiesta Storm Drain Expansion CIP Project (PW10 -07) ( "Project). Said 5,008 square foot (0.122 acre) drainage easement is referred to below as the "subject drainage easement ". WHEREAS, GRANTOR desires to grant to the CITY and the CITY desires to acquire from GRANTOR an approximate 24,997 square foot (0.57 -acre) temporary construction easement on the larger parcel to facilitate the CITY's construction of storm drain improvements in the subject drainage easement in connection with the Project. The approximate 24,997 square foot (0.57 -acre) Temporary Construction Easement is described more particularly on Exhibit "A" hereto and is depicted on Exhibit "B" hereto and is referred to below as the "Temporary Construction Easement ". NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, GRANTOR and the CITY hereby agree as follows: 1. Grantor hereby grants to Grantee an approximate 24,997 square foot (0.57 -acre) Temporary Construction Easement with a term of six (6) months from the earlier of (i) the commencement of construction over, across, and on the real property described on Exhibit "A" and depicted on Exhibit "B" hereto, or (ii) December 31, 2011. Exhibits "A" and B" are incorporated herein by this reference. The term of the Temporary Construction Easement will commence on the date that the CITY issues a Notice to Proceed (with construction) to the contractor it retains for the Project. The CITY will provide to Grantor a copy of the Notice to Proceed. The term of the Temporary Construction Easement terminates six (6) months from the City's issuance of the Notice to Proceed or on the date of the CITY's recording of a Notice of Completion for the Project in the Official Records of the County of Riverside, whichever is earlier. 2. GRANTOR hereby grants to the CITY a Temporary Construction Easement to facilitate the CITY's construction of the Project. The CITY may use the Temporary Construction Easement to facilitate its construction of the improvements in the subject drainage easement in connection with the CITY's construction of the Project. The City may also use the Temporary Construction Easement as additional right of way to facilitate the movement of the CITY's equipment in the area of the Temporary Construction Easement for the construction of the Project; to provide access to the CITY in connection with its construction of the Project; as a construction staging area for the Project; and for the storage of construction equipment, earth or construction materials needed for the Project. 3. The CITY covenants and agrees that after completing its construction work, the CITY shall, at its sole cost and expense, promptly remove any construction equipment and materials from the Subject Property and that it will repair, replace, and restore the Subject Property to as close to the condition of the Subject Property as of the date of this TCE Agreement. The CITY hereby agrees that it will replace any landscaping and/or improvements located in the area of the Temporary Construction Easement that are damaged as a result of the CITY's construction of the Project with material of like kind and quality. Further, the CITY agrees that it will install any required erosion control devices required by applicable government agencies as a result of such work by the CITY, including, without limitation, spraying with hydro -seed native seeds the area comprising the Temporary Construction Easement after it has completed its use of said area to minimize erosion in the Temporary Construction Easement Area. 4. Prior to commencing any work hereunder, the CITY shall require its contractor for the Project to maintain in force until all such work is complete, a policy or policies of commercial general liability insurance providing coverage in connection with the construction of the work pursuant to the TCE Agreement. The minimum limit of coverage of such policy or policies shall be in the amount of not less than a combined single limit for bodily injury and property damage of One Million Dollars ($1,000,000.00) annual aggregate. Such policy or policies of insurance shall (i) be primary to and not contributory with other insurance, if any, maintained by GRANTOR (whose insurance shall be considered excess insurance only), and (ii) I1086/0693/1373229v1 -2- name GRANTOR as an additional insured thereunder. The CITY shall additionally require its contractor to waive any right of subrogation that its insurers may have against GRANTOR or its successors and assigns. 5. The CITY shall indemnify, defend and protect GRANTOR and its affiliates and their respective officers, directors, employees, successors, and assigns (collectively, the "Grantor Parties ") and hold the Grantor Parties harmless from and against any and all claims, proceedings, loss, cost, damage, causes of action, liabilities, injury or expense (collectively, "Claims ") arising out of the gross negligence or willful misconduct of the CITY in connection with the construction, installation, use, operation, maintenance, repair, or replacement of the storm drain improvements in the subject drainage easement. 6. The CITY shall keep the Subject Property free from any liens arising out of any work performed or material furnished relating to the TCE Agreement. The CITY shall, within thirty (30) days following the imposition of any such lien, cause such lien to be released of record by posting of a bond reasonably satisfactory to GRANTOR in form and substance. 7. GRANTOR retains the right to use the area comprising the Temporary Construction Easement during the six month term described above to the extent such use does not interfere with the rights of the CITY under this TCE Agreement. 8. GRANTOR acknowledges and agrees that the above consideration, including the CITY's construction of the improvements on the area comprising the subject drainage easement, is the full and complete consideration for GRANTOR's conveyance to the CITY of the Temporary Construction Easement described on Exhibit "A" and depicted on Exhibit `B" hereto, and specifically includes, but is not limited to, consideration for the Temporary Construction Easement, claims arising in connection with or out of the CITY's acquisition of the Temporary Construction Easement, claims for severance and other damages, inverse condemnation, de facto taking, or any other damages of every kind and nature suffered by GRANTOR by reason of the conveyance to the CITY of the Temporary Construction Easement, or the Project for which GRANTOR is conveying said Temporary Construction Easement for the Project, and all costs and expenses whatever in connection therewith. 9. This TCE Agreement is a voluntary agreement and GRANTOR, on behalf of GRANTOR's successors and assigns, fully releases the CITY, its officials, counsel, employees, and agents, from all claims and causes of action by reason of any damage that GRANTOR has sustained, or may sustain, as a result of the CITY'S efforts to acquire the Temporary Construction Easement or any preliminary steps thereto. 10. The CITY will record this TCE Agreement in the Official Records of the County of Riverside when the CITY accepts the Agreement pursuant to a Certificate of Acceptance. 11. Miscellaneous Terms. a. Governing Law. This TCE Agreement will be governed by and interpreted under the laws of the State of California. 11086/0693/1373229v 1 -3- b. Severability. If any provision of this TCE Agreement is for any reason held to be invalid, illegal or unenforceable by any court of competent jurisdiction, the validity of the other provisions of said Agreement will in no way be affected thereby. c. Headings. Headings are provided for convenience only and are not to serve as a basis for interpretation or construction of this TCE Agreement or as evidence of the intention of the parties. d. No Drafting Presumption. GRANTOR and the CITY agree that each party has reviewed this TCE Agreement and that each party has had the opportunity to have its counsel review and revise this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not apply in the interpretation of this Agreement or any amendments or exhibits thereto. e. Entire Agreement. This TCE Agreement is intended by the parties as a final expression of their agreement and as a complete and final statement of the terms and conditions of that agreement, and will supersede any and all prior agreements or understandings relating to the same subject matter. f. Amendments. No addition to, amendments to, or modification of any provision of this TCE Agreement will be effective unless set forth in writing by GRANTOR and the CITY, or their respective successors and assigns. g. Attorneys Fees. If either party hereto incurs attorneys' fees in order to enforce, defend or interpret any of the terms, provisions or conditions of this TCE Agreement because of a breach of said Agreement by the other party, the prevailing party, whether by suit, negotiation, arbitration or settlement will be entitled to recover reasonable attorneys' fees from the other party. h. Counterparts. GRANTOR and the CITY may execute this TCE Agreement in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. i. Successors and Assigns. This TCE Agreement will be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. IN WITNESS WHEREOF, the GRANTOR and the CITY have entered into this instrument as of the date set forth above. Dated: c h, ./ j .2 7 GRANTOR: REGENT NICOLAS 73, LLC A Delaware limited liability company 11086/0693/1373229v1 , 2011 -4- Attest: 11086/0693/1373229v1 By: Jeffr f Dinkin � y Its Manning Member At' r filfn s# jA K frrci 0 ‘.../ Dated: 1 , \� , 2011 / GRANTEE CITY OF TEMECULA, A municipal corporation By: Ron Roberts, Mayor Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney -5- CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California County of Lbs kY\ S On.. \ �,,.a�, - h11 before me, ate personally appeared MELISSA E.B. OCKMAN Commission # 1862118 Notary Public • California Los Angeles County My Comm Expires Aug 21. 2013 z z Place Notary Seal and/or Stamp Above Signer Is Representing: } � 'C"l 1 1 tX P\ • J Name(s) of tgner(s) Signature: OPTIONAL RIGHT THUMBPRINT OF SIGNER Top of thumb here Here Insert Name and Title of the Officer who proved to me on the basis of satisfactory evidence to be the person(s) whose name(.) is /are subscribed to the within instrument and acknowledged to me that he /ehe/they executed the same in his/heflt4ieif authorized capacity(ies), and that by hisitterftheif signature(.) on the instrument the person(e , or the entity upon behalf of which the person(%) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of No ary Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — L1 Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator O Other: Signer's Name: U Corporate Officer — Title(s): ❑ Individual 0 Partner — O Limited O General C Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of Thumb here h^�s��c^���cw�e:�c^cxr �: ��c�:�c•�c+�cs�aa:�>�c;�:��,�cr w��c.^s.��cxuK�: s: �r�^ ce��; ���o�cc�c: �s^ 4c.^ �c�uc _v��.�^c.�^c_x^s�rc�cu:��;.- v� ©2008 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 *Chatsworth, CA 91313 -2402 • www.NalionalNolary.org Item #5907 Reorder: Call Toll -Free 1.800.876.6827 CERTIFICATE OF ACCEPTANCE OF TEMPORARY CONSTRUCTION EASEMENT (Govt. Code § 27281) (Assessor's Parcel Number 919- 350 -020) This is to certify that the approximate 24,997 square foot (0.57 -acre) temporary construction easement with a term of six months on the real property identified as Riverside County Tax Assessor's Parcel Number 919 -350 -020 granted to the City of Temecula, a municipal corporation, pursuant to the attached Grant of Temporary Construction Easement Agreement and Release, is hereby accepted under the authority of the City Council of the City of Temecula and the City of Temecula consents to the recordation thereof by its duly authorized officer. Dated: 11086/0693/1373229v1 CITY OF TEMECULA Office of the City Clerk 41000 Main Street P.O. Box 9033 Temecula, CA 92589 -9033 , 2011 CITY OF TEMECULA By: Greg Butler Director of Public Works /City Engineer ATTEST: By: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney -7- TERMINATION. Exhibit "A" January 27, 2011 Legal Description Sheet 1 of 1 Temporary Construction Easement in Favor of City of Temecula Being that certain portion of land situated in the City of Temecula, County of Riverside, State of California, being that portion of Parcel 4 as shown on Parcel Map No. 9783 filed in Book 54, Page 45, of Parcel Maps, in the Office of the County Recorder, of said County, included within a strip of land 100.00 feet wide, 50.00 feet on each side of the described centerline: COMMENCING at an angle point in the southerly line of said Parcel 4, said angle point also being the northern most corner of Lot 272 of Tract No. 3883, in Book 63, pages 1 through 35, inclusive, of maps, in the Office of the County Recorder, of said County; Thence along said southerly line South 68 °52'05" East a distance of 212.24 feet to a point, said point also being the TRUE POINT OF BEGINNING; Thence leaving said southerly line North 21 °03'09" East a distance of 194.67 feet to the beginning of a tangent curve concave southerly with a radius of 10.00 feet; Thence easterly along said curve through a central angle of 31 °55'03" with an arc length of 5.57 feet; Thence leaving said curve North 33 °58'45" East a distance of 50.00 feet to the POINT OF The sidelines of said strip are to be lengthened or shortened to meet the southerly line of said Parcel 4. Contains: 24,997 sq. ft. 0.57 acres, more or less Subject to all covenants, rights, rights -of -way, and easements of record. EXHIBIT "B" attached hereto and by this reference made apart hereof. This was prepared by me or under my direction. 2 g � �n a / — Z7 / l Kris R. Winchak, L.S. 6240 Date N0. DELTA RADIUS LENGTH Cl 31 55'03" 10.00' 5.57' L 1 N33 °58'45 "E 50.00' EASEMENTS LEGEND P.D.C. POINT OF COMMENCEMENT T.P.D.B. TRUE POINT OF BEGINNING P.O.T. POINT OF TERMINATION INDICATES 25' WIDE EASEMENT FOR DRAINAGE PURPOSES PER INSTRUMENT NO. 210495 RECORDED MAY 24, 1994, D.R. INDICATESA30' WIDE E,4QEMENT FOR EQUESTRIAN PURPOSESASSHOWNON TRACT 3883 RECORDED MB 63/ 1 -35. INDICATES AN EASEMENT FOR PUBLIC UTILITY PURPOSES AS SHOWN ON TRACT 3883 RECORDED MB 63/ 1 -35. DATA TABLE RECORD OWNER: Regent Nicolas 73, LLC 11990 an Vicente, Suite 200 Los Angeles, California 90049 A.P.N. 919- 350-020 PREPARED BY City of Temecula P.O. Box 9033 41000 Main Street Temecula, California 92589 -9033 o 7F: 1F 1989 DRAWN BY: C. Ilahas DATE 09/15/10 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS TEMPORARY C O NS T R UC T IO N EASEMENT EXHIBIT "B" JIEET 1 0F2 l 1 P.D.C. LOT 272 TM 3883 N MB 63/ 1-35 LOT 271 LOT 270 N / Z• 44, / 1/4 /ti LOT 275 LOT 276 PARCEL 4 PM 9783 PM8 54 / 45 1 50.00' , 0 \ ?Q e � \ / / / , s'''' i ix I N C' ,4 � \ \■ \ / // LOT 273 \ F N � \ \GF'Ll \ \ \ 1 N r \ LOT 4 LOT 3 100.00' 50.00' LOT 1 LOT 1 TM 21821 \ MB 233 /58-61 \ PARCEL 4 PM 9783 PM854/45 RECORD OWNER: Regent Nicolas 73. LLC 11990 an Vicente. Suite 200 Los Angeles, California 90049 A.P.N. 919 350 PREPARED BY City of Temecula P.O. Box 9033 41000 Main Street Temecula, Califomia 92589 -9033 ��� • M DRAWN 9Y: C. DAM 09/15/10 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS TEMPORARY CONSTRUCTION EASEMENT EXHIBIT "8" NETT 20F2 Administration $ 98,944 $ 48,500 $ 147,444 Construction $ 289,186 $174,010 $ 463,196 Construction $398,063 $257,069 $ - $ - $ - $ - $ - $ 655,132 Engineering $ 4,525 $ 7,475 $ 12,000 Design $ 5,408 $ 8,584 $ 13,992 MSHCP $ 18,500 $ 18,500 Totals $398,063 $ 257, 069 $ - $ - $ - $ - $ - $ 655,132 Capital Project Reserves $398,063 $ 257, 069 $ 655,132 Total Funding: $398,063 $257,069 $ - $ - $ - $ - $ - $ 655,132 CHI' OFTEMECULA CITYWIDE STORM DRAIN IMPROVEMENTS Infrastructure / Other Project Proiect Description: Design and construct storm drain improvements on several streets that flood during each storm event, including Rancho California Road at Vincent Moraga Drive, and Calle Fiesta, as well as other various locations in future years. Benefit: Project will improve safety and circulation while maintaining the integrity of the streets during inclement weather. Project Status: This project is ongoing. Department: Public Works / Temecula Community Services— Account No. 210.165.715 Priority: 1 Project Cost: Actuals Future Total to Date 2011 -12 2012 -13 2013 -14 2014 -15 2015-16 Years Project Cost Source of Funds: Actuals Future Total to Date 2011 -12 2012 -13 2013 -14 2014 -15 2015-16 Years Project Cost Future Operation & Maintenance Costs: 2011 -12 2013 -14 2 012 -13 2 014 -15 1 $ 2,500 ( $ 2,550 I $ 2,601 ( $ 2,653 $ 2,706 83 2015-16 PROJECT LOCATION CITYWIDE STORM DRAIN IMPROVEMENTS - CALLE FIESTA STORM DRAIN EXTENSION PROJECT PROJECT NO. PWIO -07 Item No. 7 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Greg Butler, Director of Public Works / City Engineer DATE: September 27, 2011 Approvals City Attorney Director of Finance City Manager OtoL SUBJECT: Approval of a Conservation Easement for Environmental Mitigation for French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements, Project Number PW02 -11 PREPARED BY: Avlin R. Odviar, Senior Engineer — CIP William Becerra, Associate Engineer — CIP RECOMMENDATION: That the City Council approve, in substantially the form attached, the Conservation Easement encumbering APN 961- 440 -007 and of a portion of APN 961- 440 -012 in favor of the Western Riverside County Regional Conservation Authority. BACKGROUND: On February 23, 2010, the City Council adopted Resolution Number 10 -14 to approve the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements, Project Number PW02 -11 and adopt the Mitigated Negative Declaration. The environmental document identified project impacts to riparian habitat and required the City to work with the California Department of Fish and Game (DFG), and other resource agencies, to establish actual mitigation for offsetting these impacts. City staff and the City's consultant (biologist) worked extensively with the DFG through the application and permitting process. Several sites were investigated for suitability and sustainability. After site selection, a comprehensive Habitat Mitigation and Monitoring Plan was developed to the satisfaction of DFG and the resource agencies. On July 21, 2010, the DFG issued Streambed Alteration Agreement, Notification No. 1600 - 2010 - 0063 -R6 (Revision 1) for the project. The subject conservation easement, and subsequent planting of the site, will fulfill the principal requirements of the agreement. Subsection 3.2 "Habitat Creation" of the agreement states, in part, that the City "shall create (establish) and preserve no less than 2.73 acres of riparian habitat." The DFG, other resource agencies, and the City agree that the subject site, located along the northern bank of Temecula Creek, approximately 1 /4 mile west of Pechanga Parkway, will meet this requirement. Subsection 3.4 "Preservation of Creation Site" states, in part, "A conservation easement or deed restriction shall be placed on the creation site to protect fish and wildlife resources, in perpetuity. The conservation easement or deed restriction shall be in favor of a DFG- approved entity." The Western Riverside County Regional Conservation Authority (RCA) is a DFG- approved entity. The subject conservation easement has been prepared in conjunction with RCA staff and meets the protective requirements stated in this subsection. Upon recordation of the Conservation Easement, future development or encroachment on the encumbered property will be prohibited. Construction plans, specifications, and estimate will be developed for the site in accordance with the approved Habitat Mitigation and Monitoring Plan (HMMP). The site will be maintained and monitored for a period of five years. At that time, the DFG will examine the site to determine if the project's mitigation commitment has been completed. FISCAL IMPACT: There is no cost associated with the approval of this conservation easement. The design, construction, maintenance and monitoring of the site will be done by a separate action of the City Council or the City Manager as appropriate. ATTACHMENTS: 1. Conservation Easement 2. Location Map RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Western Riverside County Regional Conservation Authority 3403 Tenth Street, Suite 320 P.O. Box 1667 Riverside, California 92502 -1667 Attn: Executive Director City of Temecula 41000 Main Street Post Office Box 9033 Temecula, California 92589 -9033 Attn: City Clerk Documentary Transfer Tax $0.00 This Instrument is for the benefit of the Western Riverside County Regional Conservation Authority and is exempt from Recording Fees (Govt. Code § 27383), Filing Fees (Govt. Code § 6103), and Documentary Transfer Tax (Rev & Tax Code § 11922). MSHCP APNs: 961- 440 -007 and a portion of APN 961 -440 -012 11086.0103/1383182v2 Space Above Line for Recorder's Use Only CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this 27 day of September 2011, by the CITY OF TEMECULA, a municipal corporation ( "Grantor "), in favor of the WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a joint powers authority and a public agency, ( "Grantee "), with reference to the following facts: RECITALS A. Grantor is the proponent of that certain project in the County of Riverside, State of California, commonly referred to as French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project (the "Project "). B. Grantor is the sole owner in fee simple of those portions of the Project legally described on Exhibit "A" and depicted on Exhibit "B" attached hereto and incorporated by this reference (the "Easement Property "), which consists of approximately 2.73 acres. C. The Easement Property possesses wildlife and habitat values (collectively, "Conservation Values ") of importance to Grantee and the people of the State of California that are consistent with the habitat conservation purposes of the Western Riverside County Multiple Species Habitat Conservation Plan ( "MSHCP "); D. This Conservation Easement provides mitigation for certain impacts of the Project by Grantor pursuant to the requirements of the California Department of Fish and Game ( "Department of Fish and Game ") set forth in Streambed Alteration Agreement No. 1600 -2100- 0063 -R6 (Revision 1) entered into between the Department of Fish and Game and Grantor in -1- July 2010. This Conservation Easement satisfies Mitigation Measure 3.4 of said Streambed Alteration Agreement and contributes Additional Reserve Lands to the MSHCP Conservation Area; E. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is an entity identified in Civil Code Section 815.3 and otherwise authorized to acquire and hold title to real property; and F. Grantee agrees by accepting this grant to honor the intentions of Grantor to preserve and protect in perpetuity the Conservation Values of the Easement Property in accordance with the terms of this Conservation Easement. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and pursuant to California law, including Civil Code Section 815, et seq., Grantor hereby voluntarily CONTRIBUTES, GRANTS and CONVEYS to Grantee a conservation easement over and across the Easement Property of the nature and character and to the extent hereinafter set forth ( "Conservation Easement "). This Conservation Easement shall bind the Grantor unconditionally and in perpetuity. This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Easement Property or any portion of it. 1. Definitions. Any capitalized term not otherwise defined herein shall carry the same meaning and definition as that term is used and defined in the MSHCP. 2. Purpose. a. The purpose of this Conservation Easement is to ensure that the Easement Property will be retained in perpetuity in a natural condition and to prevent any use of the Easement Property that will impair or interfere with the Conservation Values of the Easement Property ( "Natural Condition "). Grantor intends that this Conservation Easement will confine the use of the Easement Property to those activities that are consistent with the requirements of the MSHCP. Grantor warrants that no easement presently encumbers the Easement Property which conflicts with the purposes of this Conservation Easement. Grantor and Grantee also understand and agree that this Conservation Easement will be recorded in the Official Records of Riverside County, California. b. Grantor further certifies to Grantee that there are no other previously granted easements existing on the Easement Property that interfere or conflict with the Purpose of this Conservation Easement as evidenced by the Title Report attached at Exhibit "C." c. Grantor has delivered evidence of the Natural Condition to Grantee consisting of (1) an aerial photograph of the Easement Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the Easement Property boundaries on such aerial photograph; and (3) on -site color photographs showing all man-made improvements or structures (if any) and the major, distinct natural features of the Easement Property. 11086.0103/1383182v2 2 3. Responsibility for Mitigation. The Parties explicitly agree that any mitigation for activities of Grantor that is not the express obligation of Grantee pursuant to this Conservation Easement, and any other mitigation set forth in any Section 404 Permit, Streambed Alteration Agreement, Section 401 Certification, Habitat Mitigation and Monitoring Plan, and/or any other regulatory permits (collectively, "Permits "), remains solely and entirely Grantor's responsibility. Grantor and Grantee further agree that Grantee shall not be liable, in law or equity, if the obligations of Grantee agreed to under this Conservation Easement are determined in a any way, by any person or agency, to be insufficient for mitigation or regulatory compliance purposes under applicable statutes, laws and/or regulations. If any regulatory agency, including, but not limited to, the Department of Fish and Game, the Regional Water Quality Control Board, the United States Fish and Wildlife Service or the United States Army Corps of Engineers, later determines that the mitigation as set forth in the permits for the Project are insufficient, Grantor and its successors and assigns, shall be entirely responsible for satisfying any and all further obligations that may be imposed by said agencies. No responsibility or liability therefore shall accrue to Grantee. Further, Grantor will remain responsible for complying with the obligations or requirements of any of the permits mentioned in this paragraph until they are successfully implemented. 4. Grantee's Rights. To accomplish the purposes of this Conservation Easement, Grantor hereby grants and conveys the following rights to Grantee or its designee: Property; a. To preserve and protect the Conservation Values of the Easement b. To enter upon the Easement Property in order to monitor Grantor's compliance with and to otherwise enforce the terms of this Conservation Easement, and for other purposes by Grantee or its designees, and c. To enter upon the Easement Property to carry out activities consistent with the MSHCP, in excess of any management that is provided by the Grantor; d. To restrict access to portions of the Easement Property as reasonably necessary to protect habitat that is used for sensitive activities such as breeding or nesting, provided, however, that Grantee shall limit such restrictions to those specific areas where use of the Easement Property would adversely effect such activities and only during such time periods or seasons when such activities occur. e. To prevent any activity on, or use of, the Easement Property that is inconsistent with the purposes of this Conservation Easement or the MSHCP and to require the restoration of such areas or features of the Easement Property that may be damaged by any act, failure to act, or any use that is inconsistent with the purposes of this Conservation Easement or the MSHCP; f. All mineral, air and water rights necessary to protect and to sustain the biological resources of the Easement Property; g. 11086.0103/1383182v2 All present and future development rights; 3 h. The right to enforce by any means, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 5. Prohibited Uses. Any activity on or use of the Easement Property that is inconsistent with the purposes of this Conservation Easement is prohibited. Without limiting the generality of the foregoing, the following uses by Grantor, Grantor's agents, and third parties, are expressly prohibited: a. All activities and uses which may adversely affect the purposes of this Conservation Easement; b. Use of off -road vehicles and use of any other motorized vehicles except on existing roadways; c. Depositing or accumulation of soil, trash, ashes, refuse, waste, bio solids or any other materials; species; 11086.0103/1383182v2 d. Planting, introduction or dispersal of non - native or exotic plant or animal e. All activities and uses that are otherwise inconsistent with the purposes of the MSHCP; and f. No use shall be made of the Easement Property, and no activity thereon shall be permitted that is or is likely to become inconsistent with the Purposes of this Conservation Easement. Grantor and Grantee acknowledge that, in view of the perpetual nature of this Conservation Easement, they are unable to foresee all potential future land uses, future technologies, and future evolution of the land and other natural resources, and other future occurrences affecting the Purposes of this Easement. Grantee, therefore, in its sole reasonable discretion, may determine whether (i) proposed uses or proposed improvements not contemplated by or addressed in this Conservation Easement or (ii) alterations in existing uses or structures, are consistent with the Purposes of this Conservation Easement. 6. Grantor's Duties. To accomplish the purposes of this Conservation Easement as described in Section 2, Grantor, its successors and assigns shall: a. Perform or arrange for the performance of all mitigation, duties and requirements under the Permits except as set forth herein. b. Undertake all actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Easement Property. If requested by Grantee, Grantor shall install and maintain exclusionary fencing to prevent unlawful entry. In addition, Grantor shall undertake all necessary actions to perfect Grantee's rights under Section 2.a of this Conservation Easement; c. Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the Conservation Values and Natural Condition; 4 d. Repair and restore damage to the Conservation Easement directly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties; e. Erect and maintain signage and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Easement Property. Prior to erection of such signage, the Grantor shall submit detailed plans showing the location of such signs to the Grantee for review and approval. The erection and maintenance of informative signage and fencing shall not be in direct or potential conflict with the preservation of the natural condition of the Easement Property or the purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. in Section 20. f. Perform Long -Term Maintenance of the Easement Property as described 7. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Easement Property, including the right to engage in or to permit or invite others to engage in only those uses of the Easement Property which are authorized or otherwise expressly permitted under this Conservation Easement, including without limitation, the performance of all mitigation, duties and requirements under the Permits. 8. Grantee's Remedies. If Grantee determines that Grantor or any successor is in violation of the terms of this Conservation Easement or that a violation is threatened, Grantee shall give written notice to Grantor of such violation and demand in writing the cure of such violation. If Grantor fails to cure the violation within fifteen (15) days after receipt of written notice and demand from Grantee, or if the cure reasonably requires more than fifteen (15) days to complete and Grantor fails to begin the cure within the fifteen (15) -day period or fails to continue diligently to complete the cure, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement, to recover any damages to which Grantee may be entitled for violation by Grantor of the terms of this Conservation Easement or for any injury to the Conservation Values of the Easement Property, to enjoin the violation, ex parte as necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or for other equitable relief, including, but not limited to, the restoration of the Easement Property to the condition in which it existed prior to any such violation or injury. Without limiting Grantor's liability therefore, Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Easement Property. If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate damage to the Conservation Values of the Easement Property, Grantee may pursue its remedies under this Section 8 without prior notice to Grantor or without waiting for the period provided for cure to expire. Grantee's rights under this section apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor agrees that Grantee's remedies at law for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement, without the - 5 - 11086.0103/1383182v2 necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. Grantee's remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code Section 815, et seq., inclusive. The failure of Grantee to discover a violation or to take immediate legal action shall not bar Grantee from taking such action at a later time. If at any time in the future Grantor or any subsequent transferee uses or threatens to use the Easement Property for purposes inconsistent with this Conservation Easement then, notwithstanding Civil Code Section 815.7, the California Attorney General or any entity or individual with a justifiable interest in the preservation of this Conservation Easement has standing as interested parties in any proceeding affecting this Conservation Easement. a. Costs of Enforcement. Any costs incurred by Grantee where Grantee is the prevailing party, in enforcing the terms of this Conservation Easement against Grantor, including, but not limited to, costs of suit and reasonable attorneys' and experts' fees, and any costs of restoration necessitated by Grantor's negligence or breach of this Conservation Easement shall be borne by Grantor. b. Grantee's Discretion. Enforcement of the terms of this Conservation Easement by Grantee shall be at the discretion of Grantee, and any forbearance by Grantee to exercise its rights under this Conservation Easement in the event of any breach of any term of this Conservation Easement by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any of Grantee's rights under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. c. Acts Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Easement Property resulting from (i) any natural cause beyond Grantor's control, including, without limitation, fire not caused by Grantor, flood, storm, and earth movement, or (ii) any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Easement Property resulting from such causes; or (iii) acts by Grantee or its employees. d. Grantee's Right of Enforcement. All rights and remedies conveyed to Grantee under this Conservation Easement shall extend to and are enforceable by the Grantee, and its assignees. 9. Access. This Conservation Easement does not convey a general right of access to the public or any future resident or owner of the Easement Property or any adjacent landowners or a general right of access to the Easement Property. Access to the Easement Property shall be extremely limited. 10. Costs and Liabilities. Grantor, its estates, successors, and assigns, remain solely responsible for obtaining and complying with any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local, and administrative 11086.0103/1383182v2 -6- agency statutes, ordinances, rules, regulations, orders and requirements. Grantor, its invitees, agents, contractors, consultants, heirs, estates, successors, and assigns, retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Easement Property except those specifically accepted by Grantee under this Conservation Easement. Grantee shall have no duty or responsibility for the operation or maintenance of the Easement Property, the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Easement Property, except as set forth with particularity herein. 11. No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) in, on, under, about or affecting the Easement Property. Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee any of the following: a. The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA "); or b. The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4); or c. The obligations of a responsible person under any applicable Environmental Laws; or d. The right to investigate and remediate any Hazardous Materials associated with the Easement Property; or e. Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Easement Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by- products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. 11086.0103/1383182v2 7 Grantor represents, warrants and covenants to Grantee that Grantor's activities upon and use of the Easement Property will comply with all Environmental Laws. 12. Hold Harmless. Grantor, its successors and assigns shall hold harmless, indemnify, and defend Grantee and its directors, officers, employees, agents, contractors, and representatives (collectively "Indemnified Parties ") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims "), arising from or in any way connected with: a. Injury to or the death of any person, or physical damages to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Easement Property, regardless of cause; provided however, that the indemnification in this Section 12(a) shall be inapplicable to an Indemnified Party with respect to any Claim due solely to the negligence of that Indemnified Party or any of its employees. b. The obligations specified in Sections 6, 7, 10, and 13; and c. The existence or administration of this Conservation Easement. d. Any Hazardous Materials present, alleged to be present, or otherwise associated with the Easement Property at any time, except any Hazardous Materials placed, disposed or released by Grantee, its employees or agents. If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action or proceeding by counsel reasonably acceptable to Grantee or reimburse the Grantee for attorneys fees and for all charges incurred for services of the Attorney General or the U.S. Department of Justice in defending the action or proceeding. 13. Taxes; No Liens. Grantor, its successors and assigns shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Easement Property by competent authority (collectively "taxes "), including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor, its successors and assigns shall keep Grantee's interest in the Easement Property free from any liens, including those arising out of any obligations incurred by Grantor or any labor or materials furnished or alleged to have been furnished to or for Grantor at or for use on the Easement Property. Acceptance of this Conservation Easement is subject to Grantee's approval, in its sole discretion, of the title report of the Easement Property provided by the Grantor. 14. Liens Subordinated. Grantor represents that as of the date of this grant, there are no liens or mortgages outstanding against the Easement Property. Under no circumstances may Grantee's rights be extinguished or otherwise affected by the recording, foreclosure, or any other action taken concerning any subsequent lien or other interest in the Easement Property. 15. Condemnation. The purposes of the Conservation Easement are presumed to be the best and most necessary public use as defined at Code of Civil Procedure Section 1240.680 notwithstanding Code of Civil Procedure Sections 1240.690 and 1240.700. Nevertheless, if the 11086.0103/1383182v2 -8- Easement Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. 16. Assignment. This Conservation Easement is transferable by Grantee, but Grantee may assign its rights and obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3. Grantee shall require the assignee to record the assignment in the county where the Easement Property is located. 17. Subsequent Transfers. a. By Grantee. Grantee may assign, transfer its rights, and delegate its obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3 (or any successor provision then applicable) and only with the prior written approval of the Grantor. Grantee shall require the assignee to record the assignment in the Official Records of Riverside County, California. b. By Grantor. (i) The covenants, conditions, and restrictions contained in this Conservation Easement are intended to and shall run with the land and bind all future owners of any interest in the Easement Property. Grantor, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Conservation Easement in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Easement Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Conservation Easement. Grantor, its successor and assign agrees to give written notice to Grantee of the intent to transfer any interest at least forty -five (45) days prior to the date of such transfer. The failure of Grantor, its successor or assign to perform any act provided in this Section 17 shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (ii) From and after the date of any transfer of all or any portion of the Easement Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor as to the portion transferred, as set forth in this Conservation Easement, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder, and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. 18. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and be served personally or sent by recognized overnight courier that guarantees next -day delivery or by first class mail, postage fully prepaid, addressed as follows or to such other address as either party shall designate by written notice to the other: 11086.0103/1383182v2 To Grantor: City of Temecula 41000 Main Street -9- With a Copy to: To Grantee: With a Copy to: Post Office Box 9033 Temecula, CA 92589 -9033 Attn: City Manager Richards, Watson & Gershon 355 South Grand Ave., 40th Floor Los Angeles, CA 90071 Attn: Peter M. Thorson Western Riverside County Regional Conservation Authority 3403 Tenth Street, Suite 320 P.O. Box 1667 Riverside, California 92502 -1667 Attn: Executive Director Best Best & Krieger LLP 3750 University Avenue, Suite 400 P.O. Box 1028 Riverside, CA 92502 -1028 Attn: Michelle Ouellette Notice shall be deemed effective upon delivery in the case of personal delivery or delivery by overnight courier or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail. 19. Amendment. This Conservation Easement may be amended by Grantor and Grantee only by mutual written agreement. Any such amendment shall be consistent with the purposes of this Conservation Easement and shall not affect its perpetual duration. Any such amendment shall be recorded in the Official Records of Riverside County, State of California. 20. Long -Term Maintenance. In addition to the other terms contained herein, Grantor shall be responsible for the ongoing maintenance /repair of the Easement Property. Such long- term maintenance shall consist of the following activities: a. Semi- annual removal of trash or man -made debris or as needed by the direction of the Grantee; b. Annual restoration of the Easement Property damaged by any activities prohibited by Section 5 herein. c. Implement ongoing (post -five -year maintenance period) responsibilities as set forth in the Habitat Mitigation and Monitoring Program ( "HMMP ") dated June 14, 2011: (i) HMMP Section 5.2.3: RESTORATION CONTRACTOR. The City of Temecula will be responsible for retaining a licensed Restoration Contractor experienced in (1) non - native plant species control and management within natural habitat areas and (2) the 11086.0103/1383182v2 - 10 - installation and maintenance of habitat restoration programs. The Restoration Contractor will be responsible for performing initial site preparation, planting, and/or seeding at the off -site mitigation site and Warm Springs Creek temporary impact site and for long -term maintenance tasks at the off -site mitigation site. The Restoration Contractor will also be responsible for coordinating with the City of Temecula, the Biological Monitor, and the Archaeological/Native American Monitors regarding all initial implementation activities and long -term maintenance activities. (ii) HMMP Section 5.2.4: BIOLOGICAL MONITOR. The City of Temecula will retain a Biological Monitor experienced in monitoring (1) non - native plant species control and management and (2) habitat restoration implementation. The Biological Monitor will monitor invasive weed species eradication, site - preparation activities, plant establishment activities, and long -term maintenance and site performance. The Biological Monitor will also coordinate with the City of Temecula and the Restoration Contractor regarding site status. The Biological Monitor will attend meetings on the offsite mitigation site during implementation and will coordinate with the Restoration Contractor during mitigation program implementation to facilitate compliance with specified success criteria and native plant establishment. In all instances, the Biological Monitor will consult with and obtain approval from the City of Temecula concerning implementation plan revisions and will notify the City of Temecula prior to the initiation of any and all stages of plan implementation. (iii) HMMP Section 6.1.5: Protection of the mitigation sites from traffic, vandalism, or other intrusions will be provided as much as possible on an ongoing basis. All damaged areas will be repaired immediately by the Restoration Contractor, as directed by the City of Temecula. Maintenance activities will be restricted during the least Bell's vireo nesting season (March 15 to September 15) based on recommendations provided by the Biological Monitor. (iv) HMMP Section 6.1.7: The Restoration Contractor will maintain all mitigation sites in a clean and orderly condition. All trash and debris shall be removed from the sites during the five -year maintenance program and on an ongoing basis following the completion of the five -year maintenance program and shall be disposed of in a proper location. All weed debris (green waste) shall be promptly removed from the sites at the end of all weed - control activities and shall be disposed of at an appropriate green waste facility. 21. Recordation. Grantor shall promptly record this instrument in the Official Records of Riverside County, California and immediately notify the Grantee through the mailing of a conformed copy of the recorded easement. 22. General Provisions. a. Controlling Law. The interpretation and performance of this Conservation Easement shall be governed by the laws of the State of California, disregarding the conflicts of law principles of such state. b. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of and to effect the purposes of this Conservation Easement and the policy and purpose set forth in California - 11 - 11086.0103/1383182v2 Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. c. Change of Conditions. If one or more of the Purpose of this Conservation Easement may no longer be accomplished, such failure of purpose shall not be deemed sufficient cause to terminate the entire Conservation Easement as long as any other purpose of the Conservation Easement may be accomplished. In addition, the inability to carry on any or all of the permitted uses, or the unprofitability of doing so, shall not impair the validity of this Conservation Easement or be considered grounds for its termination or extinguishment. Grantor and Grantee agree that global warming and climate change - caused effects shall not be a basis for termination of this Conservation Easement. d. Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. e. Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 19. f. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. g. Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Easement Property. h. Termination of Rights and Obligations. A party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or Easement Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. i. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation. J. Exhibits. All Exhibits referred to in this Easement are attached and incorporated herein by reference. k. Warranty. Grantor represents and warrants that, to the best of Grantor's knowledge, and except as disclosed in writing to Grantee by Grantor: 11086.0103/1383182v2 - 12 - (i) There are no leases, licenses, or other agreements granting any person or persons the right to use or occupy the Easement Property or any portion thereof that have not been identified and referenced in this Conservation Easement; Property; (ii) There are no apparent or latent defects in or on the Easement (iii) Grantor is not aware of any failure of the Easement Property to be in full compliance with all federal, state, and local laws, regulations, and requirements applicable to the Easement Property; (iv) There are no pending or threatened litigation affecting, involving, or relating to the Easement Property or any portion thereof; (v) There are no civil or criminal proceedings or investigations that have been instigated at any time or are now pending, and no notices, claims, demands, or orders have been received, arising out of any violation or alleged violation of, or failure to comply with, any federal, state, or local law, regulation, or requirement applicable to the Easement Property or its use, nor, to the best of Grantor's knowledge, do there exist any facts or circumstances that Grantor might reasonably expect to form the basis for any such proceedings, investigations, notices, claims, demands, or orders; (vi) Grantor is unaware of any matters, conditions, or factors that will materially impair the Conservation Values or Natural Condition of the Easement Property or management of the Easement Property; and (vii) All Easement Property management obligations are described in this Conservation Easement. 1. Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the Easement Property (other than a security interest that is subordinate to this Conservation Easement), or grant or otherwise abandon or relinquish any water agreement relating to the Easement Property, without first obtaining the written consent of Grantee. Grantee may reasonably withhold such consent if it determines that the proposed interest or transfer is inconsistent with the purposes of this Conservation Easement or will impair or interfere with the Conservation Values or Natural Condition of the Easement Property. This Section 22.1. shall not prohibit transfer of a fee or leasehold interest in the Easement Property that is subject to this Conservation Easement that complies with Sections 16 and 17. m. Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 11086.0103/1383182v2 - 13 - IN WITNESS WHEREOF Grantor has executed this Conservation Easement the day and year first above written and has agreed to be bound by the terms and provisions hereof Further, by executing the Certificate of Acceptance attached hereto, Grantee has agreed to be bound by the terms and provisions of the Conservation Easement. 11086.0103/1383182v2 GRANTOR CITY OF TEMECULA, a municipal corporation By: Ron Roberts, Mayor ATTEST: By: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney [ATTACH NOTARY ACKNOWLEDGEMENT] - 14- Approved as to Form By: Best, Best & Krieger LLP General Counsel 11086.0103/1383182v2 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the City of Temecula, a municipal corporation on the Conservation Easement dated September 27, 2011, to the Western Riverside County Regional Conservation Authority ( "Grantee "), is hereby accepted by the undersigned officer on behalf of the Grantee, pursuant to authority conferred by Ordinance No. 08 -01, as adopted by the Board of Directors on July 7, 2008. GRANTEE: WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a joint powers authority and a public agency Date: By: - 15 - Charles V. Landry, Executive Director 26493.00279\6797155.1 Exhibit A Legal Description of Easement Property Page 16 of 18 26493.00279\6797155.1 Exhibit B Map of Easement Property [See Attached] Page 17 of 18 26493.00279\6797155.1 Exhibit C Preliminary Title Report [See Attached] Page 18 of 18 That portion of the "Remainder Parcel" as shown on Parcel Map No. 30180, in the City of Temecula, County of Riverside, State of California, as recorded in Book 208 of Parcel Maps, Pages 56 -61, inclusive, records of said County, more particularly described as follows: COMMENCING at point on the South Line of Parcel 1 of said Parcel Map No. 30180, said point being the easterly terminus of a tangent course bearing North 83 °1228" West; thence North 83 °12'28" West along said south line 120.00 feet to the TRUE POINT OF BEGINNING; thence leaving said south line, South 5 °22'00" West, 304.00 feet; thence North 87 °28'00" West, 347.00 feet; thence North 1°54'00" East, 380.50 feet to a point on the South Line of Parcel 5 of said Parcel Map No. 30180, said point being 13.74 feet from the southeast corner thereof; thence easterly along the South Line of Parcels 5, 4 and 1 of said Parcel Map No. 30180 the following 4 courses: South 72 °09'43 East 105.02 feet, South 71 °41'33" East 167.53 feet, North 88 °46'46" East 29.60 feet and South 83 °12'28" East 74.39 feet to the TRUE POINT OF BEGINNING. The above description contains approximately 2.73 acres. See Sheet 2 of 2 for a sketch attached hereto and made a part hereof. This Legal Description was prepared by me or under my direction. q 8 - 2vr/ James L. Elliott, L.S. 6334 Affects APN's 961 - 440 -007 and 961- 440 -012 Legal Description Date EXHIBIT "A" Sheet 1 of 1 SCALE: 1" =120' PARCEL 3 P.M. NO. P.M.B. PARCEL 4 49 30180 PARCEL 2 ir PARCEL 5 13.,. PARCEL 1 •0 IN THE CITY OF TEMECULA COUNTY OF RIVERSIDE STATE OF CALIFORNIA 208/56 -61 1 7 ?8 S274 33; EASEMENT PROPERTY 2.73 ACRES N8T28'00 "W 347.00' TEMECULA PARKWAY N88'46'46 "E 29.60' N83•1 2'28" W 1 94.39' 1 20.00' 4.39' O T.P.O.B. P.O.C. o "REMAINDER PARCEL" N N tf) O to EXHIBIT "B" SHEET 1 OF 1 itn PARSONS ` BRINCKERHOFF 451 E. Vonderbilt Woy Suite 200. Son Bernordino CA TEL: 909.888.1 106 FAX: 909.889.1884 EASEMENT PROPERTY Fite: 1':\ 177478PSFrenchVa ?IetiPOrk \SVR \OWG\ MAPPING \) tigotion_Pcl_Exhibit.dwo Sep O8, 2011 — 10: 38om plocencio -c AMF,,k -1 c •1• September 01, 2011 James L. Elliott Parsons Brinckerhoff 451 East Vanderbilt Way, Suite 200 San Bernardino, CA 92408 Phone: (909)915 -2497 Fax: Customer Reference: PB 177478 First American Title Insurance Company National Commercial Services 1850 Mt. Diablo Blvd., Suite 300 Walnut Creek, CA 94596 Escrow Officer: Roni Sloan Loftin Phone: (925)927 -2127 Borrower: Property: City of Temecula Vacant Land, Temecula, CA PRELIMINARY REPORT Order Number: NCS- 502983 -CC Page Number: 1 In response to the above referenced application for a policy of title insura -ice, this company hereby reports that it is prepared to issue, or cause to be i as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring agent loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exdusions from the coverage aid Limitations on Covered Risks of sad policy or policies are set fortis in Ediibit A attached. The policy to be issued may contain an arbitration clause, When the Amount of Insurance is less iha? that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Li nit of Liability for certain coverages are also set fortis in E>enibit A. Copies of the policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. First American Title Insurance Company This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 2 Dated as of August 26, 2011 at 7:30 A.M. Order Number: NCS- 502983 -CC Page Number: 3 The form of Policy of title insurance contemplated by this report is: To Be Determined A specific request should be made if another form or additional coverage is desired. Title to said estate or interest at the date hereof is vested in: City of Temecula, a municipal corporation The estate or interest in the land hereinafter described or referred to covered by this Report is: Fee Simple as to Parcel One and an Easement as to Parcels Two and Three. The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1. General and special taxes and assessments for the fiscal year 2011 -2012, a lien not yet due or payable. 2. General and special taxes and assessments for the fiscal year 2010 -2011 are exempt. If the exempt status is terminated an additional tax may be levied. Account Nos. 961- 440 - 007 -1, 961- 440- 008 -2, 961 - 440 - 009 -3, 961 - 440 -012 -5 and 961 -450 -014 -8 3. The lien of special tax for the following municipal improvement bond, which tax is collected with the county taxes. District: 159 -R First American Title Insurance Company 4. The lien of special tax for the following municipal improvement bond, which tax is collected with the county taxes. District: 159 -S -R 5. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 6. Water rights, claims or title to water, whether or not shown by the public records. 7. Rights of the public in and to that portion of the land lying within public roads. 8. An easement for pole lines, conduits, underground facilities and incidental purposes, recorded September 21, 1917 in Book 470, Page 14 of Deeds. In Favor of: Pacific Telephone and Telegraph Company Affects: As described therein The location of the easement cannot be determined from record information. 9. An easement for pole lines, conduits, underground facilities and incidental purposes, recorded February 27, 1928 in Book 745, Page 488 of Deeds. In Favor of: Affects: Southern Sierras Power Company As described therein Order Number: NCS- 502983 -CC Page Number:4 The location of the easement cannot be determined from record information. 10. An easement for pipeline and incidental purposes in the document recorded July 07, 1949 in Book 1090, Page 428 of Official Records. 11. An easement for pipe lines and incidental purposes, recorded October 27, 1949 in Book 1118, Page 376 of Official Records. In Favor of: United States of America Affects: As described therein The location of the easement cannot be determined from record information. 12. An easement for pole lines, conduits, underground facilities and incidental purposes, recorded January 23, 1951 in Book 1238, Page 69 of Official Records. In Favor of: California Electric Power Company Affects: As described therein The location of the easement cannot be determined from record information. 13. An easement for pole lines, conduits, underground facilities and incidental purposes, recorded December 01, 1953 in Book 1531, Page 11 of Official Records. In Favor of: United States of America Affects: As described therein First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number:5 The location of the easement cannot be determined from record information. 14. An easement for pipelines and incidental purposes, recorded September 19, 1958 in Book 2334, Page 559 of Official Records. In Favor of: southern Counties Gas Company of California Affects: As described therein 15. An easement for pipelines and incidental purposes, recorded July 21, 1959 as Instrument No. 63128 of Official Records. In Favor of: Southern California Gas Company Affects: As described therein The location of the easement cannot be determined from record information. 16. An easement for pipelines and incidental purposes, recorded December 30, 1959 as Instrument No. 110136 of Official Records. In Favor of: Metropolitan Water District Affects: As described therein The location of the easement cannot be determined from record information. 17. An agency agreement dated March 29, 1979 by and between Kacor Realty, Incorporated and Rancho California Water District wherein it is agreed that said district is designated as exclusive agent for the extraction, diversion, storage, blending and distribution of all local water, recorded May 07, 1979 as Instrument No. 92330 of Official Records of Riverside County, California. 18. An easement for ingress, egress and incidental purposes, recorded March 20, 1984 as Instrument No. 55633 of Official Records. In Favor of: Metropolitan Water District Affects: As described therein 19. An easement for pipelines and incidental purposes, recorded May 17, 1989 as Instrument No. 160467 of Official Records. In Favor of: Southern California Gas Company Affects: As described therein 20. An easement for pipeline and incidental purposes, recorded December 11, 1997 as Instrument No. 454860 of Official Records. In Favor of: The Metropolitan Water District of Southern California Affects: As described therein 21. The terms and provisions contained in the document entitled "Development Agreement" recorded January 07, 2000 as Instrument No. 7423 of Official Records. The terms and provisions contained in the document entitled "Assignment and Assumption Agreement of Development Agreement" recorded February 11, 2004 as Instrument No. 2004- 0098162 of Official Records. First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 6 22. An easement for slopes and temporary construction and incidental purposes, recorded November 14, 2001 as Instrument No. 561440 of Official Records. In Favor of: City of Temecula, a municipal corporation Affects: As described therein 23. An easement for slopes and temporary construction and incidental purposes, recorded February 15, 2002 as Instrument Nos. 83918, 83919 and 83920 of Official Records. In Favor of: City of Temecula, a municipal corporation Affects: As described therein 24. The terms and provisions contained in the document entitled "License Agreement" recorded February 15, 2002 as Instrument No. 2002 -83925 of Official Records. 25. An easement for storm drain access and incidental purposes, recorded March 15, 2004 as Instrument No. 178014 of Official Records. In Favor of: The State of California Affects: As described therein 26. An easement shown or dedicated on the map of Parcel Map No. 30180 on filed in Book 208, Pages 56 through 61, of Parcel Maps. For: Sewer, storm drain, landscape, public access, multi - use trail, ingress, egress, private street and incidental purposes. 27. Abutter's rights of ingress and egress to or from Pechanga Parkway except the General Easement of Travel, have been dedicated or relinquished on the map of Parcel Map No. 30180 on filed in Book 208, Pages 56 through 61, of Parcel Maps. 28. The effect of an environmental constraint note affecting Parcel Map No. 30180 on filed in Book 208, Pages 56 through 61, of Parcel Maps. Said ECS map on filed in the office of the Riverside County Surveyor, in E.C.S. Book T, Page 290. 29. An easement for ingress and egress for maintenance of storm drain facilities and incidental purposes, recorded June 11, 2004 as Instrument No. 2004 - 0448983 of Official Records. In Favor of: Affects: The State of California As described therein 30. An agency agreement dated July 06, 2004 by and between Borchard - Temecula, LLC and Rancho California Water District, a public corporation and Rancho California Water District wherein it is agreed that said district is designated as exclusive agent for the extraction, diversion, storage, blending and distribution of all local water, recorded February 24, 2005 as Instrument No. 2005- 0146508 of Official Records of Riverside County, California. 31. The terms and provisions contained in the document entitled "Hold Harmless Agreement" recorded November 08, 2005 as Instrument No. 2005 - 0930220 of Official Records. 32. The terms, provisions and easement(s) contained in the document entitled "Reciprocal Easement Agreement" recorded July 25, 2007 as Instrument No. 2007 - 0481952 of Official Records. First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 7 33. Lack of actual vehicular or actual pedestrian access, or both, to and from the land, whether or not based upon a legal right. 34. The terms, provisions and easement(s) contained in the document entitled "Agreement Regarding Grant of Reciprocal Easements, Construction of Intersection Improvements and Cost Sharing" recorded January 06, 2004 as Instrument No. 2004 - 0007253 of Official Records. 35. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded February 18, 2011 as Document No. 2011 - 0077366 of Official Records, which reflects a completion date of Not Set Out. 36. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded March 03, 2011 as Document No. 2011 - 0097372 of Official Records, which reflects a completion date of Not Set Out. 37. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded March 03, 2011 as Document No. 2011- 0097373 of Official Records, which reflects a completion date of Not Set Out. 38. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded March 03, 2011 as Document No. 2011 - 0097374 of Official Records, which reflects a completion date of Not Set Out. 39. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded June 06, 2011 as Document No. 2011 - 0246324 of Official Records, which reflects a completion date of Not Set Out. 40. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by a notice of completion recorded June 06, 2011 as Document No. 2011- 0246325 of Official Records, which reflects a completion date of Not Set Out. 41. Rights of parties in possession. First American Title Insurance Company INFORMATIONAL NOTES 1. The property covered by this report is vacant land. Order Number: NCS- 502983 -CC Page Number: 8 2. According to the public records, there has been no conveyance of the land within a period of twenty four months prior to the date of this report, except as follows: A document recorded December 29, 2010 as Document No. 2010 - 0623487 of Official Records. From: Brochard - Temecula, L.P., a California limited partnership To: City of Temecula, a municipal corporation 3. It appears that a work of improvement is in progress or recently completed on the land. The Company will require various documents and information, including but not limited to a completed mechanics' lien risk analysis, construction contract(s), lien waivers, loan agreement, disbursement information, executed indemnity agreement and current financial information from proposed indemnitors, in order to determine whether mechanics' lien insurance can be issued. Other requirements may be made following the review of such documents and information. 4. This preliminary report /commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only. It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be issued. 5. Should this report be used to facilitate your transaction, we must be provided with the following prior to the issuance of the policy: A. WITH RESPECT TO A CORPORATION: 1. A certificate of good standing of recent date issued by the Secretary of State of the corporation's state of domicile. 2. A certificate copy of a resolution of the Board of Directors authorizing the contemplated transaction and designating which corporate officers shall have the power to execute on behalf of the corporation. 3. Requirements which the Company may impose following its review of the above material and other information which the Company may require. B. WITH RESPECT TO A CALIFORNIA LIMITED PARTNERSHIP: 1. A certified copy of the certificate of limited partnership (form LP -1) and any amendments thereto (form LP -2) to be recorded in the public records; 2. A full copy of the partnership agreement and any amendments; 3. Satisfactory evidence of the consent of a majority in interest of the limited partners to the contemplated transaction; 4. Requirements which the Company may impose following its review of the above material and other information which the Company may require. C. WITH RESPECT TO A FOREIGN LIMITED PARTNERSHIP: 1. A certified copy of the application for registration, foreign limited partnership (form LP -5) and any amendments thereto (form LP -6) to be recorded in the public records; First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 9 2. A full copy of the partnership agreement and any amendment; 3. Satisfactory evidence of the consent of a majority in interest of the limited partners to the contemplated transaction; 4. Requirements which the Company may impose following its review of the above material and other information which the Company may require. D. WITH RESPECT TO A GENERAL PARTNERSHIP: 1. A certified copy of a statement of partnership authority pursuant to Section 16303 of the California Corporation Code (form GP -I), executed by at least two partners, and a certified copy of any amendments to such statement (form GP -7), to be recorded in the public records; 2. A full copy of the partnership agreement and any amendments; 3. Requirements which the Company may impose following its review of the above material required herein and other information which the Company may require. E. WITH RESPECT TO A LIMITED LIABILITY COMPANY: 1. A copy of its operating agreement and any amendments thereto; 2. If it is a California limited liability company, a certified copy of its articles of organization (LLC -1) and any certificate of correction (LLC -11), certificate of amendment (LLC -2), or restatement of articles of organization (LLC -10) to be recorded in the public records; 3. If it is a foreign limited liability company, a certified copy of its application for registration (LLC -5) to be recorded in the public records; 4. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, such document or instrument must be executed in accordance with one of the following, as appropriate: (i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such documents must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and /or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. 5. Requirements which the Company may impose following its review of the above material and other information which the Company may require. F. WITH RESPECT TO A TRUST: 1. A certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the Company. 2. Copies of those excerpts from the original trust documents and amendments thereto which designate the trustee and confer upon the trustee the power to act in the pending transaction. 3. Other requirements which the Company may impose following its review of the material require herein and other information which the Company may require. G. WITH RESPECT TO INDIVIDUALS: 1. A statement of information. The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 10 * * * * *To obtain wire instructions for deposit of funds to your escrow file please contact your Escrow Officer.***** First American Title Insurance Company PARCEL ONE: LEGAL DESCRIPTION Order Number: NCS- 502983 -CC Page Number: 11 Real property in the City of Temecula, County of Riverside, State of California, described as follows: THE "REMAINDER PARCEL" AS SHOWN ON PARCEL MAP NO. 30180, ON FILE IN BOOK 208, PAGES 56 THROUGH 61 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THAT PORTION OF SAID LAND AS SET OUT IN FINAL ORDER OF CONDEMNATION RECORDED NOVEMBER 14, 2001, AS INSTRUMENT NO. 561440 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM THAT PORTION OF SAID LAND GRANTED TO THE CITY OF TEMECULA BY DEED RECORDED APRIL 25, 2005 AS INSTRUMENT NO. 2005 - 0322891 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM THE FOLLOWING REAL PROPERTY: PARCEL "A" CONSERVATION AREA IN FEE BEGINNING AT THE MOST EASTERLY CORNER OF PARCEL "B" OF THE "WETLAND CREATION AREA AS DESCRIBED IN THE FINAL ORDER OF CONDEMNATION RECORDED NOVEMBER 14, 2001 AS INSTRUMENT NO. 561440 OFFICIAL RECORDS OF SAID COUNTY, SAID POINT ALSO BEING ON THE NORTHERLY LINE OF THE "WILDLIFE CONSERVATION EASEMENT" AS DESCRIBED IN INSTRUMENT NO. 366277, RECORDED OCTOBER 08, 1997 OFFICIAL RECORDS OF SAID COUNTY; THENCE NORTH 60° 30' 00" WEST, 63.17 FEET (NORTH 60° 31' 05" WEST, 63.17 AS RECORDED IN SAID INSTRUMENT NO. 561440) ALONG THE NORTHERLY LINE OF SAID PARCEL "B ", "WETLAND CREATION AREA TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 190.00 FEET; THENCE WESTERLY ALONG SAID CURVE AND SAID NORTHERLY LINE OF PARCEL "B" "WETLAND CREATION AREA" THROUGH A CENTRAL ANGLE OF 33° 12' 50 ", AN ARC LENGTH OF 110.14 FEET; THENCE SOUTH 89° 17' 10" WEST, 131.69 FEET ALONG SAID NORTHERLY LINE OF PARCEL "B ", "WETLAND CREATION AREA" TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 190.00 FEET; THENCE WESTERLY ALONG SAID CURVE AND SAID NORTHERLY LINE OF PARCEL "B ", "WETLAND CREATION AREA" THROUGH A CENTRAL ANGLE OF 30° 10' 07 ", AN ARC LENGTH OF 100.04 FEET; THENCE NORTH 63° 32' 43" WEST, 23.37 FEET ALONG SAID NORTHERLY LINE OF PARCEL "B ", "WETLAND CREATION AREA TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY, HAVING A RADIUS OF 500.00 FEET; THENCE WESTERLY ALONG SAID CURVE AND SAID NORTHERLY LINE OF PARCEL "B ", 'WETLAND CREATION AREA" THROUGH A CENTRAL ANGLE OF 25° 59' 49 ", AN ARC LENGTH OF 226.87 FEET; THENCE LEAVING SAID NORTHERLY LINE OF PARCEL "B ", "WETLAND CREATION AREA SOUTH 86° 54' 37" EAST, 548.70 FEET; THENCE SOUTH 82° 38' 40" EAST, 224.77 FEET; THENCE SOUTH 89° 34' 27" EAST, 489.39 FEET TO A POINT ON THE NORTHERLY LINE OF SAID "WILDLIFE CONSERVATION EASEMENT "; THENCE SOUTH 55° 52' 16" WEST, 64.65 FEET ALONG THE NORTHERLY LINE OF SAID "WILDLIFE CONSERVATION EASEMENT "; THENCE SOUTH 72° 53' 44" WEST, 201.78 FEET ALONG THE NORTHERLY LINE OF SAID "WILDLIFE CONSERVATION EASEMENT "; THENCE NORTH 85° 45' 31" WEST, 386.01 FEET ALONG THE NORTHERLY LINE OF SAID "WILDLIFE First American Title Insurance Company CONSERVATION EASEMENT" TO THE POINT OF BEGINNING. PARCEL TWO: PARCEL THREE: First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 12 ACCESS EASEMENTS AS SET FORTH IN DOCUMENT ENTITLED "RECIPROCAL EASEMENT AGREEMENT ", RECORDED JULY 25, 2007 AS INSTRUMENT NO. 2007 - 481952, OFFICIAL RECORDS OF RIVERSIDE COUNTY. NON EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, DRAINAGE, UTILITIES, AND SIGNAGE PURPOSES AS SET FORTH AND DEFINED IN SECTION 5.1 OF THAT CERTAIN AGREEMENT REGARDING GRANT OF RECIPROCAL EASEMENTS, CONSTRUCTION OF INTERSECTION IMPROVEMENTS AND COST SHARING DATED DECEMBER 03, 2003, RECORDED JANUARY 06, 2004 AS INSTRUMENT NO. 2004 -7253 OF OFFICIAL RECORDS. APN: 961 - 440 - 007 -1, 961 - 440 - 008 -2, 961 - 440 - 009 -3, 961 - 440 -012 -5 and 961 - 450 -014 -8 The First American Corporation First American Title Company Privacy Policy Order Number: NCS- 502983 -CC Page Number: 13 We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. First American Title Insurance Company 1. 2. 3. Order Number: NCS- 502983 -CC Page Number: 14 EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notice of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the and or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or govemmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) My govemmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable "doing business" laws of the state in which the and is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by their policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. 2. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B - 1970 SCHEDULE OF EXCLUSIONS FROM COVERAGE Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions of area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. First American Title Insurance Company 3. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B - 1970 WITH REGIONAL EXCEPTIONS When the American Land Tide Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 2 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 4. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE 1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant, (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent insurance is afforded herein as to any statutory lien for labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy). 4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any subsequent owner of the indebtedness to comply with applicable "doing business" laws of the state in which the land is situated. 5. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association Lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy, the exclusions set forth in paragraph 4 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 6. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 15 This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 8. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 1992 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or govemmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy; (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or the extent insurance is afforded herein as to assessments for street improvements under construction or completed at date of policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable "doing business" laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 7. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH REGIONAL EXCEPTIONS First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 16 When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 6 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or govemmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the and is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 9. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 8 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 10. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY - 1987 EXCLUSIONS First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 17 This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: Part One: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from: 1. Govemmental police power, and the existence or violation of any law or govemment regulation. This includes building and zoning ordinances and also laws and regulations concerning: * land use * land division * improvements on the and * environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: *a notice of exercising the right appears in the public records on the Policy Date * the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking. 3. Title Risks: * that are created, allowed, or agreed to by you * that are known to you, but not to us, on the Policy Date - unless they appeared in the public records * that result in no loss to you * that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: * to any land outside the area specifically described and referred to in Item 3 of Schedule A, or * in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. a. building c. land use 11. EAGLE PROTECTION OWNER'S POLICY CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 2008 ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 2008 Order Number: NCS- 502983 -CC Page Number: 18 Covered Risks 16 (Subdivision Law Violation). 18 (Building Permit). 19 (Zoning) and 21 (Encroachment of boundary walls or fences) are subject to Deductible Amounts and Maximum Dollar Limits of Liability EXCLUSIONS In addition to the Exceptions in Schedule 8, You are not insured against loss, costs, attomeys' fees, and expenses resulting from: 1. Govemmental police power, and the existence or violation of those portions of any law or govemment regulation concerning: b. zoning d. improvements on the land e. land division f. environmental proiection This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21 LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount or $5,000.00 (whichever is less) Covered Risk 18: 1% of Policy Amount or $5,000.00 (whichever is less) Covered Risk 19: 1% of Policy Amount or $5,000.00 (whichever is less) Covered Risk 21: 1% of Policy Amount or $2,500.00 (whichever is less) $10,000.00 $25,000.00 $25,000.00 $5,000.00 12. THIRD GENERATION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (1 /01/08) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or(iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. First American Title Insurance Company (b)Any govemmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforoeability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in- lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of 1. 2. 3. 4. 5. 6. 7. 13. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 EXCLUSIONS FROM COVERAGE (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or govemmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing - business laws of the state where the Land is situated. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in- lending law. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 19 When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 13 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. 2. 3. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. 2. 3. 4. 5. 14. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 WITH REGIONAL EXCEPTIONS (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection;or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risks 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 15. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY- 2006 EXCLUSIONS FROM COVERAGE Order Number: NCS- 502983 -CC Page Number: 20 16. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 2006 WITH REGIONAL EXCEPTIONS First American Title Insurance Company Order Number: NCS- 502983 -CC Page Number: 21 When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 15 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. First American Title Insurance Company r v -*A astat 021 NOANVO MOSN1y21 l 10 N33210 � F . `JN111ftd a • 0 u J N 1n 0 N 0 § n 0 tON bls s- >:• ,n >21.• q, 3,... ,0 Item No. 8 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Greg Butler, Director of Public Works /City Engineer DATE: September 27, 2011 Approvals City Attorney Director of Finance City Manager Sief OtoL SUBJECT: Approval of a Conservation Easement for Ronald Reagan Sports Park Desilting Basin Environmental Mitigation Site, Project No. PW05 -13 PREPARED BY: Amer Attar, Principal Engineer Jon Salazar, Associate Engineer - CIP RECOMMENDATION: That the City Council approve the Conservation Easement, in substantially the form attached, for the Ronald Reagan Sports Park Desilting Basin Environmental Mitigation Site, Project No. PW05 -13 BACKGROUND: On December 11, 2007, the City Council approved the Ronald Reagan Sports Park Desilting Basin Project. Subsequently, the City was conditioned to construct a mitigation site to offset project impacts to riparian habitat. In compliance with the Streambed Alteration Agreement issued by the Department of Fish and Game, the City is required to establish a conservation easement over the 0.26 acre mitigation site. A conservation easement is a real property restriction that insures the encumbered property is maintained without future development or encroachment and prohibits, without exception, all residential, commercial, industrial, institutional, transportation and all other infrastructure development that would not maintain or enhance the wetland functions and values of the site. The chosen property is a portion of the City owned 17.9 acre parcel adjacent to the Ronald Reagan Sports Park, Assessor Parcel No. 945 - 050 -006. FISCAL IMPACT: There is no fiscal impact associated with the recordation of the Conservation Easement. ATTACHMENTS: 1. Conservation Easement 2. Project Description 3. Project Location RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Western Riverside County Regional Conservation Authority 3403 Tenth Street, Suite 320 P.O. Box 1667 Riverside, Califomia 92502 -1667 Attn: Executive Director City of Temecula 41000 Main Street Post Office Box 9033 Temecula, California 92589 -9033 Attn: City Clerk Documentary Transfer Tax $0.00 Space Above Line for Recorder's Use Only This Instrument is for the benefit of the Western Riverside County Regional Conservation Authority and is exempt from Recording Fees (Govt. Code § 27383), Filing Fees (Govt. Code § 6103), and Documentary Transfer Tax (Rev & Tax Code § 11922). MSHCP APN: A portion of APN 945 -050 -006 CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this 27 day of September 2011, by the CITY OF TEMECULA, a municipal corporation ( "Grantor "), in favor of the WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a joint powers authority and a public agency, ( "Grantee "), with reference to the following facts: RECITALS A. Grantor is the proponent of that certain real project in the County of Riverside, State of California, commonly referred to as the Ronald Reagan Sports Park Desilting Basin Environmental Mitigation, Project Number PW05 -13 the "Project "). B. Grantor is the sole owner in fee simple of those portions of the Project legally described on Exhibit "A" and depicted on Exhibit "B" attached hereto and incorporated by this reference (the "Easement Property "), which consists of approximately 0.26 acres. C. The Easement Property possesses wildlife and habitat values (collectively, "Conservation Values ") of importance to Grantee and the people of the State of California which are consistent with the habitat conservation purposes of the Western Riverside County Multiple Species Habitat Conservation Plan ( "MSHCP "); D. This Conservation Easement provides mitigation for certain impacts of the California Department of Fish and Game set forth in the Agreement Regarding Proposed Stream or Lake Alteration Notification No. 1600- 2007- 0216 -R6 (Revisions 2) dated June 27, 2008 entered into between the California Department of Fish and Game and Grantor; 11086.000411383270v2 -1- E. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is an entity identified in Civil Code Section 815.3 and otherwise authorized to acquire and hold title to real property; and F. Grantee agrees by accepting this grant to honor the intentions of Grantor to preserve and protect in perpetuity the Conservation Values of the Easement Property in accordance with the terms of this Conservation Easement. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and pursuant to California law, including Civil Code Section 815, et seq., Grantor hereby voluntarily CONTRIBUTES, GRANTS and CONVEYS to Grantee a conservation easement over and across the Easement Property of the nature and character and to the extent hereinafter set forth ( "Conservation Easement "). This Conservation Easement shall bind the Grantor unconditionally and in perpetuity. This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Easement Property or any portion of it. 1. Definitions. Any capitalized term not otherwise defined herein shall carry the same meaning and definition as that term is used and defined in the MSHCP. 2. Purpose. a. The purpose of this Conservation Easement is to ensure that the Easement Property will be retained in perpetuity in a natural condition and to prevent any use of the Easement Property that will impair or interfere with the Conservation Values of the Easement Property. ( "Natural Condition ") Grantor intends that this Conservation Easement will confine the use of the Easement Property to those activities that are consistent with the requirements of the MSHCP. Grantor warrants that no easement presently encumbers the Easement Property which conflicts with the purposes of this Conservation Easement. Grantor and Grantee also understand and agree that this Conservation Easement will be recorded in the Official Records of Riverside County, California. b. Grantor further certifies to Grantee that there are no other previously granted easements existing on the Easement Property that interfere or conflict with the Purpose of this Conservation Easement as evidenced by the Title Report attached at Exhibit "C." c. Grantor has delivered evidence of the Natural Condition to Grantee consisting of (1) an aerial photograph of the Easement Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the Easement Property boundaries on such aerial photograph; and (3) on -site color photographs showing all man-made improvements or structures (if any) and the major, distinct natural features of the Easement Property. 3. Responsibility for Mitigation. The Parties explicitly agree that any mitigation for activities of Grantor that is not the express obligation of Grantee pursuant to this Conservation Easement, and any other mitigation set forth in any Section 404 Permit, Streambed Alteration Agreement, Section 401 Certification, Habitat Mitigation and Monitoring Plan, and/or any other 11086.000411383270v2 -2- regulatory permits (collectively, "Permits "), remains solely and entirely Grantor's responsibility. Grantor and Grantee further agree that Grantee shall not be liable, in law or equity, if the obligations of Grantee agreed to under this Conservation Easement are determined in a any way, by any person or agency, to be insufficient for mitigation or regulatory compliance purposes under applicable statutes, laws and /or regulations. If any regulatory agency, including, but not limited to, the Department of Fish and Game, the Regional Water Quality Control Board, the United States Fish and Wildlife Service or the United States Army Corps of Engineers, later determines that the mitigation as set forth in the permits for the Project are insufficient, Grantor and its successors and assigns, shall be entirely responsible for satisfying any and all further obligations that may be imposed by said agencies. No responsibility or liability therefore shall accrue to Grantee. Further, Grantor will remain responsible for complying with the obligations or requirements of any of the permits mentioned in this paragraph until they are successfully implemented. 4. Grantee's Rights. To accomplish the purposes of this Conservation Easement, Grantor hereby grants and conveys the following rights to Grantee or its designee: Property; a. To preserve and protect the Conservation Values of the Easement b. To enter upon the Easement Property in order to monitor Grantor's compliance with and to otherwise enforce the terms of this Conservation Easement, and for other purposes by Grantee or its designees, and c. To enter upon the Easement Property to carry out activities consistent with the MSHCP, in excess of any management that is provided by the Grantor; d. To restrict access to portions of the Easement Property as reasonably necessary to protect habitat that is used for sensitive activities such as breeding or nesting, provided, however, that Grantee shall limit such restrictions to those specific areas where use of the Easement Property would adversely effect such activities and only during such time periods or seasons when such activities occur. e. To prevent any activity on, or use of, the Easement Property that is inconsistent with the purposes of this Conservation Easement or the MSHCP and to require the restoration of such areas or features of the Easement Property that may be damaged by any act, failure to act, or any use that is inconsistent with the purposes of this Conservation Easement or the MSHCP; f. All mineral, air and water rights necessary to protect and to sustain the biological resources of the Easement Property; g. h. The right to enforce by any means, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 5. Prohibited Uses. Any activity on or use of the Easement Property that is inconsistent with the purposes of this Conservation Easement is prohibited. Without limiting the 11086.000411383270v2 All present and future development rights; -3- generality of the foregoing, the following uses by Grantor, Grantor's agents, and third parties, are expressly prohibited: a. All activities and uses which may adversely affect the purposes of this Conservation Easement; b. Use of off -road vehicles and use of any other motorized vehicles except on existing roadways; c. Depositing or accumulation of soil, trash, ashes, refuse, waste, bio solids or any other materials; species; d. Planting, introduction or dispersal of non - native or exotic plant or animal e. All activities and uses that are otherwise inconsistent with the purposes of the MSHCP; and f. No use shall be made of the Easement Property, and no activity thereon shall be permitted that is or is likely to become inconsistent with the Purposes of this Conservation Easement. Grantor and Grantee acknowledge that, in view of the perpetual nature of this Conservation Easement, they are unable to foresee all potential future land uses, future technologies, and future evolution of the land and other natural resources, and other future occurrences affecting the Purposes of this Easement. Grantee, therefore, in its sole reasonable discretion, may determine whether (i) proposed uses or proposed improvements not contemplated by or addressed in this Conservation Easement or (ii) alterations in existing uses or structures, are consistent with the Purposes of this Conservation Easement. 6. Grantor's Duties. To accomplish the purposes of this Conservation Easement as described in Section 2, Grantor, its successors and assigns shall: a. Perform or arrange for the performance of all mitigation, duties and requirements under the Permits except as set forth herein. b. Undertake all actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Easement Property. In addition, Grantor shall undertake all necessary actions to perfect Grantee's rights under Section 2.a of this Conservation Easement; c. Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the Conservation Values and Natural Condition; d. Repair and restore damage to the Conservation Easement directly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties; in Section 20. 11086.000411383270v2 e. Perform Long -Term Maintenance of the Easement Property as described 4 7. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Easement Property, including the right to engage in or to permit or invite others to engage in only those uses of the Easement Property which are authorized or otherwise expressly permitted under this Conservation Easement, including without limitation, the performance of all mitigation, duties and requirements under the Permits. 8. Grantee's Remedies. If Grantee determines that Grantor or any successor is in violation of the terms of this Conservation Easement or that a violation is threatened, Grantee shall give written notice to Grantor of such violation and demand in writing the cure of such violation. If Grantor fails to cure the violation within fifteen (15) days after receipt of written notice and demand from Grantee, or if the cure reasonably requires more than fifteen (15) days to complete and Grantor fails to begin the cure within the fifteen (15) -day period or fails to continue diligently to complete the cure, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement, to recover any damages to which Grantee may be entitled for violation by Grantor of the terms of this Conservation Easement or for any injury to the Conservation Values of the Easement Property, to enjoin the violation, ex parte as necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or for other equitable relief, including, but not limited to, the restoration of the Easement Property to the condition in which it existed prior to any such violation or injury. Without limiting Grantor's liability therefore, Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Easement Property. If Grantee, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate damage to the Conservation Values of the Easement Property, Grantee may pursue its remedies under this Section 8 without prior notice to Grantor or without waiting for the period provided for cure to expire. Grantee's rights under this section apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor agrees that Grantee's remedies at law for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. Grantee's remedies described in this section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code Section 815, et seq., inclusive. The failure of Grantee to discover a violation or to take immediate legal action shall not bar Grantee from taking such action at a later time. If at any time in the future Grantor or any subsequent transferee uses or threatens to use the Easement Property for purposes inconsistent with this Conservation Easement then, notwithstanding Civil Code Section 815.7, the California Attorney General or any entity or individual with a justifiable interest in the preservation of this Conservation Easement has standing as interested parties in any proceeding affecting this Conservation Easement. a. Costs of Enforcement. Any costs incurred by Grantee where Grantee is the prevailing party, in enforcing the terms of this Conservation Easement against Grantor, including, but not limited to, costs of suit and reasonable attorneys' and experts' fees, and any 11086.000411383270v2 - 5 - costs of restoration necessitated by Grantor's negligence or breach of this Conservation Easement shall be borne by Grantor. b. Grantee's Discretion. Enforcement of the terms of this Conservation Easement by Grantee shall be at the discretion of Grantee, and any forbearance by Grantee to exercise its rights under this Conservation Easement in the event of any breach of any term of this Conservation Easement by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any of Grantee's rights under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. c. Acts Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Easement Property resulting from (i) any natural cause beyond Grantor's control, including, without limitation, fire not caused by Grantor, flood, storm, and earth movement, or (ii) any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Easement Property resulting from such causes; or (iii) acts by Grantee or its employees. d. Grantee's Right of Enforcement. All rights and remedies conveyed to Grantee under this Conservation Easement shall extend to and are enforceable by the Grantee, and its assignees. 9. Access. This Conservation Easement does not convey a general right of access to the public or any future resident or owner of the Easement Property or any adjacent landowners or a general right of access to the Easement Property. Access to the Easement Property shall be extremely limited. 10. Costs and Liabilities. Grantor, its estates, successors, and assigns, remain solely responsible for obtaining and complying with any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local, and administrative agency statutes, ordinances, rules, regulations, orders and requirements. Grantor, its invitees, agents, contractors, consultants, heirs, estates, successors, and assigns, retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Easement Property except those specifically accepted by Grantee under this Conservation Easement. Grantee shall have no duty or responsibility for the operation or maintenance of the Easement Property, the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Easement Property, except as set forth with particularity herein. 11. No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) in, on, under, about or affecting the Easement Property. Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee any of the following: 11086.000411383270v2 -6- a. The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA "); or b. The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4); or c. The obligations of a responsible person under any applicable Environmental Laws; or d. The right to investigate and remediate any Hazardous Materials associated with the Easement Property; or e. Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Easement Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by- products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Grantor represents, warrants and covenants to Grantee that Grantor's activities upon and use of the Easement Property will comply with all Environmental Laws. 12. Hold Harmless. Grantor, its successors and assigns shall hold harmless, indemnify, and defend Grantee and its directors, officers, employees, agents, contractors, and representatives (collectively "Indemnified Parties ") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims "), arising from or in any way connected with: a. Injury to or the death of any person, or physical damages to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Easement Property, regardless of cause; provided however, that the indemnification in this Section 12(a) shall be inapplicable to an Indemnified Party with respect to any Claim due solely to the negligence of that Indemnified Party or any of its employees. 11086.000411383270v2 b. The obligations specified in Sections 6, 7, 10, and 13; and c. The existence or administration of this Conservation Easement. -7- d. Any Hazardous Materials present, alleged to be present, or otherwise associated with the Easement Property at any time, except any Hazardous Materials placed, disposed or released by Grantee, its employees or agents. If any action or proceeding is brought against any of the Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee, defend such action or proceeding by counsel reasonably acceptable to Grantee or reimburse the Grantee for attorneys fees and for all charges incurred for services of the Attorney General or the U.S. Department of Justice in defending the action or proceeding. 13. Taxes No Liens. Grantor, its successors and assigns shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Easement Property by competent authority (collectively "taxes "), including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor, its successors and assigns shall keep Grantee's interest in the Easement Property free from any liens, including those arising out of any obligations incurred by Grantor or any labor or materials furnished or alleged to have been furnished to or for Grantor at or for use on the Easement Property. Acceptance of this Conservation Easement is subject to Grantee's approval, in its sole discretion, of the title report of the Easement Property provided by the Grantor. 14. Liens Subordinated. Grantor represents that as of the date of this grant, there are no liens or mortgages outstanding against the Easement Property. Under no circumstances may Grantee's rights be extinguished or otherwise affected by the recording, foreclosure, or any other action taken concerning any subsequent lien or other interest in the Easement Property. 15. Condemnation. The purposes of the Conservation Easement are presumed to be the best and most necessary public use as defined at Code of Civil Procedure Section 1240.680 notwithstanding Code of Civil Procedure Sections 1240.690 and 1240.700. Nevertheless, if the Easement Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. 16. Assignment. This Conservation Easement is transferable by Grantee, but Grantee may assign its rights and obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3. Grantee shall require the assignee to record the assignment in the county where the Easement Property is located. 17. Subsequent Transfers. a. By Grantee. Grantee may assign, transfer its rights, and delegate its obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3 (or any successor provision then applicable) and only with the prior written approval of the Grantor. Grantee shall require the assignee to record the assignment in the Official Records of Riverside County, California. 11086.000411383270v2 b. By Grantor. 8 (i) The covenants, conditions, and restrictions contained in this Conservation Easement are intended to and shall run with the land and bind all future owners of any interest in the Easement Property. Grantor, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Conservation Easement in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Easement Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Conservation Easement. Grantor, its successor and assign agrees to give written notice to Grantee of the intent to transfer any interest at least forty -five (45) days prior to the date of such transfer. The failure of Grantor, its successor or assign to perform any act provided in this Section 17 shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (ii) From and after the date of any transfer of all or any portion of the Easement Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor as to the portion transferred, as set forth in this Conservation Easement, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder, and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. 18. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and be served personally or sent by recognized overnight courier that guarantees next -day delivery or by first class mail, postage fully prepaid, addressed as follows or to such other address as either party shall designate by written notice to the other: 11086.0004\1383270v2 To Grantor: With a Copy to: To Grantee: City of Temecula 41000 Main Street Post Office Box 9033 Temecula, CA 92589 -9033 Attn: City Manager Richards, Watson & Gershon 355 South Grand Ave., 40th Floor Los Angeles, CA 90071 Attn: Peter M. Thorson Western Riverside County Regional Conservation Authority 3403 Tenth Street, Suite 320 P.O. Box 1667 Riverside, California 92502 -1667 Attn: Executive Director With a Copy to: Best Best & Krieger LLP 3750 University Avenue, Suite 400 -9- Notice shall be deemed effective upon delivery in the case of personal delivery or delivery by overnight courier or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail. 19. Amendment. This Conservation Easement may be amended by Grantor and Grantee only by mutual written agreement. Any such amendment shall be consistent with the purposes of this Conservation Easement and shall not affect its perpetual duration. Any such amendment shall be recorded in the Official Records of Riverside County, State of California. 20. Long -Term Maintenance. In addition to the other terms contained herein, Grantor shall be responsible for the ongoing maintenance /repair of the Easement Property. Such long- term maintenance shall consist of the following activities: a. Semi- annual removal of trash or man -made debris or as needed by the direction of the Grantee; b. Annual restoration of the Easement Property damaged by any activities prohibited by Section 5 herein. 21. Recordation. Grantor shall promptly record this instrument in the official records of Riverside County, California and immediately notify the Grantee through the mailing of a conformed copy of the recorded easement. 22. General Provisions. a. Controlling Law. The interpretation and performance of this Conservation Easement shall be governed by the laws of the State of California, disregarding the conflicts of law principles of such state. b. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of and to effect the purposes of this Conservation Easement and the policy and purpose set forth in California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. c. Change of Conditions. If one or more of the Purpose of this Conservation Easement may no longer be accomplished, such failure of purpose shall not be deemed sufficient cause to terminate the entire Conservation Easement as long as any other purpose of the Conservation Easement may be accomplished. In addition, the inability to carry on any or all of the permitted uses, or the unprofitability of doing so, shall not impair the validity of this Conservation Easement or be considered grounds for its termination or extinguishment. Grantor and Grantee agree that global warming and climate change- caused effects shall not be a basis for termination of this Conservation Easement. 11086.000411383270v2 P.O. Box 1028 Riverside, CA 92502 -1028 Attn: Michelle Ouellette - 10 - d. Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. e. Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 19. f. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. g. Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Easement Property. h. Termination of Rights and Obligations. A party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or Easement Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. i. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation. J. Exhibits. All Exhibits referred to in this Easement are attached and incorporated herein by reference. k. Warranty. Grantor represents and warrants that, to the best of Grantor's knowledge and except as disclosed in writing to Grantee by Grantor: (i) There are no leases, licenses, or other agreements granting any person or persons the right to use or occupy the Easement Property or any portion thereof that have not been identified and referenced in this Conservation Easement; Property; 11086.000411383270v2 (ii) There are no apparent or latent defects in or on the Easement (iii) Grantor is not aware of any failure of the Easement Property to be in full compliance with all federal, state, and local laws, regulations, and requirements applicable to the Easement Property; (iv) There are no pending or threatened litigation affecting, involving, or relating to the Easement Property or any portion thereof; (v) There are no civil or criminal proceedings or investigations that have been instigated at any time or are now pending, and no notices, claims, demands, or orders have been received, arising out of any violation or alleged violation of, or failure to comply with, any federal, state, or local law, regulation, or requirement applicable to the Easement Property or its use, nor, to the best of Grantor's knowledge, do there exist any facts or circumstances that Grantor might reasonably expect to form the basis for any such proceedings, investigations, notices, claims, demands, or orders; (vi) Grantor is unaware of any matters, conditions, or factors that will materially impair the Conservation Values or Natural Condition of the Easement Property or management of the Easement Property; and (vii) All Easement Property management obligations are described in this Conservation Easement. 1. Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the Easement Property (other than a security interest that is subordinate to this Conservation Easement), or grant or otherwise abandon or relinquish any water agreement relating to the Easement Property, without first obtaining the written consent of Grantee. Grantee may reasonably withhold such consent if it determines that the proposed interest or transfer is inconsistent with the purposes of this Conservation Easement or will impair or interfere with the Conservation Values or Natural Condition of the Easement Property. This Section (k) shall not prohibit transfer of a fee or leasehold interest in the Easement Property that is subject to this Conservation Easement and complies with Sections 16 and 17. m. Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. /11 /1l /1l 111 Ill ll1 11086.000411383270v2 - 12 - IN WITNESS WHEREOF Grantor has executed this Conservation Easement the day and year first above written and has agreed to be bound by the terms and provisions hereof. Further, by executing the Certificate of Acceptance attached hereto, Grantee has agreed to be bound by the terms and provisions of the Conservation Easement. 11086.000411383270v2 GRANTOR CITY OF TEMECULA, a municipal corporation By: Ron Roberts, Mayor ATTEST: By: Susan W. Jones, MMC City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney [ATTACH NOTARY ACKNOWLEDGEMENT] - 13 - Approved as to Form By: Best, Best & Krieger LLP General Counsel 11086.000411383270v2 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the City of Temecula, a municipal corporation on the Conservation Easement dated September 27, 2011, to the Western Riverside County Regional Conservation Authority ( "Grantee "), is hereby accepted by the undersigned officer on behalf of the Grantee, pursuant to authority conferred by Ordinance No. 08 -01, as adopted by the Board of Directors on July 7, 2008. GRANTEE: WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a joint powers authority and a public agency Date: By: - 14- Charles V. Landry, Executive Director 26493.00280\6787406.2 Exhibit A Legal Description of Easement Property Page 15of17 26493.00280\6787406.2 Exhibit B Map of Easement Property [See Attached] Page 16 of 17 26493.00280\6787406.2 Exhibit C Preliminary Title Report [See Attached] Page 17 of 17 EXHIBIT "A" LEGAL DESCRIPTION HABITAT CREATION EASEMENT THAT CERTAIN PARCEL OF LAND SITUATED IN THE CITY OF TEMECULA, RIVERSIDE COUNTY, CALIFORNIA, BEING THAT PORTION OF THE RANCHO TEMECULA GRANTED BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO LUIS VIGNES BY PATENT DATED JANUARY 18, 1860 AND RECORDED IN BOOK 1, PAGE 37 OF PATENTS IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE POINT OF INTERSECTION OF THE CENTERLINE OF RANCHO VISTA ROAD WITH THE CENTERLINE OF SOUTHERN CROSS ROAD AS SHOWN ON A MAP OF TRACT NO. 20079 -1 FILED IN BOOK 150, PAGES 28 THROUGH 34 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA; THENCE NORTH 71 °36'23" WEST ALONG SAID CENTERLINE OF RANCHO VISTA ROAD A DISTANCE OF 246.45 FEET; THENCE SOUTH 18 °23'37" WEST AT RIGHT ANGLES TO SAID CENTERLINE, A DISTANCE OF 85.40 FEET TO THE TRUE POINT OF BEGINNING. THENCE SOUTH 73 °04'15" THENCE SOUTH 20 °31'08" THENCE SOUTH 69 °06'00" THENCE NORTH 77 °28'59" THENCE NORTH 81 °50'15" THENCE SOUTH 62 °47'06" THENCE SOUTH 17 °16'43" THENCE SOUTH 84 °04'14" THENCE NORTH 67 °51'31" EAST, A DISTANCE OF 43.25 FEET; EAST, A DISTANCE OF 37.30 FEET; EAST, A DISTANCE OF 181.41 FEET; EAST, A DISTANCE OF 18.51 FEET; EAST, A DISTANCE OF 33.71 FEET; EAST, A DISTANCE OF 50.47 FEET; WEST, A DISTANCE OF 5.48 FEET; WEST, A DISTANCE OF 115.77 FEET; WEST, A DISTANCE OF 194.86 FEET; THENCE NORTH 18 °06'45" WEST, A DISTANCE OF 73.94 FEET TO THE TRUE POINT OF BEGINNING. Page 1 of 3 CONTAINING 11,313.0 SQUARE FEET OR 0.26 ACRES MORE OR LESS. THIS DESCRIPTION ALSO BEING SHOWN ON THE ATTACHED EXHIBIT "B" AND THEREBY BEING MADE A PART HEREOF. PRPARED UNDER MY SUPERVISION: BRIAN D. FOX PROFESSIONAL LAND SURVEYOR NO. 7171 REGISTRAT$JN EXPIRES: 12/31/11 DATED: Ci //3// Page 2 of 3 7/ EXHIBIT "B" HABITAT CREATION EASEMENT T.P.O.B. SCALE IN FEET 1" = 60' PREPARED UNDER MY SUPERVISION: BRIAN D. FIX, P.L.S. 7 EXPIRES: 12-31-11 S20'31'08 "E 37.30' PREPARED BY: R a d 1 D // 61,46/7;17. J 06 p0 // // N718.5'1'9 "E C��T� 78/ 4� , // / ` N8330'1 5 "E N sT 3' 26 qC �N � l w X 948 eM FNT 6 / 115.77 REGISTRATION EXPIRES 12 -31 -11 Hp X111 S62'47'06 "E 50.47' S1716'43"W 5.48' / -----� / / EXIST. 10' WIDE PUBLIC DRAINAGE / / —_AND FLOWAGE EASEMENT PER / / INSTR. NO. 161501 O.R. RECORDED / / JULY 10, 1986 // PREPARED FOR CITY OF TEMECULA COMMUNITY SERVICE DISTRICT 41000 MAIN STREET TEMECULA, CA 92589 -9033 CML / STRUCTURAL ENGINEERS MUNICIPAL CONSULTANTS / PLANNERS SURVEYORS / GPS 151 South Girard Street Hemet, Ca 92544 TEL. (951) 652 -4454 FAX (951) 766 -8942 PAGE 3 OF 3 Parcel name: HABITAT ESMT North: 9917.5405 Line Course: S 73 -04 -15 E North: 9904.9465 Line Course: S 20 -31 -08 E North: 9870.0130 Line Course: S 69 -06 -00 E North: 9805.2971 Line Course: N 77 -28 -59 E North: 9809.3088 Line Course: N 81 -50 -15 E North: 9814.0949 Line Course: S 62 -47 -06 E North: 9791.0135 Line Course: S 17 -16 -43 W North: 9785.7808 Line Course: S 84 -04 -14 W North: 9773.8213 Line Course: N 67 -51 -31 W North: 9847.2628 Line Course: N 18 -06 -45 W North: 9917.5389 HABITAT CLSR CALCS.TXT East : 9981.6247 Length: 43.25/ East : 10023.0005 Length: 37.30 1 East : 10036.0747 Length: 181.41 East : 10205.5488 Length: 18.51 East : 10223.6188 Length: 33.71 East : 10256.9873 Length: 50.47 East : 10301.8701 Length: 5.48 East : 10300.2424 Length: 115.77 East : 10185.0918 Length: 194.86 East : 10004.6015 Length: 73.94 East : 9981.6147 Perimeter: 754.71 Area: 11,313 sq.ft. 0.26 acres Mapcheck Closure - (Uses listed courses and chords) Error Closure: 0.0101 Course: S 80 -57 -52 W Error North: - 0.00158 East : - 0.00997 Precision 1: 74,722.77 Page 1 CHICAGO TITLE COMPANY Jon Salazar City of Temecula - Public Works Date: April 29, 2011 Order No.: 7101103004 -D D Borrower: Property: 30875 Rancho Vista Temecula, CA 92592 In connection with the above referenced transaction, please find the following enclosed: • Preliminary Title Report Sincerely, Dan Dulin Title Officer dulind @ctt.com We appreciate the opportunity of being of service to you. If we can be of further assistance, please feel free to call upon us. Enclosure(s) cc: Jon Salazar / City of Temecula - Public Works 560 E. Hospitality Lane San Bemardino, CA 92408 Phone: (800)722 -08241 Fax: (909)384 -7901 Generic Enclosure Letter- Title Printed: 04.29.11 @ 07:49AM SSCORPD0278.doc /Updated: 08.26.10 Page 1 of 1 - -- 7101103004 Preliminary Report Issued By: Dated: April 14, 2011 Countersigned By: CHICAGO TITLE COMPANY In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate of interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(ies) of title insurance to be issued hereunder will be policy(ies) of Chicago Title Insurance Company, a Nebraska corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. Chicago Title Insurance Company By: u l( Authorized Officer or Agent CLTA Preliminary Report Form - Modified SSCORPD0817.doc /Updated: 03.12.2010 •'..-" Attest: ►e1. c SEAT Adopted: 11.17 2006 PRELIMINARY REPORT FORM Preliminary Report Number: 7101103004 President Secretary Printed: 04.29.11 @ 07:50AM CA - -- 7101103004 ISSUING OFFICE: FOR SETTLEMENT INQUIRIES, CONTACT: Title Officer: Dan Dulin Chicago Title Company 560 E. Hospitality Lane San Bernardino, CA 92408 Phone: (909)384 -7806 Fax: (909)384 -7902 Main Phone: (800)722 -0824 Email: dulind @ctt.com CHICAGO TITLE COMPANY ORDER NO. 7101103004 PRELIMINARY REPORT NO.: 7101103004 PROPERTY ADDRESS(ES): 30875 Rancho Vista, Temecula, CA 92592 EFFECTIVE DATE: April 14, 2011 at 07:30AM THE FORM OF POLICY OR POLICIES OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS: CLTA Standard Coverage Policy 1990 ALTA Loan Policy 2006 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: The City of Temecula Community Service District, as to Parcels 1 and 2; and City of Temecula, as to Parcels 3 and 4 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF CLTA Preliminary Report Form - Modified Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0836.doc / Updated: 04.20.2011 CA----7101103004 For AP N/Parcel ID(s): 945 - 050 - 006 -7, 945 -050 -014 -4 and 945 - 050 -008 -9 Parcel 1: Those certain parcels of land situated In the unincorporated territory of the County of Riverside, State of California, being those portions of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded In Book 1, page 37 of Patents in the Office of the County Recorder of San Diego County described as follows: BEGINNING at the point of Intersection of the centerline of Rancho Vista Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46 of Maps In the Office of the County Recorder of said Riverside County with the easterly line of the Southern California Gas Company easement as described In a document recorded September 19, 1958 In Book 2334, Page 559 of Official Records In said Office of the Riverside County Recorder, said point being on a curve In said centerline concave northerly and having a radius of 1600,00 feet a radial line of said curve from said point bears North 8 °13'31" East; thence leaving said centerline, non - tangent from said curve, along said easterly line South 3° 07'39" West 742.13 feet; thence North 52 °25'00" West 805.00 feet to the beginning of a tangent curve concave southwesterly and having a radius of 1100.00 feet; thence along said curve northwesterly 131.19 feet thresh a central angle of 6° 50' 00" to a point of compound curvature with a curve concave southerly and having a radius of 250,00 feet, a radial line of said curves from said point bears South 30° 45' 00" West; thence along said curve westerly 269.07 feet through a central angle of 61° 40'00" to a point of reverse curvature with a curve concave northwesterly and having a radius of 375.00 feet, a radial line of said curve from said point bears North 30° 55' OCT West; thence along said curve southwesterly 185.44 feet through a central angle of 28° 20'00 "; thence tangent from said curve South 87° 25'00" West 136,00 feet; thence South 52° 40'00" West 114.10 feet; thence North 63° 35'00" West 187.25 to the southeasterly line of the Metropolitan Water District of Southern California property as described in a deed recorded December 13, 1967 as Instrument No. 109720 of Official Records in said Office of the Riverside County Recorder; thence along said southeasterly line North 28° 28'42" East 701.05 feet to a point on a non - tangent curve in said centerline of Rancho Vista Road concave southerly and having a radius of 4000.00 feet a radial line of said curve from said point bears South 15° 48' 32" west; thence along said centerline through the following courses: along said curve easterly 180.16 feet through a central angle of 2° 35' 05"; thence tangent from said curve South 71 ° 36' 23" East 875.24 feet to the beginning of a tangent curve concave northerly and having a radius 011600.00 feet; thence along said curve easterly 283.95 feet through a central angle 0110°10' 06" to the point of beginning. Parcel 2: CLTA Preliminary Report Form - Modified EXHIBIT "A" Legal Description That certain parcel of land situated in the unincorporated territory of the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0836.doc 1 Updated: 04.20.2011 CA----7101103004 Parcel 3: EXHIBIT "A" Legal Description Patents in the Office of the County Recorder of San Diego County, California, described as follows: Beginning at the centerline intersection of Margarita Road with Rancho Vista Road as shown on a map of Tract No, 20079 -3 filed 1 n Book 150, Pages 41 through 46 of Maps in the Office of the County Recorder of said Riverside County; thence along said centerline of Rancho Vista Road through the following courses: South 49° 14'45" West 415.25 feet to the beginning of a tangent curve concave northerly and having a radius of 1600.00 feet; thence along said curve westerly 1367.76 feet through a central angle of 48° 58'46" to the easterly line of the Southern California Gas Company easement as described In a document recorded September 19, 1958 in Book 2334, Page 559 of Official Records In said Office of the Riverside County Recorder; thence leaving said centerline, non - tangent from said curve, along said easterly line South 3° 07'39" West 742.13 feet; thence South 84'05'00" East 335.59 feet to the beginning of a tangent curve concave northerly and having a radius of 1500.00 feet; thence along said curve easterly 1051.86 feet through a central angle of 40°10'41"; thence non- tangent from said curve South 52° 55' OCT East 248.00 feet; thence South 1° 30'00" East 405.00 feet to a point on the northerly right -of -way line of Pauba Road as described in a document recorded March 23, 1972 as Instrument No. 38505 of Official Records in said Office of the Riverside County Recorder; thence South 3 °18'00" East 44.00 feet to the centerline of said Pauba Road; thence along said centerline through the following courses: North 86 °42'11" East 652.75 feet to the beginning of a tangent curve concave northerly and having a radius of 1200.00 feet; thence along said curve easterly 657.11 feet through a central angle of 31° 22'29 "; thence tangent from said curve North 55 °19' 31" East 173.80 feet to a point on a non - tangent curve In the centerline of Margarita Road as described In an easement deed recorded April 28, 1971as Instrument No. 44142 of Official Records In said Office of the Riverside County Recorder, said curve being concave northeasterly and having a radius of 2000.00 feet, a radial line of said curve from said point bears North 39 °20'19" East; thence leaving said centerline of Pauba Road, along said curve and centerline of Margarita Road northwesterly 285.85 feet through a central angle of 8° 11' 20" thence continuing along said centerline, tangent from said curve North 42 ° 28'21" West 1226.50 feet to the most easterly corner of a parcel of land described in a deed to the Rancho California Water District recorded February 26, 1973 as Instrument No. 24026 of Official Records in said Office of the Riverside County Recorder; thence along the boundary line of said parcel of land through the following courses: South 47 °31' 39" West 203.05 feet; thence North 5 ° 57'40" West 248.84 feet; thence North 47 °31'39" East 55.00 feet to a point In said centerline of Margarita Road; thence leaving said boundary line, along said centerline North 42 ° 28' 21" West 228.05 feet to the point of beginning. That certain parcel of land situated in the incorporated territory of the City of Temecula, in the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of patents in the office of the County Recorder of San Diego County, California, described as follows: CLTA Preliminary Report Form - Modified Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0836.doc 1 Updated: 04.20.2011 CA----7101103004 Parcel 4: CLTA Preliminary Report Form - Modified EXHIBIT "A" Legal Description Beginning at the centerline intersection of Margarita Road with Rancho Vista Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46, inclusive, of Maps in the office of the County Recorder of said County of Riverside; Thence along the centerline of Margarita Road as described in a deed recorded August 5, 1988 as Instrument no. 221290 of official records in said office of the County Recorder of the County of Riverside, South 42 °28'21" East, a distance of 345.05 feet to the true point of beginning. Thence leaving said centerline at right angles South 47 °31'39" West, a distance of 141.61 feet to the intersection thereof with the easterly line of that certain strip of land, known as the first San Diego Aqueduct, as shown on Record of Survey Map filed in Book 55, Pages 61 through 64 inclusive of Record of Surveys, in the office of the County Recorder of said County of Riverside; Thence along said easterly line of the first San Diego Aqueduct, North 05 °57'40" West, a distance of 145.57 feet to the intersection of the westerly line of said Margarita Road; Thence leaving said easterly line, North 47 °31'39" East, a distance of 55.00 feet, to a point on the centerline of Margarita Road; Thence along the centerline of Margarita Road, South 42 °28'21" East, a distance of 117.00 feet to the true point of beginning. Excepting therefrom the westerly 55 feet of Margarita Road as described in Instrument recorded April 28, 1971 as Instrument No. 44142 of Official Records. The certain parcel of and situated in the incorporated territory of the City of Temecula, in the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of patents in the office of the County Recorder of San Diego County, California, described as follows: Beginning at the centerline intersection of Margarita Road with Rancho Vista Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46, inclusive, of Maps in the office of the County Recorder of said County of Riverside; Thence along the centerline of Margarita Road as described in a deed recorded August 5, 1988 as Instrument no. 221290 of official records in said office of the County Recorder of the County of Riverside, South 42 °28'21" East, a distance of 345.05 feet; Thence leaving said centerline at right angles South 47 °31'39" West, a distance of 141.61 feet to the intersection thereof with the easterly line of that certain strip of land, known as the first San Diego Aqueduct, as shown on Record of Survey Map filed in Book 55, Pages 61 through 64 inclusive of Record of Surveys, in the office of the County Recorder of said County of Riverside; Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0836.doc 1 Updated: 04.20.2011 CA----7101103004 EXHIBIT "A" Legal Description Thence along said easterly line of the first San Diego Aqueduct, South 05 °57'40" East, a distance of 47.71 feet to the TRUE POINT OF BEGINNING: Thence continuing along easterly line of the first San Diego Aqueduct, South 05 °5740" East, a distance of 55.56 feet; Thence leaving said easterly line, North 47 °31 '39 ", East, a distance of 33.06 feet; Thence North 42 °28'21" West, a distance of 44.66 feet to the true point of beginning. CLTA Preliminary Report Form - Modified Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0836.doc 1 Updated: 04.20.2011 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011 -2012. 2. There were no taxes levied for the fiscal year 2010 -2011 as the property was vested in a public entity. Affects: Assessor's Parcel No.: 945 - 050 -006 -7 (Parcel 1) 3. There were no taxes levied for the fiscal year 2010 -2011 as the property was vested in a public entity. Assessor's Parcel No.: 945 - 050 -14 -4 and 945 -008 -0 (Parcels 2, 3 and 4) 4. Any taxes that my be owed or due and payable to the California State Board of Equalization by General Telephone Company of California, a corporation, under S.B. No. 201- 33- 673BParcel 6. Affects: Assessor Parcel No.: 945 - 050 -008 -9 (a portion of Parcel 2 being assessed to General Telephone Company of California) 5. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation Code of the State of California. 6. Water rights, claims or title to water, whether or not disclosed by the public records. 7. Rights of the public to any portion of the Land lying within the area commonly known as Rancho Vista Road, Pauba Road and Margarita Road. 8. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document: In favor of: Purpose: Recording Date: Recording No.: Affects: Granted to: Purpose: Recording Date: Recording No.: Affects: Entitled: Court: Case No.: Purpose: Recording Date: Recording No.: Affects: CLTA Preliminary Report Form - Modified Cassie Swangreen roads June 30, 1922 in book 560 page 137, Official Records cannot be located from the record. 9. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Southern Counties Gas Company pipelines July 7, 1 949 in book 1090 page 428, Official Records a portion of said land as described therein 10. Easement(s) for the purpose(s) shown below and rights incidental thereto Decree of Condemnation United States District Court Action 5019 -2 San Diego Aqueduct October 27, 1949 in book 1118 page 376, Official Records a portion of said land as described therein as condemned by an instrument, Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.10.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 11. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: United States of America Purpose: pipelines or conduits of the San Diego Aqueduct, for the transportation of water, and any structures appurtenant thereto Recording Date: December 1, 1953 Recording No.: in book 1531 page 11, Official Records Affects: a portion of said land as described therein 12. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 13. Easement(s) for the purpose(s) shown below and rights incidental thereto as condemned by an instrument, Entitled: Court: Case No.: In favor of: Purpose: Recording Date: Recording No.: Affects: Reference is hereby made to said document for full particulars. 14. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 15. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 16. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: CLTA Preliminary Report Form - Modified Southern Counties Gas Company of California pipeline September 19, 1958 in book 2334 page 559, Official Records a portion of Parcel 1 as described therein Final Order of Condemnation Superior Court of the State of California in and for the County of Riverside 22243 Rancho California Water District roadway and pipelines April 21, 1967 34389, Official Records as described therein County of Riverside street purposes April 18, 1971 44142, Official Records a portion of Parcel 2 lying within Margarita Road and Pauba Road as described therein General Telephone Company of California public utilities May 11, 1971 49485, Official Records a portion of Parcels 1 and 2 lying within Rancho Vista Road as described therein Southern California Edison Company public utilities January 19, 1972 7606, Official Records a portion of said and as described therein Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 17. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 18. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 19. Easement(s) for the purpose(s) shown below and rights incidental thereto as reserved in a document; Reserved by: Purpose: Recording Date: Recording No.: Affects: 20. Agency Agreement wherein the Rancho California Water District is designated as exclusive agent for the extraction, diversion, storage and distribution of all local water upon the herein described Land Recording Date: March 23, 1972 Recording No.: 38505, Official Records Reference is hereby made to said document for full particulars. 21. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: and Re- Recording Date:June 28, 1985 and Re- Recording No.: 142117, Official Records Reason: to correct the legal description 22. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): Recording Date: Recording No.: Affects: and Re- Recording Date:July 10, 1986 and Re- Recording No.: as instrument no. 161502, Official Records Reason: to correct the wording CLTA Preliminary Report Form - Modified County of Riverside street purposes and slopes March 23, 1972 38505, Official Records that portion of said and shown as Pauba Road Southern California Edison Company public utilities April 11, 1972 46873, Official Records portions of said land as described therein Kaiser Aetna, a California general partnership equestrian, sanitary sewer, waterline, cable television, drainage and public utility purposes February 26, 1973 as instrument no. 24026, Official Records the northeasterly 20 feet of Parcel 3 County of Riverside public road and drainage purposes, including public utility and public services purposes May 16, 1985 105029, Official Records portions of Parcel 1 and 2 lying within Rancho Vista Road drainage and flowage purposes May 23, 1985 110899, Official Records a portion of Parcel 1 as described therein Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 23. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): Recording Date: Recording No.: Affects: and Re- Recording and Re- Recording Reason: 24. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): Recording Date: Recording No.: Affects: and Re- Recording Date:July 10, 1986 and Re- Recording No.: as instrument no. 161503, Official Records Reason: to correct the wording 25. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): Recording Date: Recording No.: Affects: and Re- Recording Date:July 10, 1986 and Re- Recording No.: as instrument no. 161501, Official Records Reason: to correct the wording 26. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 27. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: CLTA Preliminary Report Form - Modified drainage and flowage purposes May 23, 1985 110900, Official Records a portion of Parcel 2 as described therein Date:July 10, 1986 No.: as instrument no. 161504, Official Records to correct the wording drainage and flowage purposes May 23, 1985 110901, Official Records a portion of Parcel 2 as described therein drainage and flowage purposes May 23, 1985 110903, Official Records a portion of Parcel 1 as described therein Southern California Edison Company public utilities July 2, 1987 190501, Official Records a portion of Parcel 2 as described therein General Telephone Company of California public utilities January 15, 1988 12254, Official Records a portion of Parcel 2 as described therein Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 28. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date:August 5, 1988 Recording No.: 221290, Official Records and Recording Date: June 7, 1990 and Recording No.: 210181, Official Records Said instrument provides or establishes: said land shall be used solely for the purposes of a public park to be named the 'Rancho California Sports Park" for a period of fifty years from the date of recordation of this deed. If the subject real property is not used as a public park named "Rancho California Sports Park" for said time period, then grantor, its successors and assigns, without paying any compensation, shall have right to re -enter and repossess the estate herein granted. Affects: Parcel 2 29. Easement(s) for the purpose(s) shown below and rights incidental thereto as reserved in a document; Reserved by: Kaiser Development Company, et al Purpose: sewer pipelines and other utilities across said land, together with the right of grantor to dedicate the easements necessary for the construction and maintenance of said utilities Recording Date: September 9, 1988 Recording No.: 260424, Official Records Affects: Parcel 1 Said easement has been granted and/or reserved in various instruments of record. 30. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date:September 9, 1988 Recording No.: 260424, Official Records Said instrument provides or establishes: said land shall be used solely for the purposes of a public park to be named the 'Rancho California Sports Park" for a period of fifty years from the date of recordation of this deed. If the subject real property is not used as a public park named "Rancho California Sports Park" for said time period, then grantor, its successors and assigns, without paying any compensation, shall have right to re -enter and repossess the estate herein granted. Affects: Parcel 1 31. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: CLTA Preliminary Report Form - Modified Rancho California Water District pipeline or pipelines together with appurtenances, connections and structures January 8, 1993 as instrument no. 7770 Official Records a portion of Parcel 1 as described therein Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 32. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: and Recording Date: August 6, 1993 and Recording No.: 306461, Official Records 33. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: Granted to: Purpose: Recording Date: Recording No.: Affects: Granted to: Purpose: Recording Date: Recording No.: Affects: CLTA Preliminary Report Form - Modified Southern California Edison Company public utilities August 6, 1993 306460, Official Records a portion of Parcel 2 as described therein Southern California Edison Company public utilities October 5, 1993 390129, Official Records a portion of Parcel 1 as described therein 34. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Rancho California Water District Purpose: pipeline or pipelines for drainage purposes only, together with incidental appurtenances, connections and structures Recording Date: January 4, 1995 Recording No.: 001889, Official Records Affects: a portion of Parcel 3 as described therein 35. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Rancho California Water District access January 4, 1995 001890, Official Records portions of Parcel 2 as described therein 36. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: The Metropolitan Water District of Southern California ingress, egress and road purposes December 4, 1996 458861, Official Records portions of Parcel 2 as described therein 37. Resolution No. 2000 -83 Of The City Council Of The City Of Temecula Granting An Easement And Right Op Way For Pipeline And Appurtenant Structures, Related To Temecula Sports Park Reclaimed Water Conversion Project Rancho California Water District Project No. D0774 recorded January 18, 2001 as instrument no. 2001 - 20646, Official Records. Reference is hereby made to said document for full particulars. Affects: a portion of Parcel 2 as described therein Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 38. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Rancho California Water District Purpose: pipeline or pipelines for drainage purposes only, together with incidental appurtenances, connections and structures Recording Date: February 8, 2001 Recording No.: 2001 - 54777, Official Records Affects: a portion of parcel 2 as described therein 39. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein as disclosed by the document Entitled: Memorandum of Communications Site Lease Agreement Lessor: City of Temecula Lessee: Cingular Wireless, LLC, a Delaware Limited Liability Company, on behalf of Pacific Bell Wireless, LLC, a Nevada Limited Liability Company Recording Date: June 4, 2002 Recording No.: 2002 - 300498, Official Records The present ownership of the leasehold created by said lease and other matters affecting the interest of the lessee are not shown herein. Said instrument provides or establishes: an access easement and a utility easement as set forth and described therein Affects: a portion of Parcel 2 as described therein 40. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein as disclosed by the document Entitled: Memorandum of Site Lease Acknowledgement Lessor: Not shown Lessee: Sprint PCS Assets, L.L.C. a Delaware Limited Liability Company Recording Date: August 16, 2002 Recording No.: 2002 - 452712, Official Records The present ownership of the leasehold created by said lease and other matters affecting the interest of the lessee are not shown herein. Affects: Parcels 3 and 4 41. Resolution No. CSD 03 -18 Of The Board Of Directors Of The City Of Temecula Community Services District Authorizing The Grant Of Easement For Electrical Supply Systems To Southern California Edison Company To A Well Site (Within The Rancho California Sports Park Near The Entrance At Margarita Road), recorded November 18, 2003 as instrument no. 2003 - 910534, Official Records. Reference is hereby made to said document for full particulars. Affects: a portion of Parcel 2 as described therein 42. A Resolution No. CSD 03 -19 Of The Board Of Directors Of The City Of Temecula Community Services District Authorizing The Grant Of Easement For Electrical Supply Systems To Southern California Edison Company To Supply Power To A Personal Communications Services Facility (within The Rancho California Sports Park Near The Entrance At Margarita Road), recorded November 18, 2003 as instrument no. 910535, Official Records. CLTA Preliminary Report Form - Modified Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 Reference is hereby made to said document for full particulars. Affects: 43. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 44. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Purpose: Recording Date: Recording No.: Affects: 1. Note: The current owner does NOT qualify for the $20.00 discount pursuant to the coordinated stipulated judgments entered in actions filed by both the Attorney General and private class action plaintiffs, for the herein described Land. 2. If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14 -point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. CLTA Preliminary Report Form - Modified a portion of parcel 2 as described therein Southern California Edison Company public utilities November 24, 2003 2003 - 924358, Official Records a portion of Parcel 2 as described therein Southern California Edison Company public utilities November 24, 2003 2003 - 924359, Official Records a portion of Parcel 2 as described therein NOTES Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 3. If this company is requested to disburse funds in connection with this transaction, Chapter 598, Statutes of 1989 mandates hold periods for checks deposited to escrow or sub - escrow accounts. The mandatory hold period for cashier's checks, certified checks and teller's checks is one business day after the day deposited. Other checks require a hold period of from two to five business days after the day deposited. In the event that the parties to the contemplated transaction wish to record prior to the time that the funds are available for disbursement (and subject to Company approval), the Company will require the prior written consent of the parties. Upon request, a form acceptable to the company authorizing said early recording may be provided to Escrow for execution. Wire Transfers There is no mandated hold period for funds deposited by confirmed wire transfer. The Company may disburse such funds the same day. Chicago Title will disburse by Wire (Wire -out) only collected funds or funds received by confirmed Wire (Wire -in). Wiring Instructions for Chicago Title Company, San Bernardino, CA, are as follows: Receiving Bank: Union Bank 1980 Saturn Street ABA Routing No.: Credit Account Name: Credit Account No.: Escrow No.: CLTA Preliminary Report Form - Modified Monterey Park, CA 91755 122000496 Chicago Title Company 9101051085 7101103004 These wiring instructions are for this specific transaction involving the Title Department of the San Bernardino office of Chicago Title Company. These instructions therefore should not be used in other transactions without first verifying the information with our accounting department. It is imperative that the wire text be exactly as indicated. Any extraneous information may cause unnecessary delays in confirming the receipt of funds. 4. Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancsery or other approved third -party service. If the above requirements cannot be met, please call the company at the number provided in this report. 5. The Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance by the corporation named below. Name of Corporation: City of Temecula Community Services District a. A Copy of the corporation By -laws and Articles of Incorporation. b. An original or certified copy of a resolution authorizing the transaction contemplated herein. c. If the Articles and /or By -laws require approval by a 'parent' organization, a copy of the Articles and By -laws of the parent. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 CHICAGO TITLE COMPANY PRELIMINARY REPORT NO.: 7101103004 6. The Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance by the corporation named below. Name of Corporation: City of Temecula a. A Copy of the corporation By -laws and Articles of Incorporation. b. An original or certified copy of a resolution authorizing the transaction contemplated herein. c. If the Articles and /or By -laws require approval by a 'parent' organization, a copy of the Articles and By -laws of the parent. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. mk CLTA Preliminary Report Form - Modified END OF NOTES Adopted: 11.17.2006 Printed: 04.29.11 @ 07:50AM SSCORPD0855.doc / Updated: 03.12.2010 CA----7101103004 ATTACHMENT ONE In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land land division environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: a notice of exercising the right appears in the public records on the Policy Date the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking 3. Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: to any land outside the area specifically described and referred to in Item 3 of Schedule A or AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6 -1 -87) EXCLUSIONS in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. Attachment One (02/03/10) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. Attachment One (02/03/10) SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART I 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (02/03/10) (e) FORMERLY AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10- 17 -92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (1) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (02/03/10) 2006 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (06- 17 -06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in- lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (02/03/10) FORMERLY AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10- 17 -92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (1) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy, or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (1) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (02/03/10) 2006 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (06- 17 -06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (02/03/10) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 22 -03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10- 22 -03) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes ordinances, laws and regulations concerning: a. building b. zoning c. Land use d. improvements on Land e. Land division f. environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy Date; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23, 24 or 25. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 18. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 14, 15, 16 and 18, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 14: 1.00% of Policy Amount $10,000.00 or $2.500.00 (whichever is less) Covered Risk 15: 1.00% of Policy Amount $25,000.00 or $5,000.00 (whichever is less) Covered Risk 16: 1.00% of Policy Amount $25,000.00 or $5,000.00 (whichever is less) Covered Risk 18: 1.00 %of Policy Amount $5,000.00 or $2,500.00 (whichever is less) Attachment One (02/03/10) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02- 03 -10) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02- 03 -10) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1.00% of Policy Amount $10,000.00 Shown in Schedule A or $2.500.00 (whichever is less) Covered Risk 18: 1.00% of Policy Amount $25,000.00 Shown in Schedule A or $5.000.00 (whichever is less) Covered Risk 19: 1.00% of Policy Amount $25,000.00 Shown in Schedule A or $5.000.00 (whichever is less) Covered Risk 21: 1.00% of Policy Amount $5.000.00 Shown in Schedule A or $2,500.00 (whichever is less) Attachment One (02/03/10) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/13/01) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions or location of any improvements now or hereafter erected on the Land; (iii) a separation in ownership or a change in the dimensions or areas of the Land or any parcel of which the Land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of this policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of this policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without Knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (this paragraph does not limit the coverage provided under Covered Risks 8, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of the Insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the Land is situated. 5. Invalidity or unenforceability of the lien of the Insured Mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, except as provided in Covered Risk 27, or any consumer credit protection or truth in lending law. 6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 7, 8(e) and 26. 7. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This exclusion does not limit the coverage provided in Covered Risk 8. 8. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encumbrances and other matters affecting the title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided in Covered Risk 8. 9. The failure of the residential structure, or any portion thereof to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at Date of Policy. Attachment One (02/03/10) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (02/03/10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in- lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. Attachment One (02/03/10) NOTICE You may be entitled to receive a Twenty And No /100 Dollars ($20.00) discount on escrow services if you purchased, sold or refinanced residential property in California between May 19, 1995 and November 1, 2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is subject of your current transaction, you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. AG Settlement Discount Notice Printed: 04.29.11 @ 07:50AM SCA0001882.doc / Updated: 12.21.09 Page 1 of 1 - - -- 7101103004 FIDELITY NATIONAL FINANCIALTM Order No.: 7101103004--DG PRIVACY STATEMENT Effective Date: May 1, 2008 Fidelity National Financial, Inc. and its subsidiaries ( "FNF ") respect the privacy and security of your non - public personal information ( "Personal Information ") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. PERSONAL INFORMATION COLLECTED We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. DISCLOSURE OF PERSONAL INFORMATION We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and /or providing you with services you have requested; • To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and /or • To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. Privacy Statement Printed: 04.29.11 @ 07:50AM SSCORPD0911.doc / Updated: 11.03.09 Page 1 of 2 - - -- 7101103004 PRIVACY STATEMENT Effective Date: May 1, 2008 (continued) We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process. Disclosure to Affiliated Companies: We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties: We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. CONFIDENTIALITY AND SECURITY OF PERSONAL INFORMATION We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. ACCESS TO PERSONAL INFORMATION / REQUESTS FOR CORRECTION, AMENDMENT, OR DELETION OF PERSONAL INFORMATION As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However FNF's current policy is to maintain customers' Personal Information for no less than your state's required record retention requirements for the purpose of handling future coverage claims. For your protection all requests made under this section must be in writing and must include your notarized signature to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to: Chief Privacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 CHANGES TO THIS PRIVACY STATEMENT This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Privacy Statement Printed: 04.29.11 @ 07:50AM SSCORPD0911.doc 1 Updated: 11.03.09 Page 2 of 2 - - -- 7101103004 FNF Underwritten Title Companies CTC — Chicago Title Company CLTC — Commonwealth Land Title Company FNTC — Fidelity National Title Company FNTCCA — Fidelity National Title Company of California TICOR — Ticor Title Company of California LTC — Lawyer's Title Company Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ( "FNF ") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumers right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one -to -four family residential dwelling. Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount. Underwritten by FNF Underwriters CTIC — Chicago Title Insurance Company CLTIC — Commonwealth Land Title Insurance Company FNTIC — Fidelity National Title Insurance Company FNTIC — Fidelity National Title Insurance Company CTIC — Chicago Title Insurance Company CLTIC — Commonwealth Land Title Insurance Company Available Discounts CREDIT FOR PRELIMINARY TITLE REPORTS AND /OR COMMITMENTS ON SUBSEQUENT POLICIES (CTIC, FNTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 to 36 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge. FEE REDUCTION SETTLEMENT PROGRAM (CTC, CTIC, CLTC, CLTIC, FNTC, FNTCCA, FNTIC, LTC, TICOR) Eligible customers shall receive a $20.00 reduction in their title and /or escrow fees charged by the Company for each eligible transaction in accordance with the terms of the Final Judgments entered in The People of the State of California et al. v. Fidelity National Title Insurance Company et al., Sacramento Superior Court Case No. 99AS02793, and related cases. DISASTER LOANS (CTIC, CLTIC, FNTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any and located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON - PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owners policy shall be 50% to 70% of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be 32% to 50% of the appropriate title insurance rate, depending on the type of coverage selected. Notice of Available Discounts Printed: 04.29.11 @ 07:50AM SCA0001736.doc / Updated: 07.20.10 Page 1 of 1 - - -- 7101103004 Order No.: 7101103004 EXHIBIT A For APN /Parcel ID(s): 945 - 050 - 006 -7, 945 -050 -014 -4 and 945 - 050 -008 -9 Parcel 1: Those certain parcels of land situated In the unincorporated territory of the County of Riverside, State of California, being those portions of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded In Book 1, page 37 of Patents in the Office of the County Recorder of San Diego County described as follows: BEGINNING at the point of Intersection of the centerline of Rancho Vista Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46 of Maps In the Office of the County Recorder of said Riverside County with the easterly line of the Southern California Gas Company easement as described In a document recorded September 19, 1958 In Book 2334, Page 559 of Official Records In said Office of the Riverside County Recorder, said point being on a curve In said centerline concave northerly and having a radius of 1600,00 feet a radial line of said curve from said point bears North 8 °13'31" East; thence leaving said centerline, non- tangent from said curve, along said easterly line South 3° 07'39" West 742.13 feet; thence North 52 °25'00" West 805.00 feet to the beginning of a tangent curve concave southwesterly and having a radius of 1100.00 feet; thence along said curve northwesterly 131.19 feet thresh a central angle of 6° 50' 00" to a point of compound curvature with a curve concave southerly and having a radius of 250,00 feet, a radial line of said curves from said point bears South 30° 45' 00" West; thence along said curve westerly 269.07 feet through a central angle of 61° 40'00" to a point of reverse curvature with a curve concave northwesterly and having a radius of 375.00 feet, a radial line of said curve from said point bears North 30° 55' 00" West; thence along said curve southwesterly 185.44 feet through a central angle of 28° 20'00 "; thence tangent from said curve South 87° 25'00" West 136,00 feet; thence South 52° 40'00" West 114.10 feet; thence North 63° 35'00" West 187.25 to the southeasterly line of the Metropolitan Water District of Southern California property as described in a deed recorded December 13, 1967 as Instrument No. 109720 of Official Records in said Office of the Riverside County Recorder; thence along said southeasterly line North 28° 28'42" East 701.05 feet to a point on a non - tangent curve in said centerline of Rancho Vista Road concave southerly and having a radius of 4000.00 feet a radial line of said curve from said point bears South 15° 48' 32" west; thence along said centerline through the following courses: along said curve easterly 180.16 feet through a central angle of 2° 35' 05"; thence tangent from said curve South 71 ° 36' 23" East 875.24 feet to the beginning of a tangent curve concave northerly and having a radius of 1600.00 feet; thence along said curve easterly 283.95 feet through a central angle of 10 °10' 06" to the point of beginning. Parcel 2: That certain parcel of land situated in the unincorporated territory of the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of EXHIBIT A (continued) Patents in the Office of the County Recorder of San Diego County, California, described as follows: Beginning at the centerline intersection of Margarita Road with Rancho Vista Road as shown on a map of Tract No, 20079 -3 filed 1 n Book 150, Pages 41 through 46 of Maps in the Office of the County Recorder of said Riverside County; thence along said centerline of Rancho Vista Road through the following courses: South 49° 14'45" West 415.25 feet to the beginning of a tangent curve concave northerly and having a radius of 1600.00 feet; thence along said curve westerly 1367.76 feet through a central angle of 48° 58'46" to the easterly line of the Southern California Gas Company easement as described In a document recorded September 19, 1958 in Book 2334, Page 559 of Official Records In said Office of the Riverside County Recorder; thence leaving said centerline, non - tangent from said curve, along said easterly line South 3° 07'39" West 742.13 feet; thence South 84'05'00" East 335.59 feet to the beginning of a tangent curve concave northerly and having a radius of 1500.00 feet; thence along said curve easterly 1051.86 feet through a central angle of 40°10'41"; thence non- tangent from said curve South 52° 55' 00" East 248.00 feet; thence South 1° 30'00" East 405.00 feet to a point on the northerly right -of -way line of Pauba Road as described in a document recorded March 23, 1972 as Instrument No. 38505 of Official Records in said Office of the Riverside County Recorder; thence South 3 °18'00" East 44.00 feet to the centerline of said Pauba Road; thence along said centerline through the following courses: North 86 °42'11" East 652.75 feet to the beginning of a tangent curve concave northerly and having a radius of 1200.00 feet; thence along said curve easterly 657.11 feet through a central angle of 31° 22'29 "; thence tangent from said curve North 55 °19' 31" East 173.80 feet to a point on a non - tangent curve In the centerline of Margarita Road as described In an easement deed recorded April 28, 1971as Instrument No. 44142 of Official Records In said Office of the Riverside County Recorder, said curve being concave northeasterly and having a radius of 2000.00 feet, a radial line of said curve from said point bears North 39 °20'19" East; thence leaving said centerline of Pauba Road, along said curve and centerline of Margarita Road northwesterly 285.85 feet through a central angle of 8° 11' 20" thence continuing along said centerline, tangent from said curve North 42 ° 28'21" West 1226.50 feet to the most easterly corner of a parcel of land described in a deed to the Rancho California Water District recorded February 26, 1973 as Instrument No. 24026 of Official Records in said Office of the Riverside County Recorder; thence along the boundary line of said parcel of land through the following courses: South 47 °31' 39" West 203.05 feet; thence North 5 ° 57'40" West 248.84 feet; thence North 47 °31'39" East 55.00 feet to a point In said centerline of Margarita Road; thence leaving said boundary line, along said centerline North 42 ° 28' 21" West 228.05 feet to the point of beginning. Parcel 3: That certain parcel of land situated in the incorporated territory of the City of Temecula, in the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of patents in the office of the County Recorder of San Diego County, California, described as follows: Beginning at the centerline intersection of Margarita Road with Rancho Vista EXHIBIT A (continued) Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46, inclusive, of Maps in the office of the County Recorder of said County of Riverside; Thence along the centerline of Margarita Road as described in a deed recorded August 5, 1988 as Instrument no. 221290 of official records in said office of the County Recorder of the County of Riverside, South 42 °28'21" East, a distance of 345.05 feet to the true point of beginning. Thence leaving said centerline at right angles South 47 °31'39" West, a distance of 141.61 feet to the intersection thereof with the easterly line of that certain strip of land, known as the first San Diego Aqueduct, as shown on Record of Survey Map filed in Book 55, Pages 61 through 64 inclusive of Record of Surveys, in the office of the County Recorder of said County of Riverside; Thence along said easterly line of the first San Diego Aqueduct, North 05 °57'40" West, a distance of 145.57 feet to the intersection of the westerly line of said Margarita Road; Thence leaving said easterly line, North 47 °31'39" East, a distance of 55.00 feet, to a point on the centerline of Margarita Road; Thence along the centerline of Margarita Road, South 42 °28'21" East, a distance of 117.00 feet to the true point of beginning. Excepting therefrom the westerly 55 feet of Margarita Road as described in Instrument recorded April 28, 1971 as Instrument No. 44142 of Official Records. Parcel 4: The certain parcel of land situated in the incorporated territory of the City of Temecula, in the County of Riverside, State of California, being that portion of the Rancho Temecula granted by the government of the United States of America to Luis Vignes by patent dated January 18, 1860 and recorded in Book 1, Page 37 of patents in the office of the County Recorder of San Diego County, California, described as follows: Beginning at the centerline intersection of Margarita Road with Rancho Vista Road as shown on a map of Tract No. 20079 -3 filed in Book 150, Pages 41 through 46, inclusive, of Maps in the office of the County Recorder of said County of Riverside; Thence along the centerline of Margarita Road as described in a deed recorded August 5, 1988 as Instrument no. 221290 of official records in said office of the County Recorder of the County of Riverside, South 42 °28'21" East, a distance of 345.05 feet; Thence leaving said centerline at right angles South 47 °31'39" West, a distance of 141.61 feet to the intersection thereof with the easterly line of that certain strip of land, known as the first San Diego Aqueduct, as shown on Record of Survey Map filed in Book 55, Pages 61 through 64 inclusive of Record of Surveys, in the office of the County Recorder of said County of Riverside; Thence along said easterly line of the first San Diego Aqueduct, South 05 °57'40" East, a distance of 47.71 feet to the TRUE POINT OF BEGINNING: EXHIBIT A (continued) Thence continuing along easterly line of the first San Diego Aqueduct, South 05 °5740" East, a distance of 55.56 feet; Thence leaving said easterly line, North 47 °31 '39 ", East, a distance of 33.06 feet; Thence North 42 °28'21" West, a distance of 44.66 feet to the true point of beginning. Administration $168,187 $ 5,078 $ 5,200 $ 5,200 $ 5,200 $ 5,200 $ 194,065 Construction $172,376 $130,664 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 343,040 Design $177,561 $128,597 $ 306,158 Totals $518,124 $264,339 $ 15 $ 15,200 $ 15200 $ 15,200 $ - $ 843,263 Capital Project Reserties $298,768 $ 20,183 $ 15,200 $ 15,200 $ 349,351 Proposition 42 $ 88,000 $ 88,000 Reimbursements /Other (FEMA)* $131,356 $244,156 $ 375,512 Unspecified ** $ 15,200 $ 15,200 $ 30,400 Total Funding: $518,124 $264,339 $ 15,200 $ 15,200 $ 15,200 $ 15,200 $ - $ 843,263 � y 1 CITY OF TEMECU[A Project Cost: Source of Funds: Future Operation & Maintenance Costs: RONALD REAGAN SPORTS PARK CHANNEL SILT REMOVAL AND DESILTING POND Parks and Recreation Project Project Description: Project will include excavating, hauling away, and disposing of silt in the channel located in Ronald Reagan Sports Park, and the desiltation pond west of the sports park, as well as mitigation. Part of this project was completed in December 2007, in accordance with City Resolution No. 07 -105, Declared Local Emergency. Benefit: Project will increase the flow capacity of the channel in order to prevent flooding in the sports park, and increase the capacity of the pond to hold storm water and reduce down stream sedimentation. Project Status: The design for restoring the Best Management Practices (BMP) of the Storm Water Pollution Prevention Plan and the Required Water Quality Management Plan by desilting the basin near the sports park is nearly complete. Removal of silt and construction of the mitigation site is estimated to be complete by end of fiscal year 2012. Upon approval by the resource agencies, the maintenance of the mitigation site is estimated to be complete by fiscal year 2016. Department: Public Works / Temecula Community Services - Account No. 210.190.187 Priority: Actuals Future Total to Date 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 Years Project Cost Actuals to Date 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 1 1 1 I N/A *Part of this project was completed in December 2007 and FEMA requires approval for additional funds. * *Project cannot be constructed until a funding source is identifed. 137 Future Total Years Project Cost RONALD REAGAN SPORTS PARK CHANNEL SILT REMOVAL AND DESILTING POND Parks and Recreation Project Location Aerial Data - March 2010 0 100 200 Feet 400 136 Item No. 9 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Greg Butler, Director of Public Works /City Engineer DATE: September 27, 2011 SUBJECT: Authorization to Purchase a Replacement Backhoe Approvals City Attorney Director of Finance City Manager (10L PREPARED BY: Rodney Tidwell, Street Maintenance Supervisor RECOMMENDATION: That the City Council approve the purchase of a new John Deere Backhoe for the total amount of $113,708.58. BACKGROUND: The Fiscal Year 2011 -12 Annual Operating Budget identifies funding (Gas Tax Revenues) for the purchase of a backhoe to be used by the Public Works Street Maintenance Division. Utilizing Gax Tax revenues for the backhoe purchase will necessitate that it be used exclusively for city street and road purposes, including, but not limited to, asphalt repairs, concrete repairs, sediment removal, debris removal and storm related issues (i.e., downed trees, rock slides, etc.) affecting the public right -of -way. The existing 1995 John Deere Backhoe has reached the extent of its service life and is thus becoming less and less reliable when needed. The existing backhoe will remain within the service fleet and be avaialbe for both Public Works and Community Services maintenace crews to utilize, however it will not be the primary backhoe to be utlized for day to day operations. Based on a needs assessment, a John Deere 310 SJ Turbo with a quick disconnect compaction wheel and breaker has been selected as the preferred model. Pursuant to the City's purchasing policy, staff solicted three proposals for this specified piece of equipment with RDO Equipment Co. Riverside submitting the lowest cost proposal. Proposals from RDO Equipment Co. Poway and Coastline Equipment for $116,302.33 and $122,371.68 respectively were also received. FISCAL IMPACT: The purchase of this new piece of equipment is included the FY2011- 2012 operating budget, with adequate funds available in the Vehicle Internal Service Fund Account #310.1910 utilizing $113,708.58 in State Gas Tax funds. ATTACHMENTS: RDO Equipment Co. proposal Investment Proposal for: CITY OF TEMECULA PO BOX 9033 TEMECULA CA TEMECULA, CA 92589 Phone: (951) 693-3944 Equipment: NEW 2011 JOHN DEERE 310SJ Key Features 7320T 1700 4780 8675 7075 7685 9060 9140 9515 AT338274 2085 CONT.- 2085 CONT.- 2085CONT.,- 2085CONT: Serial Number TBD (0 Approximated Hours) Additional Items Other Other Other Other Other Other Other PROPOSAL SUMMARY Total Investment PagMRK33RUNEWALD 310SJ STD BACKHOE DEERE TURBO JD LINK ULTIMATE GOODYEAR 19.5L -241N. REAR/ 12.5/80 -18 14PR FRONT DUAL 300MIN RES. BATTERIES LOADER W/3 FUNCTION HYDRAULICS FOR MULTI -LDR. 1.32 CYD. 92" WIDE MUTT- PURPOSE BUCKET WI REV.B0 FRONT VIEW MIRROR HEAVY DUTY 410J BUCKET CYLINDER DIAGNOSTIC OIL SAMPLING PORTS FULL TRANSMISSION & MFWD DRIVESHAFT GUARD TINTED SAFETY GLASS, INT.TRIM,HEADLIN'R,MOLD'D M AIR SUSP. SEAT FULLY ADJ.,3 "W RETR. BELT,RIDE CNTL FRT /REAR WIPERS,2 FRT,2 REAR HALOGEN LIGHTS 4- TURN SIGNAL /FLASHING /REAR STOP/TAIL LIGHTS 2F Equipment Total Sub Total Estimated sales tax to apply (CARV CA RIVERSIDE 7.75 %) Factory unit Approx.Machine weight 18,080Ibs 3 -bkts. weight 7501bs Comp.Wheel assy.1,1481bs Breaker weight 1,100Ibs Warranty Extension options; 3,000hr.,48mo.$1,767.00 /1/ 60mo.$2,302.00 4,000hr.,48mo.$1,964.00 11/ 60mo:$2,556.00 5,000hr.,48mo.$2,181.00 /1160mo.$2,841.00 1RDO, EQUIPMENT CO. Thank you for allowing me the opportunity to quote you this equipment. We appreciate your business. MARK 1085 3085 2085 5085 8485 9040 9920 9045 5285 AT313592 2085 CONT.- 2085CONT., 2085CONT.- QUICK COUPLER 24" & 36" QC HD BUCKETS HD UB305 (IMPACT ENERGY CLASS 1,000LBS) 18" HEXAGON HD DC -18S COMP. WHL. &MOUNT FULL PARTS MANUAL EXTRA OPERATORS MANUAL Gearmore Fork Hooks , QTY.4 - Installed JOHN DEERE POWERTECH E 4.5L TURBOCHARGED TIE FRONT WHEEL DRIVE W/ POWERSHIFTTRANSMISSIO CAB W/ DUAL DOORS & AIR CONDITIONING EXTENDIBLE DIPPERSTICK & AUXILIARY HYDRAULICS 1,250LB, FRONT COUNTERWEIGHT HIGH AMBIENT COOLING PACKAGE 2- EXTERNAL REAR VIEW MIRRORS CHROME EXHAUST EXTENSION PILOT CONTROLS W/ PATTERN CHANGER ROTATING BEACON KIT HTR.,DEF,PRESSURIZER,SUN VISOR,TILT WHEEL AM /FMIWB WI CD RADIO INCLDS: 6 ADDL. WORK ROOF LIGHTS (1 @SIDE OF RO Estimated Conversion Price: MARK GRUNEWALD 20 Iowa Avenue PO Box 1069 Riverside, CA 92502 Phone: (951) 778 -3700 Mobile: (951) 217 -9951 Fax: (951) 778 -3746 Equipment Price $91,240.00 $0.00 $0.00 $10,218.00 $3,235.00 $316.00 586.00 5435.00 8105,530.00 5105,530.00 $105,530.00 58,178.58 5113,708.58 F ctor Pow rai & H dr ttics Wara E N d dc�uctible. California Air 1 esou iscrosure - hen ope any off -road diesel vehicle may be subject to the California Air Resources Board In -Use Off -Road Diesel Vehicle Regulation. It therefore could be subject to retrofit or accelerated turnover requirements to reduce emmission of air pollutants. CA Air Resources Board Regulation 2449(d)(3) As of June 15th, 2008 idling rental equipment must be limited to 5 minutes. This proposal was created on August 26, 201' and is valid until September 26, 2011 and is subject to prior sale. After that date the quote and terms in the proposal may TERRITORY MANAGER need to be revised. D341296 C3944001 Submitted By: Approved By: Date: Date: Page 2of3 This proposal was created on August 26, 2011 and is valid until September 26, 2011 and is subject to prior sale. After that date the quote and terms in the proposal may need to be revised. D341296 C3944001 *The RDO Po i «2 any ne w John D ƒ \ forestry) or Hitachi \.) machines klk s . hours at time a p 7 yl�mnRDO §A n Area of m s %y On Rental Pur ase the RDO Promiserm b the limey initial rente ( to the cs! me 040809 . _...,_ � �'����`\ Cn r . . • • • • • m WP) 2 D o * v < < a) D 5' � 0. P. v (D _ �`< 0 m c, -- CO D o 0 O (D 0 c a u) o o 7),9 � O D 0 O N 7 (Q Q (D -., p i a). - (/) ( 0� w 5 r r o - 0 - n (D o r (l) � , O O . ▪ O ( (D N = ' Q (D � O � — a) 0 0 O co co 6 O �!; N C) 5 • (/3 3 (D (0 < p (D (D 6. 4. _n (n • • • Q 0 - s (D n3 3 0 1 0 0 < Q 0 O O -u p C 0 7 �� 3 � 2 o (D Q. (n 2 = Q= O [Q ( . a) (0 (D a (D O U) p 0- < 43 a) Q (D (D Q (D (A ii , 3 S l = 0- 0 X Q (Q -' o (D (D O 5' 6- (D Q 0) 0 O = 5 < (n - • '+ r r Q O N (D < S (D w 73 , -G (0 (n (n 0 N 0 (/3 (D (7 o (D 0- () ('3 Q a (D Q • • • 0. 13) 0 6 (D JDLink FAQs - Frequently Asked Questions (Dealer Version) Q: What is JDLinkTM? A: JDLinkTM is our John Deere fleet management system designed to remotely connect owners and managers to their equipment, providing alerts and machine information including location, engine hours, utilization, performance, and maintenance data to manage where and how equipment is being used. Q: How does JDLinkTM work? A: JDLinkTM uses a communications controller, a GPS and cellular antenna, and harnesses installed in a machine to send machine data wirelessly to the JDLink data server. This machine data is available to the customer or dealer through the JDLinkTM website (www.jdlink.com). Q: In which countries is JDLinkTM going to be available? A: JDLinkTM is now available in all EU27 countries, Ukraine, US, Canada, Mexico, Australia, New Zealand, Argentina, Chile. Additional countries will be added at later dates. The JDLink system's data transfer capabilities are dependent upon the cellular coverage of John Deere's cellular network providers. The links below include the advertised coverage areas of these providers as of the date of publication of this guide. John Deere has no control over the content of these links and cannot guarantee their accuracy. The identity of the cellular network providers and /or their coverage areas may change at any time. us http://www.wireless.att.com/coverageviewer/US-premium.jsp Canada http: / /www.rogers.com /web /content /wireless network 2G Voice and Data is available with the MTG All Other Regions http : / /www.gsmworld .com /roaming /gsminfo /roa usb3.shtml #SectK Please note the appropriate specifications of JDLink (MTG) to assist when viewing maps showing various cellular technologies. - GPRS / GSM - 2G -- 850/1900 MHz (US and Canada) Q: In which languages is JDLinkTM going to be available? A: JDLinkTM is now available in English, German, Spanish, Italian, French and Russian, Additional languages will be added at later dates, JDLink FAQs Dealer Version April 2011 Q: How many JDLinkTM solutions are available? A: There are three JDLinkTM solutions available for Construction & Forestry: 1. JDLink Express is a value- priced solution that gives you all the basic features that meet most basic contractor needs --- hours, machine location, curfew, and maintenance tracking. Express is an all -makes product, so you can install this kit on any piece of equipment. 2. JDLink Select is a great whole -fleet solution, count on Select for machine hours, location, maintenance - tracking, and geofencing capabilities delivered to your PC. Look to Select for a well - rounded telematics solution for advanced machine utilization for every piece in your fleet. All -new hardware allows quick and easy installation on anything with 12 or 24 volts of power. JDLink Select is also upgradeable to JDLink Ultimate on many current pieces of Deere equipment. 3. JDLink Ultimate delivers all of the features of Select and adds Ultimate Utilization reporting, keeping your customers informed about what percentage of their machine hours are spent idling instead of working. It &so provides critical system temperatures and /or pressures for machine - specific applications including hydraulics, transmissions, and coolant. Ultimate also provides low fuel level warnings, dashboard alerts, idle time and load work levels giving equipment managers better visibility to machine problems. Both dashboard alerts and low fuel level warnings can be accessed on the Internet or sent directly to a customer's cell phone, pager, or e -mail address. Q: How can JDLink subscription be purchased? A: Customers have two options for where they can purchase JDLink Subscriptions: - StellarSupport.com, with two options to pay: o Credit Card o Customer can set up a payment plan through their dealer Q: How does the customer know when their JDLink subscription has ended? A: StellarSupport will send them an email 30 days and 7 days before the subscription period ends. It is possible to extend or renew your JDLink subscription before the expiration date by purchasing another JDLink subscription via Stellar Support. This new purchase will be added to the end date of your current JDLink subscription. Q: What will happen when JDLink subscription expires? A: When the JDLink subscription expires, JDLink system will be deactivated. You will be notified of the expiration via e -mail. Expiration means cessation of all data collection on all machines and groups. Your machines and terminals will show as inactive on your company's JDLink website. If more than one license exists between an account and a device of the same license type, and one of those licenses expires, data collection for measurements and any related features will continue on the device. JDLInk FAQs Dealer Version April 2011 Q: Where do 1 find training material for JDLinkTM? A: The following materials are available: - JDLink Website Simulator and general information • Available on JDLink Info To Go • - Distance Learning Module - DLM • JDLink /ZXLink MTG Sales Overview: Cap- 17- DLMTC173 • JDLink / ZXLink MTG Technical Overview: Cap- 17- DLMTC174 - JDLink Help Files • Available under the Help menu on JDLink.com Q: How can I equip a machine with JDLinkTM? A: There are two different installation solutions: - Field Kit A kit of parts ordered by the dealer and installed at the dealership after machine is bought. See the Product Configurator for details. - Factory Installed The machine is delivered from the factory with 3DLink Ultimate system already installed and 3 years of service included. See the Product Configurator or JDLink Info To Go for details. Q: What are the models 3DLink can be installed on? A: JDLink Express This kit can be installed on any piece of equipment with a 12 or 24 volt power source. JDLink Select This kit can be installed on any piece of equipment with a 12 or 24 volt power source. JDLink Ultimate This kit can be installed on every approved John Deere machine with a CAN bus only. See the Product Configurator for details. JDLj FAQs Dealer Version April 2011 Q: What is the process for a JDLink Field Kit solution? (MTG Hardware) A: Refer to the following flow -chart JDLink — MTG Field Kit Stellar Activation Support - * Activate the JDLink terminal on Stellar Support _.* Complementary 28 day license begins -Auto - JDLink -SA JDLink Web JDLink Web JDL1nk FAQs Dealer places kit order through COMAR Installation * JDLink field kit is installed on the machine Registration * Assign terminal serial num to the machine VIN /PIN - run machine for 10 minutes to auto - register - if auto- registration fails, manually register on the JDLink web or use Service ADVISOR 3DL,ink Customer Account (This step only applies to new JDLink customers) * Perform a search on JDLink web to see if a customer account already exists * If not, create a new JDLink customer account * Provide log -in credentials and website address to customer Log into JDLink Web (This step only applies to new JDLink customers) * Customer logs into JDLink web and accepts Telematics User Agreement and Data Privacy Authorization Terrnina Tra nsfer * Transfer the terminal to the customer's JDLink account * 1 year subscription begins at time of transfer or 28 days elapses whichever comes first C._._....... COMPLETE D E A L E R C u s T 0 M E R 0 E A L E R Dealer Version April 2011 Q: What is the process for a JDLink Factory Installed solution? (MTG) A: Refer to the following flow -chart JDLink - MTG Factory Install `Dealer orders a machine that has JDLink JOLink Web JDLink Web JDLink FAQs Installation * Terminal is installed on the machine Registration + Activation * Terminal serial num is assigned to the machine VIN /PIN * JDLink Select subscription begins collecting /transmitting data *NOTE; If the machine is being shipped to countries other than U.S., Canada, Australia, New Zealand then the dealer will need to sign into Stellar Support and activate. Dealer Receives Machine * 50 hour complementary Select license (Ultimate license kicks in after 50 machine engine hours) * 3 year JDLink Ultimate subscription included from factory JDLink Customer Account (This step only applies to new JDLink customers) * Perform a search on JDLink web to see if a customer account already exists 1 * If not, create a new JDLink customer account I* Provide log -in credentials and website address to customer — i1 Log into JDLink Web (This step only applies to new JDLink customers) * Customer logs into JDLink web and accepts Telematics User Agreement and Data Privacy Authorization Terminal Transfer * Transfer the terminal to the customer's JDLink account * 3 year subscription begins at time of transfer or 50 engine hours, whichever comes first COMPLETE Th 0 Dealer Version April 2011 Q: How do I log into the JDLink website? A: Log directly into www.jdllnk.com If you are logging into the JDLink website for the first time, you need to: 1. Select the country you are in 2. Sign the Telematics System Contract and the Data Privacy Authorization sign it by checking boxes and click on accept. (The contract is available in all major EU languages and Ukrainian). Q: Can dealers view customer's machine? A: Yes, if a customer grants the dealership 3rd party access to their machines. By default, when a dealer transfers a machine to a customer organization the transferring dealer will be given 3rd party access to that machine. The customer can remove the 3rd party access at any time in Equipment Groups on the JDLink Website. Q: Is it possible for the customer to block the dealer's access to his 3DLink account? A: Yes, the customer can remove the dealership from the 3rd party access equipment group. After they remove the dealership the customer machines will no longer show up in the dealership's account on JDLink. Q: Which tools do I need to support JDLink system? A: The Service ADVISOR Remote is an essential tool for setting up and supporting JDLink. However, the GTT config software tool is still needed to setup /support the legacy hardware (GTTs GTLites). Q: What is the process for a customer that does not want 3DLink activated or does not want Deere /Dealer to collect and see the machine data? A: In the event that a customer does not want to accept the term in the standard purchase order granting Deere and their dealer access to the Machine Data from the customer's machine, there are two potential processes the dealer can follow to accommodate the customer. JDLink FAQs a. Dealer: use your John Deere RACF ID and Password Important: By default the Dealer Profile Administrator from your Dealership is the only user in your account who will be able to access this website (same person that grants access to Pathways, DTAC etc.). b. Customer: use the LDAP ID and Password (StellarSupport credentials). If customers do not have an LDAP ID yet, the Dealer will create one. Important: Account Administrator's User ID /Password will be the only user in the account who will be able to access the website. Dealer Version April 2011 Acceptance of Purchase Order and Declining of Telematics System Contract The first, and preferred, method is to encourage the customer to sign the purchase order without amendment. As with any other customer, then proceed to assist the customer in setting up their JDLink account. However, when the customer first logs into their account, instruct the customer to decline the Telematics System Contract. This action informs Deere that the customer does not desire the telematics service, and Deere begins the process of deactivating the telematics unit on the customer's machine. Amendment to Purchase Order and Notification to Deere If the customer is not willing to follow the preferred method, the customer may strike out the Machine Data clause of the purchase order. Then, you must contact Deere's Customer Contact Center at 888 - 476 -7827 to notify Deere that the customer does not desire the telematics service, so that Deere can begin the process of deactivating the telematics unit on the customer's machine. JDLi FAQs Dealer Version April 2011 1 TO: FROM: DATE: SUBJECT: PREPARED BY: RECOMMENDATION: CITY OF TEMECULA AGENDA REPORT City Manager /City Council Greg Butler, Director of Public Works / City Engineer September 27, 2011 Avlin R. Odviar, Senior Engineer — CIP William Becerra, Associate Engineer — CIP That the City Council: Approvals City Attorney Director of Finance City Manager OtoL Approval of Utility Agreements with Southern California Edison, Verizon, and Eastern Municipal Water District for French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements, Project Number PW02 -11 1. Approve an agreement with Southern California Edison Company in an amount not to exceed $66,098.79 to relocate utilities for the French Valley Parkway / Interstate - 15 Over - Crossing and Interchange Improvements Project; 2. Approve an agreement with Verizon California Inc. in an amount not to exceed $13,150.23 to relocate utilities for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project; 3. Approve an agreement with Eastern Municipal Water District in an amount not to exceed $53,105.00 to relocate utilities for the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project. BACKGROUND: The construction of the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project — Phase I, Project Number PW07 -04, necessitates the relocation of existing electrical, telephone, and sewer facilities. These relocations are necessary to maintain compliance with Caltrans' policy of curtailing utility easements and facilities from State right of way. The project is on the State Highway System and the City is the implementing agency. As such, and in accordance with the Design Cooperative Agreement (District Agreement No. 8- 1217), City staff has worked directly with Southern California Edison (SCE), Verizon, and Eastern Municipal Water District (EMWD) as an agent of the State. Relocation plans have been developed to resolve conflicts and cost liabilities have been established. The subject utility agreements facilitate the construction of the relocations. The agreements are accepted as standard for projects of this type and apply only to the subject project for the work described therein. FISCAL IMPACT: The City of Temecula has identified the French Valley Parkway / Interstate -15 Over - Crossing and Interchange Improvements Project, Phase I within its Capital Improvement Program FY2012 -2016. The total cost of these agreements is $132,354.02 and will be covered by TUMF Community Environmental Transportation Acceptability Process (CETAP) funds secured in Agreement No. 11 -72- 036 -00 between the City and Riverside County Transportation Commission (RCTC) on December 14, 2010. ATTACHMENTS: 1. Project Description 2. Project Location 3. SCE Agreement 4. Verizon Agreement 5. EMWD Agreement Administration $ 266,114 $ 325,812 $ 215,000 $ 110,000 $ 916,926 Acquisition $ 2,256,992 $1,631,631 $ 215,000 $ 110,000 $ 3,888,623 Construction $ 444,203 $ 13,822,348 $ 7,211,726 $ 21,034,074 Construction Engineering $ 651,369 $ 325,812 $ 2,000,000 $ 1,000,000 $ 3,000,000 Design $ 1,033,242 $ 961,625 $ 1,994,867 Environmental $ 51,000 $ 51,000 MSHCP $ 72,618 $ 1,600,000 $ 72,618 Totals $ 3,556,348 $3,042,686 $ 16,037,348 $ 8,321,726 $ - $ - $ - $ 30,958,108 Capital Project Reserves $ 215,000 $ 110,000 $ 325,000 DIF (Street hprovements) $ 444,203 $ 444,203 Measure A -Local Street and Road $ 651,369 $ 325,812 $ 939,256 $ 878,744 $ 2,795,181 Reimbursement /Other (Murrieta Dedication) $1,631,631 $ 1,631,631 SAFETEA - LU $ 1,600,000 $ 1,600,000 TUMF (RCTC)* $ 2,460,776 $ 14,883,092 $ 2,533,096 $ 19,876,964 TUMF (WRCOG) ** $1,085,243 $ 3,199,886 $ 4,285,129 Total Funding: $ 3,556,348 $3,042,686 $ 16,037,348 $ 8,321,726 $ - $ - $ - $ 30,958,108 Project Description: Project will include the design, right -of -way acquisition, utility relocation, and construction activities to portions of the French Valley Parkway and Interstate -15 over - crossing and interchange. The project will add a new southbound off -ramp from Interstate -15 to French Valley Parkway, construct the northern half of French Valley Parkway from the off -ramp to Jefferson Avenue, widen the existing southbound off -ramp from Interstate -15 to Winchester, and construct a new auxiliary lane between French Valley Parkway and the Winchester Road southbound off -ramp. Other features include permanent and temporary retaining walls, erosion control and irrigation, and a new traffic signal and roadway improvements at the intersection of French Valley Parkway and Jefferson Avenue. Project requires oversight by Caltrans and coordination with the City of Murrieta. Benefit: Project will improve traffic circulation by providing another southbound off -ramp from Interstate -15 and add a lane to the Interstate -15 southbound off -ramp to Winchester. Project Status: The plans, specifications, and estimates, are expected to be complete during fiscal year 2011. Construction is expected to be complete by fiscal year 2013. Department: Public Works— Account No. 210.165.719 Project Cost: FRENCH VALLEY PARKWAY / INTERSTATE -15 OVER - CROSSING AND INTERCHANGE IMPROVEMENTS —PHASE I Circulation Project Source of Funds: Future Operation & Maintenance Costs: Actuals to Date Actuals to Date 2010 -11 2010 -11 2010 -11 I f 2011 -12 2011 -12 2011 -12 55 2012 -13 2012 -13 2012 -13 2013 -14 2014 -15 2013 -14 2014 -15 2013 -14 2014 -15 Priority: 1 Future Total Project Years Cost Future Total Project Years Cost 1 $ 15,000 1 $ 15,300 1 $ 15,606 *TUMF Regional funding programmed in RCTC Regional 11P ($20 million total) - See also Phase II. * *TUMF Zone Funding programmed in SW Zone T1P for PS &E- $8,925,000; PAED - $2,650,000 - See also Phase II. FRENCH VALLEY PARKWAM INTERCHANGE Circule 54 / INTERSTATE -15 OVER - CROSSING AND IMPROVEMENTS —PHASE I tion Project Location DISTRICT 08 COUNTY Riverside ROUTE 15,215 KP (PM) 9.2/15.3 EXPENDITURE AUTHORIZATION 432700 FEDERAL AID NUMBER OWNER'S FILE NUMBER DWO #293677, #TD461316 FEDERAL PARTICIPATION On the Project [X] YES 1 ] NO On the Utilities [ ] YES [X] NO UTILITY AGREEMENT NO. 08-UT-20704 DATE: September 27, 2011 CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) The City of Temecula hereinafter called "CITY", proposes to construct improvements in the Temecula area of Riverside County. The planned improvements will construct a new interchange, French Valley Parkway, at Interstate 15, between the existing Winchester Road and the Interstate- 15/Interstate -215 junction, hereinafter referred to as "PROJECT ". The PROJECT is a cooperative project between the City of Temecula and the State of California Department of Transportation, hereinafter referred to as "STATE ". CITY is the lead agency for the PROJECT and is acting as an agent of the STATE with respect to the PROJECT, under the terms of a cooperative agreement between STATE and CITY, with oversight provided to CITY by STATE. Southern California Edison Company Hereinafter called "OWNER ", owns and maintains distribution electric facilities that are in conflict with the CITY's proposed freeway improvements within the limits of - the CITY's PROJECT. The - PROJECT requires relocation of OWNER's underground 12kV distribution system. To accommodate CITY's PROJECT, it is hereby, mutually agreed that: I. WORK TO BE DONE H. LIABILITY FOR WORK Page 1 of 4 In accordance with Notice to Owner No. 20704 dated 08/29/2011, which is attached and made part hereto, OWNER shall relocate OWNER's underground 12kV distribution system. All work shall be performed substantially in accordance with OWNER's Plan No. 293677 dated March 23, 2011 consisting of 3 sheets, a copy of which is on file at the CITY, located at 41000 Main Street, Temecula CA 92590. Deviations from the OWNER's plan described above, initiated by either the CITY or the OWNER, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by the CITY and agreed to / acknowledged by the OWNER, will constitute an approved revision of the OWNER's plan described above and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by the OWNER of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the Revised Notice to Owner. The existing facilities are located in their present location pursuant to the OWNER Franchise Agreement and applicable encroachment permits issued by the CITY and superior to those of the STATE and will be relocated at CITY and OWNER expense. The existing facilities described in Section I above will be relocated at fifty percent (50 %) CITY expense and fifty percent (50 %) OWNER expense in accordance with Section 5 of the Master Contract dated November 1, 2004. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /I/2009) III. PERFORMANCE OF WORK Page 2 of 4 UTILITY AGREEMENT NO. 08 -UT -20704 OWNER agrees to perform the herein described work with its own forces or to cause the herein described work to be performed by the OWNER's contractor, employed by written contract on a continuing basis to perform work of this type, and to provide and furnish all necessary labor, materials, tools, and equipment required therefore, and to prosecute said work diligently to completion. Use of out -of -state personnel or personnel requiring lodging and meal ( "per diem ") expenses will not be allowed without prior written authorization by STATE's representative. Requests for such permission must be contained in OWNER's estimate of actual and necessary relocation costs. OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work proposed. Per Diem expenses shall not exceed the per diem expense amounts allowed under the State's Department of Personnel Administration travel expense guidelines. Pursuant to Public Works Case No. 2001 - 059 determination by the California Department of Industrial Relations dated October 25, 2002, work performed by OWNER's contractor is a public work under the definition of Labor Code Section 1720 (a) and is therefore subject to prevailing wage requirements. OWNER shall verify compliance with this requirement in the administration of its contracts referenced above. IV. PAYMENT FOR WORK The CITY shall pay its share of the actual and necessary cost of the herein described work within 45 days after receipt of five (5) copies of OWNER's itemized bill, signed by a responsible official of OWNER's organization and prepared on OWNER's letterhead, compiled on the basis of the actual and necessary cost and expense incurred and charged or allocated to said work in accordance with the uniform system of accounts prescribed for OWNER by the California Public Utilities Commission, Federal Energy Regulatory Commission or Federal Communications Commission, whichever is applicable. It is understood and agreed that the CITY will not pay for any betterment or increase in capacity of OWNER's facilities in the new location and that OWNER shall give credit to the CITY for the "used life" or accrued depreciation of the replaced facilities and for the salvage value of any material or parts salvaged and retained or sold by OWNER. Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit progress bills for costs incurred not to exceed OWNER's recorded costs as of the billing date less estimated credits applicable to completed work. Payment of progress bills not to exceed the amount of this Agreement may be made under the terms of this Agreement. Payment of progress bills which exceed the amount of this Agreement may be made after receipt and approval by CITY of documentation supporting the cost increase and after an Amendment to this Agreement has been executed by the parties to this Agreement. The OWNER shall submit a final bill to the CITY within 360 days after the completion of the work described in Section I above. If the CITY has not received a final bill within 360 days after notification of completion of OWNER's work described in Section I of this Agreement, and CITY has delivered to OWNER fully executed Director's Deeds, Consents to Common Use or Joint Use Agreements as required for OWNER's facilities, CITY will provide written notification to OWNER of its intent to close its file within 30 days. OWNER hereby acknowledges, to the extent allowed by law, that all remaining costs will be deemed to have been abandoned. If the CITY processes a final bill for payment more than 360 days after notification of completion of OWNER's work, payment of the late bill may be subject to allocation and/or approval by the CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /I/2009) California Transportation Commission. The final billing shall be in the form of an itemized statement of the total costs charged to the PROJECT, less the credits provided for in this Agreement, and less any amounts covered by progress billings. However, the CITY shall not pay fmal bills which exceed the estimated cost of this Agreement without documentation of the reason for the increase of said cost from the OWNER and approval of documentation by CITY. Except, if the fmal bill exceeds the OWNER's estimated costs solely as the result of a revised Notice to Owner as provided for in Section I, a copy of said revised Notice to Owner shall suffice as documentation. In either case, payment of the amount over the estimated cost of this Agreement may be subject to allocation and/or approval by the California Transportation Commission. In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an Amended Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNER's final bill. Any and all increases in costs that are the direct result of deviations from the work described in Section I of this Agreement shall have the prior concurrence of CITY. Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date of the fmal payment and will be available for audit by State and/or Federal auditors. OWNER agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR, Chapter 1, Part 31, et seq., 23 CFR, Chapter 1, Part 645 and/or 18 CFR, Chapter 1, Parts 101, 201, et aI. If a subsequent State and/or Federal audit determines payments to be unallowable, OWNER agrees to reimburse CITY upon receipt of CITY billing. V. GENERAL CONDITIONS Page 3 of 4 UTILITY AGREEMENT NO. 08 -UT -20704 All costs accrued by OWNER as a result of CITY's request of April 12, 2010 review, study and/or prepare relocation plans and estimates for the PROJECT associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement. If CITY's PROJECT, which precipitated this Agreement, is canceled or modified so as to eliminate the necessity of work by OWNER, CITY will notify OWNER in writing and CITY reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations of CITY under the terms of this Agreement are subject to the passage of the annual Budget Act by the State Legislature and the allocation of those funds by the California Transportation Commission. CITY will acquire new rights of way in the name of either the CITY or OWNER through negotiation or condemnation and when acquired in CITY's name, shall convey same to OWNER by Director's Easement Deed. CITY's liability for such rights of way will be at the proration shown for relocation work involved under this Agreement. OWNER shall reimburse the CITY all costs for the easement. OWNER shall submit a Notice of Completion to the STATE within 30 days of the completion of the work described herein. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) THE ESTIMATED COSTS TO THE CITY FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $ 66,098.79 IN WITNESS WHEREOF, this Agreement has been executed as of the day, month and year first above written. SOUTHERN CALIFORNIA EDISON B &OW eAti, Carol Brow CITY OF TEMECULA By: Ron Roberts, Mayor Approved as to form: By: Peter M. Thorson, City Attorney ATTEST: Susan W. Jones, MMC, City Clerk Page 4 of 4 UTILITY AGREEMENT NO. 08 -UT -20704 District County Route KP (PM) E.A. 08 Riv 15,215 9.2/15.3 432700 FEDERAL AID NUMBER OWNERS FILE CAL201369268 DATE August 29, 2011 FREEWAY No Yes CITYOF TEMECULA • PUBLIC WORKS DEPARTMENT NOTICE TO OWNER RW 13-4 (REV 1/2009) NOTICE TO OWNER Number 20704 To SOUTHERN CALIFORNIA EDISON 26100 Menifee Road Menifee, CA 92585 ATTN: Carol Brown Because of the City of Temecula's construction project: French Valley Parkway Interchange Project Which affects your facilities: Southern California Edison's Utility Facilities You are hereby ordered to: relocate your facilities designated on attached plans hereto and made part of this Notice. STORM WATER AND NON -STORM WATER: In accordance with State & Federal law, work on State highways requires compliance with current applicable regulations contained in the Department's Encroachment Permit. Encroachment Permit Manual. and Federal, State and local requirements and regulations including but not limited to National Pollutant Discharge Elimination System (NPDES), and State Water Resources Control Board (SWRCB) Compliance shall include, where required, the preparation and submission of a Storm Water Pollution Protection Plan (SWPPP) or Water Pollution Control Program (WPCP), and the approval of same by the appropriate review authority before any work shall start. Contact Departments District Encroachment Permit section for guidance on required advance lead times for such review & approval. Copies of the regulations may also be reviewed at the Caltrans Construction Website http: / /www. dot. ca. qov /hq/ constru c /sformwater /stormwatert.htm Your work schedule shall be as follows: At the direction of City's Project Manager William Becerra, (951) 693 -3963. Mr. Becerra will contact you 48 hours before start of work. Notify William Becerra City's Project Manager at telephone number (951) 693 -3963 and 72 hours prior to initial start of work, and 24 hours prior to subsequent restart when your work schedule is interrupted. Liability for the cost of the work is: 50% SOUTHERN CALIFORNIA EDISON per Section 5 (C) of Master Contract executed November 1, 2004. cc Caltrans R/W file By WILLIAM BECERRA Associate Engineer — CIP City of Temecula c71ZY 7(7 Date THIS NOTICE DOES NOT CONSTITUTE A PERMIT. OBTAIN AN ENROACHMENT PERMIT BEFORE STARTING WORK. For individuals with disabilities, this document is available in alternate formats. For information call (916) 654.6410 or ADA Notice TDD (916) 654-3880 or write Records and Forms Management, 1120 N. Street. MS -89, Sacramento, CA 95814 DISTRICT 08 COUNTY Riverside ROUTE 15,215 KP (PM) 91/15.3 EXPENDITURE AUTIIORIZATION 432700 FEDERAL AID NUMBER OWNER'S FILE NUMBER WO #0453- 8P0A0AU FEDERAL PARTICIPATION On the Project [X] YES [ ] NO On the Utilities [ ] YES [X] NO UTILITY AGREEMENT NO. 08-UT-20707 DATE: September 27, 2011 CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) The City of Temecula hereinafter called "CITY ", proposes to construct improvements in the Temecula area of Riverside County. The planned improvements will construct a new interchange, French Valley Parkway, at Interstate 15, between the existing Winchester Road and the Interstate -15 /Interstate -215 junction, hereinafter referred to as "PROJECT ".. The PROJECT is a cooperative project between the City of Temecula and the State of California Department of Transportation, hereinafter referred to as "STATE ". CITY is the lead agency for the PROJECT and is acting as an agent of the STATE with respect to the PROJECT, under the terms of a cooperative agreement between STATE and CITY, with oversight provided to CITY by STATE. Verizon Califonia Inc. Hereinafter called "OWNER ", owns and maintains telephone facilities that are in conflict with the CITY's proposed freeway improvements within the limits of the CITY's PROJECT. The PROJECT requires relocation of OWNER's underground telephone system. 'fo accommodate CITY's PROJECT, it is hereby, mutually agreed that: L WORK TO BE DONE In accordance with Notice to Owner No. 20707 dated 08/29/2011, which is attached and made part hereto, OWNER shall relocate OWNER's facilities. All work shall be performed substantially in accordance with OWNER's Plan No. 8P0A0AU dated March 07, 2011 consisting of 3 sheets, a copy of which is on file at the CITY, located at 41000 Main Street, Temecula CA 92590. Deviations from the OWNER's plan described above, initiated by either the CITY or the OWNER, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by the CITY and agreed to / acknowledged by the OWNER, will constitute an approved revision of the OWNER's plan described above and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by the OWNER of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the Revised Notice to Owner. I1. LIABILITY FOR WORK Page 1 of 4 The existing facilities are located in their present location pursuant to the OWNER Franchise Agreement and applicable encroachment permits issued by the CITY and superior to those of the STATE and will be relocated at CITY and OWNER expense. The existing facilities described in Section I above will be relocated at fifty percent (50 %) CITY expense and fifty percent (50 %) OWNER expense in accordance with Section 5 of the Freeway Master Contract dated January 8, 2004. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) III. PERFORMANCE OF WORK Page 2 of 4 Utz LIr'Y AGREEM ENT NO. 08 -UT -20707 OWNER agrees to perform the herein described work with its own forces or to cause the herein described work to be performed by the OWNER's contractor, employed by written contract on a continuing basis to perform work of this type, and to provide and furnish all necessary labor, materials, tools, and equipment required therefore, and to prosecute said work diligently to completion. Use of out -of -state personnel or personnel requiring lodging and meal ( "per diem ") expenses will not be allowed without prior written authorization by STATE's representative. Requests for such permission must be contained in OWNER's estimate of actual and necessary relocation costs. OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work proposed. Per Diem expenses shall not exceed the per diem expense amounts allowed under the State's Department of Personnel Administration travel expense guidelines. Pursuant to Public Works Case No. 2001 - 059 determination by the California Department of Industrial Relations dated October 25, 2002, work performed by OWNER's contractor is a public work under the definition of Labor Code Section 1720 (a) and is therefore subject to prevailing wage requirements. OWNER shall verify compliance with this requirement in the administration of its contracts referenced above. IV. PAYMENT FOR WORK The CITY shall pay its share of the actual and necessary cost of the herein described work within 45 days after receipt of five (5) copies of OWNER's itemized bill, signed by a responsible official of OWNER's organization and prepared on OWNER's letterhead, compiled on the basis of the actual and necessary cost and expense incurred and charged or allocated to said work in accordance with the uniform system of accounts prescribed for OWNER by the California Public Utilities Commission, Federal Energy Regulatory Commission or Federal Communications Commission, whichever is applicable. It is understood and agreed that the CITY will not pay for any betterment or increase in capacity of OWNER's facilities in the new location and that OWNER shall give credit to the CITY for the "used life" or accrued depreciation of the replaced facilities and for the salvage value of any material or parts salvaged and retained or sold by OWNER. Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit progress bills for costs incurred not to exceed OWNER's recorded costs as of the billing date less estimated credits applicable to completed work. Payment of progress bills not to exceed the amount of this Agreement may be made under the terms of this Agreement. Payment of progress bills which exceed the amount of this Agreement may be made after receipt and approval by CITY of documentation supporting the cost increase and after an Amendment to this Agreement has been executed by the parties to this Agreement. The OWNER shall submit a final bill to the CITY within 360 days after the completion of the work described in Section I above. If the CITY has not received a final bill within 360 days after notification of completion of OWNER's work described in Section I of this Agreement, and CITY has delivered to OWNER fully executed Director's Deeds, Consents to Common Use or Joint Use Agreements as required for OWNER's facilities, CITY will provide written notification to OWNER of its intent to close its file within 30 days. OWNER hereby acknowledges, to the extent allowed by law, that all remaining costs will be deemed to have been abandoned. If the CITY processes a final bill for payment more than 360 days after notification of completion of OWNER's work, payment of the late bill may be subject to allocation and /or approval by the CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) California Transportation Commission. The final billing shall be in the form of an itemized statement of the total costs charged to the PROJECT, less the credits provided for in this Agreement, and less any amounts covered by progress billings. However, the CITY shall not pay final bills which exceed the estimated cost of this Agreement without documentation of the reason for the increase of said cost from the OWNER and approval of documentation by CITY. Except, if the final bill exceeds the OWNER's estimated costs solely as the result of a revised Notice to Owner as provided for in Section I, a copy of said revised Notice to Owner shall suffice as documentation. In either case, payment of the amount over the estimated cost of this Agreement may be subject to allocation and /or approval by the California Transportation Commission. In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an Amended Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNER's final bill. Any and all increases in costs that are the direct result of deviations from the work described in Section I of this Agreement shall have the prior concurrence of CITY. Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date of the final payment and will be available for audit by State and /or Federal auditors. OWNER agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR, Chapter 1, Part 31, et seq., 23 CFR, Chapter 1, Part 645 and /or 18 CFR, Chapter 1, Parts 101, 201, et al. If a subsequent State and /or Federal audit determines payments to be unallowable, OWNER agrees to reimburse CITY upon receipt of CITY billing. V. GENERAL CONDITIONS Page 3 of 4 UTILITY AGREEMENT NO. 08 -UT -20707 All costs accrued by OWNER as a result of CITY's request of April 12, 2010 review, study and /or prepare relocation plans and estimates for the PROJECT associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement. If CITY's PROJECT, which precipitated this Agreement, is canceled or modified so as to eliminate the necessity of work by OWNER, CITY will notify OWNER in writing and CITY reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations of CITY under the terms of this Agreement are subject to the passage of the annual Budget Act by the State Legislature and the allocation of those funds by the California Transportation Commission. CITY will acquire new rights of way in the name of either the CITY or OWNER through negotiation or condemnation and when acquired in CITY's name, shall convey same to OWNER by Director's Easement Deed. CITY's liability for such rights of way will be at the proration shown for relocation work involved under this Agreement. OWNER shall reimburse the CITY all costs for the easement. OWNER shall submit a Notice of Completion to the STATE within 30 days of the completion of the work described herein. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev/1/2009) THE ESTIMATED COSTS TO THE CITY FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $ 13,150.23 IN WITNESS WHEREOF, this Agreement has been executed as of the day, month and year first above written. VERIZON CALIFORNIA INC. By: William (Andy) King, Network Engineer CITY OF TEMECULA By: Ron Roberts, Mayor Approved as to form: By: Peter M. Thorson, City Attorney ATTEST: Susan W. Jones, MMC, City Clerk Page 4 of 4 UTILITY AGREEMENT NO. 08-UT -20707 District County Route KP (PM) E.A. 08 Riv 15,215 9.2/15.3 432700 FEDERAL AID NUMBER OWNERS FILE W00453- 8P0A0AU DATE August 29, 2011 FREEWAY Yes No CITYOF TEMECULA • PUBLIC WORKS DEPARTMENT NOTICE TO OWNER RW 13 -4 (REV 1/2009) NOTICE TO OWNER To: VERIZON 150 S. Juanita Street Hemet, CA 92543 Because of the City of Temecula's construction project: French Valley Parkway Interchange Project Which affects your facilities: Verizon Utility Facilities You are hereby ordered to: relocate your facilities designated on attached plans hereto and made part of this Notice. STORM WATER AND NON -STORM WATER: In accordance with State & Federal law, work on State highways requires compliance with current applicable regulations contained in the Department's Encroachment Permit, Encroachment Permit Manual, and Federal, State and local requirements and regulations including but not limited to National Pollutant Discharge Elimination System (NPDES), and State Water Resources Control Board (SWRCB). Compliance shall include, where required, the preparation and submission of a Storm Water Pollution Protection Plan (SWPPP) or Water Pollution Control Program (WPCP), and the approval of same by the appropriate review authority before any work shall start. Contact Department's District Encroachment Permit section for guidance on required advance lead times for such review & approval. Copies of the regulations may also be reviewed at the Caltrans Construction Website http.• / /www. dot. ca. qov/ hq/ construc /stormwater/storrnwaterf.htm Your work schedule shall be as follows: At the direction of City's Project Manager William Becerra, (951) 693 -3963. Mr. Becerra will contact you 48 hours before start of work. Notify William Becerra, City's Project Manager at telephone number (951) 693 -3963 and 72 hours prior to initial start of work, and 24 hours prior to subsequent restart when your work schedule is interrupted. Liability for the cost of the work is: 50% VERIZON per Section 5 of Master Contract executed January 8, 2004. cc: Caltrans RNV file Number 20707 ATTN: William (Andy) King By ���- � ?f-/( WILLIAM BECERRA Date Associate Engineer — CIP City of Temecula THIS NOTICE DOES NOT CONSTITUTE A PERMIT. OBTAIN AN ENROACHMENT PERMIT BEFORE STARTING WORK. For individuals with disabilities, this document is available in alternate formats. For information call (916) 654 -6410 or ADA Notice TDD (916) 654 -3880 or write Records and Forms Management, 1120 N. Street, MS -89, Sacramento, CA 95814 DISTRICT 08 COUNTY Riverside ROUTE 15,215 KP (PM) 9.2/153 EXPENDITURE AUTHORIZATION 432700 FEDERAL AID NUMBER OWNER'S FILE NUMBER C.O. No. 68286 FEDERAL PARTICIPATION On the Project [X] YES [ ] NO On the Utilities [ 1 YES [X] NO UTILITY AGREEMENT NO. 08-UT-20705 DATE: September 27, 2011 CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) The City of Temecula hereinafter called "CITY ", proposes to construct improvements in the Temecula area of Riverside County. The planned improvements will construct a new interchange, French Valley Parkway, at Interstate 15, between the existing Winchester Road and the Interstate- 15/Interstate -215 junction, hereinafter referred to as "PROJECT ". The PROJECT is a cooperative project between the City of Temecula and the State of California Department of Transportation, hereinafter referred to as "STATE ". CITY is the lead agency for the PROJECT and is acting as an agent of the STATE with respect to the PROJECT, under the terms of a cooperative agreement between STATE and CITY, with oversight provided to CITY by STATE. Eastern Municipal Water District Hereinafter called "OWNER ", owns and sewage facilities that are in conflict with the CITY's proposed freeway improvements within the limits of the CITY's PROJECT. The PROJECT requires relocation of OWNER's sewage system. To accommodate CITY's PROJECT, it is hereby, mutually agreed that: L WORK TO BE DONE II. LIABILITY FOR WORK The existing facilities are lawfully maintained in their present location and qualify for relocation at CITY expense under the provisions of Section 703 of the Streets and Highways Code. In accordance with Notice to Owner No. 20705 dated 08/29/2011, which is attached and made part hereto, OWNER shall relocate facilities. All work shall be performed substantially in accordance with OWNER's Plan No. 38720 dated April 04, 2011 consisting of 2 sheets, a copy of which is on file at the CITY, located at 41000 Main Street, Temecula CA 92590. Deviations from the OWNER's plan described above, initiated by either the CITY or the OWNER, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by the CITY and agreed to / acknowledged by the OWNER, will constitute an approved revision of the OWNER's plan described above and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by the OWNER of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the Revised Notice to Owner. III. PERFORMANCE OF WORK Page 1 of 4 OWNER agrees to perform the herein described work with its own forces or to cause the herein described work to be performed by the OWNER's contractor, employed by written contract on a continuing basis to perform work of this type, and to provide and furnish all necessary labor, materials, tools, and equipment required therefore, and to prosecute said work diligently to completion. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) IV. PAYMENT FOR WORK Page 2 of 4 UTILITY AGREEMENT NO. 08 -UT -20705 Use of out -of -state personnel or personnel requiring lodging and meal ( "per diem ") expenses will not be allowed without prior written authorization by STATE's representative. Requests for such permission must be contained in OWNER's estimate of actual and necessary relocation costs. OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work proposed. Per Diem expenses shall not exceed the per diem expense amounts allowed under the State's Department of Personnel Administration travel expense guidelines. Pursuant to Public Works Case No. 2001 - 059 determination by the California Department of Industrial Relations dated October 25, 2002, work performed by OWNER's contractor is a public work under the definition of Labor Code Section 1720 (a) and is therefore subject to prevailing wage requirements. OWNER shall verify compliance with this requirement in the administration of its contracts referenced above. The CITY shall pay its share of the actual and necessary cost of the herein described work within 45 days after receipt of five (5) copies of OWNER's itemized bill, signed by a responsible official of OWNER's organization and prepared on OWNER's letterhead, compiled on the basis of the actual and necessary cost and expense. The OWNER shall maintain records of the actual costs incurred and charged or allocated to the project in accordance with recognized accounting principles. It is understood and agreed that the CITY will not pay for any betterment or increase in capacity of OWNER's facilities in the new location and that OWNER shall give credit to the CITY for the accrued depreciation or "used life" of the replaced facilities and for the salvage value of any material or parts salvaged and retained or sold by OWNER. Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit progress bills for costs incurred not to exceed OWNER's recorded costs as of the billing date less estimated credits applicable to completed work. Payment of progress bills not to exceed the amount of this Agreement may be made under the terms of this Agreement. Payment of progress bills which exceed the amount of this Agreement may be made after receipt and approval by CITY of documentation supporting the cost increase and after an Amendment to this Agreement has been executed by the parties to this Agreement. The OWNER shall submit a final bill to the CITY within 360 days after the completion of the work described in Section I above. If the CITY has not received a final bill within 360 days after notification of completion of OWNER's work described in Section I of this Agreement, and CITY has delivered to OWNER fully executed Director's Deeds, Consents to Common Use or Joint Use Agreements as required for OWNER's facilities, CITY will provide written notification to OWNER of its intent to close its file within 30 days. OWNER hereby acknowledges, to the extent allowed by law, that all remaining costs will be deemed to have been abandoned. If the CITY processes a fmal bill for payment more than 360 days after notification of completion of OWNER's work, payment of the late bill may be subject to allocation and/or approval by the California Transportation Commission. The final billing shall be in the form of an itemized statement of the total costs charged to the PROJECT, less the credits provided for in this Agreement, and less any amounts covered by progress billings. However, the CITY shall not pay final bills which exceed the estimated cost of this Agreement without documentation of the reason for the increase of said cost from the OWNER and approval of documentation by CITY. Except, if the final bill exceeds the OWNER's estimated costs solely as the result of a revised Notice to Owner as provided for in Section I, a copy of said revised Notice to Owner shall suffice as documentation. In either case, payment of the amount over the estimated cost of this Agreement may be subject to allocation and/or approval by the California Transportation Commission. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) Page 3 of 4 UTILITY AGREEMENT NO. 08 -UT -20705 In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an Amended Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNER's final bill. Any and all increases in costs that are the direct result of deviations from the work described in Section I of this Agreement shall have the prior concurrence of CITY. Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date of the final payment and will be available for audit by State and/or Federal auditors. OWNER agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR, Chapter 1, Part 31, et seq., 23 CFR, Chapter 1, Part 645 and/or 18 CFR, Chapter 1, Parts 101, 201, et al. If a subsequent State and/or Federal audit determines payments to be unallowable, OWNER agrees to reimburse CITY upon receipt of CITY billing. V. GENERAL CONDITIONS All costs accrued by OWNER as a result of CITY's request of April 12, 2010 review, study and /or prepare relocation plans and estimates for the PROJECT associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement. If CITY's PROJECT, which precipitated this Agreement, is canceled or modified so as to eliminate the necessity of work by OWNER, CITY will notify OWNER in writing and CITY reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations of CITY under the terms of this Agreement are subject to the passage of the annual Budget Act by the State Legislature and the allocation of those funds by the California Transportation Commission. CITY will acquire new rights of way in the name of either the CITY or OWNER through negotiation or condemnation and acquired in CITY's name, shall convey same to OWNER by Director's Easement Deed. CITY's liability for such rights of way will be at the proration shown for relocation work involved under this Agreement. OWNER shall reimburse the CITY all costs for the easement. OWNER shall submit a Notice of Completion to the STATE within 30 days of the completion of the work described herein. CITY OF TEMECULA PUBLIC WORKS DEPARTMENT UTILITY AGREEMENT RW 13 -5 (Rev /1/2009) THE ESTIMATED COSTS TO THE CITY FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $ 53,105 IN WITNESS WHEREOF, this Agreement has been executed as of the day, month and year first above written. EASTERN MUNICIPAL WATER DISTRICT By: Paul D. Jones II, P.E., General Manager CITY OF TEMECULA By: Ron Roberts, Mayor Approved as to form: By: Peter M. Thorson, City Attorney ATTEST: Susan W. Jones, MMC, City Clerk Page4of4 UTILITY AGREEMENT NO. 08 -UT -20705 District County Route KP (PM) E.A. 08 Riv 15,215 9.2/15.3 432700 FEDERAL AID NUMBER OWNERS FILE C068286 DATE August 29, 2011 FREEWAY No Yes CITYOF TEMECULA • PUBLIC WORKS DEPARTMENT NOTICE TO OWNER RW 13-4 (REV 1/2009) NOTICE TO OWNER Number 20705 To: EASTERN MUNICIPAL WATER DISTRICT PO Box 8300 Perris, CA 92570 ATTN: Severino Mendoza Because of the City of Temecula's construction project: French Valley Parkway Interchange Project Which affects your facilities: Eastern Municipal Water District's Utility Facilities You are hereby ordered to: relocate your facilities designated on attached plans hereto and made part of this Notice. STORM WATER AND NON -STORM WATER (IF APPLICABLE). In accordance with State 8 Federal law, work on State highways requires compliance with current applicable regulations contained in the Department's Encroachment Permit, Encroachment Permit Manual, and Federal, State and local requirements and regulations including but not limited to National Pollutant Discharge Elimination System (NPDES), and State Water Resources Control Board (SWRCB). Compliance shall include, where required, the preparation and submission of a Storm Water Pollution Protection Plan (SWPPP) or Water Pollution Control Program (WPCP), and the approval of same by the appropriate review authority before any work shall start. Contact Department's District Encroachment Permit section for guidance on required advance lead times for such review 8 approval. Copies of the regulations may also be reviewed at the Caltrans Construction Website http: //www. dot. ca. Qov/ hq/construclstormwater /stormwaterl.htm Your work schedule shall be as follows: At the direction of City's Project Manager William Becerra, (951) 693 -3963. Mr. Becerra will contact you 48 hours before start of work. Notify William Becerra, City's Project Manager at telephone number (951) 693 -3963 and 72 hours prior to initial start of work, and 24 hours prior to subsequent restart when your work schedule is interrupted. Liability for the cost of the work is: 100% CITY OF TEMECULA per Section 703 of Streets and Highway Code. cc Caltrans R/W file By WILLIAM BECERRA Associate Engineer — CIP City of Temecula ADA Notice TDD (916) 654 -3880 or write Records and Forms Management. 1120 N. Street, MS -89. Sacramento, CA 95814 Date THIS NOTICE DOES NOT CONSTITUTE A PERMIT. OBTAIN AN ENROACHMENT PERMIT BEFORE STARTING WORK. For individuals with disabilities, this document is available in alternate formats. For information call (916) 654-6410 or Item No. 11 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Greg Butler, Director of Public Works /City Engineer DATE: September 27, 2011 SUBJECT: Approval of Amendment No. 2 to the Professional Services Agreement with Independent Roofing Consultants (IRC) for additional services needed for the Old Town Civic Center, Project Number, PW06 -07 PREPARED BY: Amer Attar, Principal Engineer Julie Dauer, Senior CIP Specialist RECOMMENDATION: That the City Council approve Amendment No. 2 to the Professional Services Agreement with IRC Technologies, Inc., dba Independent Roofing Consultants (IRC) for additional services needed the Old Town Civic Center, Project Number PW06 -07 in the amount of $1,000.00. BACKGROUND: On March 16, 2010 a professional services agreement with IRC was approved administratively for roofing and waterproofing inspection & testing for the Old Town Civic Center in the amount of $29,650.00. On November 09, 2010, City Council approved Amendment No. 1 for additional services associated with roofing and waterproofing inspection & testing services in the amount of $10,000.00. Amendment No. 2 is for the completion of a Verification Inspection to ensure all single -ply roofing items were properly repaired by the roofing contractor and for the preparation of a written report of findings and recommendations to be provided to the City of Temecula. This final inspection and report is to be performed for the total cost of $1,250.00. FISCAL IMPACT: The Old Town Civic Center Project is funded by Capital Project Reserves, Certificates of Participation, Development Impact Fees (DIF) Corporate Facilities and Public Art. IRC's original agreement and Amendment No. 1 totaled $39,650.00. The proposed amendment will increase the allowable compensation under the agreement by $1,000.00 for an agreement total of $40,650.00. Funding for this final work is available within the Civic Center accounts. ATTACHMENTS: 1. IRC Amendment No. 2 Approvals City Attorney Director of Finance City Manager "of fie, OtoL SECOND AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND IRC TECHNOLOGIES, INC. dba INDEPENDENT ROOFING CONSULTANTS follows: PW06 -07 CIVIC CENTER THIS SECOND AMENDMENT is made and entered into as of September 27, 2011 by and between the City of Temecula , a municipal corporation (hereinafter referred to as "City "), and IRC TECHNOLOGIES, INC. dba Independent Roofing Consultants, a Corporation, (hereinafter referred to as "Consultant "). 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 March 16, 2010 the City and Consultant entered into that certain Agreement entitled "Agreement for Consultant Services ", in the amount of Twenty Nine Thousand Six Hundred Fifty Dollars and No Cents ($29,650.00). b. On November 9, 2010, the City and Consultant entered into the First Amendment to that certain Agreement entitled "Agreement for Consultant Services," to increase the payment in the amount of Ten Thousand Dollars and No Cents ($10,000.00), and to revise the Notices section. c. The parties now desire to add scope of work, extend the term of the agreement to December 31, 2011, increase the payment in the amount of One Thousand Dollars and No Cents ($1000.00), and to amend the Agreement as set forth in this Amendment. 2. Section 1 of the Agreement entitled "TERM" is hereby amended to read as "This Agreement shall remain and continue in effect until tasks herein are completed, but in no event later than December 31, 2011 unless sooner terminated pursuant to the provisions of this Agreement. 3. Section 5 of the Agreement entitled "PAYMENT" at paragraph "a" is hereby amended to read as follows: 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 SECOND Amendment amount shall not exceed One Thousand Dollars and No Cents ($1000.00) for additional consultant services for a total Agreement amount of Forty Thousand Six Hundred Fifty Dollars and No Cents ($40,650.00). 1 4. Exhibit "A" to the Agreement is hereby amended by adding thereto the items set forth on Attachment "A" to this Amendment, which is attached hereto and incorporated herein as though set forth in full. 5. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 2 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA IRC TECHNOLOGIES, INC. DBA INDEPENDENT ROOFING CONSULTANTS (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) By: By: Ron Roberts, Mayor ATTEST: By: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: By: By: Peter M. Thorson, City Attorney CONSULTANT IRC TECHNOLOGIES, INC. DBA INDEPENDENT ROOFING CONSULTANTS Lynn Jardinico, Executive Vice President 1761 Garry Avenue, Suite 100 Santa Ana, CA 92705 (949) 476 -8626 3 Lynn Jardinico, Executive Vice President Jeff Starr, CFO FSM Initials: Date: ATTACHMENT A Attached hereto and incorporated herein is the additional scope of work and associated cost as provided by the Consultant. 4 Dublin Office 6955 Sierra Court, Suite 203 Dublin, CA 94568 (925)829-5030 7' (925) 829 -5032 F July 14, 2011 Mr. David McBride CITY OF TEMECULA 43200 Business Park Drive Temecula, CA 92598 Reference: Temecula Civic Center 41000 Main Street Temecula, CA VERIFICATION INSPECTION INDEPENDENT ROOFING CONSULTANTS Roofing & Waterproofing Solutions Santa Ana Office 1761 E. Garry Avenue, Suite 100 Santa Ana, CA 92705 (949) 476 -8626 T (949) 476 -9810 F Attachment A Las Vegas Office 3175 E. Warm Springs Road, Suite 121 Las Vegas, Nevada 89120 (702) 795 -8020 T (702) 795 -2271 F Independent Roofing Consultants will make an inspection of all single -ply roofing items to verify that the deficiencies were properly repaired by the roofing contractor. A written report of our findings and recommendations will be provided to the City of Temecula. The consideration for this service is: Verification Inspection $1,250.00 Provisions: The fee structure for this proposal is valid for ninety (90) days. If not executed within ninety (90) days, fees may or may not be revised at the sole discretion of Independent Roofing Consultants, Item No. 12 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Patrick Richardson, Director of Planning & Redevelopment DATE: September 27, 2011 PREPARED BY: Matt Peters, Associate Planner Approvals City Attorney Director of Finance City Manager Sief OtoL SUBJECT: Agreement for Consulting Services between the City of Temecula and RBF Consulting for an Environmental Impact Report (EIR) for the Temecula Creek Inn Specific Plan RECOMMENDATION: That the City Council approve an Agreement for Consultant Services with RBF Consulting in the amount of $268,250 to prepare an EIR for the Temecula Creek Inn Specific Plan. BACKGROUND: The Temecula Creek Inn currently consists of a 27 -hole golf course, 128 hotel rooms, a conference room, and a restaurant/clubhouse. The Temecula Creek Inn Specific Plan proposes five Planning Areas: Planning Area 1 includes an expansion of the existing hotel and the addition of a spa and banquet facilities totaling 153,837 square feet. Planning Area 1 also includes an option for 126 Active Adult units to replace existing hotel rooms. Planning Areas 2- 4 include a maximum of 409 single family and multi - family residential units ranging in size from 1,600 to 4,300 square feet. Planning Area 5 maintains 18 -holes of the existing 27 -hole golf course as a championship golf course. The development is on 305 acres located at 44501 Rainbow Canyon Road in the City of Temecula. To complete the necessary environmental review for the proposed Specific Plan, the Planning Department is requesting that the City Council enter into an agreement for consulting services with RBF Consulting for preparation of an EIR. FISCAL IMPACT: The attached professional services agreement to complete the EIR totals $268,250. All fees associated with the EIR contract will be paid by the applicant to cover the costs of the agreement. ATTACHMENTS: Agreement for Consulting Services 1. TERM TEMECULA CREEK INN ENVIRONMENTAL IMPACT REPORT THIS AGREEMENT is made and effective as of September 27, 2011, between the City of Temecula , a municipal corporation (hereinafter referred to as "City "), and RBF Consulting, a Corporation, (hereinafter referred to as "Consultant "). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: This Agreement shall commence on September 27, 2011, and shall remain and continue in effect until tasks described herein are completed, but in no event later than September 27, 2012, unless sooner terminated pursuant to the provisions of this Agreement. The City may, upon mutual agreement, extend the contract for one (1) additional one (1) year term. In no event shall the contract be extended beyond September 27, 2013. 2. SERVICES 4. PAYMENT AGREEMENT FOR CONSULTANT SERVICES BETWEEN CITY OF TEMECULA AND RBF CONSULTING 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. 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 Two Hundred Sixty -Eight Thousand Two Hundred Fifty Dollars ($268,250) for the total term of this 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 Manger. 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. 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 thirty (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 entitled "PAYMENT" herein. 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 ten (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. 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 of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula. 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. 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. a. 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 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 shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000). 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their officers, officials, employees and volunteers. Any insurance or self- insured maintained by the City of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, the Temecula Community Services District, and the Redevelopment Agency of the City of Temecula, their 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 insurers 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 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 affecting 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. 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 Attn: City Manager P.O. Box 9033 Temecula, CA 92589 -9033 Use this Address for a Delivery Service: City of Temecula or Hand - Deliveries ONLY Attn: City Manager 41000 Main Street Temecula, CA 92590 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 To Consultant: RBF Consulting Attn: Kevin Thomas 40810 County Center Dr., Suite 100 Temecula, CA 92591 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 that has participated in the development of this agreement or its approval 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 that has participated in the development of this agreement or its approval has any interest, whether contractual, non - contractual, financial or otherwise, in this transaction, the proceeds thereof, 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 AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. The City Manager is authorized to enter into an amendment on behalf of the City to make the following non - substantive modifications to the agreement: (a) name changes; (b) extension of time; (c) non - monetary changes in scope of work; (d) agreement termination. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By: By: ATTEST: Ron Roberts, Mayor Michael A. Tylman, Senior Vice- President By: By: Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONSULTANT RBF Consulting (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) Kevin Thomas, Vice President RBF Consulting Attn: Kevin Thomas 40810 County Center Dr., Suite 100 Temecula, CA 92591 951 - 506 -2074 951 - 676 -7240 KTHOMAS @RBF.com FSM Initials: Date: EXHIBIT A Tasks to be Performed The specific elements (scope of work) of this service include: A - Overall Project Approach and Key Assumptions: RBF Consulting has prepared this proposal to provide the professional services required to analyze the environmental impacts of the proposed Temecula Creek Inn Specific Plan and prepare a Environmental Impact Report (EIR) to support the Specific Plan adoption. Our proposal includes the preparation of technical studies required to complete the EIR and not covered by separate City or other contracts. We recognize the extensive amount of work already prepared by the applicant, and /or that will be prepared by the applicant as the Specific Plan and related entitlement documents move through the City's review process. We have prepared a scope of work that responds to the existing and anticipated information, providing for new technical studies and peer review of applicant studies as primary or optional tasks based on our preliminary review of available information. Please note that for each technical study, should the City deem it appropriate, RBF can shift our scope to have more or less technical review and /or can prepare new formal technical reports. B - Project Understanding: The development of the Temecula Creek Inn Specific Plan intends on expanding the existing Temecula Creek Inn into a master - planned 18 -hole golf course resort and community. The Project development area encompasses 305 acres located at 44501 Rainbow Canyon Road in the City of Temecula. The Specific Plan proposes five Planning Areas: Planning Area 1 includes an expansion of the existing hotel and the addition of a spa and banquet facilities totaling 153,837 square feet. Planning Area 1 also includes an option for 126 Active Adult units to replace existing hotel rooms, which will be analyzed throughout the EIR as an optional /alternative development scenario. Furthermore, the Specific Plan proposes Planning Areas 2 -4, which will include a maximum of 409 single family and multi - family residential units ranging in size from 1,600 to 4,300 square feet. The proposed Specific Plan Planning Area 5 maintains the existing 18 -hole golf course. The Specific Plan will require the following: Specific Plan for the Temecula Creek Inn General Plan Amendment for the Land Use and Circulation Elements Vesting Tentative Tract Map Development Plan C - PROPOSED SCOPE OF WORK: The EIR will be prepared as a "Project EIR" commensurate with the level of detail available in the Specific Plan and related entitlement documents. The EIR will address the Specific Plan land uses and optional active adult overlay in Planning Area 1. The overall intent of the EIR will be to provide construction level CEQA compliance for the project, and minimize or avoid the need for future CEQA review. Task 1.0 PROJECT INITIATION Task 1.1 Refine Scope of Services At the outset of the Project, the RBF Consulting team shall review the proposed Project and its progress in consultation with City staff. This task assumes that the EIR Project Manager (Kevin Thomas, CEP) and an Environmental Specialist will attend a meeting to discuss and refine the scope of services. Approximately eight (8) hours of staff time has been assumed for this task, which includes meeting preparation, minimal travel, and meeting time. Task 1.2: Analysis Parameters and Methodology The RBF Consulting team shall coordinate with City staff and legal counsel to determine appropriate parameters and methodology for performing the necessary impact analysis. RBF will discuss with appropriate City staff and legal counsel key issues to be addressed and develop a mutual understanding of key issues. As part of this process, RBF can make available a team of Community Stakeholder Experts who are exceptionally knowledgeable regarding issues, opportunities, and constraints in the Temecula Creek Inn Specific Plan area because of their past involvement in development and infrastructure projects in the Specific Plan Area. These include Bill Green and Mike Tylman. This special team will be available to work with City staff to address stakeholder concerns through the EIR process. RBF will obtain existing data and documents applicable to the Project, and discuss the proposed methodology, parameters, important Project schedule and work plan. The most important purpose of the discussions will be to clearly define City expectations for the planning process and to define basic objectives for the environmental analysis pursuant to CEQA. This information will serve as the foundation of the EIR and will be incorporated into the analysis, as appropriate. Approximately forty (40) hours of staff time have been assumed for this task. Task 1.3 NOP Distribution RBF has provided this task to assist City staff in the publication of the NOP, as it does not appear the NOP has been submitted to the State Clearinghouse. RBF will finalize the Initial Study with any minor updates since its completion, will prepare the NOP for City review, will work with City staff in developing an appropriate interest list, and will prepare a newspaper notice for City review. RBF assumes that a radius list will be provided by the applicant. RBF will work with City staff in identifying an appropriate Public Scoping Meeting time and location, which will be reflected in the NOP. RBF will distribute the Initial Study /NOP to the interest list, City Hall, City library, and State Clearinghouse (up to fifty copies total). The NOP will be sent to the radius list, and will be posted with the County Clerk. This Task also includes the required SB18 consultation. RBF assumes that the City will pay any required newspaper notice fees. RBF will provide the City with a digital copy of the Initial Study /NOP for posting on the City's website. Task 1 Public Scoping Meeting RBF will assist City staff in preparing the powerpoint for the Public Scoping Meeting, as well as a sign -in sheet, comment cards and extra copies of the IS /NOP. RBF assumes that any wall - sized exhibits will be provided by the applicant. RBF will participate in the presentation as determined appropriate by City staff, and will provide a summary of public scoping meeting comments for use in the El R. Task 2.0 Technical Studies and Peer Review RBF proposes to prepare the following technical studies, or to provide peer review of applicant prepared studies where appropriate. Please note that RBF is flexible in this regard, in that, should City staff determine, we can provide peer review where technical studies are noted, or rely on City staff for review and approval of applicant studies. We have provided for additional technical study preparation or peer review where it is not clear that this is required, such as water /wastewater analysis and a Water Supply Assessment (which could be provided by the applicant and Rancho California Water District, respectively, then reviewed by City staff as part of the Specific Plan, Development Plan and VTTM review process). Task 2.1: Air Quality Analysis Existing Conditions. The Project site is within the jurisdiction of the South Coast Air Quality Management District (SCAQMD) located within Source Receptor Area 26 (Temecula Valley). RBF will describe the meteorological conditions and discuss ambient air monitoring data collected for the nearest monitoring station (Lake Elsinore). A description of the regulatory framework relating to air quality (i.e., California Clean Air Act, Air Quality Management Plan, etc.) will also be provided. Construction - Related Emissions. Based on data provided by the Project applicant, emissions generated during demolition, earthwork, and building construction will be quantified. A general description of the major phases of construction and their timing will be required. The air pollutant emissions during construction will be compared to the SCAQMD Regional and Local Significance Thresholds. RBF will also qualitatively discuss naturally occurring asbestos impacts. Operational Air Emissions. RBF will quantify operational emissions and provide a comparison to the SCAQMD regional thresholds of significance, based on data provided by the applicant and the TIA. The emissions will be quantitatively derived utilizing the CaIEEMod model. Primary sources of emissions will be related to area sources and local /regional vehicle miles traveled. Project consistency with the SCAQMD's 2007 Air Quality Management Plan for the South Coast Air Basin will be addressed. Localized Emissions. Consistent with the SCAQMD environmental justice program and Localized Significance Threshold (LST) methodologies, RBF will identify impacts using the SCAQMD's localized thresholds, based on data provided by the applicant and TIA. RBF will identify mitigation measures, if necessary, to reduce emissions to less than significant levels. Should Project traffic warrant Carbon Monoxide Hotspot modeling, RBF will model intersections utilizing the BREEZE ROADS model. Task 2.2: Climate Change RBF will review the land use data (and other information available from the applicant) and will prepare an inventory of the greenhouse emissions (i.e., nitrous oxide, methane, and carbon dioxide) from both direct and indirect sources. The emissions inventory will be quantified with the CaIEEMod model. The analysis will determine the Project's impact by determining if it is consistent with the Assembly Bill 32 mandate of reducing GHG's beyond "Business as Usual" conditions. The GHG reduction associated with the Project's design features will be quantified utilizing the California Air Pollution Control Officers Association (CAPCOA) methodology (Quantifying Greenhouse Gas Mitigation Measures — A Resource for Local Government to Assess Emission Reductions from Greenhouse Gas Mitigation Measures [September 2010]). RBF will analyze the energy implications of the Project pursuant to Public Resources Code Section 21100(b)(3) and Appendix F of the CEQA Guidelines. These statutes and guidelines require CEQA compliance documentation to describe, where relevant, the wasteful, inefficient, and unnecessary consumption of energy caused by a project. The analysis will analyze energy consumption associated with short -term construction activities, long -term operations, buildings, and transportation. Additionally, the assessment of environmental impacts on energy resources will include mitigation measures to reduce inefficient and unnecessary consumption of energy. Task 2.3: Cultural Resources RBF has retained the services of BCR Consulting to review and submit comments regarding the adequacy of the Phase 1 Cultural Resources Survey of the Temecula Creek Inn Property, Temecula California (March 2006). BCR Consulting will thoroughly analyze the document for adherence to standard cultural resources requirements under CEQA as required by the City of Temecula. A letter report and comments matrix will be produced and submitted that will highlight any errors and /or omissions to the cultural resources document. The report will offer recommendations to bring the document into compliance with any appropriate requirements. Cultural Resources Assessment. It is our understanding that Helix Environmental Planning, Inc. completed a Cultural Resources Assessment in March 2006 for the Project property. This study noted the presence of nine cultural resources, including three prehistoric archaeological sites, two prehistoric isolated artifacts, two historic structures, one historic building (a Temecula Valley Historical Society Landmark), and one resource of unknown disposition. Per CEQA Section 5024.1, since the previous study is over five years old, the survey and report will be updated. BCR Consulting will conduct a records search for cultural resources (archaeological and historical), which will be conducted through the Eastern Information Center located at the University of California, Riverside. The objective of this archival research will be to update the status and extent of previous surveys in the subject property area. This research will be supplemented by a detailed review of the 2006 assessment to note what types of resources might be expected to occur within the subject property boundaries. In addition, BCR Consulting will perform research at the historic map collection in the University of Riverside's Science Library, and at other local libraries and repositories as appropriate to assist in developing the property's land use history. A field survey will be conducted by BCR Consulting that will cover 100 percent of the accessible subject property. The field survey will be performed by field personnel trained to recognize cultural resources (prehistoric and historic archaeological and historic architecture). The field crew will walk parallel transects 15 — 20 meters apart across the subject property. The purpose of the field visit is to identify any previously unidentified resources and to update site records for each of the previously recorded cultural resources noted above. Any resources recorded during the field survey will be documented on DPR 523 forms. If necessary, drafts will be submitted to the Easter Information Center for approval, and will subsequently be assigned with permanent primary number of trinomial, per requirements of the Office of Historic Preservation's guidelines. Upon approval of the forms, and receipt of the relevant primary number or trinomial, the forms will be included in an appendix of the technical report. Upon completion of the field study, BCR Consulting will prepare a technical report that will be acceptable to the City. This will be a complete technical report presenting the findings of the research and survey. The report will include a Project description and relevant maps and photos, as well as methods, results, and recommendations sections. This scope of work and budget stipulate the presence of a maximum of nine cultural resources present within the subject property boundaries. These include three prehistoric archaeological sites, two prehistoric isolated artifacts, two historic structures, one historic building, and one resource of unknown disposition, all of which were noted during the previous study. As a result, BCR Consulting will produce a report of positive findings. The report will include the appropriate DPR 523 forms for documentation as an appendix. This scope of work allows for Native American Consultation assistance, as necessary. At the direction of the City, BCR Consulting will contact the Native American Heritage Commission for a list of Native American tribes to contact. BCR Consulting will then contact all entities listed to discuss whether any tribe or individual has knowledge of cultural resources within the subject property. During this task, BCR Consulting will send one letter to the NAHC and one mailing to each listed entity. One follow up phone call will be made per tribe and /or individual listed. The results of these communications will be included in the report. If the City deems this task unnecessary (i.e. if the City conducts it "in house "), it will not be performed or invoiced. Task 2.4: Noise /Acoustical Analysis Existing Conditions. RBF will review applicable noise and land use compatibility criteria for the Project area. Noise standards regulating noise impacts in the noise standards for the City of Temecula will be discussed for land uses on and adjacent to the project sites. RBF will conduct a site visit and conduct short -term noise level measurements along the project area. Noise monitoring equipment will consist of a Bruel & Kjaer model 2250 sound level meter (SLM) equipped with Bruel & Kjr pre - polarized freefield microphone. The results of the noise measurements will be post - processed and graphically illustrated with the Bruel & Kjaer Noise Explorer software. The noise monitoring survey will include short -term measurements at up to six separate locations to establish baseline noise levels in the Project area. Construction- related Noise. Construction would occur during implementation of the proposed Project. Noise impacts from construction sources will be analyzed based on the equipment, construction task, equipment type, horsepower, load factor, and percentage of time in use. The construction noise impacts will be evaluated in terms of maximum levels (Lmax) and hourly equivalent continuous noise levels (L and the frequency of occurrence at adjacent sensitive locations. Analysis requirements will be based on the sensitivity of the area and the City's Noise Ordinance specifications, based on information provided by the applicant. The traffic noise levels from construction workers accessing the site will be qualitatively evaluated. Stationary Noise Sources. Stationary noise sources will be evaluated based on the City's land use compatibility standards and information provided by the applicant. Compliance with applicable noise standards will be evaluated, with recommended mitigation measures included where appropriate. Noise associated with potential blasting activities at the Liberty Quarry will also be evaluated. Operational Noise Sources. The proposed Project is anticipated to generate vehicular traffic trips from future growth. Noise impacts from vehicular traffic will be assessed using the U.S. Federal Highway Traffic Noise Prediction Model (FHWA -RD -77 -108). The analysis will focus on noise impacts associated with the development of the proposed Project. Model input data will include average daily traffic volumes, day /night percentages of autos, medium and heavy trucks, vehicle speeds, ground attenuation factors, and roadway widths. The 24 -hour weighted Community Noise Equivalent Levels (CNEL) will be presented in a tabular format. A particular emphasis will be placed on traffic noise associated with Rainbow Canyon Road and Interstate 15. Task 2.5; Traffic Impact Analysis RBF will prepare traffic impact analysis for the proposed Temecula Creek Inn Specific Plan. The existing Temecula Creek Inn includes 130 hotel rooms, meeting rooms, special event space, and a 27 -hole golf course. The project plans to construct 99 additional hotel rooms, 409 dwelling units, and removal of 9 of the 27 -holes from the golf course. The project is located at 44501 Rainbow Canyon Road in the City of Temecula. The specific plan consists of the following five Planning Areas: • Planning Area 1: expansion of existing hotel and the addition of a spa and banquet facilities totaling 153,837 square feet; • Planning Area 2 -4: maximum of 409 single family and multi - family residential units ranging in size from 1,600 to 4,300 square feet; and • Planning Area 5: maintain the 18 -hole golf course. Access for the project is planned through new and modified intersections on Rainbow Canyon Road. A new intersection is planned just south of the bridge crossing the creek, and the Golf Resort Driveway /Rainbow Canyon Road intersection will be modified to a 4 -way intersection. A new intersection is also planned serving residential uses southerly of the Golf Resort Driveway. Rainbow Canyon Road transitions to a slower speed mountainous roadway south of the existing Golf Resort Driveway, and the project plans to realign the roadway to eliminate the slow speed curves within the project area. The traffic study will assess the impacts of the proposed project by analyzing forecast trip generation, distribution, and assignment of the proposed project on the study area roadway /intersection circulation system. If necessary, mitigation measures for identified project - generated traffic impacts will be recommended in accordance with applicable agency performance criteria and thresholds of significance. This scope of work has been developed using the Traffic Scoping Study for Temecula Creek Inn (Urban Systems Associates, Inc., March 2, 2011) as an informational tool. Additionally this scope is based on supplemental guidance provided by City staff. This scope of work is structured to satisfy typical traffic analysis procedures as required by the County of Riverside Transportation Department, and the Caltrans Guide for the Preparation of Traffic Impact Studies (State of California Department of Transportation, December 2002). RBF transportation staff scheduled to work on this project have visited the project site, and are familiar with the City of Temecula. We have worked on the I- 15/SR -79 South project for the City, and were involved in the recent Urban Land Institute Technical Assistance Panel for the Jefferson Corridor. Additionally, we have provided transportation planning support to private sector clients in the area, as well as direct support to the City of Menifee and County of Riverside. We recognize the City is tasked with accommodating development within the City while maintaining the quality of life for residents, of which traffic is a key topic. Balancing the needs of growth with traffic and public infrastructure is further complicated by the relationship in the area with the County of Riverside and the Pechanga Band of Luiseno Indians. Transportation analysis for this project will be conducted with full understanding of these dynamics with a goal of positioning the project and City for a successful outcome that is amenable to key stakeholders. Study Scenarios The traffic analysis will identify traffic operations under the following scenarios: • Existing Conditions; • Forecast Existing Plus Project Conditions; • Forecast Near -Term Year Plus Cumulative Projects Without Project Conditions; • Forecast Near -Term Year Plus Cumulative Projects With Project Conditions; • Forecast Buildout Year Without Project Conditions; • Forecast Buildout Year With Project Conditions. The near -term analysis scenarios listed above are included to account for cumulative projects within the study area that may influence traffic operations and satisfy CEQA requirements. The buildout year analysis scenarios listed above are included to address the General Plan Amendment required of the project. Study Area As part of the analysis, RBF will analyze up to twelve (12) study intersections during the a.m. peak period (7:00 a.m. to 9:00 a.m.) and the p.m. peak period (4:00 p.m. to 6:00) on a typical weekday (Tuesday, Wednesday, or Thursday). Additionally, the analysis study area will include up to ten (10) study roadway segments. The precise study intersections and roadway segments will be identified based on discussions with City Staff. This scope of work does not assume traffic count data by vehicle classification. The study intersections are expected to include the following nine (9) study intersections identified in the supplemental Traffic Scoping Study for Temecula Creek Inn (Urban Systems Associates, Inc., March 2, 2011): 1. 1 -15 Southbound Ramps /Temecula Parkway; 2. 1 -15 Northbound Ramps /Temecula Parkway; 3. Bedford Court/Temecula Parkway; 4. La Paz Street/Temecula Parkway; 5. Pechanga Parkway /Temecula Parkway; 6. Jedediah Smith Road /Temecula Parkway; 7. Pechanga Parkway /Rainbow Canyon Road; 8. Golf Resort Driveway /Rainbow Canyon Road; and 9. Muirfield Drive /Pechanga Parkway. Additionally, the study roadways are expected to include the following seven (7) study roadway segments identified in the supplemental Traffic Scoping Study for Temecula Creek Inn (Urban Systems Associates, Inc., March 2, 2011): 1. Temecula Parkway between 1 -15 Northbound Ramps and Bedford Court; 2. Temecula Parkway between La Paz Street and Pechanga Parkway; 3. Temecula Parkway between Pechanga Parkway and Jedediah Smith Road; 4. Temecula Parkway east of Jedediah Smith Road; 5. Pechanga Parkway between Temecula Parkway and Rainbow Canyon Road; 6. Pechanga Parkway between Rainbow Canyon Road and Muirfield Drive; and 7. Rainbow Canyon Road south of Pechanga Parkway. RBF does not anticipate utilizing the raw traffic counts included in the March 2nd Scoping Study. However, RBF will work with the County of Riverside and City staff to determine if traffic counts are available in other studies such as the Wine Country Community Plan Traffic Analysis. Therefore, this scope of work assumes new traffic data collection at up to twelve (12) study intersections and ten (10) study roadway segments. Where possible, the additional cost of data collection will be minimized. RBF will visit the study intersections and roadways to document geometric configurations of the study area and confirm geometric data where already available in other informational documents. Forecast Future Year Traffic Volumes Near -Term year analysis will require coordination with City of Temecula and County of Riverside staff to identify a list of cumulative projects for inclusion in the traffic impact analysis. The study will identify the number of daily and peak hour trips forecast to be generated by approved /pending projects, using trip generation rates contained in Trip Generation (Institute of Transportation Engineers, 8th Edition, 2008) or other source as directed by agency staff. RBF is currently working with the County of Riverside to evaluate the Wine County Community Plan, and inclusion of this cumulative project is expected. Detailed Wine County project trip generation and assignment data is available with County staff. RBF will manually derive cumulative projects trip generation and assignment data, which will be reviewed and approved by applicable agency staff for use in the analysis. This scope of work assumes RBF will derive trip distribution and assignment at up to ten (10) cumulative projects provided by agency staff. Forecast buildout conditions will be determined based on the Riverside County Traffic Analysis Model (RIVTAM). RBF will work directly with the County to run the model and provide the General Plan Buildout model runs without and with proposed project. The regional modeling data may already be available with the County of Riverside utilizing modeling prepared for the Wine County Community Plan Traffic Analysis which is under preparation by the County. We have provided assistance and advice to the County as they have developed their traffic analysis of the Wine County Community Plan, and suggested coordination with the City of Temecula for mitigation solutions specific to shuttle transport of Wine Country visitors from designated parking areas such as the City of Temecula City Hall and parking structure. This scope of work anticipates some regional modeling is still required to determine the project trip distribution. Therefore, a select zone run will be modeled to identify project trip distribution. The estimated cost for regional traffic modeling for trip distribution purposes is assumed in this scope and fee. Proposed Project Trip Generation, Trip Distribution, & Assignment The traffic study will identify the number of daily and peak hour trips forecast to be generated by the proposed project, using trip generation rates contained in Trip Generation (Institute of Transportation Engineers, 8 Edition, 2008). Trip generation will be refined if needed accounting for compatibility (internal trip capture) of land uses within the Master Planned Community. Trip distribution of traffic associated with the proposed project will be based on the regional traffic model, which accounts for the local circulation system, future land uses, and attraction to other land uses. Trip generation and trip distribution will be reviewed with City staff for concurrence prior to completion of the draft traffic study. Level of Service The analysis will assess the forecast traffic impacts of the proposed project at the study intersections and roadway segments for the analysis scenarios identified above in the study scenarios section. Synchro software analysis will document operation of the study intersections and roadway segments both with and without the proposed project to identify potential project - related traffic impacts using the Highway Capacity Manual (HCM) analysis methodology for the study intersections and the Volume to Capacity Ratio (V /C) analysis methodology for study roadway segments. The City of Temecula's Traffic Impact Analysis Guidelines (May, 2011) states that LOS "D" or better shall be maintained at all study intersections and LOS "E" or better shall be maintained at all study roadway segments. It should be noted the City of Temecula General Plan Update Circulation Element Traffic Study (Austin -Foust Associates, Inc., December 2004) utilizes the Intersection Capacity Utilization (ICU) analysis methodology to evaluate intersections. If the analysis shows the proposed project will significantly impact an intersection based on applicable agency thresholds of significance, mitigation measures will be recommended in accordance agency performance criteria. The analysis will also document forecast operating conditions after application of the recommended mitigation measures. A potential mitigation measure identified in the applicant traffic scoping study is use of Adaptive Traffic Control Systems (ATCS) for use in improving operations without substantial infrastructure widening or modifications. ATCS is utilized at multiple jurisdictions, including the City of Los Angeles to link the centralized City Traffic Management Center (TMC) with the circulation system and associated traffic signals. ATCS can improve traffic operations through enhanced management of the traffic signals to rapidly modify timing in response to actual traffic volume needs at linked intersections. Riverside County Congestion Management Program Analysis The Riverside County Transportation Commission (RCTC) has developed a Congestion Management Program (CMP) with varying methods and strategies to meet the intent of the CMP legislation enacted in 1990. The RCTC CMP focuses on an Enhanced traffic monitoring system, and does not require local agencies to include Traffic Impact Analyses (TIA's) for proposed projects. Since RCTC does not require preparation of TIA's for proposed projects, no CMP analysis is included in this scope of work. State Highway Analysis The purpose of the State of California Department of Transportation (Caltrans) Guide for the Preparation of Traffic Impact Studies is to provide a safe and efficient State Highway transportation system, provide consistency and uniformity in the identification of traffic impacts generated by local land use proposals, and consistency and equity in the identification of measures to mitigate the traffic impacts generated by land use proposals. The Caltrans traffic studies guide requires review of substantial individual projects, which might on their own impact the State Highway transportation system. The following two (2) State Highway intersections will be analyzed and prepared in accordance with the Caltrans Guide for the Preparation of Traffic Impact Studies (State of California Department of Transportation, December 2002): 1. I -15 Southbound Ramps /Temecula Parkway; and 2. 1 -15 Northbound Ramps /Temecula Parkway. No State Highway mainline or ramp analysis is assumed in this scope of work. The analysis will assess the proposed project forecast traffic impact during the a.m. peak hour and p.m. peak hour at the State Highway study intersections. The study intersections will be analyzed for the scenarios discussed above in the Study Scenarios Section. Traffic analysis will be conducted using the HCM 2000 analysis methodology. If the State Highway analysis shows the proposed project will significantly impact a State Highway study intersection based on Caltrans thresholds of significance, mitigation measures will be recommended in accordance with Caltrans performance criteria. The analysis will also document forecast operating conditions after application of recommended mitigation measures. Site Access & Collision Review Since Rainbow Canyon Road is planned for realignment, a site access review will be prepared for the new and modified intersections serving the proposed project. Forecast traffic volumes will be identified at the new /modified intersections, and RBF will provide recommendations for the traffic control and intersection configuration. Stop - controlled intersections are expected to remain adequate for the project intersections, and dedicated turn lanes may be required to minimize the potential for collisions as motorists maneuver at the intersections. Additionally, RBF will review collision history on Rainbow Canyon Road within the project study area, and will identify trends, if any, that may be affected by the proposed project. Collision history will be analyzed for the recent three -years of available data. Sight distance at the existing Golf Resort Driveway /Rainbow Canyon Road intersection will be evaluated. Through review of the proposed project site plan (in AutoCAD format provided by applicant), the sight distance provided for motorists at the intersection will be identified, and reviewed for adequacy using the City standards based on the roadway design speeds. The collision review is expected to be utilized in the CEQA review for consideration of potential hazardous roadways, and the project changes /modifications to any existing hazards. Meetings /Conference Calls This scope of work assumes RBF traffic analysis staff will participate in meetings /conference calls based on direction from the Client. Additionally, this scope of work assumes preparation and attendance of three (3) public hearings for consideration of the project and environmental document. Therefore, for the purposes of this scope of work, a total of thirty -four (34) hours have been budgeted for meeting /conference call participation. Task 2.6: Preliminary Drainage Study Review RBF will conduct a peer review of the "Preliminary Drainage Study" (March 2011) prepared by Latitude 33 Planning & Engineering to support the Temecula Creek Inn Specific Plan EIR. The review will include a limited evaluation of the methodologies, assumptions, and conformance with local and County Hydrology and water quality guidelines. RBF will provide a technical memorandum including evaluation results and recommendations to satisfy the drainage requirements to support the Specific Plan EIR. Task 2.7; Updated Biological Technical Report The Western Riverside County MSHCP states compliance with the plan is sufficient to mitigate impacts to covered species as required under the CEQA process only up to the level of a mitigated negative declaration (MND). The Plan specifically calls out the need to do additional analysis and mitigation, if required, for projects requiring the preparation of an environmental impact report (EIR). For the Temecula Creek Inn Specific Plan area, the applicant has submitted a Heritage Tree Survey, a Jurisdictional Delineation, the MSHCP required Habitat Assessment to address the standards MSHCP consistency issues as well as the possible presence of burrowing owl; a HANS analysis to address conservation requirements; and a DBESP analysis to address minor impacts to Riparian /Riverine habitats. The Regional Conservation Authority (RCA) has reviewed the reports and issued a clearance letter stating that the project, as proposed, is consistent with the Plan's requirements and that there are no conservation requirements for the site. The RCA also concurred with the DBESP analysis which presented information that limited potential impacts to Riparian /Riverine to 0.19 acres with no identified impacts to Pechanga or Temecula Creeks and the conclusion of an overall improvement to the watershed. Most of the above mentioned analysis and conclusions were limited to the immediate specific plan area which was defined as a redesign of a previously developed area. In order to provide a sufficient level of biological information for the EIR, the existing biological database needs to be expanded. RBF will provide additional biological information as follows: 1) Conduct an extended literature review, including a search of the CA Natural Diversity Database, to identify potentially occurring, sensitive biological resources beyond those covered by the County's MSHCP; 2) Review current aerial photographs of both the project site, as well as identified offsite improvements areas; 3) Carefully review proposed alignments of Rainbow Canyon Road for consistency against the approved improvements under the County's MSHCP and provide an MSHCP consistency (equivalency) analysis; 4) Conduct a reconnaissance level review of the project site to verify the baseline conditions identified by the applicant's reports; 5) Conduct a habitat assessment of all un- surveyed project areas (if any) and all identified offsite project improvement areas, including realignments for Rainbow Canyon Road; 6) Verify potential impacts to the Riparian /Riverine habitats (including those identified in the provided jurisdictional delineation and DBESP) and any other identified areas during the reconnaissance level review of the project site, as well as the habitat assessment of offsite project areas, noted above in item 4; 7) Conduct a spot check of tree locations and overall health conditions, as defined by the applicant's Heritage Tree Survey, and assist City staff in evaluating the feasibility of preserving or relocating heritage trees based upon review of forthcoming detailed site grading plans; 8) Address Fuel Modification Zone issues in terms of effects upon native habitat and proposed plant palette (working with RBF's landscape architect and City staff); 9) Address on -site and edge conditions associated with the project, including potential biological resource effects upon the existing Temecula Creek, such as Urban Wildlife Interface, and water quality /runoff associated with golf course maintenance practices and urban runoff; 10) Prepare a comprehensive biological technical report that will serve as an umbrella report for: a) presenting the results of previously provided MSHCP reports, b) addendums to the MSHCP process (if required —the intent would be to preserve the integrity of the already acquired MSHCP clearances); c) accurately defining the biological baseline for both the project site, as well as all offsite improvements areas; d) summarizing potential impacts to sensitive biological habitats and /or species; e) clearly noting required clearances -both existing and yet to be acquired; and f) identifying mitigation measures that may be required to reduce impacts to below a level of significance 11) RBF's biologist will be available to attend City staff and public meetings on a time and materials basis, with an initial budget of 16 hours included in this fee. Task 2.8: Off - site Utility Review The following task would be provided to assess existing conditions, project impacts and recommended off -site improvements related to water and sewer service. RBF will work closely with City staff, and review available information provided by the applicant (the administrative Draft Specific Plan notes preparation of forthcoming water /sewer capacity analyses which, if made available in a timely fashion, could facilitate this work effort). Document Research RBF will utilize base knowledge of Eastern Municipal Water District's (EMWD) existing sewer system and Rancho California Water District's (RCWD) existing water system obtained from master plans, planning studies, Urban Water Management Plans and other pertinent documents. It is RBF's understanding that EMWD's offsite sewer system is currently deficient in capacity. Any additional loading into the sewer system project tributary projects will need to address this capacity issue. Meeting and Coordination For this task, an initial meeting with EMWD and RCWD would be of assistance in understanding the current capital improvement plans for future water and sewer service in the project's service area. This task includes coordination efforts between RBF, City, EMWD and RCWD staff for the planning stages of the Project. Eight (8) hours of meeting time have been budgeted for this task. Additional meeting time can be provided on a time and materials basis. Water Demand and Wastewater Flow Estimate RBF will prepare water demand estimates projecting ultimate average, maximum -day, and peak hour flows under normal operating conditions, and coordinate with the governing fire authority to obtain the emergency fire flow requirements. We understand a secondary irrigation system utilizing non - potable reclaimed is currently used on -site. A separate irrigation demand estimate, will be calculated for the general landscape areas. We will also prepare wastewater flow estimates projecting ultimate average and peak flows. Conceptual Master Planning RBF will provide conceptual pipeline sizing for both the water and sewer systems for the planned project area. Current water lines (potable and reclaimed water) currently serve the development area. Any water deficiencies are unknown at this time. It is assumed that pipelines can be connected to the nearest main and routed for on -site distribution. Sewer conveyance is also present on -site, however, the current off -site system for the entire Pala Basin is deficient in several aspects. RBF will also provide up to three off -site sewer alternatives for the project. This will incorporate the knowledge obtained from the meeting tasks and document research stated earlier. This task assumes a conceptual hydraulic model analysis performed under foreseeable critical operating conditions for the domestic water supply such as during peak summer demands (both nighttime irrigation and daytime domestic), and emergency fire flow, to ensure adequate operation in compliance with RCWD criteria and standards. RBF will also perform analysis to verify pipe sizing and alignment for the proposed sewerage collection system to ensure adequate operation in compliance with EMWD standards. Further Plan of Service studies provided to either District for review would be an additional scope item. Summary Reports RBF will summarize the findings of the planning analyses for the above task and following conceptual planning studies. It is anticipated that one report document will be provided for the Specific Plan. Each document report will include exhibits showing piping required for water, sewer, and non - potable irrigation lines. Tables providing demands or flow estimates, and appendices to include computer analysis results and operating standards are included. Assumptions /Exclusions: • This scope excludes sewer flow monitoring at manholes or water hydrant flow testing. • It is assumed that existing and conceptual grades will be provided. • Digital files for aerial views will be provided for exhibit and analysis purposes. • RCWD and EMWD will provide master planning documents for review. TASK 3.0 SCREENCHECK EIR RBF shall meet with City staff on a monthly basis (if requested), as well as technical consultants when needed, to review development of a screen check EIR and progress of technical studies (see Task 7.2 for assumptions). RBF shall monitor and advise the City on the development of EIR chapters, including a Project description, environmental settings, issues of environmental concerns, evaluation of environmental impacts, identification of potential mitigation measures, analysis of appropriate project alternatives, mandatory CEQA topics, as well as reference sources. The Screencheck EIR will assess the Project's significant environmental effects, any unavoidable environmental impacts, effects that can be mitigated, and effects not found to be significant. The cumulative and growth inducing impacts of the Project will also be evaluated. Task 3.1; EIR Table of Contents and Section Format To ensure the City's concurrence with the proposed format and content of the environmental document, RBF will prepare a Table of Contents and a representative EIR section outline that will be submitted to City of Temecula Planning Staff for review and approval. The intent of this task is to facilitate City staff input and feedback into the environmental assessment process and allow City staff to comment on the style and content of the document so as to minimize review and revision time for the Screencheck Draft EIR. Task 3.2: Land Use Plan Review and Infrastructure Assessment As part of Task 1.1 above, RBF will review the Specific Plan and available documents from the applicant and City to identify initial areas of concern or data gaps. RBF has provided for preparation or peer review of certain technical studies, such as traffic, water, wastewater, and drainage. RBF's engineering and community planning staff will assist in the review and incorporation of the land use and infrastructure information into the Project Description (Task 3.6). Should the City desire additional planning, environmental or engineering support services, these can be provided under separate scope and fee (to be discussed during Task 1.1 above and here, during technical study and EIR initiation phases). Task 3.3: Field Reconnaissance As part of the early scoping for the Project, RBF will conduct a field study of the Study Area, reviewing existing land use and environmental conditions and taking photos for use in the EIR and technical studies. This site visit will be combined with technical study and peer review efforts above to coordinate data collection and project review, including site photos, existing noise conditions, and field verification of conditions noted in the technical reports or required for technical study or peer review completion. Task 3.4: Executive Summary RBF will provide an Executive Summary for the EIR including a Project Summary, Environmental Summary, Summary of Project Alternatives, Areas of Controversy, and Issues to be Resolved. The Environmental Summary will include impacts, mitigation measures, and unavoidable adverse impacts in a columnar format. Task 3.5: Introduction and Purpose Project organization and need for action will be explained in the Introduction and Purpose section of the EIR and will contain a discussion on the purpose of the EIR, information relating to the Project's compliance with the California Environmental Quality Act (CEQA) (including sections of CEQA which apply to the Project, as proposed), Scope of the EIR, and Documentation Incorporated by Reference. Task 3.6: Project Description The Project Description section of the EIR will detail the Study Area's location and boundaries, background and history, community characteristics, Specific Plan objectives, implementation program, agreements, and permits and approvals which may be subsequently required, based on information provided by the City and /or applicant. The Project Description will address the Temecula Creek Inn Specific Plan as defined at the kick -off meeting and identify the Project's key components and features, including a thorough discussion of proposed entitlements necessary to implement the Project. The Project Description will also include a generalized discussion of existing conditions by topical area sufficient to support the discussion of community characteristics including land use, community character, natural resources, recreational features including trails and bikeways, and existing infrastructure and circulation. The Project Description also will identify and generally describe the infrastructure changes and improvements that would be required to accommodate the level of development contemplated by the proposed Project based on information provided by the applicant, City or technical study tasks in this scope of work. The Project may require certain offsite improvements, most notably related to traffic, water, wastewater or drainage. These offsite improvements, if required for the Project" and not City -wide improvements, will require analysis in the EIR. This proposal includes qualitative evaluation of offsite improvements; however, should the offsite improvements require supplements or revisions to applicant or RBF technical reports (such as biological or cultural resource assessments), these can be provided under separate scope and fee. Task 3.7: Environmental Analysis The following scope and associated fee is based on receiving fully vetted technical data from the City, the applicant, and its consultants ( "released" to RBF for use in the EIR). If substantive modifications to the original Project Description are made following authorization of RBF Consulting to proceed with the EIR, revisions to this Scope of Work and cost estimate may be required. Throughout the EIR, RBF will evaluate the "Project ", including the optional active adult use in Planning Area 1 (provided as a separate subsection in each Impact discussion). For each topical analysis section, RBF will discuss Project Design Features and existing generally accepted industry or regulatory standards, policies, regulatory requirements, local ordinances and State and federal laws that, when complied with and /or implemented, would minimize or avoid environmental impacts, including existing fee programs. In discussing such an existing regulatory or fee program (such as a traffic impact fee), RBF will discuss the program or regulatory requirement, and clearly explain its relationship to, and effect upon, the impact. In those cases where implementation of existing regulatory and /or policy requirements are not sufficient to permit a less- than - significant determination, RBF will work with the City staff to identify the appropriate and feasible mitigation measures needed to achieve a less -than- significant level of impact. RBF will also discuss impacts of recommended mitigation measures, if any, as required by CEQA. Aesthetics, Light, and Glare The Temecula Creek Inn Specific Plan region contains significant and diverse visual resources associated with the variety of uses, neighborhoods, natural resources, and topography that characterize the Temecula Creek Inn Specific Plan Study Area. The Aesthetics section of the EIR will identify and describe, with both text and graphics, the area's aesthetic resources and visual character, identifying visual "communities" or "corridors" that share a similar topographic or visual character and /or are related by existing or proposed uses. The section will use photographs to document significant features and visual character and reference existing design guidelines and associated graphics to characterize the visual environment. The section will identify General Plan policies, including those proposed as part of the Temecula Creek Inn Specific Plan document General Plan EIR mitigation measures, and local ordinances that provide guidance for future development and will analyze potential long and short -term impacts to scenic resources and visual character that could result from activities authorized pursuant to the proposed Project. Where needed to ensure that potential adverse effects could be reduced to a less than significant level, the EIR will identify additional mitigation measures. The Initial Study states that the General Plan has identified the Project site as a viewshed and impacts to General Plan policy and viewsheds will be assessed in this section of the EIR. The EIR will identify potential sources of light and glare that could result from activities authorized by the Plan and incorporate the analysis and mitigation measures drawn from the IS to address this topical area. Agriculture The EIR will provide a brief discussion of potential impacts to agricultural lands and uses that might occur as a result of activities authorized by the Project. The Initial Study states that the Project site does not contain any Prime Farmland, Unique Farmland, or Farmland of Statewide importance to non - agricultural uses. Therefore, this discussion will be provided in the Effects Found Not to be Significant section of the EIR. Air Quality This Air Quality section will summarize the Air Quality Assessment described above in Task 2.1 (the EIR will include a technical appendix of all air quality emission model calculations and CAPCO mitigation spreadsheets). This section will also include a discussion of the Project's consistency with the SCAQMD Air Quality Management Plan and an assessment of potential cumulative impacts for both construction and operational emissions. Biological Resources As noted in the Initial Study, the Project has an approved DBESP, approved HANS, a Regional Conservation Authority Joint Project Review Consistency Determination, and a Heritage Tree Survey. This section will incorporate these documents and any mitigation measures into the biological analysis. As required, RBF is providing additional peer review by Dr. Tom McGill, and assisting City staff in resolving site - specific design and mitigation concerning on and off -site issues such as Rainbow Canyon Road alignment and heritage tree preservation. Climate Change - Greenhouse Gas Analysis This section will analyze the land use data and an inventory of the greenhouse emissions (i.e., nitrous oxide, methane, and carbon dioxide) from both direct and indirect sources will be prepared. The emissions inventory will be quantified with the CaIEEMod model. The analysis will determine the Project's impact by determining if it is consistent with the Assembly Bill 32 mandate of reducing GHG's beyond "Business as Usual" conditions. The GHG reduction associated with the Project's design features will be quantified utilizing the California Air Pollution Control Officers Association (CAPCOA) methodology (Quantifying Greenhouse Gas Mitigation Measures — A Resource for Local Government to Assess Emission Reductions from Greenhouse Gas Mitigation Measures [September 2010]). RBF will analyze the energy implications of the Project pursuant to Public Resources Code Section 21100(b)(3) and Appendix F of the CEQA Guidelines. These statutes and guidelines require CEQA compliance documentation to describe, where relevant, the wasteful, inefficient, and unnecessary consumption of energy caused by a project. The analysis will analyze energy consumption associated with short -term construction activities, long -term operations, buildings, and transportation. Additionally, the assessment of environmental impacts on energy resources will include mitigation measures to reduce inefficient and unnecessary consumption of energy. RBF will assess indirect impacts to the proposed Plan and the projects that could be facilitated by its adoption resulting from anticipated climate change pursuant to Executive Order S -13 -08 (2009 California Adaptation Strategy). Such impacts include rising sea levels, public health threat caused by higher temperatures and more smog, damage to agriculture, habitat modification and destruction, higher risk of fires, and increased demand for electricity. Energy Conservation. RBF will analyze the indirect energy implications of the Project in terms of the needs assumed for projects that the Plan would facilitate pursuant to Public Resources Code Section 21100(b)(3) and Appendix F of the CEQA Guidelines. These statutes and guidelines require an EIR to describe, where relevant, the wasteful, inefficient, and unnecessary consumption of energy caused by a project. The analysis will analyze energy consumption associated with short -term construction activities, long -term operations, buildings, and transportation. Additionally, the assessment of environmental impacts on energy resources will include mitigation measures to reduce inefficient and unnecessary consumption of energy. If GHG and Climate Change are not discussed in a separate section of the EIR, this discussion will be incorporated into the Utilities section of the document (Energy). Conclusion, Based on the above tasks and guidance CAPCOA, CEQA and case law, RBF will consult with City staff and City Counsel in regards to appropriate GHG significance determinations. The conclusion section will present the overall net GHG emissions, relationship to applicable criteria /thresholds, proposed Project Design Features and mitigation measures, and residual significance after mitigation. Cultural Resources The Specific Plan area includes elements of the built environment that have potential historic significance and contains documented sensitive paleontological and archaeological areas. This section would incorporate available data from City staff and existing cultural resources studies, and will describe the cultural resources (archaeological, architectural [built environment], and paleontological) within the Study Area boundaries and assess its resource sensitivity. RBF has provided a cultural resource peer review task above in Task 2.3 as well as a task for an updated cultural resources assessment. The section will identify potential indirect impacts to cultural resources that may occur as a result of the implementation of the Project and provide mitigation measures. Geology, Soils, and Seismicity The section will utilize available information to describe the existing soils and geotechnical setting of the Study area and identify existing regional and area - specific geology and soils constraints (such as compressible soils, landslide hazards, disruptions, displacements, compaction, or over - covering of the soil, and areas subject to subsidence), and seismic hazards. Existing topography will be described and potential landform modifications associated with implementation of the Project would be conceptually identified. Potential for Project - facilitated development to result in wind and /or water erosion impacts would be assessed to the extent feasible given the programmatic nature of the analysis. Groundwater conditions would be described from a hydro - geologic perspective. Potential grading challenges would be discussed based on actual performance of projects within the Specific Plan area and may include an analysis of slope stability issues and excavation characteristics. City grading standards /policies would be identified along with applicable building standards based on the 2011 - effective California Building Code. The Section will include an analysis of risk associated with the implementation of the proposed Specific Plan as related to geological hazards and will address primary and secondary seismic impacts including ground shaking, fault rupture, ground failure, soil settlement, subsidence or liquefaction. The suitability of soils within the Study Area to support septic tanks or alternative wastewater disposal systems will be identified and described. Mitigation measures will be provided where necessary to ensure that potential impacts can be reduced to a level of insignificance. Hazards and Hazardous Materials This section will identify the historic uses associated with the Specific Plan Area, as well as identify any hazardous materials that may be located in or around the Project Area as identified in the baseline assessment based on available information. RBF will also identify whether or how implementation of the Project could result in indirect adverse effects to any emergency response plans. Indirect effects associated with potential increased exposure of people to hazards associated with wildland fires, if any, associated with Plan implementation would also be identified and assessed. The section will also include an assessment of the adequacy of emergency response and evacuation plans as these relate to potential development activity that could be authorized pursuant to the Project. An explanation of the regulatory environment at the local, State and federal levels and, if required, mitigation measures in addition to those proposed in the General Plan and /or provided for in City ordinances will be recommended to reduce potential impacts to a less- than - significant level. Hydrology The section will be based on available information from the City staff, County, and applicant. RBF has also provided for a peer review of the applicant's drainage study and water quality information. (Task 2.6, above). This section will include a description of existing area hydrology including identification watershed sub -zones and existing drainage patterns. Existing drainage systems and facilities will be identified and their capacity assessed. Potential system improvements, effects related to an increase in impervious surfaces, and overall hydrologic conditions that could be associated with the Project, including potential changes in absorption rates, drainage patterns, and the amount of surface runoff will be addressed. RBF will also address the Project's water quality impacts based on available data. The need for further mitigation will be evaluated and additional mitigation measures will be formulated, if needed. Land Use and Relevant Planning RBF will evaluate the proposed Specific Plan in regards to potential land use conflicts that could be created as a result of its implementation including the potential to conflict with any established habitat conservation plan or land use plan. The section will primarily focus on the Project's consistency with the City's General Plan and other applicable regional planning documents. As a "Regionally Significant Project ", the EIR will address Project consistency with SCAG policies. Housing, population and employment will be address in the "Other CEQA — Growth Inducing" section of the document. Mineral Resources As noted in the Specific Plan's IS, the majority of the Study Area is designated Mineral Resources Zone MRZ -3a, indicating that this area is not considered to contain mineral resources of significant economic value. Therefore, this issue will be addressed in the Effects Found Not To Be Significant Section of the EIR. Noise This section will summarize the Noise Assessment described above under Task 2.4. An appendix will be provided for the detailed acoustic calculations and ambient noise level recordings. Noise mitigation measures designed to reduce long -term impacts to acceptable noise levels will be determined where necessary (i.e., window treatments, insulation requirements, barriers, etc.). Both an evaluation of the potential mitigation measures and a discussion of their effectiveness will be provided. Preliminary noise barrier design or related architectural or mechanical noise attenuation design can be provided under separate scope and fee if desired by the City. Public Services, Recreation and Utilities The section will identify relevant existing conditions, assess potential effects associated with implementation of the Project, review existing General Plan policies and related mitigation measures and ordinances, and identify infrastructure constraints. Where needed, mitigation measures will be formulated. The section will also draw on existing Master Facilities Plans or other City, County or special district plans currently in place for water, sewer, wastewater treatment, water quality, water supply, solid waste disposal and diversion, recreation, and fire protection services. The section will assess the Project's conformance to adopted Plans. The section assumes the availability of a Water Supply Assessment prepared either by Rancho California Water District (or its consultant), or as an optional task by RBF. Refer to Optional Tasks below, for RBF to provide a peer review of the applicant's water and wastewater studies, and /or for RBF to prepare a Water Supply Assessment on behalf of the City and RCWD. Analysis will focus on the potential need for alteration of existing facilities, extension or expansion of new facilities, and the increased demand for services based on the proposed land uses in the Temecula Creek Inn Specific Plan. RBF will evaluate the ability of the Project Area to receive adequate service to support proposed land uses based on applicable City standards and, where adequate services are not available, will identify the effects of inadequate service and recommend mitigation measures. Traffic and Circulation Upon completion of the Traffic Study and review by City staff, RBF will incorporate the results into the Traffic and Circulation section of the Screencheck EIR. This data will be used to make impact determinations and identify mitigation measures in accordance with the CEQA Guidelines. The EIR will also address construction - related issues such as traffic control and hauling associated with site grading. Task 3.8: Alternatives to the Proposed Action Pursuant to CEQA Guidelines Section 15126.6, RBF will provide an analysis of project alternatives, including an analysis of the No Project" Alternative as required by CEQA, including a "No Development" and "Existing General Plan ", as well as a "Reduced Density" and "Alternative Land Use" plan. Key elements of the Alternatives section will be to relate each alternative to the Specific Plan Objectives, and to alternatives capable of eliminating or reducing significant impacts that could occur as a result of Project implementation. This task assumes a maximum of five alternatives will be analyzed as part of this Project, which may include land use plans previously considered as part of the Specific Plan development process and /or alternatives considered but rejected by the City. This analysis will include a comparative matrix using quantitative data were available (RBF has budged for public utility /service demand analysis for each alternative, and recommends that the Project's Traffic Impact Assessment and Air Quality Assessment quantify one or more alternatives as well). This alternatives section will culminate with the selection of the environmentally superior alternative in accordance with CEQA requirements. During initial scoping with the City, a preferred alternative will be developed. Task 3.9: Growth Inducement RBF will discuss potential growth- inducing impacts pursuant to CEQA Guidelines Section 15126.2d. The analysis in this section will be based on the California Department of Finance, SCAG, and U.S. Census data. The potential impact of Project implementation upon the jobs /housing balance will be discussed. Mitigation measures will be recommended if required. This section will include analysis of the Project's potential impact on employment, housing availability, and population growth. Task 3.10: Cumulative Impacts In accordance with CEQA Guidelines Section 15130, RBF will discuss cumulative impacts for each environmental issue area identified in this scope of work, focusing on cumulative impacts in the Study Area at a qualitative level. The analysis will focus upon cumulative impacts from recently approved and /or pending Projects in proximity (cumulative Project information to be provided by the County of Riverside, City of Temecula and City of Murrieta as determined necessary, consistent with the scope of the Traffic Study. Task 3.11: Additional Sections RBF will provide additional sections in the EIR to meet CEQA and City requirements including the following: Significant Irreversible Environmental Changes That Would Be Involved In the Proposed Action Should It Be Implemented Changes in the environment and uses on non - renewable resources that will occur as a result of the proposed Project and can be considered irreversible or irretrievable will be evaluated and discussed within this section of the EIR. Effects Found Not To Be Significant RBF will provide a qualitative explanation of issues found to have "No Impact" due to the proposed project, relying primarily upon the Initial Study. Organizations and Persons Consulted /Bibliography Any federal, state or local agencies, other organizations and private individuals consulted in preparing the EIR will be listed in this section. RBF will provide a complete list of reference materials used in preparation of the EIR. Task 3.92: Screencheck EIR Submittal RBF will assemble all completed sections, incorporating team comments from early EIR section submittals into a single consolidated EIR submittal, including technical appendices. The intent of the Screencheck EIR submittal is that the Screencheck EIR is as close to 100% ready for public review as possible, to minimize City review and EIR revision time. The Screencheck EIR will not only reflect team comments, but will also reflect changes in Project materials and related technical studies (assumed to be minor). The EIR will include exhibits to enhance the written text and clarify the proposed Project environmental impacts. Using state -of- the -art computer design equipment and techniques, our in -house graphic design team will create professional quality, black and white or full color exhibits, dividers and covers for the EIR and Appendices. This Task assumes high quality digital base maps are provided by the City and /or the applicant for Project- related graphics and graphics related to technical studies prepared by others. Task 3.93: Screencheck EIR Workshop Upon completion and submittal of the Screencheck EIR document to the City for its review, RBF will conduct a review workshop, which will include City staff, consulting team and City Counsel representatives. This workshop would review the completed Screencheck EIR and provide RBF with comments and revisions. The Screencheck EIR document would be revised based on these comments and submitted to the City for its subsequent review. This task assumes two RBF staff at eight (8) hours each. Task 4.0 PREPARATION OF DRAFT EIR Task 4.9: Completion of the Draft EIR Upon receipt of the comments from the City on the Screencheck EIR, RBF will prepare a "Check Copy" of the Draft EIR responding to the City's comments. Upon approval from City staff, the City's consulting team, and City Counsel, RBF will begin preparing the Draft EIR document for public review. RBF will prepare a Notice of Availability (NOA) and Notice of Completion (NOC) for City review /approval. RBF will distribute the EIR to the State Clearinghouse (15 hard copies of the Executive Summary, plus the 15 CDs with the DEIR, Appendices and NOA). RBF will post the NOA with the County Clerk, and will draft a newspaper notice for local publication. In addition, RBF will send the NOA to an interest or radius list developed in conjunction with City staff (the radius list is assumed to be provided by the City or applicant). RBF will distribute up to 50 NOAs (and CDs, if desired) to affected agencies/ interested parties. RBF will distribute up to 20 full sets of the EIR (in hard copy) to the City and designated parties. Additional copies can be provided at direct cost. This Task assumes one hundred hours to complete. Task 4.2: Public Meetings and Workshops RBF will work with City staff in arranging and conducting a public meeting for the Draft EIR (not required by CEQA, but recommended) and up to three additional public meetings or workshops (such as a Planning Commission Workshop or joint Commission /Council workshop, either during the circulation period of the Draft EIR, or prior to formal public hearings, and one or more Planning Commission and City Council hearings). RBF will prepare a public meeting notice for approval by City staff, to be included as part of the NOA. RBF will attend the public meeting, to be facilitated by City staff. RBF assumes that City staff will provide/ arrange for meeting locations. RBF's Stakeholder team is available to work with City staff to coordinate implementation of a stakeholder outreach program that will help to explain the process and involve the community in constructive dialogue to facilitate the smooth completion of the EIR and to minimize /avoid Project delays (as a potential optional task). The RBF Project Manager and key Project Team personnel will attend this meeting. RBF will assist and support City staff in the preparation of staff report(s) and PowerPoint presentation(s) as part of its participation in these workshops. Approximately eight (8) hours of time per staff member is assumed for up to two RBF staff to attend these meetings (allowing for preparation and follow -up). This Proposal includes an initial budget of 80 hours of public meeting time, including preparation, attendance and follow -up. Task 5.0 FINAL EIR The following tasks will culminate in the completion of the Final EIR for the proposed Temecula Creek Inn Specific Plan. In accordance with the proposed schedule, these tasks will commence as early as possible during the process, and would be completed and submitted to the City for review prior to distribution for public hearings. RBF assumes that the Final EIR will consist of the Draft EIR and the Responses to Comments document (with Errata). RBF has proposed a post- certification Final EIR for the City and applicant's records, whereby RBF will produce a redlined Draft EIR showing all modifications based on the Responses to Comments, Errata, and final City Council deliberations. Task 5.1: Responses to Comments Upon completion of the Public Review period, RBF will prepare thorough, reasoned, and sensitive responses to relevant environmental issues. This task includes written responses to both written and oral comments received on the Draft EIR during the public review period (includes review of hearing transcripts, as required). The Draft Responses to Comments will be prepared for review by City staff. Following review of the Draft Responses to Comments, RBF will finalize this section for inclusion in the Final EIR, and will distribute the Comments and Responses packet to Responsible Agencies, as required by CEQA. An initial estimate of sixty (60) hours is assumed for the preparation of these responses on a time and materials basis. Task 5.2: Errata RBF will prepare an Errata section for inclusion with the Responses to Comments document, identifying all proposed changes to the Draft EIR, based on public comments or staff - initiated technical corrections. A maximum of twelve (12) hours has been budgeted for this task. Task 5.3: Mitigation Monitoring and Reporting Program RBF will prepare a Mitigation Monitoring and Reporting Program to be defined through in a coordinated effort between RBF, City staff and City Counsel. RBF will prepare a Draft Mitigation Monitoring and Reporting Program that will be submitted to the City for review. RBF will respond to one comprehensive set of City comments on the Draft Mitigation Monitoring and Reporting Program. This document will be attached to the City's staff report and resolution for Plan approval, and provided to City staff in electronic format (staff report to be prepared by City staff or others). Task 5.4: Findings/Statement of Overriding Considerations RBF will prepare CEQA findings and a Statement of Overriding Considerations using a City - approved template or example, for City review and approval as part of the Project approval documents and resolutions. Task 5.5: NOD and Post - certification Final EIR/Record Following Final EIR certification, RBF will prepare and file the Notice of Determination, upon City review /approval. The NOD will be posted at the County Clerk and with the State clearinghouse, per CEQA. This task also includes producing five hard copies and one digital copy of the entire Final EIR, including the revised Draft EIR text (reflecting the Comments and Responses, Errata, and final City Council deliberations), Responses to Comments, Appendices and appropriate project approval documents such as staff reports, resolutions, findings and the mitigation monitoring program. RBF will maintain copies of all technical studies and references used in the preparation of the EIR, can supply these to the City if requested. RBF can provide formal administrative record assistance and other CEQA support (preparation of staff reports, resolutions, etc) under separate scope and fee, if desired. RBF assumes the City will be responsible for all recording and newspaper notification fees. Task 6.0 PROJECT MANAGEMENT AND MEETINGS All items under this portion of the EIR preparation process are considered time and materials with initial estimates. Task 6.1: Project Management The Project Manager, Kevin Thomas, will be responsible for management and supervision of the Project Team, and will provide oversight as well as consultation with City staff to incorporate City policies into the EIR. The Project Manager will also review the EIR for compliance with CEQA requirements and guidelines and City CEQA procedures. The Project Manager, with the assistance of RBF staff personnel, will consult with State and local agencies regarding the Project and will coordinate with all technical staff, consultants, support staff and word processing to ensure timely completion of the EIR. RBF will provide a monthly status report to City staff, and will be available for periodic conference calls as determined appropriate. For budgeting purposes, this task has assumed an average of eight (8) hours per month for management time for 9 months, allowing 72 hours of Project Management time. Task 6.2: Project Meetings and Hearings Task 4.2 provides for public meetings and workshops. In addition, RBF has budgeted for additional staff meetings, to allow for progress meetings, meetings with other agency staff (such as RCWD, EMWD and Riverside County), and other meetings as requested by the City. RBF has budgeted for a total of fifty (50) hours of staff meeting time, allowing for preparation, attendance and follow -up. 1.0 PROJECT INITIAION Total Cost 1.1 Refine Scope of Services 2,900 1.2 Analysis Parameters and Methodology 5,500 1.3 Notice of Preparation 2,500 1.4 Public Scoping Meeting 3,000 Subtotal Task 1.0 13,900 2.0 PEER REVIEW AND TECHNICAL STUDIES FOR EIR 2.1 Air Quality Analysis 8,500 2.2 Climate Change 6,500 2.3 Cultural Resources 10,700 2.4 Noise /Acoustical Analysis 7,500 2.5 Traffic Impact Analysis 32,000 2.6 Preliminary Drainage Study Review 4,000 2.7 Updated Biological Technical Report 13,000 2.8 Off -site Utility Review 23,000 Subtotal Task 2.0 105,200 3.0 DEVELOPMENT OF SCREEN -CHECK EIR 3.1 EIR Table of Contents and Section Format 1,000 3.2 Land Use Plan Review and Infrastructure Assessment 1,700 3.3 Field Reconnaissance 2,500 3.4 Excutive Summary 3,000 3.5 Introduction and Purpose 750 3.6 Project Description 3,500 3.7 Environmental Analysis Aesthetics, Light, and Glare 2,750 Air Quality 2,250 Biological Resources 2,500 Cultural Resources 1,250 Climate Change - Greenhouse Gas Analysis 2,500 Geology, Soils, and Seismicity 1,900 Hazards and Hazardous Materials 1,600 Hydrology 2,500 Land Use and Relevent Planning 2,000 Noise 2,000 EXHIBIT B Payment Rates and Schedule FEES Public Services, Recreation and Utilities 2,800 Traffic and Circulation 3,000 3.8 Alternatives to the Proposed Action 5,000 3.9 Growth Inducement 2,000 3.10 Cumulative Impacts 2,000 3.11 Additional Sections 1,800 3.12 Screencheck EIR Submittal 15,000 3.13 Screencheck EIR Workshop 2,500 Subtotal Task 3.0 67,800 4.0 PREPRATION OF DRAFT EIR 4.1 Completion of the Draft EIR 15,000 4.2 Public Meetings and Workshops 9,000 Subtotal Task 4.0 24,000 8,350 5.0 FINAL EIR 5.1 Responses to Comments 5.2 Errata 1,600 5.3 Mitigation Monitoring and Reporting Program 3,100 5.4 Finding and Statement of Overriding Considerations 4,000 5.5 Certified Final EIR 3,900 Subtotal Task 5.0 20,950 6.0 PROJECT MANAGEMENT AND MEETINGS M 6.1 Project Management 14,400 6.2 Project Meetings and Hearings 10,000 Subtotal Task 6.0 24,400 Total Professional Fees 256 Reimbursables 12,000 268,250 TOTAL PROPOSED FEES RE. HOURLY RATE SCHEDULE For the term of this Agreement OFFICE PERSONNEL $/ Hr. Senior Principal $245.00 Principal 225.00 Project Director 220.00 Program Manager 215.00 Senior Project Manager 200.00 Project Manager 195.00 Structural Engineer 195.00 Technical Manager 180.00 Senior Engineer 163.00 Senior Planner 163.00 Electrical Engineer 156.00 Landscape Architect 150.00 Senior GIS Analyst 150.00 Project Engineer 148.00 Project Planner 148.00 Environmental Specialist 138.00 Design Engineer /Senior Designer /Mapper 135.00 GIS Analyst 122.00 Designer /Planner 118.00 Project Coordinator 110.00 Graphic Artist 97.00 Environmental Analyst /Staff Planner 97.00 Design Technician 97.00 Assistant Engineer /Planner 93.00 Permit Processor 83.00 Engineering Aid /Planning Aid 75.00 Office Support/ Clerical 63.00 FIELD PERSONNEL 2- Person Survey Crew $245.00 1- Person Survey Crew 165.00 Licensed Surveyor 175.00 Field Supervisor 172.00 CONSTRUCTION MANAGEMENT PERSONNEL Construction Manager $185.00 Resident Engineer /Project Manager 154.00 Senior Construction Inspector 123.00 Construction Inspector 118.00 Field Office Engineer 110.00 Construction Technician 95.00 Note: Blueprinting, reproduction, messenger service and other direct expenses will be charged as an additional cost plus 15 %. A Sub - consultant Management Fee of fifteen- percent (15 %) will be added to the direct cost of all sub - consultant services to provide for the cost of administration, sub - consultant consultation and insurance. Vehicle mileage will be charged as an additional cost at $0.50 per mile. Item No. 13 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Bob Johnson, Assistant City Manager DATE: September 27, 2011 SUBJECT: Resolution of the City of Temecula to support the construction of a privately financed NFL stadium in the City of Industry, California (requested by Council Members Comerchero and Naggar PREPARED BY: Bob Johnson, Assistant City Manager RECOMMENDATION: That the City Council 1. Adopt a resolution entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE CONSTRUCTION OF A PRIVATELY FINANCED STADIUM IN THE CITY OF INDUSTRY, CALIFORNIA BACKGROUND: Majestic Reality Company proposes to develop a state -of- the -art football stadium that could be utilized by two NFL football teams and a 2.9 million square foot complex that includes commercial, office, retail & restaurant facilities, a movie theater and a 5,000 seat live theater complex on a 600 -acre undeveloped parcel in the City of Industry, California. The proposed project is located at the confluence of the 57 and 60 freeways, is adjacent to an existing Metrolink Station and is within a 25 mile radius of 12 million people. The proposed site is easily accessible to the residents of Temecula and Southwest Riverside County. It is anticipated that development of the City of Industry sports and entertainment complex at the gateway to the Inland Empire has the potential to serve as a significant economic stimulus to Western Riverside County and a result strongly recommend approval of the attached resolution. FISCAL IMPACT: None ATTACHMENT: Resolution RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE CONSTRUCTION OF A PRIVATELY FINANCED STADIUM IN THE CITY OF INDUSTRY, CALIFORNIA THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula supports attracting new forms of employment, revenue and family - friendly entertainment to the Inland Empire; and Section 2. The National Football League (NFL) provides entertainment for all ages and there is not an existing NFL team in Los Angeles, Orange, San Bernardino or Riverside counties; and Section 3. Majestic Realty Company proposes to develop in the nearby city of Industry, a state -of- the -art football stadium, accompanied by 2.9 million square feet of commercial space, including office space, retail space restaurant space, a live theater with 5,000 seats and a movie theater with 1,200 seats; and Section 4. The project will be privately funded and will be of no cost to taxpayers; and Section 5. The location of the proposed project at the intersection of the 57 and 60 freeways are within a 25 -mile radius of 12 million people and easily accessible to residents of Los Angeles, Orange, San Bernardino and Riverside counties; and Section 6. It is estimated that the project could bring more than 6,735 new permanent jobs to the area and will create new business opportunities and increase revenue to existing businesses; Section 7. The City Clerk shall certify the adoption of this resolution. NOW THEREFORE, BE IT RESOLVED, that the City of Temecula supports the construction of a privately financed football stadium and commercial space in the City of Industry, California. 1 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day September, 2011.. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27 day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk 1 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Bob Johnson, Assistant City Manager DATE: September 27, 2011 PREPARED BY: Bob Johnson, Assistant City Manager 3. The source of funds is from DIF Open Space ATTACHMENTS: Agreement Map Approvals City Attorney Director of Finance City Manager (10L SUBJECT: Agreement for funding the acquisition of open space property (Assessor's Parcel No. 940 - 140 -010 — Alan T. and Patricia S. Oto property) between Western Riverside County Regional Conservation Authority and the City of Temecula RECOMMENDATION: Approve the funding agreement for acquisition of open space parcel (Assessor's Parcel Number 940 - 140 -010 — Alan T. and Patricia S. Oto property) between the Western Riverside County Regional Conservation Authority (RCA) and the City of Temecula in the amount of $135,000. BACKGROUND: The Oto's, owners of a 4.86 acre parcel on 43955 Via Horca, have agreed to sell their land to the RCA for permanent open space. The RCA, serving as the City's agent, performed an appraisal, is responsible for closing costs and has agreed to accept and maintain the property in open space in perpetuity. It is anticipated that the RCA Board will approve the Alan T. and Patricia S. Oto acquisition on October 3, 2011. FISCAL IMPACT: 1. The appraised value and sale price is $135,000. 2. The 2011 -12 Capital Improvement Open Space Acquisition Program has earmarked $300,000 for open space acquisition AGREEMENT FOR FUNDING THE ACQUISITION OF OPEN SPACE PROPERTY BETWEEN WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY AND CITY OF TEMECULA (ALAN T. AND PATRICIA S. OTO PROPERTY) THIS AGREEMENT is made and entered into by and between the Western Riverside County Regional Conservation Authority, a public agency and joint powers authority ( "RCA ") and the City of Temecula, a municipal corporation ( "City ") and shall be dated as of September 27, 2011. In consideration of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Recitals. This Agreement is made with respect to the following facts and purposes, which each party finds and determines to be true and correct: A. RCA is a joint powers authority, of which the City is a member agency, that was formed to implement the Western Riverside County Multiple Species Habitat Conservation Plan ( "MSHCP "), a multi jurisdictional habitat conservation plan focusing on the conservation of both sensitive species and associated habitats to address biological and ecological diversity conservation needs in western Riverside County, and setting aside significant areas of undisturbed land for the conservation of sensitive habitat while preserving open space and recreational opportunities. B. RCA has entered into that certain agreement dated as of September 27, 2011, entitled "AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY WITH ESCROW INSTRUCTIONS" with Alan T. Oto and Patricia S. Oto ( "Purchase Agreement ") for the purchase of approximately 4.86 acres of real property located at 43955 Via Horca, Temecula, California 92590, in the unincorporated area of Riverside County and abutting the City of Temecula, California, also known as Assessor's Parcel Number 940 - 140 -010 (the "Property ") more particularly described in Exhibit "A" attached hereto and incorporated herein as though set forth in full. C. RCA will designate the Property as Additional Reserve Lands pursuant to the MSHCP. (1 MSHCP, §§ 3.2.1 & 3.2.2; Implementing Agreement, §§ 3.3 & 3.72, p. 4.) D. The Property is located outside of the City boundaries, but within the City's Sphere of Influence. E. Acquisition of the Property and its dedication to open space and trail purposes will provide substantial value to the City of Temecula. The Property is a prominent natural feature dominating the western viewscape for the City in the areas known as the "Escarpment." Use of the Property for these purposes the fulfills goals and policies of the Open Space /Conservation Element of the General Plan for the City of Temecula and particularly the following: Goal 3, conservation of important biological habitats and protection of plant and animal species of concern, wildlife movement corridors, and general biodiversity; Goal 5, conservation of open space areas for a balance of recreation, scenic enjoyment, and protection of natural resources and features; Policy 5.1, conserve the western escarpment and southern 26493.00268\6075072.1 ridgelines, the Santa Margarita River, slopes in Sphere of Influence; and Goal 8, development of a trail system that serves both recreational and transportation needs. F. City desires to assist the RCA in funding the purchase of the Property. G. Acquisition of the Property by RCA with the contribution from the City and the dedication of the Property to open space and trail purposes is consistent with the City's General Plan and each element thereof. H. The City Council has duly considered all terms and conditions of this Agreement and finds and determines that the Agreement is in the best interests of the City and the health, safety, and welfare of their residents, and in accord with the public purposes and provisions of applicable State and local law requirements. 2. City Contribution of Funds for Acquisition of Property. A. City shall pay to RCA the sum of ONE HUNDRED THIRTY -FIVE THOUSAND DOLLARS AND NO CENTS ($135,000.00) for the purchase price of the Property. B. City shall pay such sum into the escrow for the purchase of the Property pursuant to the Purchase Agreement ( "Escrow ") within five (5) business days of notice to the City by RCA that the Escrow is ready to close. RCA's notice to the City shall provide directions for the wiring of the City funds to Escrow. C. Within five (5) business days of the close of Escrow, RCA shall provide City with a copy of the Grant Deed and a closing statement. 3. RCA to Dedicate Property to Open Space and Trail Uses A. As soon as practical, but not later than three (3) months from the date of the close of Escrow, RCA shall record a restrictive covenant, or another similar document, as determined by the RCA, to dedicate the Property to open space and trail uses that would be consistent with the MSHCP. B. City shall be a third party beneficiary to such restrictive covenant or similar document with the right to enforce its provisions. C. City shall consent to such restrictive covenant or similar document prior to its recordation, provided such consent shall not be unreasonably withheld or delayed. 4. Establishment of a Trail System on Property. A. City may use its reasonable efforts to establish a trail system on the Property for pedestrians and equestrians, consistent with the MSHCP. RCA agrees to work with the City to assure the trail system's consistency with the MSHCP. B. City agrees to pay for all costs associated with and undertake all other actions necessary in constructing and maintaining any trail system that may be developed on the 26493.00268\6075072.1 2 Property and agrees to indemnify RCA against any liability, except such liability that may be the result of RCA's negligence. 5. Consideration of Annexation of Property into City. A. City may use its reasonable efforts to investigate the feasibility of annexing the Property into the City. RCA shall cooperate in the process to the extent appropriate. B. Nothing in this Agreement is intended to be, nor shall it be construed to be, a commitment on the part of the City to annex the Property into the City. 6. General A. 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 written notice to the other party: City: With a copy to: RCA: B. This Agreement is the result of negotiations between the Parties and is intended by the Parties to be a final expression of their understanding with respect to the matters 26493.00268\6075072.1 3 CITY OF TEMECULA 41000 Main St. P 0 Box 9033 Temecula, California 92589 -9033 Attention: City Manager Richards, Watson & Gershon 355 South Grand Ave., 40th Floor Los Angeles, CA 90071 Attn: Peter M. Thorson WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY 3403 Tenth Street, Suite 320 P.O. Box 1667 Riverside, CA 92502 -1667 Attn: Executive Director With a copy to: Best, Best & Krieger LLP 3750 University Ave., Suite 400 P.O. Box 1028 Riverside, CA 92502 -1028 Attn: Michelle Ouellette herein contained. This Agreement supersedes any and all other prior agreements and understandings, oral or written, in connection therewith. C. Amendments hereto must be in writing executed by the appropriate authorities of the City and RCA. D. The parties agree that each party has reviewed and revised this Agreement and have had the opportunity to have their counsel and real estate advisors review and revise this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. E. In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words "person" and "party" include corporation, partnership, firm, trust, or association wherever the context so requires. F. Each person signing below personally warrants and represents to the parties that the party he or she represents has approved this Agreement, intends to be bound by its terms and that they are duly authorized to execute this Agreement on behalf of the party they represent. G. The parties acknowledge that time is of the essence in this Agreement. H. If any term or provision of this Agreement shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement shall not be affected. I. A waiver or breach of covenant or provision in this Agreement shall not be deemed a waiver of any other covenant or provision in this Agreement, and no waiver shall be valid unless in writing and executed by the waiving party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for the performance of any other obligation or act. J. Each party acknowledges and agrees that this Agreement is valid, binding and enforceable against the party. K. This Agreement may be executed in one or more counterparts. Each shall be deemed an original and all, taken together, shall constitute one and the same instrument. 26493.00268\6075072.1 4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. CITY OF TEMECULA, a municipal corporation Ron Roberts Mayor ATTEST: 26493.00268 \6075072.1 5 WESTERN RIVERSIDE COUNTY REGIONAL CONSERVATION AUTHORITY, a public agency and a joint powers authority Charles V. Landry Executive Director ATTEST: Susan W. Jones, MMC Honey Bernas City Clerk Clerk of the RCA Board APPROVED AS TO FORM: APPROVED AS TO FORM: Peter M. Thorson Best Best & Krieger, LLP City Attorney General Counsel EXHIBIT "A" LEGAL DESCRIPTION Lot 8 of Tract 25980, in the County of Riverside, as per map recorded in Book 243, Page(s) 92 through 96, of Miscellaneous Maps, in the Office of the County Recorder of said County. 26493.00268\6075072.1 Exhibit "A" 997 °10'0'W 4 RC 22000238 Q Project Site RCA ON SERVATION EASEMENTS - RCAMSHCP Conserved Lands Public/Quad- Public Conserved Lands WRC Non R CA Conservation Easements jj Criteria Cells HIGHWAYS 0 400 800 ' 997 °9'0'W 1,600 City of Temecula Habitat Management Unit - Santa Ana Mtns Rough Step Unit 5 Area Plan - Southwest Area SubUnit- SU1- Murrieta Creek e 2,400 ',200 4,000 Feet 997 °8'0'W eglonal onservatlon uthority Wctem RIvu°Ide County February 3, 2011 1 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: Approval of Resolution Designating the City of Temecula as Successor Agency to the Temecula Redevelopment Agency PREPARED BY: Peter Thorson, City Attorney RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager (10L A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING AN ELECTION IN CONNECTION WITH SERVING AS A SUCCESSOR AGENCY UNDER PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH INTRODUCTION: This agenda item is to address a potential outcome of the California Supreme Court's upcoming decision in the litigation challenging ABX1 26 and ABX1 27. It is possible that the Court will strike down ABX1 27 but uphold ABX1 26. In such case, each redevelopment agency will be dissolved even if the city adopted an ordinance to participate in the Alternative Voluntary Redevelopment Program established by Part 1.9 of ABX1 27. In addition, a successor agency will be designated for each dissolved redevelopment agency and charged with administrating the wind -down of the dissolved redevelopment agency. The attached resolution designates the City of Temecula to serve as the successor agency for the Redevelopment Agency of the City of Temecula in the event the Agency is dissolved, as described above. BACKGROUND: ABX1 26, which was signed bythe Governor of California on June, 29, 2011, added Parts 1.8 and 1.85 to the Community Redevelopment Law. Part 1.8 immediately suspends most redevelopment agency activities. Part 1.85 provides that on October 1, 2011, all existing redevelopment agencies and redevelopment agency components of community development agencies are dissolved, and successor agencies are designated as successor entities to the former redevelopment agencies. Except for those provisions of the Redevelopment Law that are repealed, restricted, or revised pursuant to ABX1 26, all authority, rights, powers, duties and obligations previously vested with the former redevelopment agencies under the Redevelopment Law, are vested in the successor agencies. ABX1 26 imposes numerous requirements on the successor agencies, including continuing to make payments due for enforceable obligations of the agency, remit unencumbered balances of agency funds to the county auditor - controller for distribution to the taxing entities, and dispose of assets and properties of the Agency as directed by the oversight board. ABX1 27 was signed by the Governor concurrently with ABX1 26 and added Part 1.9 to the Community Redevelopment Law. Part 1.9 establishes an Alternative Voluntary Redevelopment Program (AVRP) whereby a redevelopment agency will, notwithstanding Parts 1.8 and 1.85, be authorized to continue to exist and carry out the provisions of the Community Redevelopment Law. To opt into the Alternative Voluntary Redevelopment Program, a city must adopt an ordinance by which the city agrees to make specified annual payments to the county auditor - controller for allocation to special districts and educational entities. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 (including Health and Safety Code Section 34173) was not stayed. Staff recommends the City Council adopt a resolution electing for the City to serve as a successor agency in the event the Court lifts the stay and strikes down ABX1 27 while upholding ABX1 26. FISCAL IMPACT: In the event the Agency is dissolved and the City is the successor agency, the City will be entitled to an annual administrative cost allowance of not less than $250,000 per year, provided that the allowance will exclude any administrative costs that can be paid from bond proceeds or sources other than property tax, and provided that the amount is subject to reduction if there is a shortfall of funds available to make payments to taxing entities and to pay debt service on enforceable obligations. ENVIRONMENTAL IMPACT: There will be no new environmental impact associated with any of the decisions outlined above. ATTACHMENTS: Resolution RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING AN ELECTION IN CONNECTION WITH SERVING AS A SUCCESSOR AGENCY UNDER PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine, and declare that: A. The Redevelopment Agency of the City of Temecula (the "Agency ") is a redevelopment agency in the City of Temecula (the "City "), created pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law "). B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan ") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan (the "Project Area ") are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91 -08, 91- 11, 91 -14, and 91 -15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91 -11 and 91 -15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. The Plan has been amended by Ordinance Nos. 94 -33, 06 -11 and 07 -20 adopted by the City Council. The Agency duly adopted its Implementation Plan for 2010 -2014 on December 8, 2009 in accordance with Health and Safety Code Section 33490. The Agency is undertaking a program to redevelop the Project Area. C. ABX1 26 was signed by the Governor of California on June 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code. Commencing upon the effectiveness of ABX1 26, ABX1 26 suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Effective October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, provides for the designation of successor agencies as successor entities to former redevelopment agencies, and provides that except for those provisions of the Redevelopment Law that are repealed, restricted, or revised pursuant to ABX1 26, all authority, rights, powers, duties and obligations previously vested with the former redevelopment agencies under the Redevelopment Law, are vested in the successor agencies. ABX1 26 imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established pursuant to the provisions of Part 1.85. D. Health and Safety Code Section 34173, which is set forth in Part 1.85, provides that a city that authorized the creation of a redevelopment agency may elect to serve, or not to serve, as the successor agency under Part 1.85. E. ABX1 27 was signed by the Governor of California on June 29, 2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue to exist and carry out the provisions of the Redevelopment Law upon the enactment, prior to the applicable deadline established in Part 1.9 (with the earliest deadline being October 1, 2011), by the city council of the city which includes that redevelopment agency of an ordinance to comply with Part 1.9. Pursuant to Health and Safety Code Section 34192, if a city participates in the Alternative Voluntary Program and complies with all requirements and obligations contained in Part 1.9, the redevelopment agency in that city will be exempt from Part 1.8 and Part 1.85. F. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of AB X1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 (including Health and Safety Code Sections 34167 and 34169) was not stayed. G. The City Council desires to now adopt this Resolution making an election in connection with serving as a successor agency under Part 1.85 in the event that the stay is lifted, ABX1 26 is upheld by the Supreme Court of California, and the Agency is dissolved pursuant to Part 1.85. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34173. Section 3. The City Council hereby elects for the City to serve as a successor agency under Part 1.85 in the event the Agency is dissolved pursuant to Part 1.85. Section 4. The City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor - Controller. Section 5. The officers and staff of the City are herby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 6. The adoption of this Resolution is not intended and shall not constitute a waiver by the City of any right the City may have to challenge the legality of all or any portion of ABX1 26 or ABX1 27 through administrative or judicial proceedings. Section 7. At such time as the Agency becomes exempt from Parts 1.8 and 1.85, this Resolution shall be of no further force or effect. Section 8. This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the City's environmental guidelines. The City Council has determined that this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b) (5)). Section 9. The City Clerk shall certify to the adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27 day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Item No. 16 PREPARED BY: Luke Watson, Management Analyst RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager (10L CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: A nonbinding resolution of the City Council declaring its intent to adopt an ordinance to comply with Part 1.9 of Division 24 of the California Health and Safety Code after October 1, 2011 for the establishment of the Alternative Voluntary Redevelopment Program under ABX1 27 A NONBINDING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING ITS INTENT TO ADOPT AN ORDINANCE TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AFTER OCTOBER 1, 2011, AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH BACKGROUND: The City and Agency have carried out an active and successful redevelopment program since the activation of the Agency in 1991. However, the continuing ability of the Agency to eliminate blight and create economic development opportunities has been threatened by the Legislature's adoption of the recent budget package which, in part, solves State budget problems by taking revenue from redevelopment agencies. ABX1 26, which was signed by the Governor of California on June, 29, 2011, immediately suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Then, on October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, and designates successor agencies as successor entities to the former redevelopment agencies, and imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established under the new law. ABX1 27 was signed by the Governor concurrently with ABX1 26. This companion law establishes an Alternative Voluntary Redevelopment Program whereby a redevelopment agency will, notwithstanding ABX1 26, be authorized to continue to exist and carry out the provisions of the Redevelopment Law. To "opt into" this "voluntary' alternative program, the City must adopt an ordinance signifying the City's compliance with the onerous exactions imposed bythe Legislature. In addition, if the ordinance is not adopted by October 1, 2011 (second reading) the City Council must adopt a resolution signifying the Council's intent to adopt the ordinance. To restore the ability to continue redevelopment activities, the City must make specified annual payments to the County Auditor - Controller on a schedule, and the Auditor - Controller will then allocate the payments to special districts and educational entities. The amount to be paid in FY 2011 -12 is the Agency's proportionate share of $1.7 billion, as determined by the Department of Finance pursuant to a formula specified in ABX1 27. That determination, to be made on or before August 1, 2011, is subject to appeal by the City within 15 days of the determination. This payment obligation is an ongoing obligation of the City in subsequent years. For FY 2012 -13 and thereafter, the City is required to calculate its own payment amount, subject to audit by the Department of Finance, with the payments based on the Agency's proportionate share of $400 million (with adjustments based on growth /decline of tax increment revenues, and with additional payments triggered if the Agency incurs new debt). Thus, the Legislature has created a system where a city is liable for making continuing annual payments out of city funds in order for the agency to be able to continue its activities. ABX1 27 provides that a participating city and the redevelopment agency in that participating city may enter into an agreement whereby the agency will transfer a portion of its tax increment to the participating city in an amount not to exceed the annual remittance required that year. Any tax increment funds transferred from the agency to the city are required to be spent only "for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals." If the City Council determines that it will not opt into the ABX1 27 Alternative Voluntary Redevelopment Program, the activities of the Agency will continue to be severely curtailed. Ultimately, the Agency will be dissolved as of October 1, 2011 and a number of "wind -up" activities must be undertaken bya successor entity. No further redevelopment activities could be undertaken and the assets of the Agency would be disposed of. The State Controller would have the authority to review, and potentially unwind, asset transfer transactions between the City and the Agency which occurred after January 1, 2011. In addition, ABX1 26 provides that except in very limited circumstances, the Agency could not repay amounts currently owed to the City. The "wind -up" activities of the Agency would be subject to the supervision of a new "Oversight Board" with the authority to give direction to City and Agency staff, and to usurp the existing authority of the City Council and Agency Board. Part 1.9 provides that if a Participating City intends to enact a Participation Ordinance after October 1, 2011, it must indicate that intention by adopting a nonbinding resolution of intent to that effect prior to October 1, 2011 (the "Intent Resolution ") and notify the applicable county auditor - controller, the State Controller, and the Department of Finance before October 1, 2011, concerning the Intent Resolution. Pursuant to Part 1.9, this action will delay the dissolution of the redevelopment agency in the Participating City until November 1, 2011. A more detailed description of ABX1 26 and ABX1 27 prepared by Richards, Watson & Gershon is attached to this report. FISCAL IMPACT: If the City Council chooses to "opt -in" under ABX1 27 the Agency would be required to make the 2011/2012 annual payment of $4,731,158, or potentially a reduced amount if the appeal delivered to the State Department of Finance is granted. The Agency would be required to make a base annual payment of approximately $1,135,478 (before inflation factor) until the life of the Agency comes to an end in 2029. ATTACHMENTS: Resolution Ordinance Summary of ABX1 26 & ABX1 27 RESOLUTION NO. 11- A NONBINDING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING ITS INTENT TO ADOPT AN ORDINANCE TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AFTER OCTOBER 1, 2011, AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare that: A. The Redevelopment Agency of the City of Temecula (the "Agency ") is a redevelopment agency in the City of Temecula (the "City "), created pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law "). B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988 -1" (hereafter the "Plan ") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan (the "Project Area ") are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91 -08, 91- 11, 91 -14, and 91 -15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91 -11 and 91 -15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. The Plan has been amended by Ordinance Nos. 94 -33, 06 -11 and 07 -20 adopted by the City Council. The Agency duly adopted its Implementation Plan for 2010 -2014 on December 8, 2009 in accordance with Health and Safety Code Section 33490. The Agency is undertaking a program to redevelop the Project Area. C. ABX1 26 was signed by the Governor of California on June 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code. Commencing upon the effectiveness of ABX1 26, ABX1 26 suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Effective October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, designates successor agencies to the former redevelopment agencies, and imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established pursuant to the provisions of Part 1.85. D. ABX1 27 was signed by the Governor of California on June 29, 2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue to exist and carry out the provisions of the Redevelopment Law upon the enactment, prior to the applicable deadline established in Part 1.9, by the city council of the city which includes that redevelopment agency (the "Participating City ") of an ordinance to comply with Part 1.9 (the "Participation Ordinance "). E. Part 1.9 requires a Participating City to make specified annual remittances to the applicable county auditor - controller, who shall allocate the remittances for deposit into a Special District Allocation Fund, for allocation to specified special districts, and into the county Educational Revenue Augmentation Fund, for allocation to educational entities. F. To participate in the Alternative Voluntary Redevelopment Program, in addition to adopting a Participation Ordinance, Part 1.9 provides that the Participating City must, by November 1, 2011, notify the applicable county auditor - controller, the State Controller, and the State of California Department of Finance (the "Department of Finance ") that it agrees to comply with the provisions of Part 1.9. The Participating City's agreement to make the remittances provided for under Part 1.9 is a precondition to continue redevelopment pursuant to Part 1.9. G. Part 1.9 provides that if a Participating City intends to enact a Participation Ordinance after October 1, 2011, it must indicate that intention by adopting a nonbinding resolution of intent to that effect prior to October 1, 2011 (the "Intent Resolution ") and notify the applicable county auditor - controller, the State Controller, and the Department of Finance before October 1, 2011, concerning the Intent Resolution. Pursuant to Part 1.9, this action will delay the dissolution of the redevelopment agency in the Participating City until November 1, 2011. H. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 was not stayed. In the event the stay is lifted and the Supreme Court upholds ABX1 26 and ABX1 27, the City intends to adopt a Participation Ordinance after October 1, 2011, so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34193. Section 3. The City Council hereby declares its intent to adopt a Participation Ordinance so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law notwithstanding the provisions of Part 1.8 and Part 1.85 in the event the stay is lifted and the Supreme Court upholds ABX1 26 and ABX1 27; provided that the adoption of this Resolution does not guarantee that the City will adopt a Participation Ordinance or make any remittances as specified in Part 1.9. Section 4. Neither the adoption of this Resolution nor the performance of actions under or pursuant to this Resolution is intended by the City or Agency to waive any right either may have to challenge the legality of all or any portion of ABX1 26 or ABX1 27 through administrative or judicial proceedings or to contest the remittance amount for any year. This Resolution shall be of no further force and effect if ABX1 26 or ABX1 27 is repealed or held unconstitutional or unenforceable by any court of competent jurisdiction. Section 5, The City Manager, or the City Manager's designee, is hereby authorized and directed to notify the County of Riverside Auditor - Controller, the State Controller, and the Department of Finance that the Council has adopted this Resolution, with such notification to be accompanied by a certified copy of this Resolution. Section 6. This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the City's environmental guidelines. The City Council has determined that this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b) (5)). Section 7. The officers and staff of the City are herby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken by such officers are hereby ratified and confirmed. Section 8. The City Clerk is hereby directed to send a certified copy of this Resolution to the Agency. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27 day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk ORDINANCE NO.11- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH FOR THE ESTABLISHMENT OF THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM UNDER ABX1 27 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare as follows: A. The Redevelopment Agency of the City of Temecula (the "Agency ") is a redevelopment agency in the City of Temecula (the "City "), created pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law "). B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988 -1" (hereafter the "Plan ") in accordance with the provisions of the Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.). On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91 -08, 91 -11, 91 -14, and 91 -15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91 -11 and 91 -15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. These Ordinances are codified in Chapter 2.52 of the Temecula Municipal Code. The Plan has been amended by Ordinances Nos. 94 -33, 06 -11, 07 -20, 07 -21 but no new area has been added to the Project Area. C. ABX1 26 was signed by the Governor of California on June, 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code. Commencing upon the effectiveness of ABX1 26, ABX1 26 suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Effective October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, designates successor agencies to the former redevelopment agencies, and imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established pursuant to the provisions of Part 1.85. D. ABX1 27 was signed by the Governor of California on June 29, 2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue to exist and carry out the provisions of the Redevelopment Law upon the enactment, prior to the applicable deadline established in Part 1.9, by the city council of the city which includes that redevelopment agency (the "participating city ") of an ordinance to comply with Part 1.9. E. Part 1.9 requires a participating city to make specified annual remittances to the applicable county auditor - controller, who shall allocate the remittances for deposit into a Special District Allocation Fund, for allocation to specified special districts, and into the county Educational Revenue Augmentation Fund, for allocation to educational entities. F. To participate in the Alternative Voluntary Redevelopment Program, in addition to adopting the ordinance described in Recital D, above, the participating city must, by November 1, 2011, notify the applicable county auditor - controller, the State Controller, and the State of California Department of Finance (the "Department of Finance ") that the participating city agrees to comply with the provisions of Part 1.9. The participating city's agreement to make the remittances provided for under Part 1.9 is a precondition to continue redevelopment pursuant to Part 1.9. G. Part 1.9 provides that for fiscal year 2011 -12, a participating city shall remit to the applicable county auditor - controller an amount equal to the amount determined by the State of California Director of Finance (the "Director of Finance ") for the redevelopment agency pursuant to a formula set forth in Part 1.9, which formula utilizes information contained in the State Controller's redevelopment agency 2008 -09 annual report. The amount represents the redevelopment agency's proportionate share of the sum of $1,700,000,000. The initial amount determined by the Director of Finance is subject to recalculation and reduction in the event the participating city timely files an appeal in accordance with Health and Safety Code Section 34194(b)(2)(L). H. For fiscal year 2012 -13 and each fiscal year thereafter, a participating city's remittance amount shall equal the amount determined pursuant to calculations performed by the participating city in accordance with the requirements of Part 1.9, subject to adjustment based on audit and verification by the Director of Finance, the State Controller and the applicable county auditor - controller. On or before November 1 of each year, commencing November 1, 2012, a participating city shall notify the Department of Finance, the State Controller, and the applicable county auditor - controller of the remittance amount calculated by the participating city. Pursuant to the provisions of Part 1.9, a participating city shall pay one - half of the total remittance amount for a fiscal year on or before January 15 of that year and shall pay the remaining one -half of the remittance amount on or before May 15 of that year. J. A participating city making remittances pursuant to Part 1.9 may use any available funds not otherwise obligated for other uses. K. A participating city and the redevelopment agency in that participating city may enter into an agreement pursuant to Part 1.9 whereby the agency will transfer a portion of its tax increment to the participating city in an amount not to exceed the annual remittance required that year pursuant to Part 1.9. L. Pursuant to the provisions of Part 1.9, if a participating city fails to make a remittance payment, as calculated in accordance with the applicable provisions of Part 1.9 and according to the schedule set forth in Rectial I, above, the applicable county auditor - controller shall notify the Director of Finance of the failure to make the payment within 30 days. Upon receipt of the notification, the Director of Finance may determine that the redevelopment agency in the participating city shall be subject to the requirements of Part 1.8 and Part 1.85. M. The Director of Finance has notified the City that its 2011 -12 remittance amount under Part 1.9 is $4,731,158. The City has appealed the amount of the remittance to the Director of Finance, but the City has not yet been notified of the Director's decision on the appeal. N. The City desires to participate in the Alternative Voluntary Redevelopment Program so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law. O. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 was not stayed. In the event the stay is lifted and the Supreme Court upholds ABX1 26 and ABX1 27, the City desires to participate in the Alternative Voluntary Redevelopment Program so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law. P. The City has, or will have, available funds not otherwise obligated for other uses with which to make the fiscal year 2011 -12 remittance in an amount not to exceed $4,731,158, or such lesser amount recalculated by the Director of Finance, payable one -half by January 15, 2012, with the remaining one -half payable by May 15, 2012. Section 2. This Ordinance is adopted as required by Health and Safety Code Section 34193. Section 3. So that the Agency may continue to exist and carry out the provisions of the Redevelopment Law notwithstanding the provisions of Part 1.8 and Part 1.85, the City Council hereby determines and declares that it shall comply with the requirements and obligations contained in Part 1.9, as Part 1.9 exists on the date of adoption of this Ordinance. In adopting this Ordinance or agreeing to comply with the provisions of Part 1.9, the City does not intend to incur an indebtedness or liability within the meaning of any constitutional or statutory debt limitation or restriction. Section 4. Performance of actions under or pursuant to this Ordinance, including the making of payments by the City to the Riverside County Auditor - Controller (the "Auditor- Controller "), is made under protest. Neither the adoption of this Ordinance nor the performance of actions under or pursuant to this Ordinance is intended by the City or Agency to waive any right either may have to challenge the legality of all or any portion of ABX1 26 or ABX1 27 through administrative or judicial proceedings, or to appeal the City's fiscal year 2011 -12 remittance amount pursuant to Health and Safety Code Section 34194(b)(2)(L), or to otherwise contest the remittance amount for any year. Any payments hereunder are intended to be made without prejudice to the City's right to seek to recover reimbursement of such payments, plus interest, should the requirement of making such payments be stayed, enjoined, repealed, or held unconstitutional or unenforceable by any court of competent jurisdiction. This Ordinance shall be null and void and of no further force and effect in the event that ABX1 26 or ABX1 27 is repealed, or held unconstitutional or unenforceable by any court of competent jurisdiction. Section 5. The City Manager, or the City Manager's designee, is hereby authorized and directed to notify the Auditor - Controller, the State Controller, and the Department of Finance, on or before November 1, 2011, that the City agrees to comply with the provisions of Part 1.9, as Part 1.9 exists on the date of adoption of this Ordinance, with such notification to be accompanied by a certified copy of this Ordinance. Section 6. This Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the City's environmental guidelines. The City has determined that this Ordinance is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Ordinance constitutes the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (Guidelines Section 15378(b)(4)). In addition, this Ordinance is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b)(5)). Therefore, because it is not a "project," this Ordinance is not subject to CEQA's requirements. Further, even if this Ordinance were deemed a "project" and therefore subject to CEQA, the Ordinance would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061 (b)(3)). As an organizational or administrative activity or the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, this Ordinance does not have the potential to cause a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and thus this Ordinance is not subject to CEQA. (Guidelines Section 15061(b)(3)). Section 7. The City Clerk is hereby directed to file a Notice of Exemption with the County Clerk pursuant to Section 15062 of the Guidelines within five days of the adoption of this Ordinance. Section 8. The officers and staff of the City are herby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Ordinance and any such actions previously taken by such officers are hereby ratified and confirmed. Section 9. If any part of this Ordinance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance and this City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid or unconstitutional portion thereof had been deleted. Section 10. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 11. The City Clerk shall certify to the passage of this Ordinance and is hereby directed to publish or post this Ordinance, or a summary of this Ordinance, in accordance with law. Section 12. This Ordinance shall take effect on the last to occur of (a) 30 days from adoption, and (b) the stay of ABX1 27 granted by the Supreme Court of California is lifted. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor 1, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 11- was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 13 day of September, 2011, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27 day of September, 2011, the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk INN RICHARDS WATSON GERSHON "Z CI ATTORNEYS AT LAW -A PROFESSIONAL CORPORATION Summary of AB X1 26 and AB X1 27 Los Angeles Orange County San Francisco June 22, 2011 For more information contact: Robin D. Harris at 213.626.8484 or rharrisc rwglaw.com or Trisha Ortiz at 415.421.8484 or tortiz@rwglaw.com www.rwglaw.com Introduction Summary of AB X1 26 and AB X1 27 Summary of AB X1 26 and AB X1 27 On June 15, 2011, both houses of the California State Legislature passed AB Xi 26 and AB Xi 27. AB X1 26 is substantially similar (with some important differences) to AB 101 and SB 77, the two budget trailer bills that were introduced on January 10, 2011 in a shell format and amended on March 15, 2011 to provide for the elimination of redevelopment agencies. Like AB 101 and SB 77, AB X1 26 adds Parts 1.8 and 1.85 to the Community Redevelopment Law. Part 1.8 provides for the immediate curtailing of redevelopment agency activities while Part 1.85 provides for redevelopment agencies to be dissolved as of October 1, 2011 and for successor agencies to wind up the affairs of the agencies. AB X1 27 adds Part 1.9 to the Redevelopment Law. Part 1.9 provides that a city may participate in a program to make specified annual monetary contributions to exempt its redevelopment agency from Parts 1.8 and 1.85 and permit the agency to continue to exist and to carry out the provisions of the Redevelopment Law. Participation will require the city to adopt an ordinance by November 1, 2011. The city's failure to continue to make the annual payments will mean that the Department of Finance can determine that the agency becomes subject to Parts 1.8 and 1.85. Part 1.9 provides that a city and agency can enter into an agreement whereby the agency will transfer a portion of its tax increment to the city, in an amount not to exceed the annual remittance required that year pursuant to Part 1.9, "for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals." The quoted language is unclear, but may mean that a city could only use the transferred tax increment revenues to pay for financing projects that qualify for tax increment financing under the Redevelopment Law. Part 1.9 is also unclear regarding the duration of the city's obligation to make annual remittances. Part 1.9 provides that the State will be entitled to an assignment of the city's rights to any payments from the agency to which the city is entitled in the event the city fails to make a remittance required by Part 1.9. A more in depth discussion of Part 1.9 begins on page 18. Although the Legislature passed AB X1 26 and AB X1 27 on June 15, 2011, the bills are not effective until signed by the Governor. As of this date, however, the Legislature has not presented the bills to the Governor for his signature because AB X1 26 and AB X1 27 are bills related to the State Budget and on June 16, 2011, the Governor vetoed the State budget bills. AB X1 26 and AB X1 27 are linked, meaning that if the bills are presented to the 81000 - 0163 \1367407v4.doc Page 1 Summary of AB X1 26 and AB X1 27 Governor for his signature, the bills will not become effective unless the Governor signs both bills. AB Xi 26 and AB Xi 27 raise significant legal issues, and many provisions of the bills are ambiguous or contradictory. This summary does not attempt to address all these issues and ambiguities. AB X126 Part i.8: Restrictions on Redevelopment Agencies Operations Part 1.8 provides that effective immediately upon the enactment of AB X126, the authorized activities of agencies are severely curtailed. For example, agencies will be precluded from incurring new debt or entering into or modifying contractual obligations. In addition, Part 1.8 imposes various responsibilities on agencies prior to their dissolution. Chapter1. Suspension of Agency Activities and Prohibition on Creation of New Debts Upon passage of AB Xi 26, agencies' will immediately be prohibited from undertaking a number of actions, including the following: • Incurring new monetary or legal obligations or expanding existing obligations except as provided for in Part 1.8. • Incurring debt, including issuing bonds. • Except in very limited circumstances, refunding or restructuring debt or obligations that existed as of January 1, 2011 (including refunding bonds, exercising the right of optional redemption, or purchasing their own bonds). • Modifying or amending the terms and conditions, payment schedules, amortization, or maturity dates of any of the agency's bonds or other obligations that are outstanding or exist as ofJanuary 1, 2011. • Accepting loans or advances from any source for any purpose, including advances pursuant to an administrative overhead reimbursement agreement. 1 An agency includes a community development commission, but Part 1.8 does not affect the authority of a commission to act in its capacity as a housing authority or for any other community development purpose of the jurisdiction in which it operates. 81000 - 0163 \1367407v4.doc Page 2 • Executing trust deeds or mortgages on any real or personal property owned or acquired by the agency. • Pledging or encumbering (i.e., granting a lien on and a security interest in) any of the agency's revenues or assets for any purpose, including, but not limited to, tax revenues, project revenues, deeds of trust and mortgages held by the agency, rents, fees, charges, moneys, accounts receivable, contracts rights, and other rights to payment or other real or personal property. • Making loans, advances or grants, or entering into agreements to provide financial assistance for any purpose. • Loaning money or anything of value or making commitments to provide financing to nonprofit organizations to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing or the acquisition of commercial property for lease pursuant to Health and Safety Code Section 33741, et seq. • Entering into contracts with or making commitments for any purpose (e.g., leases, DDA's, and service contracts). • Purchasing mortgage or construction loans from mortgage lenders or other entities. • Forgiving all or part of the balance owed to the agency on existing loans or extending or changing the terms and conditions of existing loans. • Increasing deposits to the Low and Moderate Income Housing Fund beyond the minimum level applicable to the agency as ofJanuary 1, 2011. • Amending or modifying existing agreements, obligations or commitments for any purpose. Exceptions include extending lease space for the agency's own use for six months, with no more than a five percent rate increase, and transferring funds from the Low and Moderate Income Housing Fund to meet the "minimum housing- related obligations" that existed as ofJanuary 1, 2011 to make SERAF payments, or in connection with a borrowing pursuant to 34168.5. • Disposing of assets by any means for any purpose. Assets include, but are not limited to, real property and improvements, cash, deeds, mortgages, accounts receivable, contract rights, and rights to receive rents. 2 AB X1 26 does not contain a section 34168.5, and there is no section 34168.5 under existing law. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 Page 3 Summary of AB X1 26 and AB X1 27 • Acquiring real property, improvements on real property, or any interest in real property by any means for any purpose, provided, however, that such prohibition is not intended to prohibit the acceptance or transfer of title for real property acquired by the agency prior to the Governor signing AB X126. • Transferring, assigning, vesting, or delegating any of the agency's assets, funds, rights, powers, ownership interests, or obligations for any purpose to any entity, individual, or group. • Accepting financial or other assistance from any source if it involves incurring debt by the agency. • Engaging in redevelopment activities, including preparing, approving, adopting, amending or merging redevelopment plans; approving any program, project or expenditure where such approval is not required by law; preparing or modifying implementation plans, relocation plans (unless required by law) or housing plans; developing, rehabilitating or constructing housing units unless required to do so by an enforceable obligation; and providing relocation assistance (unless required by law) or financial assistance. • Entering into new partnerships, becoming a member of a joint powers authority, creating a new entity, becoming a member of a new entity, or taking on or agreeing to take on any new duties or obligations of an entity. • Increasing the pay, benefits, or contributions of any sort for any officer, employee, consultant, contractor, or any other goods or service provider that had not previously been contracted. • Providing optional or discretionary bonuses to any officers, employees, consultants, contractors, or any other service or goods providers. • Increasing the number of staff employed by the agency beyond the number employed as ofJanuary 1, 2011. • Bringing a validation action to determine the validity of revenue bonds. • Commencing any condemnation proceeding. • Preparing or having prepared a draft environmental impact report. MOU with Employee Organization The existing terms of any memorandum of understanding with an employee organization representing employees of the agency adopted pursuant to the Meyers- Milias -Brown Act that is in force on the date AB X1 26 is signed by the Governor will continue in force until 81000 - 0163 \1367407v4.doc Page 4 Summary of AB X1 26 and AB X1 27 September 30, 2011, unless a new agreement is reached with a recognized employee organization prior to that date. Unwinding Asset Transfers The State Controller will review the activities of agencies to determine whether an asset transfer has occurred after January 1, 2011 between each agency and the city or another public entity. To the extent not prohibited by state or federal law, the State Controller will order the return of the available assets transferred after January 1, 2011, to the redevelopment agency or, on or after October 1, 2011, to the successor agency if one has been established. The only exception will be if the government agency that received the asset is contractually committed to a third party for the expenditure or encumbrance of the asset. Chapter 2. Redevelopment Agency Responsibilities Commencing immediately upon the enactment of AB X1 26 and continuing until October 1, 2011, agencies will be required to undertake a number of actions, including the following: • Make all scheduled payments with respect to enforceable obligations. 81000 - 0163 \1367407v4.doc An "enforceable obligation" includes (A) bonds issued by an agency (including debt service, reserve set - asides, and any other payments required by the bond documents); (B) loans incurred for a lawful purpose, including moneys borrowed from the Low and Moderate Income Housing Fund, to the extent they are legally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms; (C) payments required by the Federal Government, pre - existing obligations to the State, or obligations imposed by State law, or legally enforceable payments required in connection with the agency's employees, including pension payments and unemployment payments; (D) judgments or settlements entered by a court or binding arbitration decisions; (E) any legally binding and enforceable contract that is not otherwise void as violating the debt limit or public policy; and (F) contracts necessary for the administration or operation of the agency to the extent permitted by AB X1 26 (but note that Chapter 1 of Part 1.8 provides that an agency is prohibited from accepting loans or advances from any source for any purpose, including advances pursuant to an administrative overhead reimbursement agreement). An agency must adopt an Enforceable Obligation Payment Schedule within 6o days of the date the Governor signs AB X1 26. Each schedule must list all of the agency's enforceable obligations and include certain information about each obligation, including the amount of payments obligated to be made, by month, through December 2011. Each schedule must be adopted at a public meeting and must be posted on the agency's internet web site or, if the Page 5 • Perform obligations required pursuant to enforceable obligations, including observing covenants related to continuing disclosure and preserving the tax - exempt status of outstanding bonds. • Set aside or maintain reserves in the amount required by bond documents. • Preserve all of the agency's assets and records, and minimize all liabilities. • Cooperate with the successor agency, if established, and provide all records and information necessary or desirable for audits, making of payments required by enforceable obligations, and performance of enforceable obligations by the successor agency. • Take all reasonable measures to avoid triggering an event of default under enforceable obligations. • Prepare and submit to the successor agency, if one is established, a preliminary draft of the initial Recognized Obligation Payment Schedule (the document that will govern payments by successor agencies) by September 30, 2011. The DOF may review Enforceable Obligation Payment Schedules and initial Recognized Obligation Payment Schedules. Agency actions will not be effective for three business days pending a request for review by the DOF. Each agency must designate an official to whom the DOF may make requests. In the event that the DOF requests a review of a given agency action, the DOF will have 10 days from the date of its request to approve the agency action or return it to the agency for reconsideration and the action will not be effective until approved by the DOF. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 agency does not have a site, on the city's site. The schedule must be transmitted (by mail or electronically) to the county auditor - controller, the State Controller and the Department of Finance (DOF). Upon the earlier of adoption of the Enforceable Obligation Schedule or 6o days after the Governor signs AB Xi 26, an agency will not be able to make a payment unless it is listed in the adopted schedule. An exception is provided for payments required to meet obligations with respect to bonds. The DOF and the State Controller can require an agency to provide them with documents that are associated with the agency's enforceable obligations. Any taxing entity, the DOF and the State Controller all will have standing to file a judicial action to prevent a violation under Part 1.8 and to obtain injunctive or other appropriate relief. Page 6 Summary of AB X1 26 and AB X1 27 Chapter 3. Application of Part 1.8 to Former Participants of the Alternative Voluntary Redevelopment Program As discussed beginning on page 18, an agency will be exempt from the provisions of Parts 1.8 and 1.85 if the city participates in the Alternative Voluntary Redevelopment Program established by Part 1.9 and complies with all the requirements and obligations set forth in Part 1.9. An agency that operates pursuant to the Alternative Voluntary Redevelopment Program under Part 1.9 can become subject to the provisions of Part 1.8 if the city fails to make a required annual payment. In such case, the dates and deadlines specified in Part 1.8 are appropriately modified to reflect the date that that the agency becomes subject to Part 1.8. References to "January 1, 2011" will be construed to mean January 1 of the year preceding the year that the agency became subject to Part 1.8 (but not earlier than January 1, 2011). Any reference to a date "6o days from the effective date of this part" will be construed to mean 6o days from the date that the agency becomes subject to Part 1.8. Except as specified in the two preceding sentences, any reference to a date certain will be construed to be the date measured from the date the agency became subject to Part 1.8 that is equivalent to the duration of time between the effective date of Part 1.8 and the date certain identified in AB X1 26. Part 1.85: Dissolution of Redevelopment Agencies and Designation of Successor Agencies Part 1.85 provides that unless otherwise specified, its provisions will take effect on October 1, 2011. Part 1.85 defines a number of terms used in AB X1 26 (Chapter 1); provides for the creation of funds to be held by agencies or successor agencies (Chapter 1); describes the effect of the dissolution of agencies (Chapter 2); provides for the designation of successor agencies and their responsibilities (Chapter 3); provides for the creation of oversight boards and their responsibilities (Chapter 4); specifies the duties of the county auditor - controller (Chapter 5); describes the effect of Part 1.85 on the Redevelopment Law (Chapter 6); provides for the stabilization of labor and employment relations (Chapter 7); and provides for the application of Part 1.85 to agencies if the DOF determines that this part applies because the city has ceased making payments under Part 1.9's Alternative Voluntary Redevelopment Program (Chapter 8). Chapter 1. Creation of Funds AB X126 provides for the establishment of the following funds: • A Redevelopment Obligation Retirement Fund is created in the treasury of each successor agency. • A Redevelopment Property Tax Trust Fund is created for the property tax revenues related to each former agency in each county, to be administered by the county auditor - controller. 81000 - 0163 \1367407v4.doc Page 7 Summary of AB X1 26 and AB X1 27 Chapter 2. Effect of Redevelopment Agency Dissolution All redevelopment agencies (and redevelopment agency components of community development commissions) are dissolved as of October 1, 2011, and their authority to transact business or exercise powers under the Redevelopment Law is withdrawn. The city may not create a new redevelopment agency if its agency has been dissolved unless and until the successor entity has paid off all of the former agency's enforceable obligations and the city adopts an ordinance to participate in the Alternative Voluntary Redevelopment Program. Except for those provisions of the Redevelopment Law that are repealed, restricted, or revised by AB X1 26, all authority, power, and obligations previously vested with agencies under the Redevelopment Law are vested in successor agencies as of October 1, 2011. In the case of a city redevelopment agency, the successor agency will be the city unless the city elects not to become the successor agency. If the city so elects, it must file a copy of a duly authorized resolution of the city council with the county auditor - controller by September 1, 2011. The county or a special district in the county can elect to become the successor agency if the city declines. If neither the county nor a special district so elects, a "designated local authority" will be created and the Governor will appoint three residents of the county to serve as its governing board. The designated local authority will serve unless the city, county, or a special district elect to become the successor agency. The liability of any successor agency, acting pursuant to the powers granted under AB X1 26, will be limited to the extent of the total sum of property tax revenues it receives pursuant to AB X1 26 and the value of assets transferred to it as a successor agency. All assets, properties, contracts, leases, books and records, buildings, and equipment of the agency, including cash and amounts owed to the agency as of October 1, 2011, are transferred on October 1, 2011 to the control of the successor agency for administration pursuant to AB X1 26. The city may elect to retain the housing assets and functions previously performed by the agency (presumably the city may make this election even if it elects not to become the successor agency). If the city elects to retain the responsibility for performing housing functions, all rights, powers, duties, and obligations (excluding any amounts on deposit in the Low and Moderate Income Housing Fund) will be transferred to the city. If the city does not elect to retain the responsibility for performing housing functions, the rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the agency (excluding amounts on deposit in the Low and Moderate Income Housing Fund), will be transferred as follows: 3 For non - redevelopment purposes, a community development commission derives its authority solely from federal or local laws, or from state laws other than the Redevelopment Law. 81000 - 0163 \1367407v4.doc Page 8 Summary of AB X1 26 and AB X1 27 • If there is no local housing authority in the territorial jurisdiction of the agency, to the Department of Housing and Community Development. • If there is only one local housing authority in the territorial jurisdiction of the agency, to that housing authority. • If there is more than one local housing authority in the territorial jurisdiction of the agency, to the housing authority selected by the city. The entity assuming the housing functions of the agency may enforce affordability covenants and perform related activities pursuant to the applicable provisions of the Redevelopment Law. Chapter 3. Successor Agencies Each successor agency will be required to do a number of things, including the following: • Continue to make payments due for enforceable obligations and prepare Recognized Obligation Payment Schedules. 4 "Indebtedness obligations" means bonds, notes, certificates of participation or other evidence of indebtedness issued or delivered by the agency or by ajoint exercise of powers authority created by the agency to third party investors or bondholders to finance or refinance redevelopment projects. 81000 - 0163 \1367407v4.doc On or after October 1, 2011, and until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an Enforceable Obligation Payment Schedule may be made. The initial Enforceable Obligation Payment Schedule will be the last such schedule adopted by the redevelopment agency. However, with certain exceptions, an enforceable obligation will not include any agreements, contracts, or arrangements between the city and agency. The exceptions are as follows: Written agreements entered into at the time of issuance of indebtedness obligations^ (but not later than December 31, 2010) solely for the purpose of securing or repaying those indebtedness obligations may be deemed enforceable obligations by the successor agency. Loan agreements entered into between a city and agency within two years of the date of creation of agency may also be deemed to be enforceable obligations. A joint exercise of powers agreement in which the agency is a member, provided the successor agency's rights, duties and performance obligations under the agreement will be limited by the constraints imposed upon successor agencies by Part 1.85. Page 9 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 The obligations excluded from the definition of enforceable obligations will be excluded from the Enforceable Obligation Payment Schedule and removed from the last schedule adopted by the agency prior to the successor agency adopting it as its Enforceable Obligation Payment Schedule. The Enforceable Obligation Payment Schedule may be amended by the successor agency at a public meeting, will be subject to the approval of the oversight board, and must be posted on the agency's Internet web site or, if no such web site exists, on the Internet web site of the city. Any taxing entity', the DOF, and the State Controller will each have standing to file a judicial action to prevent a violation under Part 1.85 and to obtain injunctive or other appropriate relief. Successor agencies are required to prepare Recognized Obligation Payment Schedules before each six -month fiscal period. A draft schedule must be prepared by November 1, 2011. Schedules must be approved by the oversight board, submitted to the county auditor - controller, the State Controller and the DOF, and posted on the successor agency's Internet web site. The first Recognized Obligation Payment Schedule must be submitted by December 15, 2011, and will be for the period of January 1, 2012, to June 30, 2012. Former agency enforceable obligation payments due, and reasonable or necessary administrative costs due or incurred, prior to January 1, 2012, will be made from property tax revenues received in the spring of 2011 property tax distribution, and from other revenues and balances transferred to the successor agency. Commencing on the operative date of Part 1.85, agreements, contracts, or arrangements between the city and agency are invalid and will not be binding on the successor agency; provided, however, that a successor agency wishing to enter or reenter into agreements with the city may do so upon obtaining approval of the oversight board. Notwithstanding the foregoing, the three types of city /agency contracts described above on page 9 are not invalid and may bind the successor agency. Commencing on January 1, 2012, only those payments listed in a Recognized Obligation Payment Schedule may be made by a successor agency. The successor agency must use the funds specified in the Schedule unless the oversight board approves the use of other funds. There are a number of details associated with preparing and adhering to the Schedules. From October 1, 2011 to July 1, 2012, a successor agency is prohibited from accelerating payment or making any lump sum payments that are intended to ABX1 26 defines "taxing entities" to mean cities, counties, special districts, school districts, community college districts, and county offices of education that receive pass through payments and distributions of property taxes pursuant to Part 1.85. Page to 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 prepay loans unless such accelerated repayments were required prior to October 1, 2o11. For each obligation listed on a Recognized Obligation Payment Schedule, the Schedule must identify one or more of the following sources of payment: (A) The Low and Moderate Income Housing Fund; (B) bond proceeds; (C) reserve balances; (D) the administrative cost allowance (E) moneys in the Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or payment from current property tax revenues is required by an enforceable obligation or AB Xi 26; or (F) other sources approved by the oversight board. Each Schedule must be approved by the oversight board and the initial Schedule must be reviewed and certified by an external auditor. • Maintain reserves in the amounts required by indentures or similar bond documents. • Perform obligations required pursuant to enforceable obligations. • Remit unencumbered balances of agency funds to the county auditor - controller for distribution to taxing entities, including but not limited to the unencumbered balance of the Low and Moderate Income Housing Fund. • Dispose of agency assets and properties as directed by the oversight board. Proceeds from asset sales and related funds that are no longer needed to wind up the affairs of the agency, as determined by the oversight board, must be transferred to the county auditor - controller for distribution to taxing entities. The oversight board may direct the successor agency to transfer ownership of assets that were constructed and used for a governmental purpose to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset. Any compensation to be provided to the successor agency for the transfer of the asset will be governed by the agreements relating to the construction or use of that asset. • Enforce all agency rights for the benefit of taxing entities, including the continued collection of loans, rents, and other revenues that were due to the agency. 6 The administrative cost allowance is an amount that, subject to the approval of the oversight board, is payable from property tax revenues of up to 5% of the property tax allocated to the successor agency for the 2011 -12 fiscal year and up to 3% of the property tax allocated to the Redevelopment Obligation Retirement Fund money that is allocated to the successor agency for each fiscal year thereafter. However, the amount shall not be less than $250,000 for any fiscal year or such lesser amount as agreed to by the successor agency. The allowance amount will exclude any administrative costs that can be paid from bond proceeds or from sources other than property tax. Page 11 • Effectuate transfer of housing functions and assets to the appropriate entity. • Expeditiously wind down the affairs of the agency in accordance with the direction of the oversight board. • Continue to oversee development of properties until the contracted work has been completed or the contractual obligations of the agency can be transferred to other parties. In connection with the completion of contracted work, bond proceeds must be used for the purposes for which the bonds were sold if the purposes can still be achieved, and if not, the bond proceeds may be used to defease the bonds. • Prepare a proposed administrative budget for approval by the oversight board, which includes estimated amounts for successor agency administrative costs for the upcoming six month fiscal period, proposed sources of payments for such costs, and proposals for arrangements for administrative and operations services provided by the city. • Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor - controller for each six month fiscal period. Chapter 4. Oversight Boards Each successor agency will have an oversight board composed of seven members. Two members are to be selected by the mayor; one of these two members does not need to meet any particular qualifications while the other member will represent the employees of the agency from the recognized employee organization representing the largest number of former agency employees employed by the successor agency at that time. One member is to be selected by the largest non - enterprise special district, by property tax share, with territory in the city (if none, then the county may appoint an additional member to represent the public). One member is to be appointed by the superintendent of education to represent schools. One member is to be appointed by the Chancellor of the California Community Colleges to represent community college districts. The board of supervisors is to appoint two members, with one member to represent the public. Any positions that have not been filled by January 15, 2012, or which remain vacant for more than 6o days, are to be filled by the Governor. The oversight board may direct the staff of the successor agency in furtherance of their duties and responsibilities under AB Xi 26. The successor agency must pay for all costs of meetings of the oversight board and may include such costs in its administrative budget. Members of the oversight board are to serve without compensation or reimbursement for expenses. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 Page 12 Summary of AB X1 26 and AB X1 27 AB Xi 26 provides for the DOF to review the actions of oversight boards and actions of the oversight board will not be effective for three business days pending a request for review by the DOF. If the DOF returns an action to the oversight board for reconsideration, the oversight board must get approval of its modified action. Commencing on July 1, 2016, the individual oversight boards for each dissolved redevelopment agency will be replaced with a single oversight board for each county. The appointment of members will be the same as for the individual boards, except the city and special district members will be appointed by the respective selection committees established pursuant to the Government Code' and the recognized employee organization member will be appointed by the organization instead of the mayor. The oversight board must approve a number of actions of the successor agency including the following: • Establishment of new repayment terms for outstanding loans where such terms have not been specified prior to the date of Part 1.85. • Issuance of refunding bonds. • The set aside of reserves as required by bond documents. • Acceptance of federal or state grants or other forms of financial assistance from public or private sources if the assistance is conditioned upon the provision of matching funds by the successor agency in an amount greater than five percent. • Establishment of the Recognized Obligation Payment Schedule. • A request by a successor agency or taxing entity to pledge, or to enter into an agreement for the pledge of, property tax revenues. The oversight board must direct the successor agency to do certain things, including the following: • Dispose of all assets and properties of the agency that were funded by tax increment revenues of the agency, except that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of the asset. • Cease performance in connection with and terminate all existing agreements that do not qualify as enforceable obligations. A city selection committee consists of the mayors of each incorporated city in the county. 81000 - 0163 \1367407v4.doc Page 13 Summary of AB X1 26 and AB X1 27 • Transfer housing responsibilities and all rights, powers, duties and obligations, along with any amounts on deposit in the Low and Moderate Income Housing Fund, to the appropriate entity (note, however, that other provisions of AB Xi 26 provide for the unencumbered balance of the Low and Moderate Income Housing Fund to be disbursed to taxing entities). • Terminate any agreement between the dissolved redevelopment agency and any public entity located in the same county that obligates the agency to provide funding for any debt service obligations of the public entity or for the construction or operation of facilities owned or operated by such public entity in any instance where the oversight board has found that early termination would be in the best interests of the taxing entities. • Determine whether any contracts or other arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase the revenues to the taxing entities, and present proposed termination or amendment agreements to the oversight board for its approval. The oversight board may approve any amendments to or early termination of such agreements where it finds that this would be in the best interests of the taxing entities. Chapter 5. Duties of County Auditor Controllers The county auditor - controller must conduct (or cause to be conducted) a financial audit of each agency subject to Part 1.85 by March 1, 2012. The purpose of the audits is to establish each agency's assets, liabilities, and pass through payment obligations, and the amounts and terms of any indebtedness. The county auditor - controller must determine the amount of property taxes that would have been allocated to each agency in the absence of dissolution, using current assessed values on the roll last equalized on August 2O and pursuant to statutory formulas or contractual agreements with other taxing agencies, and deposit that amount in the respective Redevelopment Property Tax Trust Fund. Each county auditor - controller is to administer the Redevelopment Property Tax Trust Fund for the benefit of the holders of former agency enforceable obligations and the taxing entities that receive pass through payments and distributions of property taxes pursuant to Part 1.85. The county auditor - controller must disburse proceeds of asset sales or reserve balances received from successor agencies to the taxing entities. 81000 - 0163 \1367407v4.doc Page 14 Summary of AB X1 26 and AB X1 27 From October 1, 2011 to July 1, 2012, and for each fiscal year thereafter, each county auditor - controller will, after deducting allowable administrative costs, allocate moneys in the Redevelopment Property Tax Trust Fund as follows: First, by no later than January 16, 2012 and June 1, 2012 and each January 16 and June 1 thereafter, to each local agency and school entity an amount of property tax revenues in an amount equal to that which would have been received pursuant to Health and Safety Code Sections 334 3349 33 33 33607.7 or 33676 as those sections read on January 1, 2011, or pursuant to any pass through agreement with a taxing jurisdiction entered into prior to January 1, 1994 that would be in force during that fiscal year if the agency existed at that time. The portion of tax increment that is attributable to an override tax rate levied to repay bonds for the acquisition or improvement of real property will be paid to the taxing entity that levied the override tax.'° Second, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, to each successor agency for payments listed in its Recognized Obligation Payment Schedule for the six month fiscal period beginning January 1, 2012, or July 1, 2012, and each January 16 and June 1 thereafter in the following order of priority: • debt service payments scheduled to be made for tax allocation bonds; • payments scheduled to be made on revenue bonds, but only to the extent the revenues pledged for them are insufficient to make the payments and only where the agency's tax increment were also pledged for the repayment of the bonds; and • payments scheduled for other debts and obligations listed in the Recognized Obligation Payment Schedule that are required to be paid from former tax increment revenue. Third, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, to each successor agency for the administrative cost allowance for administrative costs set forth in an approved administrative budget for those payments required to be paid from former tax increment revenues. Fourth, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments 8 Note that this date falls before the March 1, 2012 deadline for the completion of the financial audit of each agency conducted, or caused to be conducted, by the county auditor - controller. 9 Again, this date falls prior to the deadline for completing financial audits of redevelopment agencies. 10 In some instances, tax increment revenues derived from an override tax have been pledged to the repayment of bonds. ABX1 26 contains a provision stating that it is the intent of Part 1.85 that pledges of revenues associated with enforceable obligations of former redevelopment agencies are to be honored and that the cessation of any agency will not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of that pledge. 81000 - 0163 \1367407v4.doc Page 15 Summary of AB X1 26 and AB X1 27 and transfers authorized above have been made, shall be distributed to local agencies and school entities. If the successor agency reports, no later than December 1, 2011 and May 1, 2012 and each December 1 and May 1 thereafter, to the county auditor - controller that the total amount available to the successor agency from (i) the Redevelopment Property Tax Trust Fund allocation to that successor agency's Redevelopment Obligation Retirement Fund, (ii) other funds transferred from each redevelopment agency, and (ii) funds that have or will become available through asset sales and all redevelopment operations are insufficient to fund the payments required by the First through Third paragraphs on page 15 in the next six month fiscal period, the county auditor - controller will notify the State Controller and the DOF no later than to days from the date of that notification. The county auditor - controller will verify whether the successor agency will have sufficient funds. If the State Controller concurs that there are insufficient funds, the amount of the deficiency will be deducted from the amount remaining to be distributed to the taxing entities pursuant to the Fourth paragraph. If that amount is exhausted, the amount of deficiency will be deducted from amounts available for administrative costs pursuant to the Third paragraph. If the agency's pass through payments were subordinated to debt service payments, funds for debt service may be deducted from the amounts for pass through payments pursuant to the First paragraph to the extent that the amounts remaining to be distributed to taxing entities and the amounts for administrative costs have all been exhausted. The county treasurer may loan any funds from the county treasury that are necessary to ensure prompt payments of redevelopment agency debts. Commencing on January 16, 2012, and on each January 16 and June 1 thereafter, the county auditor - controller will transfer, from the Redevelopment Obligation Retirement Fund of that agency, an amount of property tax revenues equal to that specified in the Recognized Obligation Payment Schedule for that successor agency as payable from the Redevelopment Property Tax Trust Fund, subject to the limitations set forth in AB X1 26. Differences between actual payments and past estimated obligations on Recognized Obligation Payment Schedules must be reported in subsequent Recognized Obligation Payment Schedules and the amount to be transferred to the Redevelopment Obligation Retirement Fund will be adjusted. Commencing January 1, 2012, whenever an obligation on a Recognized Obligation Payment Schedule is paid off or retired, either through early payment or payment at maturity, the county auditor - controller must distribute to the taxing entities all property tax revenues that the agency would have been entitled to receive before enactment of AB X1 26. This provision is unclear, but may mean that once an obligation is paid off, the amount of 81000 - 0163 \1367407v4.doc Page 16 Summary of AB X1 26 and AB X1 27 property tax revenues that were used to pay debt service on the defeased obligation will subsequently be distributed to taxing entities." Chapter 6. Effect of Part 1.85 on the Redevelopment Law Chapter 6 provides that commencing on the effective date of Part 1.85, provisions of the Redevelopment Law that depend on the allocation of tax increment to redevelopment agencies will be inoperative, except with respect to agencies operating pursuant to Part 1.9 (i.e., the Alternative Voluntary Redevelopment Program). Chapter 7. Stabilization of Labor and Employment Relations Chapter 7 provides that nothing in AB Xi 26 is intended to relieve any redevelopment agency of its obligations under Section 3500 et seq. of the Government Code (which relate to local public employee organizations). Subject to the limitations described above on page 4 with respect to salaries, benefits, bonuses and numbers of staff, prior to its dissolution, an agency will retain the authority to meet and confer and to bargain over matters within the scope of representation. Chapter 7 imposes various obligations on successor agencies with respect to collective bargaining agreements and successor agencies will be deemed to have assumed the obligations under any memorandum of understanding in effect between the agency and a recognized employee organization as of the date of the agency's dissolution. Chapter8. Application of Part 1.85 to Former Participants of the Altemative Voluntary Redevelopment Program As discussed below, AB X1 27 adds Part 1.9 to the Redevelopment Law, which provides that the provisions of Part 1.8 and 1.85 will not apply to a redevelopment agency if the city participates in the Alternative Voluntary Redevelopment Program. Chapter 8 provides that if a redevelopment agency subsequently becomes subject to the provisions of Part 1.85, the dates and deadlines set forth in Part 1.8 will be appropriately modified to reflect the date that the agency becomes subject to the provisions of Part 1.85. Miscellaneous Provisions Clean Up Bill. A clean up bill must be produced by the California Law Revision Commission for consideration by the Legislature no later than January 1, 2013. Statute of Limitations. The time period to challenge the adoption or amendment of a redevelopment plan or the validity of findings or determinations by an agency or city council adopted or made after January 1, 2011 is extended to two years. An action that is commenced after January 1, 2011 to challenge the validity of bonds can be brought within two years after the date of the triggering event. 11 In such case, this would create a problem with respect to subordinate obligations that are payable from excess tax increment revenues that remain after paying debt service on senior obligations. See footnote no. 10 regarding the intent of AB X1 26 that pledges associated with enforceable obligations be honored. 81000 - 0163 \1367407v4.doc Page 17 Chapter 1. Application of Part 1.9 Summary of AB X1 26 and AB X1 27 Poison Pill. If a legal challenge to invalidate any provision of AB Xi 26 is successful, redevelopment agencies shall be prohibited from issuing new bonds, notes, interim certificates, debentures or other obligations, whether funded or refunded, assumed or otherwise. AB X127 Part 1.9: Alternative Voluntary Redevelopment Program AB Xi 27 provides for the continued existence of a redevelopment agency upon the adoption of an ordinance by the city to comply with AB Xi 27. An agency will be exempt from the provisions of Parts 1.8 and 1.85 if the city participates in the Alternative Voluntary Redevelopment Program established by Part 1.9 and complies with all the requirements and obligations set forth in Part 1.9. Chapter 2. Continued Agency Existence Participation in the Alternative Voluntary Redevelopment Program will require a city to adopt an ordinance on or before November 1, 2011. If the city intends to adopt the ordinance after October 1, 2011, it must adopt a nonbinding resolution of intent prior to October 1, 2011 and notify the DOF, the State Controller, and the county auditor - controller before October 1, 2011 concerning the resolution. This action will delay the dissolution of an agency until November 1, 2011. On or before November 1, 2011, a city that has adopted an ordinance must notify the county auditor - controller, the State Controller and the DOF that the city agrees to comply with the provisions of Part 1.9. Participation in the Alternative Voluntary Redevelopment Program constitutes an agreement by the city that it assigns its rights to any payments owed from the agency, including but not limited to, payments from loan agreements, to the State in the event the city fails to make a remittance required pursuant to Part 1.9. If the city has adopted an ordinance pursuant to the Alternative Voluntary Redevelopment Program, the actions of the agency taken after the date of adoption of the ordinance will not be subject to the new two year statute of limitations provided for by AB X1 26. 81000 - 0163 \1367407v4.doc Page 18 Chapter 3: Community Remittances 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 For each fiscal year, commencing with fiscal year 2011 -12, the city must remit to the county auditor - controller the amounts required pursuant to Part 1.9. For fiscal year 2011 -12, the DOF will determine the amount of the remittance. The calculation is similar to the SERAF calculation for 2009 -10 (using information from the State Controller's 2008 -09 report and determining each agency's proportionate share of $1.7 billion). The DOF will notify each city of its remittance amount on or before August 1, 2011. After receiving this notification, a city may appeal the amount of its remittance to the DOF on or before August 15, 2011, on the basis that the information in the State Controller's report was in error or that the percentage of tax increment necessary to pay for tax allocation bonds and interest payments has increased by to percent or more over the percentage calculated pursuant to the Controller's 2008 -09 report. The DOF may reject or approve the appeal at the DOF's discretion. The DOF must notify the city of its decision by September 15, 2011. The DOF can extend the date to October 15, 2011, in which case the city will have until December 1, 2011, to adopt an ordinance. The DOF must recalculate the remittance amount if it determines that the percentage of tax increment necessary to pay for tax allocation bonds or interest payments has increased by to percent or more. For the 2012 -13 fiscal year and subsequent fiscal years, a participating city must remit an amount equal to the sum of the amounts specified in paragraphs 1 and 2 below. 1. A base payment equal to the base payment in the prior fiscal year, increased by the percentage growth or decreased by the percentage reduction, as appropriate, from the prior fiscal year in the total "adjusted amount of property tax increment revenue" allocated to the agency with respect to project areas that were in existence, and from which the agency received allocations of tax increment revenue during the 2011 -12 fiscal year. For fiscal year 2012 -13, the base payment in the prior fiscal year will be the remittance amount for the fiscal year 2011 -12 multiplied by the ratio of $400 million to $1.7 billion. The "adjusted amount of property tax increment revenue" means an amount of property tax increment in any fiscal year for a project area that is calculated by subtracting the amount of any debt service or other payments for new debt issuances or obligations from the total amount of property tax increment revenue allocated in that year to the agency with respect to that project area. 2. An amount equivalent to 8o %, or any lesser amount as may be authorized by law for qualifying projects', of the total "net school share ", of debt service or other 12 AB X1 27 provides that it is the intent of the Legislature to enact legislation in the 2011 -12 session to prescribe a schedule of reductions in the community remittance that will authorize payments of less than 80% of the school Page 19 Summary of AB X1 26 and AB X1 27 payments made in that fiscal year for new debt or obligations issued or incurred on or after November 1, 2011, as shown on the agency's statement of indebtedness (SO1), excluding any debts issued or incurred on behalf of the Low and Moderate Income Housing Fund. "New debt" means debt that is displayed on a SO1 filed after a SO1 filed on October 1, 2011, that was not displayed on the SO1 filed on October 1, 2011. The "net school share" will be the school share of the property tax increment revenues, less any pass through payments to school entities, that would have been received in the absence of redevelopment by school entities. On or before November 1 of each year, the city must notify the DOF, the State Controller and the county auditor - controller of the remittance amount, and they will each be authorized to audit and verify the remittance amount that is determined by the city. If it determined that the city has miscalculated its remittance payment amount, the auditor - controller will adjust the amount of the next remittance payment to be paid by the city to reflect the correct amount payment previously owed by the city. The city must pay one -half of the total remittance amount on or before January 15 of each year and pay the remaining one -half on or before May 15 of each year. If the city fails to make its remittance payment, the auditor - controller will notify the DOF within 3o days. Upon receipt of the notification, the DOF may then determine that the agency will be subject to the requirements of Parts 1.8 and 1.85. To make the remittances, a city may use any available funds not otherwise obligated for other uses. A city may enter into an agreement with the agency whereby the agency will transfer a portion of its tax increment to the city in an amount not to exceed the annual remittance required that year for the purpose of financing activities within the project area that are related to accomplishing the agency project goals. For fiscal year 2011 -12 only, the agency in a participating city will be exempt from making the full allocation required to be made to the Low and Moderate Income Housing Fund if the agency makes a finding that there are insufficient other moneys to meet its debt and other obligations, current priority program needs, or its obligations under the agreement with the city to transfer tax increment to the city for the remittances. Chapter 3.5. Post Dissolution Voluntary Redevelopment Program Participation No city may establish a new redevelopment agency if its former agency has been dissolved pursuant to Part 1.85 until the successor entity has retired all existing enforceable obligations and debts of the former agency and then only after the city adopts the ordinance share of property taxes to the ERAF. The reductions will apply for bonds issued for the purpose of funding projects that advance the achievement of statewide goals with respect to transportation, housing, economic development and job creation, environmental protections and remediation and climate change. 81000 - 0163 \1367407v4.doc Page 20 Poison Pill. Chapter '. Auditor - Controller Fee 81000- 016311367407v4.doc Summary of AB X1 26 and AB X1 27 providing for the payment of remittances pursuant to the Alternative Voluntary Redevelopment Program. Chapter 4. Enforcement and Sanctions In the event a city fails to make a remittance and the DOF determines that the agency is to be subject to the requirements of Parts 1.8 and 1.85, then: The city will no longer be authorized to engage in voluntary redevelopment and the agency will become immediately subject to the provisions of Parts 1.8 and 1.85. The state will be entitled to an assignment of any rights of a city to any payments from the agency to which the city is entitled for the purpose of mitigating the fiscal impact to the State related to the failure of the city to make the required remittance payment. The auditor- controller may charge a city a fee that does not exceed the reasonable costs of the auditor- controller to implement the provisions of Part 1.9. If any legal challenge to invalidate a provision of Section 2 of AB Xi 27 (i.e., the provisions of the Alternative Voluntary Redevelopment Program) is successful, redevelopment agencies will be prohibited from issuing new obligations, including bonds and notes. AB Xi 27 provides that the provisions of Section 2 are distinct and severable from the provisions of Parts 1.8 and 1.85 and the provisions of Parts 1.8 and 1.85 will continue in effect if any provision of AB Xi 27 is held invalid. * ** We will continue to closely monitor the budget process related to the Governor's redevelopment proposal. If you have any questions about this summary, please do not hesitate to contact Robin D. Harris at 213.626.8484 or rharris @rwglaw.com, or Trisha Ortiz at 415.421.8484 or tortiz@rweaw.com. Page 21 Item No. 17 PREPARED BY: Tamra Irwin, Senior Management Analyst RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 11- Approvals City Attorney Director of Finance City Manager Mf (10L CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Grant Yates, Deputy City Manager DATE: September 27, 2011 SUBJECT: Support of Senate Bill 946, at the Request of Council Member Naggar A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUPPORT SENATE BILL 946 (STEINBERG) WHICH WILL REQUIRE PRIVATE INSURANCE COMPANIES TO COVER AUTISM TREATMENT BACKGROUND: Council Member Naggar recommends support of Senate Bill 946 which would provide insurance coverage for Autism treatment for employees of private companies. Autism rates have grown exponentially since the mid - eighties. Autism occurs in all racial, ethnic and socioeconomic groups and is four times more likely to occur in boys than in girls. Autism now occurs in 1 in 91 children and it's becoming a growing health crisis. Autism is an extreme burden to families with Autistic children because insurance companies do not currently cover the costs of treatment necessary for the child. When a family cannot afford private treatment, the child goes without and their future is greatly affected. Senate Bill 946 would require private insurance companies to cover Autism treatment. This will give families the ability to provide necessary Autism treatment for their children. This legislation affects privately contracted insurance policies and will not include Medi -Cal, the State's Healthy Families Program, or any insurance acquired through CALPERS. This legislation has passed both the Senate and Assembly, was sent to the Governor's office for signature on September 16th, and is waiting for the Governor to act on it. The Governor has thirty days to sign or veto the bill. There is a potential that the financial impacts of SB 946 to the business community will be significant. This bill is opposed by the insurance industry, as well as, the California Chamber of Commerce. There is also significant societal impact of not supporting and passing SB 946. FISCAL IMPACT: There is no fiscal impact to the City of Temecula. However, the insurance industry is estimating that it will cost hundreds of millions of dollars statewide. Supporters of this bill believe that the cost of not supporting this bill is even greater. Supporters state that early diagnosis and treatment of Autism will lead these individuals to live productive lives and become productive members of society thereby costing the state much less over the course of their lifetime. ATTACHMENTS: Resolution RESOLUTION NO. 11- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO SUPPORT SENATE BILL 946 (STEINBERG) WHICH WILL REQUIRE PRIVATE INSURANCE COMPANIES TO COVER AUTISM TREATMENT THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, Autism occurs in all racial, ethnic and socioeconomic groups and is four times more likely to occur in boys than in girls; and WHEREAS, Autism occurs in 1 in 91 children; and WHEREAS, one in every 58 boys under the age of 8 has some form of Autism Spectrum Disorder; and WHEREAS, Autism rates have increased exponentially since the mid - eighties; and WHEREAS, many families has difficulty finding and funding resources to assist them with their autistic children; and WHEREAS, Autism is a growing health crisis; and WHEREAS, Autism is an extreme burden to families with Autistic children because insurance companies do not currently cover the costs of treatment necessary for the child; and WHEREAS, when a family cannot afford private treatment, the child goes without and their future is greatly affected; and WHEREAS, the City of Temecula has supported Autism efforts in the past; and WHEREAS, SB 946 would require private insurance companies to cover Autism treatment; and WHEREAS, SB 946 would greatly assist families with children with Autism to get them the treatment that they need; and WHEREAS, SB 946 would greatly increase the chances that these children will be able to go on to lead productive lives; and THEREFORE, the City of Temecula does hereby resolve to support Senate Bill 946 (Steinberg). PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27th day September of, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 11- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27th day of September, 2011, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Item No. 18 Approvals City Attorney Director of Finance City Manager (10L CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Aaron Adams, Assistant City Manager DATE: September 27, 2011 SUBJECT: Professional Services Agreement for Graphic Art and Marketing PREPARED BY: Tamra Irwin, Senior Management Analyst RECOMMENDATION: That the City Council: 1. Approve a professional services agreement for graphic art and marketing with Ann Howell Design in the amount of $33,619.30; 2. Authorize the City Manager to approve additional work not to exceed the contingency amount of $3,362, which is equal to 10% of the agreement amount. BACKGROUND: Ann Howell Designs has been providing graphic art and marketing services to the City of Temecula for the last several years. At this time, based upon performance, it is the recommendation of staff that the City Council consider approval of an agreement for graphic design /marketing collateral services with Ann Howell Design. In addition, much of the existing marketing materials and related designs have not been updated in many years and now require a fresh perspective in continuing to brand the City of Temecula in a positive light. Ann Howell Design will provide a variety of services to the City in this fiscal year. They will include: - Economic Development 42 x 66 Poster Design. For display at Civic Center and through website /social media, this design will advertise contact information for "doing business" with the City of Temecula. - Springfest Event Promotions Design. Design will include the promotion of Old Town special events that will be developed into rackcard brochures for hotels, slides for cable television, automall marque sign and website /social media. Events included in this graphic design will include: Rod Run, Blue Grass Festival, and Western Days. Autumnfest Event Promotions Design. Design will include the promotion of Old Town special events that will be developed into rackcard brochures for hotels, slides for cable television, automall marque sign and website /social media. Events included in this graphic design will include: Old Town Quilt Show, Rod Run, Museum Gone Mad. Winterfest Event Promotions Design. Design will include the promotion of Old Town special events that will be developed into rackcard brochures for hotels, slides for cable television, automall marque sign and website /social media. Events included in this graphic design will include: Seasonal Ice Rink, Santa Arrival, Santa's Electric Parade, Pennypickle's Winterwonderland and New Year's Eve Grape Drop. Summerfest Event Promotions Design. Design will include the promotion of Old Town special events that will be developed into rackcard brochures for hotels, slides for cable television, automall marque sign and website /social media. Events included in this graphic design will include: Street Painting & Plein Air Festival, 4 of July, Hot Summer Nights, Summer Sunsets Concert Series and Balloon and Wine Festival. City of Temecula Conference Center Brochure. Design will include a marketing piece suitable for distributing to meeting planners and corporations advertisting professional meeting space within the Civic Center Conference Center. City of Temecula Old Town Demographic Brochure. Design will include updating marketing brochure promoting and encouraging economic development within the Old Town /Downtown district. City of Temecula General Quality of Life Brochure. Design will include an update and refresh of economic development marketing materials. Temecula Street Pole Banner Program. Design will include an update and refresh of existing street pole banner program. Finalize Quality of Life Master Plan. Editing, formatting and inclusion of artwork/graphic design of final document. It is staff's recommendation that the Council approve a one -year contract with Ann Howell Design to continue design and creation of marketing materials for the City of Temecula. FISCAL IMPACT: This Agreement is for $33,619.30 plus ten percent contingency for a total of $36,981.23. Appropriate funding has been budgeted in the FY 2011/2012 Operating Budget. ATTACHMENTS: Graphic Art and Marketing Agreement THIS AGREEMENT is made and effective as of September 27, 2011, between the City of Temecula , a municipal corporation (hereinafter referred to as "City "), and Ann Howell dba Ann Howell Design, (hereinafter referred to as "Consultant "). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on September 27, 2011, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2012, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES 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 AGREEMENT FOR CONSULTANT SERVICES BETWEEN CITY OF TEMECULA AND ANN HOWELL DESIGN GRAPHIC DESIGN 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 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 Thirty Three Thousand Six Hundred Nineteen Dollars and 30/100 ($33,619.30) for the total term of this 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 as 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 thirty (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 entitled "PAYMENT" herein. 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 ten (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, ARTWORK, DESIGNS, COPYRIGHTS AND TRADEMARKS 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. b. Any materials, artwork, designs, or other properties furnished by the City or specifically paid for by the City shall be the City's property. Any such property shall be used only for the City of Temecula, Consultant shall state copyright charges for the development of any logo or seal for City use. The City shall own all copyrights to any artwork or design used for the development of any City logo or seal. c. Upon completion of, or in the event of termination or suspension of this Agreement, all original artwork, designs, photographs, photographic negatives, documents, designs, drawings, maps, models, computer files, surveys, notes and other 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. Consultant acknowledges and agrees that the City will use the logo described in Exhibit A for the City's vehicles, building and public signs, promotional brochures, advertising or economic development activities, City events, City booklets and reports, CD ROM promotional disks, videos, and other promotional, economic development or community service activities, events or information, and that the City may provide the logo or design in or photographs of the logo in camera ready or electronic formats to other non - profit or for - profit groups for their use, and that such use shall be without further approval or additional compensation to the Consultant. City shall not be required to provide credits to Consultant in any use of the logo, design, or photographs. 8. INDEMNIFICATION The Consultant agrees to defend, indemnify, protect and hold harmless the City of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula. 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 88. 1) 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 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. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1) General Liability: One million ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One million ($1,000,000) per accident for bodily injury and property damage. 3) Worker's Compensation insurance is required only if Consultant employs any employees. Consultant warrants and represents to the City of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula that it has no employees and that it will obtain the required Worker's Compensation Insurance upon the hiring of any employees. c. Deductibles and Self- Insured Retentions. Any deductibles or self- insured retentions shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000). 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their 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 of Temecula, the Temecula Community Services District, the Redevelopment Agency of the City of Temecula, their officers, officials, employees and volunteers. Any insurance or self- insured maintained by the City of Temecula, Temecula Community Services District, and /or Redevelopment Agency of the City of Temecula, 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 of Temecula, the Temecula Community Services District, and the Redevelopment Agency of the City of Temecula, their 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 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 affecting 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. 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 Attn: City Manager P.O. Box 9033 Temecula, CA 92589 -9033 Use this Address for a Delivery Service: City of Temecula or Hand - Deliveries ONLY Attn: City Manager 41000 Main Street Temecula, CA 92590 14. ASSIGNMENT To Consultant: Ann Howell Design 26400 Rio Vista Road Hemet, CA 92544 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 that has participated in the development of this agreement or its approval 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 that has participated in the development of this agreement or its approval has any interest, whether contractual, non - contractual, financial or otherwise, in this transaction, the proceeds thereof, 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 AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. The City Manager is authorized to enter into an amendment on behalf of the City to make the following non - substantive modifications to the agreement: (a) name changes; (b) extension of time; (c) non - monetary changes in scope of work; (d) agreement termination. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By: By: ATTEST: By: Ron Roberts, Mayor Ann Howell, Owner Susan W. Jones, MMC, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONSULTANT ANN HOWELL DESIGN Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) Ann Howell Design Ann Howell 26400 Rio Vista Road, Hemet, CA 92544 951 - 927 -0453 951 - 927 -1917 Ann.howell@verizon.net FSM Initials: Date: EXHIBIT A Tasks to be Performed The specific elements (scope of work) of this graphic design service to be provided in FY 2011/12 include: Economic Development 42 x 66 Poster Finalize Quality of Life Master Plan Springfest Event Promotions Design Autumnfest Event Promotions Design Winterfest Event Promotions Design Summerfest Event Promotions Design City of Temecula Conference Center Brochure City of Temecula Old Town Demographic Brochure City of Temecula General Quality of Life Brochure Temecula Street Pole Banner Program EXHIBIT B Payment Rates and Schedule The City agrees to pay Howell Design the amount up to Thirty Three Thousand Six Hundred Nineteen Dollars and 30/100 ($33,619.30) for the scope of work as described in Exhibit A. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOPAITHSTANO'NG 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. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IN TYPE OF INSURANCE /IDOL IIiSR Y SUBR L'YVD POLICY NUMBER 92- BW- F013 -8 POLICY EFF ^ (MMIDDIYYYYL�MMIDDIYYI'VI 02101/2011 POLICY EXP 7 02/0112012 LIMITS GENERAL LIABILITY EACH OCCURRENCE P RR EM SESJEpp a i S 1,000,000 X COMMERCIAL GENERAL LIABILITY $ $ 5.000 ] CLAIMS -MADE OCCUR MED EXP (Any rn1e person) PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ 2,000,000 GENT AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 POLICY f J r 1 LOC $ AUTOMOBILE UABILITY ( INGLf: LIMIT $ — ANY AUTO BODILY INJURY (Per person) $ ALL OWNED AUTOS HIRED AUTOS — _ SCHEDULED AUTOS NON-OWNED AUTOS BODILY INJURY (Per oendenl I� ) $ PROPER DAYAAGE JPer accident) 5 $ UMBRELLA UAB EXCESS LIAB OCCUR CLAIMS-MADE l �I ttt EACH OCCURRENCE $ AGGREGATE $ DEO RETENTION $ 5 WORKERS COMPENSATION AND EMPLOYERS' LLABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICEAVEMBER EXCLUDED? (Mandatory in NH) If yes. describe under Oct(',RIPTIQN OE r?PFRAJFjNS tmlryr N / A WC STATU- 1 OTH- . TQKY LIMITS I ER $ E.L. EACH ACCIDENT EL DISEASE - EA EMPLOYEE ' 5 E.L DISEASE - POLICY LIMIT 5 DESCRIPTION OF OPERATIONS ( LOCATIONS t VEHICLES (Attach ACORD 101, Additional Remarks Schedule, If more space la required) The City of Temecula, the Redevelopment Agency of the City o ecula, and the Temecula Community Services District a /2411/ ACORO THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WANED, 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). PRODUCER STATE FARM INSURANCE GERRY A SEVERNS 102 S HARVARD ST HEMET, CA 92543 INSURED HOWELL, ANN MARIE DBA ANN MARIE HOWELL DESIGN 26400 RIO VISTA DR HEMET CA 92544 -6771 COVERAGES CERTIFICATE HOLDER CERTIFICATE NUMBER: The City of Temecula P.O. Box 9033 41000 Main Street, Temecula, CA 92589 CERTIFICATE OF LIABILITY INSURANCE ACORD 25 (2010/05) The ACORD name and logo are NAME Edna Villaseflor la No, f, 951_658 -0606 tae, No: 951 -766 -6964 ADDRESS: edna. villasenor.nhffpstatefarm.com INSURER(S) AFFORDING COVERAGE NAIC A INSURER A : State Farm Fire and Casualty Company INSURER 8: INSURER C • INSURER 0: INSURER E : INSURER F: CANCELLATION AUTHORIZED ' EPRESENTATIVE A • DATE (MMIDD/YYYY) 01/18/2011 25143 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ©198-2 010 ACORD CORPORATION. All rights reserved. iste ed marks f ACORD 1001486 132849.6 11 -15 -2010 BODILY INJURY LIABILITY PROPERTY DAMAGE LIABILITY THOUSAND DOLLARS PERSON THOUSAND DOLLARS 0CCLRANCE THOUSAND DOLLARS OCCURANCE 1000 1000 1000 Additional Insured Notice Forming a part of policy No. G 6801124 issued by the INTERINSURANCE EXCHANGE OF THE AUTOMOBILE CLUB to HOWELL, DANIEL.T AND ANN M Effective 11/07/2010 12:01 A.M. Pacific Standard Time THE CITY OF TEMECULA & THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA PO BOX 9033 TEMECULA CA 92559 It is agreed that In the event of: From: 7148505111 Page: 2/3 1MTERINSURANCE EXCHANGE OF the Automobile Club MAILING ADDRESS: P. O. BOX 25001, SANTA ANA, CALIFORNIA 92799-5001 ADDI''IONAL INSURED • material change to this policy; or • suspension or nonrenewal of this policy; or • cancellation of this policy at the request of other than the Interinsurance Exchange; or • cancellation of this policy at the request of the Interinsurance Exchange for nonpayment of premium; 10 days' written notice thereof will be given by regular mail to the additional insured named above, In the event of cancellation of this policy by the Interinsurance Exchange for other than nonpayment of premium, 20 days' written notice thereof will be given by regular mail to the additional insured named above. All provisions of you policy not affected by this endorsement remain unchanged, CERTIFICATE OF INSURANCE Name of insured requiring Certificate of insurance: HOWELL, ANN This is to certify to the additional insured named above that the Interinsurance Exchange of the Automobile Club has issued the above listed Member's Automobile Policy to the policyholder named above. Subject to its terms and provisions, this policy, including any applicable endorsement, provides the following coverages and limits of liability for the designated automobile(s): ITSD123A £95E6 Date: 1/28/2011 2:03:16 PM DESIGNATED AUTOMOBILE(S): 2001 FORD 1 FTRWO7L11 KC06567 2001 ACURA 19UUA56641A025746 2002 JEEP 1J4FA49S72P719608 2000 LAYT 1SL2001_28YB000139 2007 SUZUK JS1SK43A972100606 This fax was received by GFI FAXmaker fax server. For more information, visit: http: / /www.gfi.com PPC 1/30/11 ACSC Management Services, Inc. ATTORNEY -IN -FACT This Certificate of Insurance is not an Insurance policy and does not amend, extend or alter the coverages afforded by and the terms and conditions app'icable to the policy to which it pertains. ACSC Management Services, Inc. ATTORNEY -IN -FACT 2151 E 1 -96 BODILY INJURY LIAB LI Y PROPERTY DAMAGE LIABILITY THOUSAND DOLLARS EACH PERSON THOUSAND DOLLARS EACH OCCURANCE THOUSAND DOLLARS EACH OCCURANCE 1000 1000 1000 rNTERINSURANCE EXCHANGE OF the Automobile Club MAILING ADDRESS: P. 0. BOX 25001, SANTA ANA, CALIFORNIA 92799 -5001 Additional Insured Notice Forming a part of policy No. G 6801124 issued by the INTERINSURANCE EXCHANGE OF THE AUTOMOBILE CLUB to HOWELL DANIEL T AND ANN M Effective 11/0712010 12:01 A.M. Pacific Standard Time THE CITY OF TEMECULA & THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA PO BOX 9033 TEMECULA CA 92589 It is agreed that In the event of: From: 7148505111 Page: 3/3 Date: 1/28/2011 2:03:16 PM ADDITIONAL INSURED DESIGNATED AUTOMOSILE(S): 2009 JAYCO 1UJBJ02R5916C0082 PPC 1/30/11 • material change to this policy; or • suspension or nonrenewal of this policy; or • cancellation of this policy at the request of other than the Interinsurance Exchange; or • cancellation of this policy at the request of the Interinsurance Exchange for nonpayment of premium; 10 days' written notice thereof will be given by regular mail to the additional insured named above. In the event of cancellation of this policy by the Interinsurance Exchange for other than nonpayment of premium, 20 days' written notice thereof will be given by regular mail to the additional insured named above, All provisions of your policy not affected by this endorsement remain unchanged, ACSC Management Services, Inc. Al PORNEY -IN -FACT CERTIFICATE OF INSURANCE Name of insured requiring Certificate of insurance: HOWELL, ANN This is to certify to the additional insured named above that the Interinsurance Exchange of the Automobile Club has issued the above listed Member's Automobile Policy to the policyholder named above. Subject to its terms and provisions, this policy, including any applicable endorsement, provides the following coverages and limits of liability for the designated automobi e(s). This Certificate of Insurance is not an insurance policy and does not amend, extend or alter the coverages afforded by and the terms and conditions appr :cable to the policy to which it perta ;nn. ACSC Management Services, Inc. ATTORNEY -IN -FACT ITS 129A EOM This fax was receivea by GFI FAXmaker fax server. For more information, visit: http: / /www.gfi.com 2151 E 1 -98 August 23, 2011 To the City of Temecula, the Redevelopment Agency of the City of Temecula, and the Temecula Community Services District: I, Ann Howell, of Ann Howell Design, am a sole proprietor and have no employees, and therefore, opt out of Worker's Compensation Insurance. I will obtain the required Worker's Compensation Insurance upon the hiring of any employees. Sincerely, ULv Ann Howell Ann Howell Design TEMECULA COMMUNITY SERVICES DISTRICT 1 City Council Chambers, 41000 Main Street, Temecula, California TEMECULA COMMUNITY SERVICES DISTRICT MEETING The Temecula Community Services District Meeting convened at 7:40 P.M. CALL TO ORDER: Vice President Maryann Edwards ROLL CALL: DIRECTORS: Edwards, Naggar, Roberts, Washington, Comerchero Absent: CSD PUBLIC COMMENTS CSD CONSENT CALENDAR 12 Action Minutes — Approved Staff Recommendation (4 -0 -1) Director Washington made the motion; it was seconded by Director Roberts; and electronic vote reflected unanimous approval with the exception of President Comerchero who was absent. RECOMMENDATION: 12.1 Approve the action minutes of August 23, 2011. 13 Veteran's Park Easements — Approved Staff Recommendation (4 -0 -1) Director Washington made the motion; it was seconded by Director Roberts; and electronic vote reflected unanimous approval with the exception of President Comerchero who was absent. RECOMMENDATION: ACTION MINUTES of SEPTEMBER 13, 2011 Comerchero 13.1 Approve an agreement with Time Warner NY Cable, LLC that grants two (2) new permanent easements and one temporary construction easement within Veteran's Park in exchange for the payment of $18,831, which is the easements' appraised value. 14 Acceptance of Improvements and Notice of Completion for Redhawk Park Improvements — Project No. PW06- 06 /CSD08 -004 — Approved Staff Recommendation (4 -0 -1) Director Washington made the motion; it was seconded by Director Roberts; and electronic vote reflected unanimous approval with the exception of President Comerchero who was absent. RECOMMENDATION: 14.1 Accept the construction of the Redhawk Park Improvements — Project No. PW06- 06 /CSD08 -004, as complete; CSD Action Minutes1091311 1 At 7:42 P.M., the Temecula Community Services District meeting was formally adjourned to Tuesday, September 27, 2011, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. 14.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; 14.3 Release the Materials and Labor Bond seven months after filing of the Notice of Completion if no liens have been filed. CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT ATTEST: Susan W. Jones, MMC City Clerk /District Secretary [SEAL] CSD Action Minutes1091311 2 Jeff Comerchero, President 1 PREPARED BY: Jennifer Crummel, Senior Accountant Approvals City Attorney Director of Finance City Manager (10L TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager /Board of Directors FROM: Genie Roberts, Director of Finance DATE: September 27, 2011 SUBJECT: Financial Statements for the Fiscal Year Ended June 30, 2011 RECOMMENDATION: That the City Council receive and file the Financial Statements for the fiscal year ended June 30, 2011. BACKGROUND: The attached financial statements reflect the unaudited activity of the Temecula Community Services District for the fiscal year ended June 30, 2011. Please see the attached Financial Statements for an analytical review of financial activity for the various Temecula Community Services District funds. FISCAL IMPACT: A fiscal summary of the Temecula Community Services District funds are as follows: Parks and Recreation Operation - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in the Park and Recreation Operation fund increased approximately $713,000 primarily due to recovery of attorney fees from Theater litigation settlement, utility cost savings as a result of decreased water usage, landscape maintenance savings as a result of a decrease in service rates, and staffing savings as a result of a decrease in part time help within all facilities. Service Level C Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in Service Level C fund increased approximately $450,000 primarily due to utility cost savings as a result of decreased water usage and landscape maintenance savings as a result of a decrease in service rates. Service Level L Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in Service Level L fund increased approximately $45,000 primarily due to a decrease in vendor services. Temecula Library Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in Library fund increased approximately $112,000 due to savings in operations as a result of lower costs from vendors and landscape maintenance savings due to a decrease in service rates. ATTACHMENTS: Combining Balance Sheet as of June 30, 2011 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual for the Fiscal Year Ended June 30, 2011. TEMECULA COMMUNITY SERVICES DISTRICT Combining Balance Sheet as of June 30, 2011 and Statements of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual for the Fiscal Year Ended June 30, 2011 (Unaudited) Prepared by the Finance Department ASSETS: Reserved 40,835 Designated 1,149,646 TOTAL FUND BALANCES 1,190,481 NOTE: Balances are unaudited TEMECULA COMMUNITY SERVICES DISTRICT COMBINING BALANCE SHEET as of June 30, 2011 Parks & Service Level Service Level Service Level Service Level Recreation B C D R Cash and Investments $ 1,516,069 $ 85,028 $ 1,194,970 $ 2,960,357 $ 4,632 Receivables 774,193 12,349 71,915 237,734 401 Deposit 9,708 - TOTAL ASSETS $ 2,299,970 $ 97,377 $ 1,266,885 $ 3,198,091 $ 5,033 LIABILITIES AND FUND BALANCES LIABILITIES: Other Current Liabilities $ 1,109,489 $ 5,409 $ 123,803 $ 2,892,233 $ TOTAL LIABILITIES 1,109,489 5,409 123,803 2,892,233 FUND BALANCES: 1 91,968 1,143,082 91,968 1,143,082 305,857 5,033 305,857 5,033 TOTAL LIABILITIES and FUND BALANCES $ 2,299,970 $ 97,377 $ 1,266,885 $ 3,198,091 $ 5,033 ASSETS: Cash and Investments $ 260,558 $ 581,614 $ 17,962 $ 177 $ 6,621,367 Receivables 8,676 2,083 - 1,107,351 Deposit 9,708 LIABILITIES AND FUND BALANCES LIABILITIES: Other Current Liabilities $ 29,993 $ 35,392 $ 40 $ - $ 4,196,360 TOTAL LIABILITIES 29,993 35,392 40 - 4,196,360 FUND BALANCES: Reserved Designated TOTAL ASSETS $ 269,234 $ 583,697 $ 17,962 $ 177 $ 7,738,426 TOTAL FUND BALANCES 239,241 TOTAL LIABILITIES and FUND BALANCES $ 269,234 $ 583,697 $ 17,962 $ 177 $ 7,738,426 NOTE: Balances are unaudited TEMECULA COMMUNITY SERVICES DISTRICT COMBINING BALANCE SHEET as of June 30, 2011 Service Level L Summer Library Youth Program 177 41,012 239,241 548,305 17,922 3,501,054 548,305 17,922 177 3,542,066 2 2001 Debt Service Total REVENUES: EXPENDITURES: TOTAL EXPENDITURES Revenues Over /(Under) Expenditures Transfers Out Revenues Over /(Under) Expenditures and Transfers Beginning Fund Balance as of July 1, 2010 TEMECULA COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CITYWIDE OPERATIONS for the Fiscal Year Ended June 30, 2011 Parks, Medians, and Arterial Street Lighting 6,832,097 6,118,111 Seniors 292,768 257,972 Community Rrecreation Center (CRC) 552,763 497,215 Recreation Programs 1,014,297 986,527 Temecula Community Center (TCC) 299,533 261,914 Museum 239,678 228,971 Aquatics 612,203 574,162 Sports 334,156 326,141 Children's Museum 337,937 321,509 Community Theater 1,098,962 1,026,487 Cultural Arts 92,360 70,513 Old Town Maintenance 123,750 93,348 Harveston Clubhouse 34,714 28,652 Annual % of Amended Year -to -Date Encumbrances Total Activity Total Budget Activity Activity Special Tax $ 3,764,794 $ 3,847,346 $ - $ 3,847,346 102% TCSD Admin Fee Creditt'REST" 5,801,304 5,001,304 5,001,304 86% Recreation Program 1,796,257 2,029,598 2,029,598 113% (1) Investment Interest 6,939 12,236 12,236 176% Development Services 105,302 90,323 90,323 86% (2) Recovery of Prior Year Expense - 133,236 133,236 (3) TOTAL REVENUES 11,474,596 11,114,043 11,114,042 97% 11, 865, 218 10, 791, 522 40,835 10, 832, 357 91% (390,622) 322,520 (489,653) (489,653) (880,275) (167,133) 1,357, 614 1,357,614 Ending Fund Balance as of June 30, 2011 $ 477,339 $ 1,190,481 3 33,860 6,975 6,151,971 90% 257,972 88% (4) 504,190 91% 986,527 97% 261,914 87% (4) 228,971 96% 574,162 94% 326,141 98% 321,509 95% 1,026,487 93% 70,513 76% (4) 93,348 75% (5) 28,652 83% (5) NOTES: (1) Revenue was higher than anticipated due to additional sessions added to current programs which resulted in higher class participation. (2) Revenues were lower than anticipated due to a continued overall decline in development services and planned development. (3) The variance is due to recovering of attorney fees from the Theater legal settlement. (4) The variance in Senior Center, Temecula Community Center and Cultural Arts expenditures are due to less than anticipated part -time help needed during this fiscal year. (5) The variance in Old Town Maintenance and Harveston Clubhouse is due to less than anticipated maintenance during this fiscal year. TEMECULA COMMUNITY SERVICES DISTRICT REVENUES: STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SERVICE LEVEL B - RESIDENTIAL STREET LIGHTS for the Fiscal Year Ended June 30, 2011 Assessments TCSD Admin Creditl'REST" Street Lighting Fees Investment Interest TOTAL REVENUES EXPENDITURES: Salaries and Wages 8,004 7,999 100% Street Lighting Fees 925,475 920,918 100% Operating Expenditures 20,945 19,872 95% TOTAL EXPENDITURES 954,424 948,789 99% Revenues Over/(Under) Expenditures 5,223 23,082 Beginning Fund Balance as of July 1, 2010 68,886 68,886 Ending Fund Balance as of June 30, 2011 $ 74,109 $ 91,968 NOTES: (1) The variance in revenue is do an unexpected restart of construction on the Paseo del Sol Development. 4 Annual Amended Budget Total Activity Percentage of Budget $ 641,435 $ 648,844 101% 312,989 312,989 100% 4,716 9,396 199% (1) 507 642 127% 959,647 971,871 101% STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVENUES: SERVICE LEVEL C - PERIMETER LANDSCAPING AND SLOPE MAINTENANCE for the Fiscal Year Ended June 30, 2011 Assessments Investment Interest EXPENDITURES: TEMECULA COMMUNITY SERVICES DISTRICT TOTAL REVENUES Annual Amended Total Activity Percentage of Budget Budget $ 1,582,798 $ 1,606,434 101% 3,685 7,067 192% 1,586,483 1,613,501 102% Salaries and Wages 166,570 139,350 84% (1) Landscape Maintenance 849,027 706,253 83% (2) Rehabilitation 24,704 1,889 8% (2) Operating Expenditures 540,491 309,885 57% (3) TOTAL EXPENDITURES 1,580,792 1,157,377 73% Revenues Over /(Under) Expenditures 5,691 456,124 Beginning Fund Balance as of July 1, 2010 686,958 686,958 Ending Fund Balance as of June 30, 2011 $ 692,649 $ 1,143,082 NOTES: (1) The variance is due to salary savings due to employee retirement. (2) The variance is due to the landscape contractor provided some services at reduced rates or at no charge. (3) The variance is due to lower water utility expense from a long wet winter. 5 REVENUES: STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SERVICE LEVEL D - REFUSE COLLECTION, RECYCLING AND STREET SWEEPING for the Fiscal Year Ended June 30, 2011 Assessments $ 5,869,114 $ 5,869,115 100% Grants 12,543 12,543 100% Recycling Program 5,000 6,846 137% (1) Investment Interest 3,256 10,152 312% (2) EXPENDITURES: Salaries and Wages Refuse Hauling Operating Expenditures TEMECULA COMMUNITY SERVICES DISTRICT Revenues Over /(Under) Expenditures TOTAL REVENUES 5,889,913 5,898,656 100% TOTAL EXPENDITURES Beginning Fund Balance as of July 1, 2010, As Restated Ending Fund Balance as of June 30, 2011 6 Annual Percentage of Amended Total Activity Budget Budget 54,332 46,417 85% (3) 5,770,702 5,770,810 100% 33,365 27,103 81% 5,858,399 5,844,330 100% 31,514 54,326 251,532 251,532 $ 283,046 $ 305,857 NOTES: (1) Recycling program revenue for CR &R and other recycling haulers is higher than anticipated. (2) The variance in Investment Interest is due to higher cash balances and the timing of the payment made for refuse hauling. (3) The variance is due to salary savings in CAL Cash out for this fiscal year. REVENUES: STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Assessments Investment Interest EXPENDITURES: Emergency Street Maintenance Property Tax Admin Fees TEMECULA COMMUNITY SERVICES DISTRICT SERVICE LEVEL R - STREETS AND ROADS For the Fiscal Year Ended June 30, 2011 TOTAL REVENUES 7,490 7 Annual Percentage of Amended Total Activity Budget Budget $ 7,376 $ 1,221 17% (1) 114 91 80% 9,890 6,176 150 148 TOTAL EXPENDITURES 10,040 6,324 63% Revenues Over /(Under) Expenditures (2,550) (5,013) Beginning Fund Balance as of July 1, 2010 10,045 10,045 Ending Fund Balance as of June 30, 2011 $ 7,495 $ 5,033 1,312 18% 62% 98% NOTES: (1) The variance in assessments is due to reimbursement to property owners who were not benefiting within the special levy. (2) The variance in Emergency Street Maintenance is due to less than anticipated repairs needed this fiscal year. (2) REVENUES: EXPENDITURES: Salaries and Wages Operating Expenditures TEMECULA COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SERVICE LEVEL L - LAKE PARK MAINTENANCE for the Fiscal Year Ended June 30, 2011 Annual Percentage of Amended Total Activity Budget Budget Assessments $ 223,362 $ 234,419 105% Harveston Lake Boat Fees 3,000 2,325 78% (1) Investment Interest 1,934 2,076 107% TOTAL REVENUES 228,296 238,820 105% 49,443 49,441 100% 212,900 178,446 84% (2) TOTAL EXPENDITURES 262,343 227,887 87% Revenues Over /(Under) Expenditures (34,047) 10,933 Beginning Fund Balance as of July 1, 2010 228,308 228,308 Ending Fund Balance as of June 30, 2011 $ 194,261 $ 239,241 NOTES: (1) The variance is due to quarterly revenues has not been received as of June 30, 2011. (2) The variance is due to discontinued security guard services from what was originally budgeted. 8 TEMECULA COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVENUES: Library Services REST Contribution Investment Interest EXPENDITURES: TOTAL REVENUES TEMECULA LIBRARY for the Fiscal Year Ended June 30, 2011 Annual Amended Total Activity Percentage Budget of Budget $ 159,561 $ 165,320 104% 76,854 76,854 100% 10,845 8,584 79% 247,260 250,758 101% Salaries and Wages 13,479 13,746 102% County Contract 180,000 167,440 93% Operating Expenditures 549,820 453,592 82% (1) TOTAL EXPENDITURES 743,299 634,778 85% Revenues Over/(Under) Expenditures (496,039) (384,020) Beginning Fund Balance as of July 1, 2010 932,325 932,325 Ending Fund Balance as of June 30, 2011 $ 436,286 $ 548,305 NOTES: (1) The variance is due to lower costs from vendor services; printing of library cards and landscape maintenance. STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVENUES: Federal Grant EXPENDITURES: TEMECULA COMMUNITY SERVICES DISTRICT MAYOR SUMMER YOUTH PROGRAM for the Fiscal Year Ended June 30, 2011 TOTAL REVENUES Annual Amended Total Activity Budget $ 275,000 $ 195,249 71% (1) 275,000 195,249 71% Salaries and Wages 255,620 185,819 73% Operating Expenditures 19,380 9,470 49% TOTAL EXPENDITURES 275,000 195,289 71% (1) Revenues Over/(Under) Expenditures - (40) Beginning Fund Balance as of July 1, 2010 17,962 17,962 Ending Fund Balance as of June 30, 2011 $ 17,962 $ 17,922 Percentage of Budget NOTES: (1) Revenues are based on qualifying expenditures incurred which are reimbursable from the Summer Youth Grant. TEMECULA COMMUNITY SERVICES DISTRICT STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REVENUES: Investment Interest Transfers In EXPENDITURES: TOTAL REVENUES DEBT SERVICE FUND for the Fiscal Year Ended June 30, 2011 Annual Amended Budget $ 140 $ 245 175% 489,653 489,653 100% 489,793 489,898 100% Debt Service - Principal 285,000 285,000 100% Debt Service - Interest 203,848 203,847 100% Operating Expenditures 3,850 3,850 100% TOTAL EXPENDITURES 492,698 492,697 100% Revenues Over /(Under) Expenditures (2,905) (2,799) Beginning Fund Balance as of July 1, 2010 2,976 2,976 Ending Fund Balance as of June 30, 2011 $ 71 $ 177 Total Activity Percentage of Budget 1 TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager /Board of Directors FROM: Herman Parker, Director of Community Services Genie Roberts, Director of Finance DATE: September 27, 2011 Approvals City Attorney Director of Finance City Manager (10L SUBJECT: Amendment of the 2011 -12 Temecula Community Services District Cultural Arts Budget PREPARED BY: Heidi Schrader, Senior Management Analyst RECOMMENDATION: That the Board of Directors appropriate $250,000 in the fiscal year 2011 -12 Temecula Community Services District Cultural Arts Operating Budget from available Fund Balance for additional Cultural Arts events in Old Town. BACKGROUND: On June 14, 2011, the Temecula Community Services District (TCSD) Board adopted the fiscal year 2011 -12 Annual Operating Budget. The TCSD budget includes a division for Cultural Arts which is used to fund City Special Events. In addition, the Redevelopment Agency of the City of Temecula has historically funded select special events through the Old Town Plan Implementation Project, and the Redevelopment Agency fiscal year 2011 -12 Annual Operating Budget includes $331,500 for this project. This program has had significant success in attracting new growth and business within the redevelopment area. Old Town Plan Implementation projects include Hot Summer Nights, Old Town Promotions, New Year's Eve festivities and other events targeted at bringing crowds into the Old Town area. The success of the Old Town Plan Implementation Project has led to the Old Town area becoming a popular location for residents and tourists alike and these special events draw large crowds. This has triggered a revitalization of the redevelopment project area and encouraged growth of commercial and residential development, thereby increasing the assessed valuation of property within the project area. However, as a result of State budget impacts and legislation in recent years which have negatively impacted RDA funding, staff has re- evaluated RDA budget programs and expenditures. On September 13, 2011, staff met with the Economic Development Committee members, Mayor Ron Roberts and Mayor Pro Tem Chuck Washington, to evaluate the Old Town Plan Implementation Project/Special Events and the continued funding of these events without RDA funds. The Committee recommended that the program be funded in the Temecula Community Services District Cultural Arts division with an additional appropriation of $250,000 from TCSD Fund Balance for the current fiscal year. Staff anticipates a reduction in the contracts for the Seasonal Holiday Lights and Seasonal Outdoor Ice Rink which will reduce the total amount necessary to fund the Old Town Special Events programs from $331,550 originally budgeted in the RDA to the $250,000 recommended by the Economic Development Committee. FISCAL IMPACT: There is sufficient fund balance in the TCSD Citywide Fund to increase appropriations in the Annual Operating Budget by $250,000 for the Old Town Cultural Arts special events. TCSD DEPARTMENTAL REPORT 1 22 TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager /Board of Directors FROM: Herman D. Parker, Director of Community Services DATE: September 27, 2011 SUBJECT: Monthly Departmental Report PREPARED BY: Gail Zigler, Administrative Assistant Approvals City Attorney Director of Finance City Manager "of OtoL A conceptual design for the Old Town Gymnasium project was completed and approved by the Community Services Commission and City Council. The new gymnasium project will include the construction of a regulation size basketball court, restroom facilities, seating for spectators and an office. The project is currently in design development. "Art at the Merc" continues to provide local artists with an opportunity to display their art work. On Friday, September 2, 2011, an artist reception was held for Gabrielle Babar, a local artist. Ms. Babar's art will be on display in the Gallery at the Merc and the Public Library through August. The Community Services Department has prepared a draft of two Joint Use Agreements for use of Tennis Courts at Erle Stanley Gardner Middle School and Great Oak High School. These agreements are currently being reviewed by the Temecula Valley Unified School District. Once the agreements have been finalized, they will be forwarded for approval by the Community Services Commission and the Board of Directors. The Community Services Department played a supporting role in the production of the Steve Miller Rock Symphony held at the Civic Center on Sunday, September 18, 2011. The benefit concert, presented by the Fender Center and Context Middle Schools, promotes music and arts for youth in support of the Kids Rock program. The event was enjoyed by approximately 1,100 in attendance and was a success. A portion of the proceeds from ticket sales will also benefit Community Services programs. The Annual College Fair was held September 24, 2011 at the Promenade Mall. This annual event offered local students an opportunity to meet and discuss college and vocational school programs from over 120 colleges, military organizations, and trade schools. A catered reception was held at the conclusion of the event for participating organizations. The event was a success. The Cultural Arts Division is proud to offer the 2011 -2012 Season of Temecula Presents. The season calendar offers many opportunities for cultural experiences in the Theater Arts including dance, classical, blues, etc. The Community Services Department released an RFQ to select an Artist for the design, fabrication and installation of public art in Old Town Temecula. The art is envisioned to be installed on 3r Street just west of Front Street and provide a wonderful art focal point in the Old Town area. Qualifications are due no later than September 27 Staff will review the submittals and select to participate in an interview process. The project is funded in the Capital Improvement Program. The Maintenance Division treated the restroom and wedding chapel at Sam Hicks Monument Park for termites. All repairs have been completed and the facility is operational. In addition, the Maintenance Division completed athletic field renovations which included sod, fertilizer, seeding, gypsum application at several athletic fields. The TCSD Maintenance Division plays an integral role in assisting with the many citywide special events held each month. In addition, the Maintenance Division continues to oversee the maintenance and rehabilitation of all City parks and facilities. REDEVELOPMENT AGENCY 1 Absent: RDA PUBLIC COMMENTS RDA CONSENT CALENDAR ACTION MINUTES of SEPTEMBER 13, 2011 City Council Chambers, 41000 Main Street, Temecula, California TEMECULA REDEVELOPMENT AGENCY MEETING The Temecula Redevelopment Agency Meeting convened at 7:42 P.M. CALL TO ORDER: Chair Person Mike Naggar ROLL CALL: AGENCY MEMBERS: Comerchero, Edwards, Washington, Roberts, Naggar Comerchero 15 Action Minutes - Approved Staff Recommendation (4 -0 -1) Agency Member Edwards made the motion; it was seconded by Agency Member Naggar and electronic vote reflected unanimous approval with the exception of Agency Member Comerchero who was absent. RECOMMENDATION: 15.1 Approve the action minutes of August 23, 2011. RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA Action Minutes1091311 1 RDA ADJOURNMENT At 7:43 P.M., the Redevelopment Agency meeting was formally adjourned to Tuesday, September 27, 2011, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. ATTEST: Susan W. Jones, MMC City Clerk /Agency Secretary [SEAL] RDA Action Minutes1091311 2 Michael S. Naggar, Chair Person 1 Approvals City Attorney Director of Finance City Manager (10L TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: City Manager /City Council FROM: Genie Roberts, Director of Finance DATE: September 27, 2011 SUBJECT: Financial Statements for the Fiscal Year Ended June 30, 2011 PREPARED BY: Pascale Brown, Accounting Manager RECOMMENDATION: That the Agency Members: 1. Receive and file the Financial Statements for the fiscal year ended June 30, 2011. 2. Approve an increase of $91,000 for tax increment revenues in the Debt Service Fund Budget. 3. Approve an appropriation of $458,000 for Pass - Through Agreements in the Redevelopment Agency Debt Service Fund Budget. BACKGROUND: The attached financial statements reflect the unaudited activity of the Redevelopment Agency (RDA) for the fiscal year ended June 30, 2011. Please see the attached financial statements for an analytical review of financial activity. Property Tax Revenue came in $91,000 greater than was budgeted. The increase for property tax increment revenue is primarily due to the unanticipated receipt of supplemental tax revenues as a result of an increase of property sales within the redevelopment area. Pass - through agreement payments are based upon tax increment percentages on negotiated agreements. Since tax increment was higher than expected due to the receipt of supplemental tax revenues, it resulted in an increase to related pass- through obligations. In addition, projected budget estimates prepared by the City's property tax consultants did not include seven Tax Rate Areas (TRA) in the formula calculations. The omission of this TRA's resulted in the understatement of pass- through budgeted expenditures. The combination of these two factors resulted in pass- through obligations $458,000 greater than budgeted. FISCAL IMPACT: A fiscal summary of the RDA funds are as follows: • RDA Affordable Housing Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in the RDA Affordable Housing Fund increased approximately $3.1 million primarily as a result of the timing of expenditures on housing projects. These projects were not completed within the fiscal year and have been reprogrammed in fiscal year 2011 -12. • Capital Projects /Redevelopment Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in the RDA CIP Fund increased approximately $392,000 primarily as a result of the timing of expenditures for CSUSM tenant improvements, Jefferson Corridor Environmental Impact study, and Old Town Infrastructure projects. The increase is due to payment obligations which have been reprogrammed in subsequent fiscal years. • RDA Debt Service Fund - Fiscal year ended June 30, 2011, budgeted fund balance versus actual in the RDA Debt Service Fund decreased approximately $120,000 primarily due to pass- through payments higher than budgeted. This was partially offset by tax increments received and the timing of the Old Town Infrastructure projects which are financed by bond proceeds issued in a prior year. ATTACHMENTS: Combining Balance Sheet as of June 30, 2011 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual for the Fiscal Year Ended June 30, 2011 TEMECULA REDEVELOPMENT AGENCY Combining Balance Sheet as of June 30, 2011 and Statements of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual for the Fiscal Year Ended June 30, 2011 (Unaudited) Prepared by the Finance Department ASSETS: LIABILITIES AND FUND BALANCES LIABILITIES: FUND BALANCES: TOTAL LIABILITIES and FUND BALANCES Please note that these balances are unaudited. TEMECULA REDEVELOPMENT AGENCY COMBINING BALANCE SHEET As of June 30, 2011 Affordable Capital Project Housing Fund Fund Cash and Investments $ 29,000,288 $ 868,143 $ 2,879,086 $ 32,747,517 Receivables 18,188,102 892,267 9,997 19,090,366 Advances to Other Funds- SERAF 5,250,954 - 5,250,954 Land Held for Resale 6,616,177 98,484 6,714,661 TOTAL ASSETS $ 59,055,521 $ 1,858,894 $ 2,889,083 $ 63,803,498 Due to Other Funds -SERAF $ - $ 5,250,954 $ - $ 5,250,954 Other Current Liabilities 97,860 80,269 56,291 234,420 Advances from Other- City 1,242,095 1,242,095 Deferred Revenue 17,808,739 890,313 - 18,699,052 TOTAL LIABILITIES 17,906,599 6,221,536 1,298,386 25,426,521 Reserved 41,148,922 1,590,697 42,739,619 Unreserved (4,362,642) (4,362,642) TOTAL FUND BALANCES 41,148,922 (4,362,642) (1) 1,590,697 38,376,977 $ 59,055,521 $ 1,858,894 $ 2,889,083 $ 63,803,498 NOTES: (1) The deficit Fund Balance in the RDA Capital Project Fund is due to the fiscal years 2009 -10 and 2010 -11 Supplemental Educational Revenue Augmentation Fund (SERAF) Obligations pursuant to state law AB4x26. Funds are being borrowed from the RDA Affordable Housing Fund to meet the required obligations. 1 Debt Service TOTAL TEMECULA REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REDEVELOPMENT AGENCY AFFORDABLE HOUSING for the Fiscal Year Ended June 30, 2011 REVENUES: Annual Year -to -Date Amended Activity Encumbrances Total Activity % of Budget Budget Bond Proceeds $ 17,035,000 $ 17,035,000 $ $ 17,035,000 100% Property Tax Increment 3,939,000 3,961,882 3,961,882 101% Investment Interest 91,955 103,126 103,126 112% Loan Interest / Forgivable Loans 95,542 103,734 103,734 109% Monitoring Fees 10,032 10,032 Reimbursements 172,186 178,889 178,889 104% Rental Income 149,000 149,000 149,000 100% TOTAL REVENUES 21,482,683 21,541,663 21,541,663 100% EXPENDITURES: CAPITAL PROJECTS: Affordable Housing - Temecula Gardens Affordable Housing - Old Town Mixed Use Affordable Housing Project NW RDA Property Grading NPDES Compliance OPERATING EXPENDITURES: Salaries and Benefits Bond Cost of Issuance Debt Service - Interest First Time Home Buyer Program Residential Rehab Program Operating and Administrative Expenditures TOTAL EXPENDITURES: Revenues Over /(Under) Expenditures Beginning Fund Balance as of July 1, 2010 Ending Fund Balance as of June 30, 2011 305,000 305,000 305,000 100% 3,438,595 2,358,333 1,080,262 3,438,595 100% 1,500,000 - 0% 45,288 0% 516,617 500,014 500,014 97% 760,330 750,778 750,778 99% 898,306 898,306 898,306 100% 150,000 90,800 90,800 61% 200,000 197,110 197,110 99% 681,127 331,616 204,983 536,599 79% 8,495,263 5,431,957 1,285,245 6,717,202 79% 12,987,420 16,109, 706 25,039,216 25,039,216 $ 38,026,636 $ 41,148,922 NOTES: (1) Investment interest was higher than expected due to higher cash balances as a result of the 2011 TAB issuance and the timing of payments for Affordable Housing projects. (2) Monitoring fees received from Coachella Valley Housing Coalition and Temecula Gardens. (3) The Affordable Housing projects will be carry forward to fiscal year 2011 -12. (4) No maintenance is required at this time to the Diaz property. Maintenance will be done as needed to this project. (5) The Agency approved two (2) First Time Homebuyers program and thirty -two (32) Residential Improvement program. (6) The variance is due to professional services and appraisal savings during this fiscal year. 2 (1) (2) STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REDEVELOPMENT AGENCY - CIP for the Fiscal Year Ended June 30, 2011 REVENUES: Investment Interest $ 6,933 $ 8,264 $ - $ 8,264 119% Transfers In 1,172,500 1,172,500 - 1,172,500 100% Rental Income & Misc. 17,780 20,340 20,340 114% TOTAL REVENUES 1,197,213 1,201,104 1,201,104 100% EXPENDITURES: CAPITAL PROJECTS: Auto Mall Sign 458,487 458,487 458,487 100% OPERATING EXPENDITURES: Salaries and Benefits 315,254 304,302 304,302 97% Operating and Administrative Expenditures 338,202 140,783 111,326 252,109 75% Tenant Improvement -CSUSM 656,783 555,159 101,624 656,783 100% Abbott OPA 229,802 229,802 229,802 100% SERAF Obligation 896,504 896,504 896,504 100% Old Town Building Facades 30,698 9,832 20,000 29,832 97% Old Town Plan Implementation 331,500 323,721 323,721 98% TOTAL EXPENDITURES: 3,257,230 2,918,590 232,950 3,151,540 97% Revenues Over /(Under) Expenditures (2,060,017) (1,717,486) Other Financing Sources (uses): Transfers Out Revenues Over /(Under) Expenditures and Other Financing Sources (uses) Beginning Fund Balance as of July 1, 2010 Ending Fund Balance as of June 30, 2011 TEMECULA REDEVELOPMENT AGENCY Annual Year -to -Date Total Amended Activity Encumbrances Activity % of Budget Budget (84,432) (34,967) (2,144,449) (1,752,453) (2,610,189) (2,610,189) $ (4,754,638) $ (4,362,642) (3) NOTES: (1) The variance is due to rent received for the rental of office space to CONVIS. (2) The variance is due to professional services savings during this fiscal year. (3) The deficit Fund Balance in the RDA Capital Project Fund is due to the fiscal years 2009 -10 and 2010 -11 Supplemental Educational Revenue Augmentation Fund (SERAF) Obligations pursuant to state law AB4x26. Funds are being borrowed from the RDA Affordable Housing Fund to meet the required obligations. 3 STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE - BUDGET AND ACTUAL REDEVELOPMENT AGENCY - DEBT SERVICE for the Fiscal Year Ended 6/30/2011 REVENUES: Property Tax Increment Investment Interest TOTAL REVENUES OPERATING EXPENDITURES: Trustee Admin Fees 14,725 14,725 14,725 100% Property Tax Admin Fees 162,968 162,969 162,969 100% Pass - through Agreements 10,754,000 11,211,870 11,211,870 104% (1) Debt Service - Principal 980,000 980,000 980,000 100% Debt Service - Interest 3,081,617 3,081,617 3,081,617 100% TOTAL EXPENDITURES: Revenues Over /(Under) Expenditures Other Financing Sources (uses): Transfers Out Revenues Over /(Under) Expenditures and Other Financing Sources (uses) Beginning Fund Balance as of July 1,2010 TEMECULA REDEVELOPMENT AGENCY $ 15,756,000 $ 15,847,528 $ 15,847,528 101% 14,811 20,086 20,086 136% 777,501 416,433 (1,813,128) (1,572,521) (1,035,627) (1,156,088) 2,746,785 2,746,785 Ending Fund Balance as of June 30, 2011 $ 1,711,158 $ 1,590,697 Annual Year -to -Date % of Amended Activity Total Activity Budget Budget 15,770,811 15,867,614 15,867,614 101% 14,993,310 15,451,181 15,451,181 103% NOTES: (1) Tax increment calculation percentages for pass- through payments made for negotiated agreements were higher than budgeted. 4 1 TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director /Agency Members FROM: Patrick Richardson, Director of Planning /Redevelopment Genie Roberts, Director of Finance DATE: September 27, 2011 SUBJECT: Amendment of 2011 -12 Redevelopment Fund (280) Budget PREPARED BY: Heidi Schrader, Senior Management Analyst Approvals City Attorney Director of Finance City Manager (10L RECOMMENDATION: That the Board of Directors reduce the fiscal year 2011 -12 Redevelopment Fund (280) Annual Operating Budget appropriations by $331,550. BACKGROUND: On June 14, 2011, the Board of the Redevelopment Agency of the City of Temecula (RDA) adopted the fiscal year 2011 -12 Annual Operating and Capital Improvement Budgets. The RDA Annual Operating budget included $331,500 for the Old Town Plan Implementation Project. The RDA has historically funded the Old Town Plan Implementation Project from the Redevelopment Fund. This program has had significant success in attracting new growth and business within the redevelopment area. Implementation projects include Hot Summer Nights, Old Town Promotions, New Year's Eve festivities and other events targeted at bringing crowds into the redevelopment area. The success of the Old Town Plan Implementation Project has led to the Old Town area becoming a popular location for residents and tourists alike. This has triggered a revitalization of the redevelopment project area and encouraged growth of commercial and residential development, thereby increasing the assessed valuation of property within the project area. However, as a result of State budget impacts and legislation which have negatively affected funding in recent years, staff has re- evaluated all RDA budget programs and expenditures. On September 13, 2011, staff met with the Economic Development Committee members, Mayor Ron Roberts and Mayor Pro Tem Chuck Washington, to evaluate the Old Town Plan Implementation /Special Events and the continued funding of these events without RDA funds. The Committee recommended that the program be continued and funded in the Temecula Community Services District Cultural Arts division in the amount of $250,000, which is reduced from the amount originally programmed in the RDA. This reduction is related to the contracts for the Old Town Seasonal Holiday Lights and Seasonal Outdoor Ice Rink as staff anticipates negotiating reduced contract amounts for these activities. Staff recommends that the funding of $331,000 for the Old Town Implementation Program be eliminated from the fiscal year 2011 -12 Redevelopment Fund Budget. FISCAL IMPACT: The current fiscal year 2011 -12 Redevelopment Fund Annual Operating Budget contains $331,550 for the Old Town Plan Implementation which will be reduced. 1 RESOLUTION NO. RDA 11- Approvals City Attorney Director of Finance City Manager (10L TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director /Agency Members FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: Approval of Initial Recognized Obligation Payment Schedule PREPARED BY: Peter Thorson, City Attorney RECOMMENDATION: That the Members of the Redevelopment Agency: 1. Adopt a resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A PRELIMINARY DRAFT OF AN INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH DISCUSSION: ABX1 26, which was signed by the Governor of California on June, 29, 2011, added Parts 1.8 and 1.85 to the Community Redevelopment Law. Part 1.8 immediately suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Part 1.85 provides that on October 1, 2011, all existing redevelopment agencies and redevelopment agency components of community development agencies are dissolved, and successor agencies are designated as successor entities to the former redevelopment agencies. Part 1.85 imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established under Part 1.85. ABX1 27 was signed by the Governor concurrently with ABX1 26 and added Part 1.9 to the Community Redevelopment Law. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby a redevelopment agency will, notwithstanding Parts 1.8 and 1.85, be authorized to continue to exist and carry out the provisions of the Community Redevelopment Law. To opt into the Alternative Voluntary Redevelopment Program, a city must adopt an ordinance by which the city agrees to make specified annual payments to the county auditor - controller for allocation to special districts and educational entities. Section 34169 of Part 1.8 requires an agency to approve a preliminary draft of an initial recognized obligation payment schedule by September 30 However, Part 1.9 provides that if a city council timely opts into the Alternative Voluntary Redevelopment Program, then the agency will be exempt from the provisions of Parts 1.8 and 1.85. Thus, an agency should only be required to approve a draft recognized obligation payment schedule if the city council has not adopted an opt in ordinance by September 30 However, the stay issued by the California Supreme Court, discussed below, means all agencies must approve a preliminary draft of a recognized obligation payment schedule by September 30 even if the council has adopted an opt in ordinance. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 (including Health and Safety Code Section 34169) was not stayed. Thus, the requirements of Part 1.8, including the requirement to prepare a preliminary draft of an initial recognized obligation payment schedule, are applicable because the provisions of Part 1.9 which exempts agencies from the provisions of Part 1.8 upon adoption of an opt in ordinance have been stayed. Accordingly, Staff recommends that the Agency approve a preliminary draft of a recognized obligation payment schedule. FISCAL IMPACT: None. ENVIRONMENTAL IMPACT: There will be no new environmental impact associated with any of the decisions outlined above. ATTACHMENTS: Resolution Exhibit A — Recognized Obligation Payment Schedule RESOLUTION NO. RDA 11- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A PRELIMINARY DRAFT OF AN INITIAL RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART 1.8 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH THE MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA HEREBY RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Temecula does hereby find, determine and declare that: A. The Redevelopment Agency of the City of Temecula (the "Agency ") is a redevelopment agency in the City of Temecula (the "City "), created pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law "). B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan ") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan (the "Project Area ") are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91 -08, 91- 11, 91 -14, and 91 -15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91 -11 and 91 -15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. The Plan has been amended by Ordinance Nos. 94 -33, 06 -11 and 07 -20 adopted by the City Council. The Agency duly adopted its Implementation Plan for 2010 -2014 on December 8, 2009 in accordance with Health and Safety Code Section 33490. The Agency is undertaking a program to redevelop the Project Area. C. ABX1 26 was signed by the Governor of California on June 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code. Commencing upon the effectiveness of ABX1 26, ABX1 26 suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Effective October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, designates successor agencies to the former redevelopment agencies, imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established pursuant to the provisions of Part 1.85. D. Health and Safety Code Section 34169 (h), which is set forth in Part 1.8, requires a redevelopment agency to prepare a preliminary draft of an initial recognized obligation payment schedule by no later than September 30, 2011, and provide it to the successor agency, if a successor agency is established pursuant to Part 1.85. The initial recognized obligation payment schedule must set forth the minimum payment amounts and due dates of payments required by enforceable obligations for the six - month period from January 1, 2012 through June 30, 2012. E. ABX1 27 was signed by the Governor of California on June 29, 2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue to exist and carry out the provisions of the Redevelopment Law upon the enactment, prior to the applicable deadline established in Part 1.9 (with the earliest deadline being October 1, 2011), by the city council of the city which includes that redevelopment agency of an ordinance to comply with Part 1.9. Pursuant to Health and Safety Code Section 34192, if a city participates in the Alternative Voluntary Redevelopment Program and complies with all requirements and obligations contained in Part 1.9, the redevelopment agency in that city will be exempt from Part 1.8 and Part 1.85. F. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 (including Health and Safety Code Section 34169) was not stayed. Accordingly, the Agency desires to approve a preliminary draft of an initial recognized obligation payment schedule. Section 2. This Resolution is adopted pursuant to Health and Safety Code Section 34169. Section 3. The Agency hereby approves the preliminary draft of the initial recognized obligation payment schedule substantially in the form attached as Exhibit A to this Resolution and incorporated herein by reference (the "ROPS "). The Executive Director of the Agency, in consultation with the Agency's legal counsel, may modify the ROPS as the Executive Director or the Agency's legal counsel deems necessary or advisable. Section 4. The Agency Secretary is hereby authorized and directed to transmit a copy of the ROPS to the successor agency designated pursuant to Part 1.85 if a successor agency has been designated. Section 5. The Agency hereby designates the Director of Finance as the official to whom the Department of Finance may make requests for review in connection with the ROPS and who shall provide the Department of Finance with the telephone number and e-mail contact information for the purpose of communicating with the Department of Finance. Section 6. The officers and staff of the Agency are herby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 7. The approval of the ROPS is not intended and shall not constitute a wavier by the Agency of any rights the Agency may have to challenge the legality of all or any portion of ABX1 26 or ABX1 27 through administrative or judicial proceedings. Section 8. This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the Agency's environmental guidelines. The Agency has determined that this Resolution is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b) (5)). Section 9. The Agency Secretary shall certify to the adoption of this resolution in the manner required by law. PASSED, APPROVED, AND ADOPTED by the Members of the Redevelopment Agency of the City of Temecula this 27th day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk /Board Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Mike Naggar,Chairperson I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Redevelopment Agency of the City of Temecula, do hereby certify that the foregoing Resolution No. RDA 11- was duly and regularly adopted by the Members of the Redevelopment Agency of the City of Temecula at a meeting thereof held on the 27th day of September, 2011, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: ABSTAIN: AGENCY MEMBERS: Susan W. Jones, MMC City Clerk/Board Secretary EXHIBIT A RECOGNIZED OBLIGATION PAYMENT SCHEDULE Name of Redevelopment Agency: Temecula Redevelopment Agency Project Area(s) All RECOGNIZED OBLIGATION PAYMENT SCHEDULE Page 1 of 2 Pages * This Draft Recognized Obligation Payment Schedule (ROPS) Is to be completed no later than September 30, 2011 .1t Is valid from 111/12 through 6130/12. (The draft ROPS must be prepared by the Successor Agency by 11/1/11.) If an agency adopts a continuation ordinance per ABX1 27, this ROPS will not be valid and there is no need to prepare a ROPS. Project Name / Debt Obligation Payee Description Funding Source Total Outstanding Debt or Obligation Total Due During Fiscal Year Payments by month Jan Feb Mar Apr May June Total 1) CSUSM Campus Funding Agreement Cal State San Marcos Satellite Campus Development Reserves 471,624.00 288,584.43 288,584.43 288.584.43 2) Abbott OPA Abbott Vascular Property Tax Reimbursment Redevelopment Trust Fund 1.910.000.00 159,000.00 0.00 3) Payroll- Agency Administration Agency Staff Agency Staff Compensation Admin Cost Allowance 812,966.00 812,966.00 66,544.56 66.544.56 93,803.76 66,544.56 66,544.56 66,544.56 426,526.56 4) Promissory Note City of Temecula 6th Street Parking Lot Redevelopment Trust Fund 1.903,333.00 439,622.00 439.622.00 439.622.00 5) Professional Services Agreement Brown Bortz & Coddington Community Development Block Grant Entitlement LMIHF /Red. Trust Fund 29,000.00 29,000.00 4,834.00 4,834.00 4,834.00 4,834.00 4,834.00 4,830.00 29,000.00 6) Professional Services Agreement Keyser Marston Associates Real Estate /Economic Analysis LMIHF / Red. Trust Fund 75,000.00 75.000.00 6,250.00 6.250.00 6.250.00 6,250.00 6,250.00 6,250.00 37,500.00 7) Jefferson Corridor Multi Jurisdictional Study Cal Trans In -Kind Contributiuon for Cal -Trans Grant LMIHF / Red. Trust Fund 7.850.00 7,850.00 1.046.67 1.046.67 1,046.67 1.046.67 1,046.67 1,046.65 6.280.00 8) Professional Services Agreement Lance Soli & Luggard Agency Auditing Services Redevelopment Trust Fund 13,930.00 13,930.32 6,965.32 6.965.32 9) Professional Services Agreement Environmental Science Associates Jefferson Corridor Specific Plan EIR LMIHF / Red. Trust Fund 189,220.00 189,220.00 31,536.67 31,536.67 31,536.67 31,536.67 31,536.67 31,536.65 189,220.00 10) Professional Services Agreement Inland Planning & Design Jefferson Corridor Specific Plan Redevelopment Trust Fund 81,123.00 81,123.00 6,760.25 6.760.25 6,760.25 6,760.25 6,760.25 6,760.25 40,561.50 11) Professional Services Agreement Richards, Watson & Gershon Agnecy Legal Services LMIHF / Red. Trust Fund 135,000.00 135,000.00 11.250.00 11,250.00 11,250.00 11,250.00 11.250.00 11,250.00 67,500.00 12) Non Personnel Agency Administration Multiple Payees Ongoing Agency Administration LMIHF / Red. Trust Fund 375.242.00 375,242.00 31,270.17 31,270.17 31,270.17 31,270.17 31,270.17 31,270.15 187,621.00 13) Property Tax Admin Fee Riverside County Tax Assessor County Adminstration Fee Redevelopment Trust Fund 233,000.00 233.000.00 233,000.00 233.000.00 14) Trustee Admin Fees US Bank as Trustee for Bondholders Trustee Fees for TAB Bond Issues Redevelopment Trust Fund 18,760.00 18,760.00 0.00 15) 2002 TAB FY 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 44,598,491.25 1,776,063.75 630,355.63 630,355.63 16) 2006 TAB Series A FY 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 30.588,675.00 991,836.25 363,318.13 363,318.13 17) 2006 TAB Series B FY 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 5511,856.88 199,606.23 71,753.13 71,753.13 18) 2007 TAB FY 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 30,281,825.00 1,092,364.38 410,668.13 410,668.13 19) 2010 Housing TAB Series A & 8 FY 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 32285,618.00 1,258,094.80 502,797.40 502,797.40 20) 2011 Housing TAB Fiscal Year 2011/12 US Bank as Trustee for Bondholders Bonds Issues to Fund Affordable Housing Redevelopment Trust Fund 39,649,293.99 1,010,061.00 555,996.88 555,996.88 21) Front St. Plaza Partners. Inc. OPA Front Street Plaza Partners Inc. Grant for construction of Affordable Housing Bond Proceeds 4.000.000.00 4.000.000.00 4,000,000.00 4,000,000.00 22) AMCAL Pujol Fund L.P. OPA AMCAL Pujol Fund, L.P. Grant for construction of Affordable Housing Bond Proceeds 5.579,021.00 5 ,579,021.00 309,946.17 309,946.17 309,946.17 309,946.17 309,946.17 2,169,623.15 3,719,354.00 23) Summerhouse Housing Associates, L.P., OPA Summerhouse Housing Associates, L.P. Loan for Affordable Housing Bond Proceeds 1,080,262.00 1.080,262.00 1,080,262.00 1,080.262.00 24) Temecula Gardens L.P Loan Agreement Temecula Gardens L.P. Loan for Affordable Housing Redevelopment Trust Fund 4. 880, 000.00 305 ,000.00 305,000.00 305,000.00 25) Old Town Infrasrtucture Projects RBF / Pardell / LH Engineering 1 Edge Old Town Infrastructure Improvements Bond Proceeds 246,131.00 246,131.00 246.131.00 246.131.00 26) Promenade Parking Garage OPA Forrest City Loan for Public Parking Garage Bond Proceeds 20,000.00 20,000.00 20,000.00 20,000.00 27) Old Town Sound System Western Audio Visual Public Sound System Redevelopment Trust Fund 85,774.00 85,774.00 60,808.00 60,808.00 Totals - Page 1 Totals - Page 2 Grand total - All Pages $ 205,062,996.12 $ 20.502,512.16 $ 1,324,927.24 $ 2,521,906.53 $ 496,697.69 $ 469,438.49 $ 469,438.49 $ 8,636.416.67 $ 13,918.825.11 $ 10,559,000.00 $ 10.559.000.00 $ 5.279.500.00 $ - $ - $ - $ 5.279.500.00 $ - $ 10.559.000.00 I $ 215,621.996.12 I $ 31.061,512.16 I $ 6.604.427.24 I $ 2,521.906.53 I $ 496,697.69 I $ 469,438.49 I $ 5.748,938.49 I $ 8,636,416.67 I $ 24,477.825.11 Name of Redevelopment Agency: Temecula Redevelopment Agency Project Area(s) All RECOGNIZED OBLIGATION PAYMENT SCHEDULE Page 1 of 2 Pages * This Draft Recognized Obligation Payment Schedule (ROPS) Is to be completed no later than September 30, 2011 .1t Is valid from 111/12 through 6130/12. (The draft ROPS must be prepared by the Successor Agency by 11/1/11.) If an agency adopts a continuation ordinance per ABX1 27, this ROPS will not be valid and there is no need to prepare a ROPS. Name of Redevelopment Agenc' Temecula Redevelopment Agency Project Area(s) All RECOGNIZED OBLIGATION PAYMENT SCHEDULE Page 2 of 2 Pages Project Name / Debt Obligation Payee Description Funding Source Total Outstanding Debt or Obligation Total Due During Fiscal Year Payments by month Jan Feb Mar Apr May Jun Total 1) Pass - Through Payments' Riverside County General Fund Annual Pass - Through to Taxing Entity Redevelopment Trust Fund 3,438,000.00 3.438,000.00 1,719,000.00 1,719,000.00 $ 3,438,000.00 2) Pass - Through Payments' Riverside County Library Annual Pass = through to Taxing Entity Redevelopment Trust Fund 414.000.00 414,000.00 207,000.00 207,000.00 $ 414,000.00 3) Pass - Through Payments' Riverside County Fire Annual Pass - Through to Taxing Entity Redevelopment Trust Fund 892,000.00 892,000.00 446,000.00 446.000.00 $ 892,000.00 4) Pass - Through Payments' Temecula Public Cemetary District Annual Pass - Through to Taxing Entity Redevelopment Trust Fund 73.000.00 73,000.00 36.500.00 36.500.00 $ 73.000.00 5) Pass - Through Payments' Mt. San Jacinto CCD Annual Pass - Through to Taxing Entity Redevelopment Trust Fund 198,000.00 198,000.00 99,000.00 99,000.00 $ 198,000.00 6) Pass -1 hrough Payments' Temecula Valley USD Annual Pass - Through to Taxing Entity Redevelopment Trust Fund 1.717.000.00 1.717,000.00 858.500.00 858,500.00 $ 1,717,000.00 7) Pass- Through Payments' Eastern Municipal Water District Annual Pass- Through to Taxing Entity Redevelopment Trust Fund 1.788,000.00 1.788.000.00 894,000.00 894,000.00 $ 1.788.000.00 8) Pass - Through Payments' Riverside County Flood Control District Annual Pass- Through to Taxing Entity Redevelopment Trust Fund 323,000.00 323,000.00 161,500.00 161,500.00 $ 323,000.00 9) Pass- Through Payments` Riverside Co. Superintendent of Schools Annual Pass - Through to Taxing Entity Annual Pass - Through to Taxing Entity Redevelopment Trust Fund Redevelopment Trust Fund 572,000.00 1.144.000.00 572,000.00 1.144.000.00 286,000.00 572.000.00 286.000.00 572.000.00 $ 572,000.00 S 1.144.000.00 10) Pass - Through Payments' Rancho California Water District 11) $ - 12) $ - 13) S - 14) S - 15) S - 16) S - 17) S 18) S 19) $ - 20) S - 21) 5 - 22) S - 23) $ - 24) S - 25) S - 26) S 27) $ - 28) S - Totals - Other Obligations $ 10,559,000.00 $ 10,559,000.00 $ 5,279,500.00 $ - $ - $ - $ 5,279,500.00 S - $ 10,559,000.00 • All payment amounts are estimates Name of Redevelopment Agenc' Temecula Redevelopment Agency Project Area(s) All RECOGNIZED OBLIGATION PAYMENT SCHEDULE Page 2 of 2 Pages RDA DEPARTMENTAL REPORT 1 RECOMMENDATION: Receive and file. REDEVELOPMENT TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT Approvals City Attorney Director of Finance City Manager Rief 54,e, OtoL TO: Executive Director /Agency Members FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: Redevelopment Department August Monthly Report Town Square Market Place - As part of the Civic Center Master Plan, the City has created a development opportunity for approximately 52,000 square feet of commercial and office space surrounding the Town Square along the reconfigured Main Street. The Agency issued a Request for Interest to select a preferred development partner. On August 26, 2008, the City Council entered into an Exclusive Negotiating Agreement (ENA) with Pelican Properties to develop the project. Pelican has participated in several meetings with Old Town stakeholders and adjacent property owners. They have worked closely with Staff on site planning issues. On January 22, 2009 the Executive Director granted a three -month extension to the Exclusive Negotiating Agreement which expires on May 26, 2009. Due to the state of the economy Staff recommended the Agency extend the ENA an additional six months. On May 26, 2009 Agency Board approved a six (6) month extension to the ENA. Agency Staff met with the Agency sub- committee in February 2010 and received direction to take an extension of one year with the possibility of an additional one year administrative extension which the Agency approved on March 9, 2010. Due to Pelican Property's lack of progress on the project the Agency allowed the ENA to expire in February. Agency staff anticipates going out with a new solicitation of interest in an attempt to identify a preferred developer in which to enter into a ground lease for the future development of the Town Square Marketplace. Facade Improvement Program - The Facade Improvement Program provides funding assistance to Old Town business and property owners to provide exterior improvements to their buildings and property. On June 15, 2011, the City Council approved funding in the amount of $40,000 for FY 2011 -2012. However, as of July 1, 2011, this program is currently frozen due to legislation passed by the State of California. This program will remain frozen until staff receives more information regarding the legislation. HOUSING 3r and Front Street Development - On February 22, 2011 the Agency board approved the Owner Participation Agreement between the Agency and Front Street Plaza Partners Inc for the development of a 25 -unit affordable housing development at the southwest corner of Old Town Front Street and 3 Street. Of the 25 units in the proposed development, 23 will be restricted at affordable rents for 55 years. The remaining 2 units will be rented at market rate rents. The development itself is to include restaurant space on the ground floor with office and residential space on floors two through four. Plans call for a gated garage that would provide a total of 25 parking spaces, or one space per residential unit. Agency funding for this development will come at the completion of the project. The developer is currently working to secure construction financing. AMCAL Pujol Apartments - On February 22, 2011 the Agency board approved the Owner Participation and Grant Agreement between the Agency and AMCAL Pujol Fund L.P. for the development of a 45 -unit affordable housing development on the west side of Pujol Street between Main Street and First Street. The plans call for the development of 45 affordable units on 1.5 acres. The site will include a parking garage with two designated spots per residential unit. The units themselves will consist of a mix of two and three bedroom units. Additionally the site will include a pool and community room. The Developer closed escrow on a portion of the property and received entitlements for the project at the Planning Commission Meeting on August 3, 2011. The developer is also in the process of preparing their Tax Credit Application which is due in September. R.C. Hobbs Exclusive Negotiating Agreement - The R.C. Hobbs Company approached the Agency regarding the possible development of mixed income affordable housing on vacant Agency owned property located at 28640 Pujol Street. Considering Hobbs' background and recent Staff experience working with the organization, Staff felt that Hobbs would be a quality partner on an affordable housing development at the aforementioned location. Hobbs requested that the Agency and Hobbs enter into an ENA with a one -year term with a potential six month extension by written approval of the Executive Director. The Agency approved the ENA at its February 9, 2010 meeting. On February 7, 2011, R.C. Hobbs requested that the provision of the ENA that allows for an administrative extension of up to 6 months be exercised. The Executive Director of the Agency approved an extension of the ENA to August 9, 2011. No additional extension was sought by the developer and the ENA expired on August 9, 2011. First Time Homebuyers Program - This down payment assistance program allows qualifying households to purchase homes in the $200,000- $300,000 price range. On June 15, 2011, the City Council approved funding in the amount of $750,000 for FY 2011 -2012. However, as of July 1, 2011, this program is currently frozen due to legislation passed by the State of California. This program will remain frozen until staff receives more information regarding the legislation. Summerhouse - The developer has completed phase one of the project which includes 20 moderately affordable residential units. The developer has recently applied for tax credits which, if awarded, would enable the project to move on to phase two. Phase two will include an additional 60 units. Construction of phase two is expected to begin shortly after the issuance of tax credits. Residential Improvement Program - The Residential Improvement Program (RIP) provides funding assistance to low and moderate income level homeowners to do exterior improvements to their home and property. On June 15, 2011, the City Council approved funding in the amount of $400,000 for FY 2011 -2012. However, as of July 1, 2011, this program is currently frozen due to legislation passed by the State of California. This program will remain frozen until staff receives more information regarding the legislation. Supportive Housing /Services - The Agency, in collaboration with the Temecula Housing Authority, intends to continue to serve the needs of the low and moderate income households and individuals by continuing to construct affordable housing units within the City. In addition to its efforts to construct new units, the Agency also intends to provide Supportive Services to assist moderate, low, very low and extremely income households and individuals within the community. Supportive Services will include, providing housing, food, clothing, counseling, health care and day care services, among other services, to assist these families and individuals. In order to achieve this, a number of specific action steps have been identified to meet the needs of these populations. The recommended action steps were approved by City Council on May 10, 2011. COUNCIL BUSINESS 1 Approvals City Attorney Director of Finance City Manager (10L CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: Determination whether the City should participate in the "Alternative Voluntary Redevelopment Program," make the required payments to the State of California and continue redevelopment activities under ABX1 27 PREPARED BY: Luke Watson, Management Analyst RECOMMENDATION: That the City Council: 1. Consider the foregoing facts and analysis and determine that the City and Agency will participate in the Alternative Voluntary Redevelopment Program established by ABX1 27; 2. Agree to comply with Part 1.9 of Division 24 of the California Health and Safety Code; and, 3. Introduce and read by title only an ordinance entitled: ORDINANCE NO. 11- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH FOR THE ESTABLISHMENT OF THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM UNDER ABX1 27 4. Direct staff to prepare and present at a future City Council meeting the recommended adjustments to the City budget necessary to make the required ABX1 27 payment for FY 2011 -12 and a transfer agreement between the City and Agency; BACKGROUND: The City and Agency have carried out an active and successful redevelopment program since the activation of the Agency in 1991. However, the continuing ability of the Agency to eliminate blight and create economic development opportunities has been threatened by the Legislature's adoption of the recent budget package which, in part, solves State budget problems by taking revenue from redevelopment agencies. ABX1 26, which was signed by the Governor of California on June, 29, 2011, immediately suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Then, on October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, and designates successor agencies as successor entities to the former redevelopment agencies, and imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established under the new law. AB X1 27 was signed by the Governor concurrently with AB X1 26. This companion law establishes an Alternative Voluntary Redevelopment Program whereby a redevelopment agency will, notwithstanding ABX1 26, be authorized to continue to exist and carry out the provisions of the Redevelopment Law. To "opt into" this "voluntary" alternative program, the City must adopt an ordinance signifying the City's compliance with the onerous exactions imposed by the Legislature. To restore the ability to continue redevelopment activities, the City must make specified annual payments to the County Auditor - Controller on a schedule, and the Auditor - Controller will then allocate the payments to special districts and educational entities. The amount to be paid in FY 2011 -12 is the Agency's proportionate share of $1.7 billion, as determined by the Department of Finance pursuant to a formula specified in ABX1 27. That determination, to be made on or before August 1, 2011, is subject to appeal by the City within 15 days of the determination. This payment obligation is an ongoing obligation of the City in subsequent years. For FY 2012 -13 and thereafter, the City is required to calculate its own payment amount, subject to audit by the Department of Finance, with the payments based on the Agency's proportionate share of $400 million (with adjustments based on growth /decline of tax increment revenues, and with additional payments triggered if the Agency incurs new debt). Thus, the Legislature has created a system where a city is liable for making continuing annual payments out of city funds in order for the agency to be able to continue its activities. ABX1 27 provides that a participating city and the redevelopment agency in that participating city may enter into an agreement whereby the agency will transfer a portion of its tax increment to the participating city in an amount not to exceed the annual remittance required that year. Any tax increment funds transferred from the agency to the city are required to be spent only for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals." If the City Council determines that it will not opt into the ABX1 27 Alternative Voluntary Redevelopment Program, the activities of the Agency will continue to be severely curtailed. Ultimately, the Agency will be dissolved as of October 1, 2011 and a number of "wind -up" activities must be undertaken bya successor entity. No further redevelopment activities could be undertaken and the assets of the Agency would be disposed of. The State Controller would have the authority to review, and potentially unwind, asset transfer transactions between the City and the Agency which occurred after January 1, 2011. In addition, ABX1 26 provides that except in very limited circumstances, the Agency could not repay amounts currently owed to the City. The "wind -up" activities of the Agency would be subject to the supervision of a new "Oversight Board" with the authority to give direction to City and Agency staff, and to usurp the existing authority of the City Council and Agency Board. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Court to decide the case before January 15, 2012. On August 11, 2011, the Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b) (2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts), and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 was not stayed. The granting of the stay has raised numerous questions and issues. Importantly, even if the Council adopts the opt in ordinance, the stay means that the Agency will still be subject to prohibitions during the time the stay is in effect. In addition, the stay raises the question of whether an opt in ordinance adopted during the period of the stay might need to be re- adopted after the stay is lifted. The California Redevelopment Association sought clarification from the Supreme Court regarding the implications of the stay, but this request was denied. Therefore, if the Council determines that the City should opt into the Voluntary Alternative Redevelopment Program so that ultimately the Agency will be able to continue to operate if ABX1 26 and 27 are upheld by the Court, then the Council could determine to adopt an opt in ordinance at this time before the case is decided and the stay is lifted. The opt in ordinance attached to this staff report provides that the ordinance will not be effective until the later of 30 days after adoption or the lifting of the stay. In addition, the ordinance provides that it will become null and void in the event that ABX1 26 or ABX1 27 are struck down by the Court. If ABX1 26 and 27 are ultimately upheld by the Supreme Court, it appears that cities will be given additional time to adopt an opt in ordinance following the Court's ruling and the lifting of the stay. However, at the present time it is unclear how much more time will be provided. A more detailed description of AB X1 26 and AB X1 27 prepared by Richards, Watson & Gershon is attached to this report. ANALYSIS: At a threshold level, the City Council must determine whether to take the steps necessary to continue the activities of the Redevelopment Agency or allow the Agency to be dissolved. This determination requires answers to the following questions: 1. Do the benefits of keeping the Agency in operation outweigh the costs and risks to the City of opting into the "voluntary" program? a. The benefits of keeping the Agency in operation include: Continued development of Affordable Housing units which are in high demand ii. Creation of numerous middle -class jobs in connection with Agency funded development projects Creation of numerous professional level jobs associated with development projects and programs funded by the Agency iv. Compliance with State mandated Regional Housing Needs requirements v. Continued implementation of popular programs including: 1. Residential Improvement Program 2. Facade Improvement Program 3. First Time Homebuyers Program vi. Continued Agency investment in critical infrastructure such as roads, bridges and community facilities vii. Continued elimination of blighted conditions within the project area viii. Greater local control over property tax revenue generated within the project area b. The cost to the City of making the payments are estimated to be (subject to appeal): i. For FY 2011 -2012: $4,731,158 ii. For FY 2012 -2013 (with annual payments continuing thereafter) the estimated payment is to be: $1,135,478 iii. The City filed an appeal of this amount with the Department of Finance, but the Department has not yet ruled on the appeal. c. There are some significant risks to the City if it chooses to "opt into" the "voluntary" program. Those risks include: The risk that the City will not have sufficient available funds in subsequent years to continue making the required payments, or that at some future time, the net benefits of making the payments will not exceed the actual cost of making those payments. If the City stops making the payments in future years, the provisions of Part 1.8 (prohibitions on Agency activities) and 1.85 (dissolution of the Agency) will be applicable to the Agency. In addition, Part 1.9 provides that if the City stops making the payments at a later date the State will be entitled to any payments the Agency would have made to the City in order to mitigate the fiscal impact to the State related to the failure of the City to make the annual payments. ii. The risk that the Legislature makes changes to the program, or requires additional payments, in future years. For example, if the total amount paid by agencies in FY 2011 -12 does not equal the $1.7 billion anticipated by the State budget, this could trigger the need for additional exactions. The risk that the City will be unable to recover its payments to the State if ABX1 26 and ABX1 27 are ultimately invalidated by the courts. 2. Before it "opts into," the "voluntary" program, the City Council should consider whether the City will have the resources to make the annual payments required under ABX1 27. a. The 2011 -2012 Redevelopment Agency 20% Housing Set -Aside tax increment revenues will be the source of the payment. b. The Agency will have sufficient funds to make transfers to the City in amounts not to exceed the City's payment amounts under a transfer agreement between the City and Agency. The answers to the foregoing questions will help the City Council determine whether to "opt into" the "voluntary" program established by ABX1 27. If the City Council determines that the City will "opt into" the program, the first step in the process is to introduce the proposed Ordinance (attached). In addition, the City Council must direct staff to propose the City budget adjustments necessary to facilitate the required payment for FY 2011 -12 and prepare a transfer agreement between the Agency and City. If the City Council determines not to participate in ABX1 27's voluntary program, the City Council should direct staff to start the actions necessary to comply with ABX1 26, and to bring those actions before the Agency Board and City Council as necessary. Staff recommends that the City Council consider the foregoing facts and analysis and determine that the City and Agency will participate in the Alternative Voluntary Redevelopment Program established by ABX1 27. OPTIONS: 1. Determine that the City and Agency will participate in the Alternative Voluntary Redevelopment Program. 2. Determine that the City and Agency will not participate in the Alternative Voluntary Redevelopment Program. 3. Delay making the determination, and direct staff to prepare additional information and analysis. I n such case, direct staff, in the meantime, to start the actions necessaryto comply with ABX1 26 and to bring those actions before the Agency Board and City Council as necessary. FISCAL IMPACT: If the City Council chooses to `opt -in" under ABX1 27 the Agency would be required to make the 2011/2012 annual payment of $4,731,158, or potentially a reduced amount if the appeal delivered to the State Department of Finance is granted. The Agency would be required to make a base annual payment of approximately $1,135,478 (before inflation factor) until the life of the Agency comes to an end in 2029. ENVIRONMENTAL IMPACT: There will be no new environmental impact associated with any of the decisions outlined above. ATTACHMENTS: Proposed Ordinance No. 11- Richards, Watson & Gershon Summary of ABX1 26 and ABX1 27 ORDINANCE NO.11- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA TO COMPLY WITH PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH FOR THE ESTABLISHMENT OF THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM UNDER ABX1 27 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare as follows: A. The Redevelopment Agency of the City of Temecula (the "Agency ") is a redevelopment agency in the City of Temecula (the "City "), created pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (the "Redevelopment Law "). B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988 -1" (hereafter the "Plan ") in accordance with the provisions of the Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.). On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91 -08, 91 -11, 91 -14, and 91 -15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91 -11 and 91 -15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. These Ordinances are codified in Chapter 2.52 of the Temecula Municipal Code. The Plan has been amended by Ordinances Nos. 94 -33, 06 -11, 07 -20, 07 -21 but no new area has been added to the Project Area. C. ABX1 26 was signed by the Governor of California on June, 29, 2011, making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code. Commencing upon the effectiveness of ABX1 26, ABX1 26 suspends most redevelopment agency activities and, among other things, prohibits redevelopment agencies from incurring indebtedness or entering into or modifying contracts. Effective October 1, 2011, ABX1 26 dissolves all existing redevelopment agencies and redevelopment agency components of community development agencies, designates successor agencies to the former redevelopment agencies, and imposes numerous requirements on the successor agencies and subjects successor agency actions to the review of oversight boards established pursuant to the provisions of Part 1.85. D. ABX1 27 was signed by the Governor of California on June 29, 2011, adding Part 1.9 (commencing with Section 34192) to Division 24 of the California Health and Safety Code. Part 1.9 establishes an Alternative Voluntary Redevelopment Program whereby, notwithstanding the provisions of Part 1.8 and Part 1.85, a redevelopment agency will be authorized to continue to exist and carry out the provisions of the Redevelopment Law upon the enactment, prior to the applicable deadline established in Part 1.9, by the city council of the city which includes that redevelopment agency (the "participating city ") of an ordinance to comply with Part 1.9. E. Part 1.9 requires a participating city to make specified annual remittances to the applicable county auditor - controller, who shall allocate the remittances for deposit into a Special District Allocation Fund, for allocation to specified special districts, and into the county Educational Revenue Augmentation Fund, for allocation to educational entities. F. To participate in the Alternative Voluntary Redevelopment Program, in addition to adopting the ordinance described in Recital D, above, the participating city must, by November 1, 2011, notify the applicable county auditor - controller, the State Controller, and the State of California Department of Finance (the "Department of Finance ") that the participating city agrees to comply with the provisions of Part 1.9. The participating city's agreement to make the remittances provided for under Part 1.9 is a precondition to continue redevelopment pursuant to Part 1.9. G. Part 1.9 provides that for fiscal year 2011 -12, a participating city shall remit to the applicable county auditor - controller an amount equal to the amount determined by the State of California Director of Finance (the "Director of Finance ") for the redevelopment agency pursuant to a formula set forth in Part 1.9, which formula utilizes information contained in the State Controller's redevelopment agency 2008 -09 annual report. The amount represents the redevelopment agency's proportionate share of the sum of $1,700,000,000. The initial amount determined by the Director of Finance is subject to recalculation and reduction in the event the participating city timely files an appeal in accordance with Health and Safety Code Section 34194(b)(2)(L). H. For fiscal year 2012 -13 and each fiscal year thereafter, a participating city's remittance amount shall equal the amount determined pursuant to calculations performed by the participating city in accordance with the requirements of Part 1.9, subject to adjustment based on audit and verification by the Director of Finance, the State Controller and the applicable county auditor - controller. On or before November 1 of each year, commencing November 1, 2012, a participating city shall notify the Department of Finance, the State Controller, and the applicable county auditor - controller of the remittance amount calculated by the participating city. Pursuant to the provisions of Part 1.9, a participating city shall pay one - half of the total remittance amount for a fiscal year on or before January 15 of that year and shall pay the remaining one -half of the remittance amount on or before May 15 of that year. J. A participating city making remittances pursuant to Part 1.9 may use any available funds not otherwise obligated for other uses. K. A participating city and the redevelopment agency in that participating city may enter into an agreement pursuant to Part 1.9 whereby the agency will transfer a portion of its tax increment to the participating city in an amount not to exceed the annual remittance required that year pursuant to Part 1.9. L. Pursuant to the provisions of Part 1.9, if a participating city fails to make a remittance payment, as calculated in accordance with the applicable provisions of Part 1.9 and according to the schedule set forth in Rectial I, above, the applicable county auditor - controller shall notify the Director of Finance of the failure to make the payment within 30 days. Upon receipt of the notification, the Director of Finance may determine that the redevelopment agency in the participating city shall be subject to the requirements of Part 1.8 and Part 1.85. M. The Director of Finance has notified the City that its 2011 -12 remittance amount under Part 1.9 is $4,731,158. The City has appealed the amount of the remittance to the Director of Finance, but the City has not yet been notified of the Director's decision on the appeal. N. The City desires to participate in the Alternative Voluntary Redevelopment Program so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law. O. The California Redevelopment Association and League of California Cities have filed a lawsuit in the Supreme Court of California alleging that ABX1 26 and ABX1 27 are unconstitutional. On August 11, 2011, the Supreme Court of California decided to hear the case and set a briefing schedule designed to allow the Supreme Court to decide the case before January 15, 2012. On August 11, 2011, the Supreme Court also issued a stay order, which was subsequently modified on August 17, 2011. Pursuant to the modified stay order, the Supreme Court granted a stay of all of ABX1 27 (i.e., Part 1.9), except for Health and Safety Code Section 34194(b)(2) (relating to the determination of cities' fiscal year 2011 -12 remittance amounts) and a partial stay of ABX1 26. With respect to ABX1 26, Part 1.85 was stayed in its entirety, but Part 1.8 was not stayed. In the event the stay is lifted and the Supreme Court upholds ABX1 26 and ABX1 27, the City desires to participate in the Alternative Voluntary Redevelopment Program so that the Agency may continue to exist and carry out the provisions of the Redevelopment Law. P. The City has, or will have, available funds not otherwise obligated for other uses with which to make the fiscal year 2011 -12 remittance in an amount not to exceed $4,731,158, or such lesser amount recalculated by the Director of Finance, payable one -half by January 15, 2012, with the remaining one -half payable by May 15, 2012. Section 2. This Ordinance is adopted as required by Health and Safety Code Section 34193. Section 3. So that the Agency may continue to exist and carry out the provisions of the Redevelopment Law notwithstanding the provisions of Part 1.8 and Part 1.85, the City Council hereby determines and declares that it shall comply with the requirements and obligations contained in Part 1.9, as Part 1.9 exists on the date of adoption of this Ordinance. In adopting this Ordinance or agreeing to comply with the provisions of Part 1.9, the City does not intend to incur an indebtedness or liability within the meaning of any constitutional or statutory debt limitation or restriction. Section 4. Performance of actions under or pursuant to this Ordinance, including the making of payments by the City to the Riverside County Auditor - Controller (the "Auditor- Controller "), is made under protest. Neither the adoption of this Ordinance nor the performance of actions under or pursuant to this Ordinance is intended by the City or Agency to waive any right either may have to challenge the legality of all or any portion of ABX1 26 or ABX1 27 through administrative or judicial proceedings, or to appeal the City's fiscal year 2011 -12 remittance amount pursuant to Health and Safety Code Section 34194(b)(2)(L), or to otherwise contest the remittance amount for any year. Any payments hereunder are intended to be made without prejudice to the City's right to seek to recover reimbursement of such payments, plus interest, should the requirement of making such payments be stayed, enjoined, repealed, or held unconstitutional or unenforceable by any court of competent jurisdiction. This Ordinance shall be null and void and of no further force and effect in the event that ABX1 26 or ABX1 27 is repealed, or held unconstitutional or unenforceable by any court of competent jurisdiction. Section 5. The City Manager, or the City Manager's designee, is hereby authorized and directed to notify the Auditor - Controller, the State Controller, and the Department of Finance, on or before November 1, 2011, that the City agrees to comply with the provisions of Part 1.9, as Part 1.9 exists on the date of adoption of this Ordinance, with such notification to be accompanied by a certified copy of this Ordinance. Section 6. This Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ( "CEQA "), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the "Guidelines "), and the City's environmental guidelines. The City has determined that this Ordinance is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Ordinance constitutes the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (Guidelines Section 15378(b)(4)). In addition, this Ordinance is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b)(5)). Therefore, because it is not a "project," this Ordinance is not subject to CEQA's requirements. Further, even if this Ordinance were deemed a "project" and therefore subject to CEQA, the Ordinance would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061 (b)(3)). As an organizational or administrative activity or the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, this Ordinance does not have the potential to cause a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and thus this Ordinance is not subject to CEQA. (Guidelines Section 15061(b)(3)). Section 7. The City Clerk is hereby directed to file a Notice of Exemption with the County Clerk pursuant to Section 15062 of the Guidelines within five days of the adoption of this Ordinance. Section 8. The officers and staff of the City are herby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Ordinance and any such actions previously taken by such officers are hereby ratified and confirmed. Section 9. If any part of this Ordinance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance and this City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid or unconstitutional portion thereof had been deleted. Section 10. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 11. The City Clerk shall certify to the passage of this Ordinance and is hereby directed to publish or post this Ordinance, or a summary of this Ordinance, in accordance with law. Section 12. This Ordinance shall take effect on the last to occur of (a) 30 days from adoption, and (b) the stay of ABX1 27 granted by the Supreme Court of California is lifted. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day of September, 2011. ATTEST: Susan W. Jones, MMC City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) Ron Roberts, Mayor 1, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 11- was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 13 day of September, 2011, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 27 day of September, 2011, the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk INN RICHARDS WATSON GERSHON "Z CI ATTORNEYS AT LAW -A PROFESSIONAL CORPORATION Summary of AB X1 26 and AB X1 27 Los Angeles Orange County San Francisco June 22, 2011 For more information contact: Robin D. Harris at 213.626.8484 or rharrisc rwglaw.com or Trisha Ortiz at 415.421.8484 or tortiz@rwglaw.com www.rwglaw.com Introduction Summary of AB X1 26 and AB X1 27 Summary of AB X1 26 and AB X1 27 On June 15, 2011, both houses of the California State Legislature passed AB Xi 26 and AB Xi 27. AB X1 26 is substantially similar (with some important differences) to AB 101 and SB 77, the two budget trailer bills that were introduced on January 10, 2011 in a shell format and amended on March 15, 2011 to provide for the elimination of redevelopment agencies. Like AB 101 and SB 77, AB X1 26 adds Parts 1.8 and 1.85 to the Community Redevelopment Law. Part 1.8 provides for the immediate curtailing of redevelopment agency activities while Part 1.85 provides for redevelopment agencies to be dissolved as of October 1, 2011 and for successor agencies to wind up the affairs of the agencies. AB X1 27 adds Part 1.9 to the Redevelopment Law. Part 1.9 provides that a city may participate in a program to make specified annual monetary contributions to exempt its redevelopment agency from Parts 1.8 and 1.85 and permit the agency to continue to exist and to carry out the provisions of the Redevelopment Law. Participation will require the city to adopt an ordinance by November 1, 2011. The city's failure to continue to make the annual payments will mean that the Department of Finance can determine that the agency becomes subject to Parts 1.8 and 1.85. Part 1.9 provides that a city and agency can enter into an agreement whereby the agency will transfer a portion of its tax increment to the city, in an amount not to exceed the annual remittance required that year pursuant to Part 1.9, "for the purpose of financing activities within the redevelopment area that are related to accomplishing the redevelopment agency project goals." The quoted language is unclear, but may mean that a city could only use the transferred tax increment revenues to pay for financing projects that qualify for tax increment financing under the Redevelopment Law. Part 1.9 is also unclear regarding the duration of the city's obligation to make annual remittances. Part 1.9 provides that the State will be entitled to an assignment of the city's rights to any payments from the agency to which the city is entitled in the event the city fails to make a remittance required by Part 1.9. A more in depth discussion of Part 1.9 begins on page 18. Although the Legislature passed AB X1 26 and AB X1 27 on June 15, 2011, the bills are not effective until signed by the Governor. As of this date, however, the Legislature has not presented the bills to the Governor for his signature because AB X1 26 and AB X1 27 are bills related to the State Budget and on June 16, 2011, the Governor vetoed the State budget bills. AB X1 26 and AB X1 27 are linked, meaning that if the bills are presented to the 81000 - 0163 \1367407v4.doc Page 1 Summary of AB X1 26 and AB X1 27 Governor for his signature, the bills will not become effective unless the Governor signs both bills. AB Xi 26 and AB Xi 27 raise significant legal issues, and many provisions of the bills are ambiguous or contradictory. This summary does not attempt to address all these issues and ambiguities. AB X126 Part i.8: Restrictions on Redevelopment Agencies Operations Part 1.8 provides that effective immediately upon the enactment of AB X126, the authorized activities of agencies are severely curtailed. For example, agencies will be precluded from incurring new debt or entering into or modifying contractual obligations. In addition, Part 1.8 imposes various responsibilities on agencies prior to their dissolution. Chapter1. Suspension of Agency Activities and Prohibition on Creation of New Debts Upon passage of AB Xi 26, agencies' will immediately be prohibited from undertaking a number of actions, including the following: • Incurring new monetary or legal obligations or expanding existing obligations except as provided for in Part 1.8. • Incurring debt, including issuing bonds. • Except in very limited circumstances, refunding or restructuring debt or obligations that existed as of January 1, 2011 (including refunding bonds, exercising the right of optional redemption, or purchasing their own bonds). • Modifying or amending the terms and conditions, payment schedules, amortization, or maturity dates of any of the agency's bonds or other obligations that are outstanding or exist as ofJanuary 1, 2011. • Accepting loans or advances from any source for any purpose, including advances pursuant to an administrative overhead reimbursement agreement. 1 An agency includes a community development commission, but Part 1.8 does not affect the authority of a commission to act in its capacity as a housing authority or for any other community development purpose of the jurisdiction in which it operates. 81000 - 0163 \1367407v4.doc Page 2 • Executing trust deeds or mortgages on any real or personal property owned or acquired by the agency. • Pledging or encumbering (i.e., granting a lien on and a security interest in) any of the agency's revenues or assets for any purpose, including, but not limited to, tax revenues, project revenues, deeds of trust and mortgages held by the agency, rents, fees, charges, moneys, accounts receivable, contracts rights, and other rights to payment or other real or personal property. • Making loans, advances or grants, or entering into agreements to provide financial assistance for any purpose. • Loaning money or anything of value or making commitments to provide financing to nonprofit organizations to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing or the acquisition of commercial property for lease pursuant to Health and Safety Code Section 33741, et seq. • Entering into contracts with or making commitments for any purpose (e.g., leases, DDA's, and service contracts). • Purchasing mortgage or construction loans from mortgage lenders or other entities. • Forgiving all or part of the balance owed to the agency on existing loans or extending or changing the terms and conditions of existing loans. • Increasing deposits to the Low and Moderate Income Housing Fund beyond the minimum level applicable to the agency as ofJanuary 1, 2011. • Amending or modifying existing agreements, obligations or commitments for any purpose. Exceptions include extending lease space for the agency's own use for six months, with no more than a five percent rate increase, and transferring funds from the Low and Moderate Income Housing Fund to meet the "minimum housing- related obligations" that existed as ofJanuary 1, 2011 to make SERAF payments, or in connection with a borrowing pursuant to 34168.5. • Disposing of assets by any means for any purpose. Assets include, but are not limited to, real property and improvements, cash, deeds, mortgages, accounts receivable, contract rights, and rights to receive rents. 2 AB X1 26 does not contain a section 34168.5, and there is no section 34168.5 under existing law. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 Page 3 Summary of AB X1 26 and AB X1 27 • Acquiring real property, improvements on real property, or any interest in real property by any means for any purpose, provided, however, that such prohibition is not intended to prohibit the acceptance or transfer of title for real property acquired by the agency prior to the Governor signing AB X126. • Transferring, assigning, vesting, or delegating any of the agency's assets, funds, rights, powers, ownership interests, or obligations for any purpose to any entity, individual, or group. • Accepting financial or other assistance from any source if it involves incurring debt by the agency. • Engaging in redevelopment activities, including preparing, approving, adopting, amending or merging redevelopment plans; approving any program, project or expenditure where such approval is not required by law; preparing or modifying implementation plans, relocation plans (unless required by law) or housing plans; developing, rehabilitating or constructing housing units unless required to do so by an enforceable obligation; and providing relocation assistance (unless required by law) or financial assistance. • Entering into new partnerships, becoming a member of a joint powers authority, creating a new entity, becoming a member of a new entity, or taking on or agreeing to take on any new duties or obligations of an entity. • Increasing the pay, benefits, or contributions of any sort for any officer, employee, consultant, contractor, or any other goods or service provider that had not previously been contracted. • Providing optional or discretionary bonuses to any officers, employees, consultants, contractors, or any other service or goods providers. • Increasing the number of staff employed by the agency beyond the number employed as ofJanuary 1, 2011. • Bringing a validation action to determine the validity of revenue bonds. • Commencing any condemnation proceeding. • Preparing or having prepared a draft environmental impact report. MOU with Employee Organization The existing terms of any memorandum of understanding with an employee organization representing employees of the agency adopted pursuant to the Meyers- Milias -Brown Act that is in force on the date AB X1 26 is signed by the Governor will continue in force until 81000 - 0163 \1367407v4.doc Page 4 Summary of AB X1 26 and AB X1 27 September 30, 2011, unless a new agreement is reached with a recognized employee organization prior to that date. Unwinding Asset Transfers The State Controller will review the activities of agencies to determine whether an asset transfer has occurred after January 1, 2011 between each agency and the city or another public entity. To the extent not prohibited by state or federal law, the State Controller will order the return of the available assets transferred after January 1, 2011, to the redevelopment agency or, on or after October 1, 2011, to the successor agency if one has been established. The only exception will be if the government agency that received the asset is contractually committed to a third party for the expenditure or encumbrance of the asset. Chapter 2. Redevelopment Agency Responsibilities Commencing immediately upon the enactment of AB X1 26 and continuing until October 1, 2011, agencies will be required to undertake a number of actions, including the following: • Make all scheduled payments with respect to enforceable obligations. 81000 - 0163 \1367407v4.doc An "enforceable obligation" includes (A) bonds issued by an agency (including debt service, reserve set - asides, and any other payments required by the bond documents); (B) loans incurred for a lawful purpose, including moneys borrowed from the Low and Moderate Income Housing Fund, to the extent they are legally required to be repaid pursuant to a required repayment schedule or other mandatory loan terms; (C) payments required by the Federal Government, pre - existing obligations to the State, or obligations imposed by State law, or legally enforceable payments required in connection with the agency's employees, including pension payments and unemployment payments; (D) judgments or settlements entered by a court or binding arbitration decisions; (E) any legally binding and enforceable contract that is not otherwise void as violating the debt limit or public policy; and (F) contracts necessary for the administration or operation of the agency to the extent permitted by AB X1 26 (but note that Chapter 1 of Part 1.8 provides that an agency is prohibited from accepting loans or advances from any source for any purpose, including advances pursuant to an administrative overhead reimbursement agreement). An agency must adopt an Enforceable Obligation Payment Schedule within 6o days of the date the Governor signs AB X1 26. Each schedule must list all of the agency's enforceable obligations and include certain information about each obligation, including the amount of payments obligated to be made, by month, through December 2011. Each schedule must be adopted at a public meeting and must be posted on the agency's internet web site or, if the Page 5 • Perform obligations required pursuant to enforceable obligations, including observing covenants related to continuing disclosure and preserving the tax - exempt status of outstanding bonds. • Set aside or maintain reserves in the amount required by bond documents. • Preserve all of the agency's assets and records, and minimize all liabilities. • Cooperate with the successor agency, if established, and provide all records and information necessary or desirable for audits, making of payments required by enforceable obligations, and performance of enforceable obligations by the successor agency. • Take all reasonable measures to avoid triggering an event of default under enforceable obligations. • Prepare and submit to the successor agency, if one is established, a preliminary draft of the initial Recognized Obligation Payment Schedule (the document that will govern payments by successor agencies) by September 30, 2011. The DOF may review Enforceable Obligation Payment Schedules and initial Recognized Obligation Payment Schedules. Agency actions will not be effective for three business days pending a request for review by the DOF. Each agency must designate an official to whom the DOF may make requests. In the event that the DOF requests a review of a given agency action, the DOF will have 10 days from the date of its request to approve the agency action or return it to the agency for reconsideration and the action will not be effective until approved by the DOF. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 agency does not have a site, on the city's site. The schedule must be transmitted (by mail or electronically) to the county auditor - controller, the State Controller and the Department of Finance (DOF). Upon the earlier of adoption of the Enforceable Obligation Schedule or 6o days after the Governor signs AB Xi 26, an agency will not be able to make a payment unless it is listed in the adopted schedule. An exception is provided for payments required to meet obligations with respect to bonds. The DOF and the State Controller can require an agency to provide them with documents that are associated with the agency's enforceable obligations. Any taxing entity, the DOF and the State Controller all will have standing to file a judicial action to prevent a violation under Part 1.8 and to obtain injunctive or other appropriate relief. Page 6 Summary of AB X1 26 and AB X1 27 Chapter 3. Application of Part 1.8 to Former Participants of the Alternative Voluntary Redevelopment Program As discussed beginning on page 18, an agency will be exempt from the provisions of Parts 1.8 and 1.85 if the city participates in the Alternative Voluntary Redevelopment Program established by Part 1.9 and complies with all the requirements and obligations set forth in Part 1.9. An agency that operates pursuant to the Alternative Voluntary Redevelopment Program under Part 1.9 can become subject to the provisions of Part 1.8 if the city fails to make a required annual payment. In such case, the dates and deadlines specified in Part 1.8 are appropriately modified to reflect the date that that the agency becomes subject to Part 1.8. References to "January 1, 2011" will be construed to mean January 1 of the year preceding the year that the agency became subject to Part 1.8 (but not earlier than January 1, 2011). Any reference to a date "6o days from the effective date of this part" will be construed to mean 6o days from the date that the agency becomes subject to Part 1.8. Except as specified in the two preceding sentences, any reference to a date certain will be construed to be the date measured from the date the agency became subject to Part 1.8 that is equivalent to the duration of time between the effective date of Part 1.8 and the date certain identified in AB X1 26. Part 1.85: Dissolution of Redevelopment Agencies and Designation of Successor Agencies Part 1.85 provides that unless otherwise specified, its provisions will take effect on October 1, 2011. Part 1.85 defines a number of terms used in AB X1 26 (Chapter 1); provides for the creation of funds to be held by agencies or successor agencies (Chapter 1); describes the effect of the dissolution of agencies (Chapter 2); provides for the designation of successor agencies and their responsibilities (Chapter 3); provides for the creation of oversight boards and their responsibilities (Chapter 4); specifies the duties of the county auditor - controller (Chapter 5); describes the effect of Part 1.85 on the Redevelopment Law (Chapter 6); provides for the stabilization of labor and employment relations (Chapter 7); and provides for the application of Part 1.85 to agencies if the DOF determines that this part applies because the city has ceased making payments under Part 1.9's Alternative Voluntary Redevelopment Program (Chapter 8). Chapter 1. Creation of Funds AB X126 provides for the establishment of the following funds: • A Redevelopment Obligation Retirement Fund is created in the treasury of each successor agency. • A Redevelopment Property Tax Trust Fund is created for the property tax revenues related to each former agency in each county, to be administered by the county auditor - controller. 81000 - 0163 \1367407v4.doc Page 7 Summary of AB X1 26 and AB X1 27 Chapter 2. Effect of Redevelopment Agency Dissolution All redevelopment agencies (and redevelopment agency components of community development commissions) are dissolved as of October 1, 2011, and their authority to transact business or exercise powers under the Redevelopment Law is withdrawn. The city may not create a new redevelopment agency if its agency has been dissolved unless and until the successor entity has paid off all of the former agency's enforceable obligations and the city adopts an ordinance to participate in the Alternative Voluntary Redevelopment Program. Except for those provisions of the Redevelopment Law that are repealed, restricted, or revised by AB X1 26, all authority, power, and obligations previously vested with agencies under the Redevelopment Law are vested in successor agencies as of October 1, 2011. In the case of a city redevelopment agency, the successor agency will be the city unless the city elects not to become the successor agency. If the city so elects, it must file a copy of a duly authorized resolution of the city council with the county auditor - controller by September 1, 2011. The county or a special district in the county can elect to become the successor agency if the city declines. If neither the county nor a special district so elects, a "designated local authority" will be created and the Governor will appoint three residents of the county to serve as its governing board. The designated local authority will serve unless the city, county, or a special district elect to become the successor agency. The liability of any successor agency, acting pursuant to the powers granted under AB X1 26, will be limited to the extent of the total sum of property tax revenues it receives pursuant to AB X1 26 and the value of assets transferred to it as a successor agency. All assets, properties, contracts, leases, books and records, buildings, and equipment of the agency, including cash and amounts owed to the agency as of October 1, 2011, are transferred on October 1, 2011 to the control of the successor agency for administration pursuant to AB X1 26. The city may elect to retain the housing assets and functions previously performed by the agency (presumably the city may make this election even if it elects not to become the successor agency). If the city elects to retain the responsibility for performing housing functions, all rights, powers, duties, and obligations (excluding any amounts on deposit in the Low and Moderate Income Housing Fund) will be transferred to the city. If the city does not elect to retain the responsibility for performing housing functions, the rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the agency (excluding amounts on deposit in the Low and Moderate Income Housing Fund), will be transferred as follows: 3 For non - redevelopment purposes, a community development commission derives its authority solely from federal or local laws, or from state laws other than the Redevelopment Law. 81000 - 0163 \1367407v4.doc Page 8 Summary of AB X1 26 and AB X1 27 • If there is no local housing authority in the territorial jurisdiction of the agency, to the Department of Housing and Community Development. • If there is only one local housing authority in the territorial jurisdiction of the agency, to that housing authority. • If there is more than one local housing authority in the territorial jurisdiction of the agency, to the housing authority selected by the city. The entity assuming the housing functions of the agency may enforce affordability covenants and perform related activities pursuant to the applicable provisions of the Redevelopment Law. Chapter 3. Successor Agencies Each successor agency will be required to do a number of things, including the following: • Continue to make payments due for enforceable obligations and prepare Recognized Obligation Payment Schedules. 4 "Indebtedness obligations" means bonds, notes, certificates of participation or other evidence of indebtedness issued or delivered by the agency or by ajoint exercise of powers authority created by the agency to third party investors or bondholders to finance or refinance redevelopment projects. 81000 - 0163 \1367407v4.doc On or after October 1, 2011, and until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an Enforceable Obligation Payment Schedule may be made. The initial Enforceable Obligation Payment Schedule will be the last such schedule adopted by the redevelopment agency. However, with certain exceptions, an enforceable obligation will not include any agreements, contracts, or arrangements between the city and agency. The exceptions are as follows: Written agreements entered into at the time of issuance of indebtedness obligations^ (but not later than December 31, 2010) solely for the purpose of securing or repaying those indebtedness obligations may be deemed enforceable obligations by the successor agency. Loan agreements entered into between a city and agency within two years of the date of creation of agency may also be deemed to be enforceable obligations. A joint exercise of powers agreement in which the agency is a member, provided the successor agency's rights, duties and performance obligations under the agreement will be limited by the constraints imposed upon successor agencies by Part 1.85. Page 9 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 The obligations excluded from the definition of enforceable obligations will be excluded from the Enforceable Obligation Payment Schedule and removed from the last schedule adopted by the agency prior to the successor agency adopting it as its Enforceable Obligation Payment Schedule. The Enforceable Obligation Payment Schedule may be amended by the successor agency at a public meeting, will be subject to the approval of the oversight board, and must be posted on the agency's Internet web site or, if no such web site exists, on the Internet web site of the city. Any taxing entity', the DOF, and the State Controller will each have standing to file a judicial action to prevent a violation under Part 1.85 and to obtain injunctive or other appropriate relief. Successor agencies are required to prepare Recognized Obligation Payment Schedules before each six -month fiscal period. A draft schedule must be prepared by November 1, 2011. Schedules must be approved by the oversight board, submitted to the county auditor - controller, the State Controller and the DOF, and posted on the successor agency's Internet web site. The first Recognized Obligation Payment Schedule must be submitted by December 15, 2011, and will be for the period of January 1, 2012, to June 30, 2012. Former agency enforceable obligation payments due, and reasonable or necessary administrative costs due or incurred, prior to January 1, 2012, will be made from property tax revenues received in the spring of 2011 property tax distribution, and from other revenues and balances transferred to the successor agency. Commencing on the operative date of Part 1.85, agreements, contracts, or arrangements between the city and agency are invalid and will not be binding on the successor agency; provided, however, that a successor agency wishing to enter or reenter into agreements with the city may do so upon obtaining approval of the oversight board. Notwithstanding the foregoing, the three types of city /agency contracts described above on page 9 are not invalid and may bind the successor agency. Commencing on January 1, 2012, only those payments listed in a Recognized Obligation Payment Schedule may be made by a successor agency. The successor agency must use the funds specified in the Schedule unless the oversight board approves the use of other funds. There are a number of details associated with preparing and adhering to the Schedules. From October 1, 2011 to July 1, 2012, a successor agency is prohibited from accelerating payment or making any lump sum payments that are intended to ABX1 26 defines "taxing entities" to mean cities, counties, special districts, school districts, community college districts, and county offices of education that receive pass through payments and distributions of property taxes pursuant to Part 1.85. Page to 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 prepay loans unless such accelerated repayments were required prior to October 1, 2o11. For each obligation listed on a Recognized Obligation Payment Schedule, the Schedule must identify one or more of the following sources of payment: (A) The Low and Moderate Income Housing Fund; (B) bond proceeds; (C) reserve balances; (D) the administrative cost allowance (E) moneys in the Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or payment from current property tax revenues is required by an enforceable obligation or AB Xi 26; or (F) other sources approved by the oversight board. Each Schedule must be approved by the oversight board and the initial Schedule must be reviewed and certified by an external auditor. • Maintain reserves in the amounts required by indentures or similar bond documents. • Perform obligations required pursuant to enforceable obligations. • Remit unencumbered balances of agency funds to the county auditor - controller for distribution to taxing entities, including but not limited to the unencumbered balance of the Low and Moderate Income Housing Fund. • Dispose of agency assets and properties as directed by the oversight board. Proceeds from asset sales and related funds that are no longer needed to wind up the affairs of the agency, as determined by the oversight board, must be transferred to the county auditor - controller for distribution to taxing entities. The oversight board may direct the successor agency to transfer ownership of assets that were constructed and used for a governmental purpose to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of such an asset. Any compensation to be provided to the successor agency for the transfer of the asset will be governed by the agreements relating to the construction or use of that asset. • Enforce all agency rights for the benefit of taxing entities, including the continued collection of loans, rents, and other revenues that were due to the agency. 6 The administrative cost allowance is an amount that, subject to the approval of the oversight board, is payable from property tax revenues of up to 5% of the property tax allocated to the successor agency for the 2011 -12 fiscal year and up to 3% of the property tax allocated to the Redevelopment Obligation Retirement Fund money that is allocated to the successor agency for each fiscal year thereafter. However, the amount shall not be less than $250,000 for any fiscal year or such lesser amount as agreed to by the successor agency. The allowance amount will exclude any administrative costs that can be paid from bond proceeds or from sources other than property tax. Page 11 • Effectuate transfer of housing functions and assets to the appropriate entity. • Expeditiously wind down the affairs of the agency in accordance with the direction of the oversight board. • Continue to oversee development of properties until the contracted work has been completed or the contractual obligations of the agency can be transferred to other parties. In connection with the completion of contracted work, bond proceeds must be used for the purposes for which the bonds were sold if the purposes can still be achieved, and if not, the bond proceeds may be used to defease the bonds. • Prepare a proposed administrative budget for approval by the oversight board, which includes estimated amounts for successor agency administrative costs for the upcoming six month fiscal period, proposed sources of payments for such costs, and proposals for arrangements for administrative and operations services provided by the city. • Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor - controller for each six month fiscal period. Chapter 4. Oversight Boards Each successor agency will have an oversight board composed of seven members. Two members are to be selected by the mayor; one of these two members does not need to meet any particular qualifications while the other member will represent the employees of the agency from the recognized employee organization representing the largest number of former agency employees employed by the successor agency at that time. One member is to be selected by the largest non - enterprise special district, by property tax share, with territory in the city (if none, then the county may appoint an additional member to represent the public). One member is to be appointed by the superintendent of education to represent schools. One member is to be appointed by the Chancellor of the California Community Colleges to represent community college districts. The board of supervisors is to appoint two members, with one member to represent the public. Any positions that have not been filled by January 15, 2012, or which remain vacant for more than 6o days, are to be filled by the Governor. The oversight board may direct the staff of the successor agency in furtherance of their duties and responsibilities under AB Xi 26. The successor agency must pay for all costs of meetings of the oversight board and may include such costs in its administrative budget. Members of the oversight board are to serve without compensation or reimbursement for expenses. 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 Page 12 Summary of AB X1 26 and AB X1 27 AB Xi 26 provides for the DOF to review the actions of oversight boards and actions of the oversight board will not be effective for three business days pending a request for review by the DOF. If the DOF returns an action to the oversight board for reconsideration, the oversight board must get approval of its modified action. Commencing on July 1, 2016, the individual oversight boards for each dissolved redevelopment agency will be replaced with a single oversight board for each county. The appointment of members will be the same as for the individual boards, except the city and special district members will be appointed by the respective selection committees established pursuant to the Government Code' and the recognized employee organization member will be appointed by the organization instead of the mayor. The oversight board must approve a number of actions of the successor agency including the following: • Establishment of new repayment terms for outstanding loans where such terms have not been specified prior to the date of Part 1.85. • Issuance of refunding bonds. • The set aside of reserves as required by bond documents. • Acceptance of federal or state grants or other forms of financial assistance from public or private sources if the assistance is conditioned upon the provision of matching funds by the successor agency in an amount greater than five percent. • Establishment of the Recognized Obligation Payment Schedule. • A request by a successor agency or taxing entity to pledge, or to enter into an agreement for the pledge of, property tax revenues. The oversight board must direct the successor agency to do certain things, including the following: • Dispose of all assets and properties of the agency that were funded by tax increment revenues of the agency, except that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose to the appropriate public jurisdiction pursuant to any existing agreements relating to the construction or use of the asset. • Cease performance in connection with and terminate all existing agreements that do not qualify as enforceable obligations. A city selection committee consists of the mayors of each incorporated city in the county. 81000 - 0163 \1367407v4.doc Page 13 Summary of AB X1 26 and AB X1 27 • Transfer housing responsibilities and all rights, powers, duties and obligations, along with any amounts on deposit in the Low and Moderate Income Housing Fund, to the appropriate entity (note, however, that other provisions of AB Xi 26 provide for the unencumbered balance of the Low and Moderate Income Housing Fund to be disbursed to taxing entities). • Terminate any agreement between the dissolved redevelopment agency and any public entity located in the same county that obligates the agency to provide funding for any debt service obligations of the public entity or for the construction or operation of facilities owned or operated by such public entity in any instance where the oversight board has found that early termination would be in the best interests of the taxing entities. • Determine whether any contracts or other arrangements between the dissolved redevelopment agency and any private parties should be terminated or renegotiated to reduce liabilities and increase the revenues to the taxing entities, and present proposed termination or amendment agreements to the oversight board for its approval. The oversight board may approve any amendments to or early termination of such agreements where it finds that this would be in the best interests of the taxing entities. Chapter 5. Duties of County Auditor Controllers The county auditor - controller must conduct (or cause to be conducted) a financial audit of each agency subject to Part 1.85 by March 1, 2012. The purpose of the audits is to establish each agency's assets, liabilities, and pass through payment obligations, and the amounts and terms of any indebtedness. The county auditor - controller must determine the amount of property taxes that would have been allocated to each agency in the absence of dissolution, using current assessed values on the roll last equalized on August 2O and pursuant to statutory formulas or contractual agreements with other taxing agencies, and deposit that amount in the respective Redevelopment Property Tax Trust Fund. Each county auditor - controller is to administer the Redevelopment Property Tax Trust Fund for the benefit of the holders of former agency enforceable obligations and the taxing entities that receive pass through payments and distributions of property taxes pursuant to Part 1.85. The county auditor - controller must disburse proceeds of asset sales or reserve balances received from successor agencies to the taxing entities. 81000 - 0163 \1367407v4.doc Page 14 Summary of AB X1 26 and AB X1 27 From October 1, 2011 to July 1, 2012, and for each fiscal year thereafter, each county auditor - controller will, after deducting allowable administrative costs, allocate moneys in the Redevelopment Property Tax Trust Fund as follows: First, by no later than January 16, 2012 and June 1, 2012 and each January 16 and June 1 thereafter, to each local agency and school entity an amount of property tax revenues in an amount equal to that which would have been received pursuant to Health and Safety Code Sections 334 3349 33 33 33607.7 or 33676 as those sections read on January 1, 2011, or pursuant to any pass through agreement with a taxing jurisdiction entered into prior to January 1, 1994 that would be in force during that fiscal year if the agency existed at that time. The portion of tax increment that is attributable to an override tax rate levied to repay bonds for the acquisition or improvement of real property will be paid to the taxing entity that levied the override tax.'° Second, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, to each successor agency for payments listed in its Recognized Obligation Payment Schedule for the six month fiscal period beginning January 1, 2012, or July 1, 2012, and each January 16 and June 1 thereafter in the following order of priority: • debt service payments scheduled to be made for tax allocation bonds; • payments scheduled to be made on revenue bonds, but only to the extent the revenues pledged for them are insufficient to make the payments and only where the agency's tax increment were also pledged for the repayment of the bonds; and • payments scheduled for other debts and obligations listed in the Recognized Obligation Payment Schedule that are required to be paid from former tax increment revenue. Third, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, to each successor agency for the administrative cost allowance for administrative costs set forth in an approved administrative budget for those payments required to be paid from former tax increment revenues. Fourth, on January 16, 2012, and June 1, 2012, and each January 16 and June 1 thereafter, any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments 8 Note that this date falls before the March 1, 2012 deadline for the completion of the financial audit of each agency conducted, or caused to be conducted, by the county auditor - controller. 9 Again, this date falls prior to the deadline for completing financial audits of redevelopment agencies. 10 In some instances, tax increment revenues derived from an override tax have been pledged to the repayment of bonds. ABX1 26 contains a provision stating that it is the intent of Part 1.85 that pledges of revenues associated with enforceable obligations of former redevelopment agencies are to be honored and that the cessation of any agency will not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of that pledge. 81000 - 0163 \1367407v4.doc Page 15 Summary of AB X1 26 and AB X1 27 and transfers authorized above have been made, shall be distributed to local agencies and school entities. If the successor agency reports, no later than December 1, 2011 and May 1, 2012 and each December 1 and May 1 thereafter, to the county auditor - controller that the total amount available to the successor agency from (i) the Redevelopment Property Tax Trust Fund allocation to that successor agency's Redevelopment Obligation Retirement Fund, (ii) other funds transferred from each redevelopment agency, and (ii) funds that have or will become available through asset sales and all redevelopment operations are insufficient to fund the payments required by the First through Third paragraphs on page 15 in the next six month fiscal period, the county auditor - controller will notify the State Controller and the DOF no later than to days from the date of that notification. The county auditor - controller will verify whether the successor agency will have sufficient funds. If the State Controller concurs that there are insufficient funds, the amount of the deficiency will be deducted from the amount remaining to be distributed to the taxing entities pursuant to the Fourth paragraph. If that amount is exhausted, the amount of deficiency will be deducted from amounts available for administrative costs pursuant to the Third paragraph. If the agency's pass through payments were subordinated to debt service payments, funds for debt service may be deducted from the amounts for pass through payments pursuant to the First paragraph to the extent that the amounts remaining to be distributed to taxing entities and the amounts for administrative costs have all been exhausted. The county treasurer may loan any funds from the county treasury that are necessary to ensure prompt payments of redevelopment agency debts. Commencing on January 16, 2012, and on each January 16 and June 1 thereafter, the county auditor - controller will transfer, from the Redevelopment Obligation Retirement Fund of that agency, an amount of property tax revenues equal to that specified in the Recognized Obligation Payment Schedule for that successor agency as payable from the Redevelopment Property Tax Trust Fund, subject to the limitations set forth in AB X1 26. Differences between actual payments and past estimated obligations on Recognized Obligation Payment Schedules must be reported in subsequent Recognized Obligation Payment Schedules and the amount to be transferred to the Redevelopment Obligation Retirement Fund will be adjusted. Commencing January 1, 2012, whenever an obligation on a Recognized Obligation Payment Schedule is paid off or retired, either through early payment or payment at maturity, the county auditor - controller must distribute to the taxing entities all property tax revenues that the agency would have been entitled to receive before enactment of AB X1 26. This provision is unclear, but may mean that once an obligation is paid off, the amount of 81000 - 0163 \1367407v4.doc Page 16 Summary of AB X1 26 and AB X1 27 property tax revenues that were used to pay debt service on the defeased obligation will subsequently be distributed to taxing entities." Chapter 6. Effect of Part 1.85 on the Redevelopment Law Chapter 6 provides that commencing on the effective date of Part 1.85, provisions of the Redevelopment Law that depend on the allocation of tax increment to redevelopment agencies will be inoperative, except with respect to agencies operating pursuant to Part 1.9 (i.e., the Alternative Voluntary Redevelopment Program). Chapter 7. Stabilization of Labor and Employment Relations Chapter 7 provides that nothing in AB Xi 26 is intended to relieve any redevelopment agency of its obligations under Section 3500 et seq. of the Government Code (which relate to local public employee organizations). Subject to the limitations described above on page 4 with respect to salaries, benefits, bonuses and numbers of staff, prior to its dissolution, an agency will retain the authority to meet and confer and to bargain over matters within the scope of representation. Chapter 7 imposes various obligations on successor agencies with respect to collective bargaining agreements and successor agencies will be deemed to have assumed the obligations under any memorandum of understanding in effect between the agency and a recognized employee organization as of the date of the agency's dissolution. Chapter8. Application of Part 1.85 to Former Participants of the Altemative Voluntary Redevelopment Program As discussed below, AB X1 27 adds Part 1.9 to the Redevelopment Law, which provides that the provisions of Part 1.8 and 1.85 will not apply to a redevelopment agency if the city participates in the Alternative Voluntary Redevelopment Program. Chapter 8 provides that if a redevelopment agency subsequently becomes subject to the provisions of Part 1.85, the dates and deadlines set forth in Part 1.8 will be appropriately modified to reflect the date that the agency becomes subject to the provisions of Part 1.85. Miscellaneous Provisions Clean Up Bill. A clean up bill must be produced by the California Law Revision Commission for consideration by the Legislature no later than January 1, 2013. Statute of Limitations. The time period to challenge the adoption or amendment of a redevelopment plan or the validity of findings or determinations by an agency or city council adopted or made after January 1, 2011 is extended to two years. An action that is commenced after January 1, 2011 to challenge the validity of bonds can be brought within two years after the date of the triggering event. 11 In such case, this would create a problem with respect to subordinate obligations that are payable from excess tax increment revenues that remain after paying debt service on senior obligations. See footnote no. 10 regarding the intent of AB X1 26 that pledges associated with enforceable obligations be honored. 81000 - 0163 \1367407v4.doc Page 17 Chapter 1. Application of Part 1.9 Summary of AB X1 26 and AB X1 27 Poison Pill. If a legal challenge to invalidate any provision of AB Xi 26 is successful, redevelopment agencies shall be prohibited from issuing new bonds, notes, interim certificates, debentures or other obligations, whether funded or refunded, assumed or otherwise. AB X127 Part 1.9: Alternative Voluntary Redevelopment Program AB Xi 27 provides for the continued existence of a redevelopment agency upon the adoption of an ordinance by the city to comply with AB Xi 27. An agency will be exempt from the provisions of Parts 1.8 and 1.85 if the city participates in the Alternative Voluntary Redevelopment Program established by Part 1.9 and complies with all the requirements and obligations set forth in Part 1.9. Chapter 2. Continued Agency Existence Participation in the Alternative Voluntary Redevelopment Program will require a city to adopt an ordinance on or before November 1, 2011. If the city intends to adopt the ordinance after October 1, 2011, it must adopt a nonbinding resolution of intent prior to October 1, 2011 and notify the DOF, the State Controller, and the county auditor - controller before October 1, 2011 concerning the resolution. This action will delay the dissolution of an agency until November 1, 2011. On or before November 1, 2011, a city that has adopted an ordinance must notify the county auditor - controller, the State Controller and the DOF that the city agrees to comply with the provisions of Part 1.9. Participation in the Alternative Voluntary Redevelopment Program constitutes an agreement by the city that it assigns its rights to any payments owed from the agency, including but not limited to, payments from loan agreements, to the State in the event the city fails to make a remittance required pursuant to Part 1.9. If the city has adopted an ordinance pursuant to the Alternative Voluntary Redevelopment Program, the actions of the agency taken after the date of adoption of the ordinance will not be subject to the new two year statute of limitations provided for by AB X1 26. 81000 - 0163 \1367407v4.doc Page 18 Chapter 3: Community Remittances 81000 - 0163 \1367407v4.doc Summary of AB X1 26 and AB X1 27 For each fiscal year, commencing with fiscal year 2011 -12, the city must remit to the county auditor - controller the amounts required pursuant to Part 1.9. For fiscal year 2011 -12, the DOF will determine the amount of the remittance. The calculation is similar to the SERAF calculation for 2009 -10 (using information from the State Controller's 2008 -09 report and determining each agency's proportionate share of $1.7 billion). The DOF will notify each city of its remittance amount on or before August 1, 2011. After receiving this notification, a city may appeal the amount of its remittance to the DOF on or before August 15, 2011, on the basis that the information in the State Controller's report was in error or that the percentage of tax increment necessary to pay for tax allocation bonds and interest payments has increased by to percent or more over the percentage calculated pursuant to the Controller's 2008 -09 report. The DOF may reject or approve the appeal at the DOF's discretion. The DOF must notify the city of its decision by September 15, 2011. The DOF can extend the date to October 15, 2011, in which case the city will have until December 1, 2011, to adopt an ordinance. The DOF must recalculate the remittance amount if it determines that the percentage of tax increment necessary to pay for tax allocation bonds or interest payments has increased by to percent or more. For the 2012 -13 fiscal year and subsequent fiscal years, a participating city must remit an amount equal to the sum of the amounts specified in paragraphs 1 and 2 below. 1. A base payment equal to the base payment in the prior fiscal year, increased by the percentage growth or decreased by the percentage reduction, as appropriate, from the prior fiscal year in the total "adjusted amount of property tax increment revenue" allocated to the agency with respect to project areas that were in existence, and from which the agency received allocations of tax increment revenue during the 2011 -12 fiscal year. For fiscal year 2012 -13, the base payment in the prior fiscal year will be the remittance amount for the fiscal year 2011 -12 multiplied by the ratio of $400 million to $1.7 billion. The "adjusted amount of property tax increment revenue" means an amount of property tax increment in any fiscal year for a project area that is calculated by subtracting the amount of any debt service or other payments for new debt issuances or obligations from the total amount of property tax increment revenue allocated in that year to the agency with respect to that project area. 2. An amount equivalent to 8o %, or any lesser amount as may be authorized by law for qualifying projects', of the total "net school share ", of debt service or other 12 AB X1 27 provides that it is the intent of the Legislature to enact legislation in the 2011 -12 session to prescribe a schedule of reductions in the community remittance that will authorize payments of less than 80% of the school Page 19 Summary of AB X1 26 and AB X1 27 payments made in that fiscal year for new debt or obligations issued or incurred on or after November 1, 2011, as shown on the agency's statement of indebtedness (SO1), excluding any debts issued or incurred on behalf of the Low and Moderate Income Housing Fund. "New debt" means debt that is displayed on a SO1 filed after a SO1 filed on October 1, 2011, that was not displayed on the SO1 filed on October 1, 2011. The "net school share" will be the school share of the property tax increment revenues, less any pass through payments to school entities, that would have been received in the absence of redevelopment by school entities. On or before November 1 of each year, the city must notify the DOF, the State Controller and the county auditor - controller of the remittance amount, and they will each be authorized to audit and verify the remittance amount that is determined by the city. If it determined that the city has miscalculated its remittance payment amount, the auditor - controller will adjust the amount of the next remittance payment to be paid by the city to reflect the correct amount payment previously owed by the city. The city must pay one -half of the total remittance amount on or before January 15 of each year and pay the remaining one -half on or before May 15 of each year. If the city fails to make its remittance payment, the auditor - controller will notify the DOF within 3o days. Upon receipt of the notification, the DOF may then determine that the agency will be subject to the requirements of Parts 1.8 and 1.85. To make the remittances, a city may use any available funds not otherwise obligated for other uses. A city may enter into an agreement with the agency whereby the agency will transfer a portion of its tax increment to the city in an amount not to exceed the annual remittance required that year for the purpose of financing activities within the project area that are related to accomplishing the agency project goals. For fiscal year 2011 -12 only, the agency in a participating city will be exempt from making the full allocation required to be made to the Low and Moderate Income Housing Fund if the agency makes a finding that there are insufficient other moneys to meet its debt and other obligations, current priority program needs, or its obligations under the agreement with the city to transfer tax increment to the city for the remittances. Chapter 3.5. Post Dissolution Voluntary Redevelopment Program Participation No city may establish a new redevelopment agency if its former agency has been dissolved pursuant to Part 1.85 until the successor entity has retired all existing enforceable obligations and debts of the former agency and then only after the city adopts the ordinance share of property taxes to the ERAF. The reductions will apply for bonds issued for the purpose of funding projects that advance the achievement of statewide goals with respect to transportation, housing, economic development and job creation, environmental protections and remediation and climate change. 81000 - 0163 \1367407v4.doc Page 20 Poison Pill. Chapter '. Auditor - Controller Fee 81000- 016311367407v4.doc Summary of AB X1 26 and AB X1 27 providing for the payment of remittances pursuant to the Alternative Voluntary Redevelopment Program. Chapter 4. Enforcement and Sanctions In the event a city fails to make a remittance and the DOF determines that the agency is to be subject to the requirements of Parts 1.8 and 1.85, then: The city will no longer be authorized to engage in voluntary redevelopment and the agency will become immediately subject to the provisions of Parts 1.8 and 1.85. The state will be entitled to an assignment of any rights of a city to any payments from the agency to which the city is entitled for the purpose of mitigating the fiscal impact to the State related to the failure of the city to make the required remittance payment. The auditor- controller may charge a city a fee that does not exceed the reasonable costs of the auditor- controller to implement the provisions of Part 1.9. If any legal challenge to invalidate a provision of Section 2 of AB Xi 27 (i.e., the provisions of the Alternative Voluntary Redevelopment Program) is successful, redevelopment agencies will be prohibited from issuing new obligations, including bonds and notes. AB Xi 27 provides that the provisions of Section 2 are distinct and severable from the provisions of Parts 1.8 and 1.85 and the provisions of Parts 1.8 and 1.85 will continue in effect if any provision of AB Xi 27 is held invalid. * ** We will continue to closely monitor the budget process related to the Governor's redevelopment proposal. If you have any questions about this summary, please do not hesitate to contact Robin D. Harris at 213.626.8484 or rharris @rwglaw.com, or Trisha Ortiz at 415.421.8484 or tortiz@rweaw.com. Page 21 DEPARTMENTAL REPORTS 1 CITY OF TEMECULA AGENDA REPORT Approvals City Attorney Director of Finance City Manager Rief TO: City Manager /City Council FROM: Patrick Richardson, Director of Planning and Redevelopment DATE: September 27, 2011 SUBJECT: August Monthly Report The following are the recent highlights for the Planning Division of the Community Development Department for the month of August, 2011. CURRENT PLANNING ACTIVITIES New Cases The Division received 58 new applications for administrative, other minor cases, and home occupations including 8 applications for public hearings during the month of August. Special Proiects & Lonci Rance Planning Activities The Long Range Planning Division commits work efforts toward larger scale and longer time frame projects for both private and public purposes. These activities can range from a relatively simple ordinance or environmental review to a new specific plan or a general plan amendment. Some of the major special projects and long range planning activities currently in progress are described in the paragraphs below: • Temecula Regional Hospital — This project was approved by the City Council on January 22, 2008. On December 30, 2009 the applicant submitted an application for a one year extension of time and Council approved this extension on January 26, 2010, extending the approval until January 22, 2011. The applicant submitted a Major Modification application on June 18, 2010, to reduce the number of hospital beds in the first phase from 178 beds to 140 beds and to change the construction of the building from concrete to framed construction. The Planning Commission recommended that the City Council approve the Major Modification application on December 15, 2010 and City Council approved the Modification application on February 8, 2011. The applicant has submitted permit applications to the Regional Water Quality Control Board, Army Corps, and the California Department of Fish and Game and is currently seeking environmental clearances from these agencies. Environmentally sensitive areas on the project site have been identified by these agencies, and the agencies have provided clearance for the application to begin grading operations outside of the environmentally sensitive areas. A grading permit was issued for rough grading operations on June 8, 2011. Clearing and grubbing operations began on June 9, 2011, and cut/fill operations began on June 21, 2011 and import operations began on June 30, 2011 and have been completed. UHS and their biologist from URS continue to work with the agencies to address the environmentally sensitive areas so that grading can commence in those areas. (FISK) • The Green House Gas (GHG) Emissions Inventory—The Green TAC selected 2007 as the base year for GHG emissions inventory analysis. Two inventories were prepared: 1) a municipal operations inventory and, 2) a communitywide inventory. The next steps are to select a target emission reduction and identify implementation measures that will achieve the selected target. The Green TAC established a test target of 15 percent below the 2007 base year. Staff is currently reviewing potential reduction measures to see if a 15 percent reduction in GHG emissions below baseline is feasible. (WEST) • Residential Energy Efficiency Loan Program — The Residential Energy Efficiency Loan Program makes low interest loans available to low and moderate income homeowners to make energy efficient improvements to their homes. The Program allows for specific types of energy efficiency improvements based on the year of construction, which coincides with the changes to Energy Codes of the California Building Standards. The Residential Energy Efficiency Program will work in conjunction with the Redevelopment Agency Residential Improvement Program, which offers forgivable loans for qualifying interior and exterior home improvements. The program was approved bythe City Council on September 14, 2010 and staff began accepting applications on January 1, 2011. The three applications that were being reviewed were determined to be ineligible for funding. Currently, there are no applications pending. (WESTIWEAVER) • Liberty Quarry — The County of Riverside has held six continuous Planning Commission Meetings (April 26, May 3, June 22, July 18, August 15 and August 31) for Granite Construction's Liberty Quarry proposal for a Surface Mining Permit, Change of Zone, and Noise Ordinance Exception. The project is a 75 -year land use permit for a rock quarry and associated aggregate processing facilities, hot mix asphalt plant, ready mix concrete plant, concrete and asphalt recycling facility, administration and employee buildings, a maintenance facility with diesel, gas and propane tanks, water tanks, natural gas fuel engines for electric power generation, water and gas lines, truck scales, and truck and equipment parking areas within a 414 acre -site located adjacent to the City's southern boundary within the County of Riverside. The City reviewed the Draft Environmental Impact Report and provided comments to the County of Riverside on November 23, 2009. Despite voluminous comments on the DEIR received by the County on the project, the Riverside County Planning staff determined that redrafting or recirculating the Liberty Quarry Surface Mining Permit Draft Environmental Impact Report was not required and recommended approval to the Planning Commission of the project including certification of the El R. The City provided additional written support material in opposition of the project throughout the Planning Commission hearings. I n addition, the City Council, City staff, City Attorneys and the City's experts on topics including air quality, traffic, aggregate resources, hydrology and geology provided testimony to the Planning Commission during the hearings. Simultaneously, the Pechanga Band of Luiseno Indians, in efforts to oppose Liberty Quarry, sponsored a State Bill (AB 742 - Bonnie Lowenthal along with 38 co- authors) to Amend Section 2773.3 of the Public Resources Code with site - specific language to protect the Native American sacred site of the Luiseno Indians Creation Area from mining. City Council Member Edwards and Council Member Comerchero travelled to Sacramento on August 23rd to voice the City's support of AB 742 at which time the Committee of Natural Resources and Water encouraged the tribe and Granite Construction to try to reach a settlement and voted 7 -0 to move the Bill to the Senate's Rules Committee where it will remain until the Legislature reconvenes in January 2012. Back at the County level, on August 31, the Riverside County Planning Commission voted to deny Liberty Quarry (4 -1 vote with Commissioner Porras dissenting) based upon multiple reasons of concerns deliberated by each Commissioner. The County's resolution for denial and its findings will be brought back to another Planning Commission hearing at some point before October 31, 2011 at which time the Commission is anticipated to adopt the Resolution to formalize their decision to deny the project. It is anticipated that Granite Construction will appeal the Planning Commission decision thereafter and the project will be ultimately heard by the Board of Supervisors towards the latter end of 2011 or early 2012. JOHNSON /RICHARDSON/ LOWREY • Jefferson Avenue Specific Plan — Staff is studying the Jefferson Avenue Corridor to create a future Specific Plan for the area. The boundaries of the Jefferson Avenue Corridor are preliminarily defined to include all properties north of Rancho California Road, east of Diaz, south of the Murrieta City boundary and west of Interstate 15. In June 2010, approximately 15 representatives of the Urban Land Institute (ULI) together with City Staff conducted a tour of the Jefferson Corridor. The ULI Technical Advisory Panel consists of design, architectural, engineering, retail, and planning experts and provided the City with an outside expert review of the Jefferson Avenue Corridor with land use recommendations. The ULI Technical Advisory Panel (TAP) held a one day planning summit in the Council Chambers on June 23, 2010, and shared their findings and recommendations with City staff. On September23, the recommendations from the ULI Technical Advisory Panel were presented at a ULI Transit Oriented Development conference in Anaheim. This conference was intended to highlight the planning efforts being made throughout California in relation to the future high speed rail that will eventually connect San Diego to San Francisco. The City of Temecula was recognized, along with two other cities (San Diego and San Jose), for its future transportation planning efforts and ULI TAP process. Since the future high speed rail station will be located to the north of the Temecula boundary in Murrieta, the ULI TAP process provided a case study for a "station adjacent" community and focused on how future land use planning efforts within the Jefferson Avenue Corridor will take advantage of the proximity to the future high speed rail station. The ULI TAP recommendations have provided valuable information from a group of outstanding and diverse professionals. The recommendations from the study will set the foundation as the City embarks on our own planning effort for the Jefferson Avenue Corridor. Staff is currently finalizing an Existing Conditions Summary Report for the project study area. This report will outline baseline information, including existing zoning and land uses, existing businesses, building square footages and development intensity, historic structures, parcel sizes, property ownership, existing and future planned roadway circulation, roadway capacity and existing traffic volumes, impacts of the French Valley Interchange on the corridor, existing transit routes and transit stops, existing sidewalk conditions, and existing and proposed Murrieta Creek trail improvements within the corridor. On January 11, 2011 the City Council established the Jefferson Corridor Ad Hoc Committee comprised of Mayor Ron Roberts and Council Member Jeff Comerchero. On July 25, 2011 staff met with the Jefferson Corridor Ad Hoc Committee to discuss the status of the Jefferson Corridor Planning Effort and to discuss the Professional Services Agreement for the Caltrans Community Based Transportation Planning grant between the City of Temecula, WRCOG and Fehr & Peers. At the July 25 subcommittee meeting the subcommittee members gave staff the authorization to move forward with the public outreach and visioning effort for the Jefferson Corridor Specific Plan and the Multi - Jurisdictional Transportation Corridor Plan. The first visioning workshop for the Jefferson Corridor planning effort is anticipated to take place in mid - October. (RICHARDSON/ WATSON /WEST /INNES /LOWREY • SCAG 2012 Regional Transportation Plan — The update to the Southern California Association of Governments (SCAG) 2012 Regional Transportation Plan (RTP) is underway. The RTP includes a Sustainable Communities Strategy (SCS), which is a new component to the RTP as a result of the passage of SB 375. Staff has provided land use, employment and population data to SCAG and the County of Riverside Center for Demographic Research to establish Base Year Conditions and General Plan Based Growth Forecast /Distribution and land use for years 2020 and 2035. The Regional Transportation Plan, including the SCS, is scheduled to be adopted by SCAG by November 2012. (WEST) • Caltrans Community Based Transportation Planning Grant — The City of Temecula was awarded $248,200 from Caltrans for a Community Based Transportation Planning grant. This grant will fund a multi - jurisdictional transportation corridor planning effort for the Jefferson Avenue Corridor for the Cities of Temecula, Murrieta, Wildomar, and Lake Elsinore. The City of Temecula is the lead agency and primary recipient of the grant funding. WRCOG is a sub - recipient for the purposes of administering the grant. The City of Murrieta, City of Wildomar and City of Lake Elsinore are grant participants. The Jefferson Avenue Corridor is a 16 -mile central north /south arterial that parallels the west side of Interstate 15. The planning effort will promote public engagement, livable communities, and will address mobility, access and safety along the Jefferson Avenue Corridor. As a part of this effort, the City of Temecula will analyze affordable housing opportunities, and the opportunities and impacts of increased intensity and density, mixed -use development and impacts and opportunities related to the transportation network. The final product emerging as a result of this grant will be a "Multi- Jurisdictional Corridor Plan for the Jefferson Corridor" which is a 20 -year transportation plan for the Jefferson Corridor. The Caltrans Community Based Transportation Planning grant is anticipated to complement the ULI Technical Advisory Panel study completed for the Jefferson Avenue Corridor which focuses on future land use and transportation planning efforts related to the high speed rail alignment through the City of Temecula. The City Council approved the contract with Fehr and Peers on August 9, 2011. The project kick -off meeting with the consults and City staff was held on August 16, 2011. The community outreach and engagement effort of this project is being coordinated through the SCAG Compass Blueprint Demonstration Project for the Jefferson Avenue Corridor. (WEST /INNES) • SCAG Compass Blueprint Demonstration Project Grant for the Jefferson Avenue Corridor and Specific Plan Visioning and Public Outreach Process - The City of Temecula was awarded a Compass Blueprint Demonstration Project grant by SCAG in February 2011 to provide visioning and public outreach assistance for the Caltrans Community Based Transportation Planning Grant funded by Caltrans and visioning and outreach assistance with the Jefferson Avenue Specific Plan. The objective of the grant is to establish a vision for the future of the Jefferson Corridor area through public outreach and an extensive visioning process. The visioning process is intended to promote SCAG's four key principles of livability, mobility, sustainability and prosperity and also focus on achieving the goals of SB 375. The future Jefferson Corridor Specific Plan area is intended to become a mixed -use, transit - oriented corridor and future planning efforts are intended to support the feasibility of the future High Speed Rail station that is slated to be located north of the specific plan area in the City of Murrieta, and the planned Cherry Street Transit Station located on the boundaries of the City of Murrieta and Temecula. The public outreach efforts will include visioning workshops and a website dedicated to the visioning and public outreach process. MIG was the consulting firm selected as a result of the interview process. MIG is under contract with SCAG and will provide professional planning consulting work for the public outreach effort for the both the Jefferson Avenue Specific Plan and the Caltrans Community Based Transportation Planning Grant. The project kick -off meeting with the consults and City staff was held on August 16, 2011. The Specific Plan visioning process is anticipated to begin in mid October, 2011. The community outreach and engagement effort for the Caltrans Community Based Transportation Planning Grant is anticipated to begin in November 2011. (WEST /INNES) • Development Code Amendment to address concerns with off -sale alcohol sales for businesses that require a Conditional Use Permit — On May 24, 2011 the City Council adopted an Interim Urgency Ordinance establishing a 45 -day moratorium on the issuance /approval of Conditional Use Permits for off -sale alcohol businesses (i.e. Convenience Markets and Liquor Stores). On June 28, 2011 the City Council adopted an extension to the Interim Urgency Ordinance to extend the moratorium until May 13, 2012. This extension would provide staff adequate time to prepare studies as may be required to determine the appropriate locations in the City for Off -Sale Alcohol CUP businesses and to determine whether additional regulations should be imposed upon these businesses or whether these businesses should be prohibited in certain areas of the City. Since adoption of the moratorium ordinance on May 24, 2011, Staff has been studying potential provisions for the City's Zoning Ordinance that would mitigate the detrimental impacts on public peace, health and safety expressed in the moratorium ordinance, including review of ordinances from other cities addressing these issues. In addition, staff will determine if additional regulations should be imposed upon Off Sale Alcohol CUP Businesses to reduce their detrimental impacts on public peace, health and safety and report these findings to the City Council at a public hearing. Staff is currently working with the City Attorney to prepare the draft ordinance and required environmental documents. Staff anticipates bringing a draft ordinance to the Planning Commission and City Council in November, 2011. (KITZEROW) 1. • PA11 -0009 A Tentative Parcel Map the southwest corner of -006) • PA11 -0127 • PA11 -0207 Planning Agenda Report 8/1/2011 through 8/31/2011 Recently Approved APN # Harveston TPM 36358 916560006 to allow one existing parcel to be divided into three separate parcels Landings Road and Village Road within the Harveston Specific Plan Portola Terrace Apts DP Temecula Home Major TUP 1 of 4 APN # 922062003 APN # 910420030 ERIC JONES . Project is located on (Current APN: 916 -560 Submitted Date Jan 18 2011 Approved Date Aug 18 2011 CHERYL KITZEROW A Multi- family residential Development Plan for Portola Terrace to construct 45 affordable apartment units and a parking structure on 1.53 acres located at 28673/28681/28701 Pujol Street. Associated cases include Parcel Merger PA11 -0128 and Certificate of Historical Appropriateness PA11 -0129. (Pre -app PR10 -0033) Submitted Date Apr 20 2011 Approved Date Aug 3 2011 STUART FISK A Major Temporary Use Permit for The Temecula Home Improvement and Remodeling Show located within the Promenade Mall parking area at 40820 Winchester Road from November 2, 2011 through November 7, 2011. Submitted Date Aug 3 2011 Approved Date Aug 24 2011 2. Scheduled for Hearing APN # Vail Ranch Major Mod 960010044 • PA11 -0033 A Major Modification Application to allow the Vail Ranch Historic center to create a phasing plan and make project revisions. Revisions consist of landscape and architectural changes. Project is generally located at the southeast corner of Redhawk Parkway and Wolf Store Road (APN:960- 010 -044) Submitted Date Feb 4 2011 Anticipated DRC Meeting Date Planning Commision Sep 21 2011 • PA11 -0112 Newpath Networks (Node TM -18) 945203001 MATTHEW PETERS A Conditional Use Permit for NewPath /Crown Castle to install a new 40' high concrete street light pole as part of its wireless distributed antenna system (DAS) Master Plan (Node TM -18) in the City of Temecula right -of -way on the northwest side of Southern Cross Road, across from Sky Terrace Drive. Submitted Date Apr 192O11 Anticipated DRC Meeting Date Planning Commision Sep 21 2011 • PA11.0175 Planning Agenda Report 8/1/2011 through 8/31/2011 Fish House Vera Cruz MinorCUP 2 of4 APN # APN # 921750001 ERIC JONES ERIC JONES A Minor Conditional Use Permit to allow the existing Fish House Vera Cruz located at 26700 Ynez Road to upgrade their existing liquor license from a Type 41 to a Type 47. Submitted Date Jun 27 2011 Anticipated DRC Meeting Date Planning Commision Sep 21 2011 Submitted Date Anticipated DRC Meeting Date Hearing Planned Jul 14 2010 8/12/2010 TBD • PA10.0213 Planning Agenda Report 8/1/2011 through 8/31/2011 3. New Submittals Pending DRC Meeting APN # 945120001 Simms TTM A Tentative Tract Map application to create 15 residential lots located approximately 1,500 feet east of Santiago and Ynez Road. Lots will range in size from 1.31 - 2.80 acres. Related Case PA10 -0214. • PA10.0317 Mtn. View Community Church CUP A Minor Conditional Use Permit for Mountain View Community Church to operate in a Service Commercial (SC) zone and occupy approximately 101,619 square feet of an existing building next to Gold's Gym located at 29201 Ynez Road (APN 910 - 281 -001). Related cases PR10 -0025 and PA10 -0318. Submitted Date Oct 29 2010 Anticipated DRC Meeting Date Hearing Planned TBD • PA10 -0326 PA11 -0031 Rancho Highlands Maravilla MHC • PA11 -0194 Rancho Highlands Maravilla Spooktacular TUP 3 of 4 APN it 910281001 APN # 944330001 A Multi- family development plan application for Maravilla at Rancho Highlands. A proposed 210 unit triplex project with units ranging in size from 1,100 to 1,700 square feet. The project site is approximately 24 acres located along the west side of Ynez Road at Tierra Vista Road, Tract 23992. (previously approved /expired project PA05 -0167) Submitted Date Nov 52010 Anticipated DRC Meeting Date Hearing Planned TBD APN # 944330001 A Major Temporary Use Permit for a Model Home Complex at Maravilla (Rancho Highlands - PA10 -0326) located along the west side of Rancho Highlands Drive, east of Ynez Road. Submitted Date Feb 3 2011 Anticipated DRC Meeting Date Hearing Planned TBD APN # • PA11.0142 McDonalds Major Mod 921060027 ERIC JONES A Major Modification to update the fascade of an existing McDonalds located at 28100 Jefferson Avenue. An existing playground area will also be removed as part of the application. (APN: 921- 060 -027) Submitted Date May 22011 Anticipated DRC Meeting Date Hearing Planned TBD APN # 922130017 APN # 921070031 ERIC JONES MATTHEW PETERS CHERYL KITZEROW CHERYL KITZEROW ERIC JONES • PA11 -0183 Rancho Bapt'st Major Mod A Major Modification to allow Rancho Baptist Church, located at 29775 Santiago Road, to add 2,178 square feet to an existing structure and add 62 additional parking spaces to the existing parking lot (APN: 922 - 130 -017) Submitted Date Jul 5 2011 Anticipated DRC Meeting Date Hearing Planned TBD CHRISTINE DAMKO Submitted Date Anticipated DRC Meeting Date Hearing Planned Sep 1 2011 9/29/2011 TBD Major Temporary Use Permit for Spooktacular Event for Animal Friends of The Valleys to be loacted at the Sam Hicks Monument Park at 41970 Moreno Rd. on October 23, 2011 from 12:00 p.m. until 5:00 p.m. Submitted Date Jul 18 2011 Anticipated DRC Meeting Date Hearing Planned TBD • PA11 -0212 Planning Agenda Report 8/1/2011 through 8/31/2011 5 & Diner Remodel APN # 910320037 Demolition to existing exterior walls (formerly 5 & Diner) and provide new structure from prior modification located at 26460 Ynez Road, Temecula , CA 92591. Submitted Date Aug 8 2011 Anticipated DRC Meeting Date Hearing Planned TBD • PA71 -0226 Neighbor Health Major Mod • PA11 -0238 De Portola Medical Offices TPM 4 of 4 APN # 909282006 A Major Modification Application to allow for an additional 3,771 square feet to be added onto an existing structure located at 41840 Enterprise Circle North (APN: 909 - 282 -006) Submitted Date Aug 22 2011 Anticipated DRC Meeting Date Hearing Planned TBD APN # • PA11 -0230 Jumpin Pumpkins Major TUP 910420030 ERIC JONES A Major TUP to allow Jumpin Pumkins, inc. to operate a pumpkin patch in the Promenade Mall parking lot adjacent to Edward's Cinema from September 24, 2011 to November 2, 2011. The project is located at 40640 Winchester Road. Submitted Date Aug 24 2011 Anticipated DRC Meeting Date Hearing Planned TBD APN # 959050011 STUART FISK ERIC JONES STUART FISK A Tentative Parcel Map to subdivide a 2.76 acre parcel into three parcels for future medical office buildings, located at the southwest corner of De Portola and Margarita Raod. 174:, eitye PAT' =0212 tr4te4 1. Recently Approved 2. Scheduled for Hearing 3. New Submittals Pending DRC Meeting . 1 11 FTVI LI" ow--1-1-1-11 / .1.11W144m1 ami ng1 laii SI 4:111114 a wg % Amwevi =ion ] it film wal igniii firm num !! =5- 1 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Aaron Adams, Assistant City Manager DATE: September 27, 2011 SUBJECT: Economic Development Departmental Monthly Report ECONOMIC DEVELOPMENT NEWS 1 Approvals City Attorney Director of Finance City Manager "of OtoL PREPARED BY: Christine Damko, Economic Development Analyst RECOMMENDATION: Receive and file. The following lists some recent highlights of the Economic Development Department for the months of May through August 2011: SPECIAL EVENTS Summerfest kicked off with the Balloon and Wine Festival on June 3rd- 5 drawing over 40,000 people to the Temecula Valley. The Street Painting and Plein Air Festival in Old Town on June 24 - 26 drew hundreds of artists that participated in the festival and drew over 12,000 spectators over the course of the weekend. Summerfest's Hot Summer Nights (HSN) ran July 9 through September 2nd. Every Friday night from 6:OOpm to 10:OOpm the City sponsored free entertainment such as live bands and a variety of kids games. HSN continues to be a favorite as thousands visited Old Town throughout the nine week event. May 26 Age Strong Live Long Summit: Mayor Ron Roberts, Mayor Pro -Tem Chuck Washington, Economic Development and Community Services Staff organized the "Age Strong Live Long" Summit. The event included a panel of expert speakers in the fields of health and aging, a vendor fair offering free health screenings. An estimated 75 -100 people were in attendance for this first time event. June 2011: Portions of Temecula, Murrieta and South West Riverside County were annexed into San Diego's Foreign Trade Zone (FTZ). The FTZ will allow companies to cut through the red tape of exporting /importing and will be eligible for reduced tariff fees. June 2nd Stn 16 Export University: The City of Temecula, City of Murrieta, Paulson Manufacturing, US Department of Commerce and the CA Inland Empire Export Council joined forces to provide a series of three courses on learning exporting basics that was offered to local companies. The training was held at the Temecula Conference Center. June 2n Economic Development Staff attended the SBA Awards Luncheon at San Manuel Indian Casino where Temecula business owner Roy Paulson was honored as "Exporter of the Year ". August 2n Mayor Pro -Tem Chuck Washington among other local government officials spoke at the Governor's Economic Development Innovation Hub Press Event at UC Riverside campus. The City of Temecula and Southwest Riverside County was recently incorporated into the San Diego Innovation Hub (iHub). The iHub was created by Arnold Schwarzenegger in March 2010. It's a state designation that markets a region's innovation clusters. There are 7 iHubs in the state including San Diego, which focuses on three innovation clusters: mobile health, biofuels and solar energy /storage. There is no money behind the iHub designation- just increased marketing potential, better networking /collaboration with our San Diego partners and more opportunity to apply for grant funding. SITE VISITS June 8 Staff along with EDC and Chamber of Commerce representatives met Eman McDonald, owner of Predator Offroad at the Temecula Civic Center. Predator Offroad is a manufacturer of off - road vehicles who heavily exports their product. Mr. McDonald has a virtual office in Temecula. June 16 Staff along with EDC representatives met Michelle Hurdle, Economic Development Director for Cassidian Communications (formally Plant CML) who have a plant located in Temecula. Cassidian provides technology for emergency dispatch operating systems such as teh 911 call centers across the country. July 6 Staff along with EDC representatives attended a site visit to KATY 101.3 radio station, a commercial adult contemporary music radio station, broadcasting to the southwestern portion of the Riverside -San Bernardino area. July 12 Staff along with EDC representatives attended a site visit to Professional Golfers Career College, an accredited golf college that offers a specialized Associate's Degree in Professional Golf Management. August 15 Staff along with EDC and Chamber of Commerce representatives visited Jeff Kurtz, General Manager for the Temecula Promenade Mall. August 23 Staff along with EDC representatives visited San Joaquin Valley College, a private community college located in Temecula specializing in certificate and technical training programs, mostly in the medical field. MEETINGS OF INTEREST May 11 June 8 July 13 and August 10 Staff attended the Temecula Chamber of Commerce Membership Committee meeting and updated the group on upcoming special events and recently approved projects. May 11 Staff attended EDC Board of Directors Meeting at Cal State University San Marcos at Temecula campus. 2 May 18 Staff attended a ribbon cutting for Michelle's Place, who recently relocated to a building on Jefferson Ave. May 18 Staff attended a Chamber of Commerce Mixer located at Keyways Winery. June 15: Staff attended the Chamber of Commerce Mixer held at Pacific Sales. June 16 City of Temecula Economic Development staff hosted the EDC Board of Directors meeting in the Conference Center. June 23r Staff attended the Temecula Valley Chamber of Commerce Economic Forecast at South Coast Winery where Temecula City Manager Shawn Nelson was part of a presentation panel focusing on "The Economic Outlook ". June 24 Mayor Pro -Tem Chuck Washington and Economic Development Staff promoted the upcoming Aging Summit by recording a radio interview at KMYT FM 94.5 Smooth Jazz station in Temecula. July 6 Staff attended the Workforce Investment Board Southwest Regional Committee Meeting located at the Workforce Offices in Murrieta. July 15 Staff attended a ribbon cutting for Mantra Indian Restaurant located on Jefferson Ave. July 18 Staff attended the Board of Directors Meeting located at Mt. San Jacinto College Menifee Campus. July 21S Staff attended the EDC Board of Directors Meeting at the Keyways Winery. July 28 Staff attended the EDC 20 Anniversary Celebration located at Southwest Traders. August 16 Staff attended the International Film Festival Media Day located at Monte de Oro Winery. August 23 Staff participated in the Blue Ribbon Committee meeting where the draft Temecula 2030 plan was discussed. 3 1 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Shawn D. Nelson, City Manager DATE: September 27, 2011 SUBJECT: City Council Travel /Conference Report - August 2011 PREPARED BY: Sue Steffen, Executive Assistant RECOMMENDATION: Receive and file On August 25, 2011, Mayor Ron Roberts traveled to Universal City to attend the Metrolink (Southern California Regional Rail Authority) Board Retreat On August 31, 2011, Mayor Ron Robert traveled to Los Angeles to attend the Southern California Association of Governments' Executive /Administration Committee, Transportation Committee, and Regional Council Meetings. Attachment: Meeting Agendas Approvals City Attorney Director of Finance City Manager Mf fie, (10L SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017 -3435 t (213) 236 -1800 ( (213) 236-1825 www.scag.ca.gov Officers President Pam O'Connor, Santa Monka First Vice President Glen Decerra, Simi Valley Second Vice President Greg Pettis, Cathedral City Immediate Past President Larry McCallon, Highland Executive /Administration Committee Chair Pam O'Connor, Santa Monka Policy Committee Chairs Community, Economic and Human Development Dill Jahn, Dig bear Lake Energy & Environment Margaret Clark, Rosemead Transportation Paul Glaab, Laguna Niguel MEETING OF THE Thursday, September 1, 2011 9 :00 a.m. -- 10:00 a.m. SCAG Main Office 818 W. 7 Street, 12 Floor Board Room Los Angeles, CA 90017 (213) 236 -1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Deby Salcido at (213) 236 -1993 or via email salcido @scaq.ca.gov Agendas & Minutes for the Executive /Administration Committee are also available at: www.scaq.ca.gov /committees /eac.htm SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at (213) 236 -1928 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format, please contact (213) 236 -1928. The Regional Council is comprised of 84 elected officials representing 191 cities, six counties, six County Transportation Commissions and a Tribal Government representative within Southern California. 7.1.11 Members Chair Vice -Chair 2" Vice -Chair 1mm. Past Pres. SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Executive / Administration Committee Membership — September 2011 1. Hon. Pam O'Connor 2. Hon. Glen Becerra 3. Hon. Greg Pettis 4. Hon. Larry McCallon 5. Hon. Mark Calac 6. Hon. Margaret Clark 7. Hon. Paul G1aab 8. Hon. Bill Jahn 9. Hon. Paula Lantz 10. Mr. Randall Lewis 11. Hon. Michele Martinez 12. Hon. Keith Millhouse 13. Hon. Sharon Quirk -Silva 14. Hon. Ronald Roberts 15. Hon. Cheryl Viegas - Walker Santa Monica Simi Valley Cathedral City Highland Rosemead Laguna Niguel Big Bear Lake Pomona Ex- Officio Santa Ana Moorpark Fullerton Temecula El Centro Representing District 41 District 46 District 2 District 7 Pechanga Band of Luiseno Indians District 32 District 12 District 11 District 38 Lewis Group of Companies District 16 VCTC District 21 District 5 District 1 EXECUTIVE /ADMINISTRATION COMMITTEE AGENDA SEPTEMBER 1, 2011 The Executive /Administratio,, Committee may consider and act upon any of the items listed on the agenda regardless of whether they are listed as information or action items. CALL TO ORDER & PLEDGE OF ALLEGIANCE (Hon. Pam O'Connor, Chair) (RTP /SCS) and Regional Housing Needs Assessment (RHNA) Update. PUBLIC COMMENT PERIOD — Members of the public desiring to speak on items on the agenda, or items not on the agenda, but within the purview of the Council, must fill out and present a Public Comment Card to the Assistant prior to speaking. Comments will be limited to two (2) minutes. The President may limit the total time for all comments to twenty (20) minutes. REVIEW AND PRIORITIZE AGENDA ITEMS EXECUTIVE DIRECTOR'S REPORT Masan Ikhrata, Executive Director) Regional Transportation Plan /Sustainable Communities Strategy CONSENT CALENDAR Approval Items 1. Minutes of the June 2, 2011 Meeting Attachment 1 2. SCAG Sponsorship of Annual Event — 1) UCLA Lewis Center and Attachment 7 Institute of Transportation Studies Transportation Land -Use Environment Connection Symposium, Oct. 16 - 18 ($10,000); 2) 1 lth Annual New Partners for Smart Growth Event, Feb. 2 - 4, 2012 (in -kind sponsorship) 3. SCAG Sponsorship of Annual Events and Fellowship — 1) METRANS 2011 National Urban Freight Conference ($3,000); 2) 2011 Coro Southern California's Executive Fellows Program ($5,000); 3) Air Quality & Transportation Regional Conference: and 4) Clean Tech Los Angeles Membership ($2,500) 4. SCAG Conflict-of-Interest Code Amendments 5. Invitation to "Green Korea 2011" Conference in Seoul, South Korea 6. Contracts $200,000 or Greater: Arroyo Seco Corridor Management Plan IE.. A SOUTHERN CALIFORNIA ASSOCIATION Of GOVERNMENTS l Attachment will be distributed under separate cover Attachment Attachment Attachment Attachment Page No, 9 11 19 23 CONSENT CALENDAR - continued 7. Resolution to Enter into an Agreement with the California Energy Commission (CEC) for up to $200,000 toward a Regional Plug -In Electric Vehicle (PEV) Readiness Plan 8. 1-lousing and Urban Development (I-IUD) Sustainable Communities Planning Grant Application 9. Resolution Accepting the Federal Highway Administration (FI -IWA) Funding Grant of $3.2M for the Value Pricing Pilot Program 10 Amendments $75,000 or Greater: Contract No. 09-008-CI, Comprehensive Regional Goods Movements Plan and Implementation Strategy Study Receive & File 11, Contracts/Purchase Orders and/or Amendments Between $5,000 - $200,000 Attachment 54 ACTION ITEM 12. Assessment of Regional Mousing Needs Assessment (RI•INA) Fee for SCAG Non - Member Cities for 2012 RHNA Cycle Recommended Action: Authorize the Executive Director or his designee to send invoices to non - member cities for the RHNA fee for the 5"' cycle RFINA. CFO MONTHLY FINANCIAL REPORT (Wayne Moore, Chief Financial Officer) FUTURE AGENDA ITEMS Any Committee member or staff desiring to place items on a future agenda may make such a request. ANNOUNCEMENTS ADJOURNMENT EXECUTIVE /ADMINISTRATION COMMITTEE AGENDA SEPTEMBER 1, 2011 SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS ii Page No. Attachment 27 Attachment Attachment Attachment Attachment 77 Attachment 79 The next regular meeting of the Executive /Administration Committee will be held on Thursday, October 6, 2011 at the SLAG Los Angeles Office. 31 44 48 SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017•3435 1(213)236.1800 f(213)236.1825 www.scag.ce.gov Officers President Pam O'Connor. Santa Monica First Vice President Glen ()corm, Simi Valley Second Vice President Greg Pettis, Cathedral City Immediate Past President Larry McC.allon, Highland Executive/Administration Committee Chair Pam O'Connor, Santa Monica Policy Committee Chairs Community, Economic and Human Development Bill Jahn. Big Bear Lake Energy & Environmen Maigaret Clark, Rosemead Transportation Paul Glaab, Laguna Niguel MEETING OF THE TRANSPORTATION COMMITTEE Thursday, September 1, 2011 10:00 a.m. - 12:00 p.m. SCAG Main Office 818 W. 7 Street, 12 Floor Board Room Los Angeles, CA 90017 (213) 236 -1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Deby Salcido at (213) 236 -1993 or via email salcido@scaq.ca.gov Agendas & Minutes for the Transportation Committee are also available at: www.scaq.ca.gov /committees /tc.htm SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at (213) 236 -1928 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format, please contact (213) 236 -1928. The Regional Council is comprised of 84 elected officials representing 191 cities, six counties, six County Transportation Commissions and a Tribal Government representative within Southern California. 7.L11 Members Chair* 1. Hon. Paul Glaab Vice Chair * 2. Hon. Keith Millhouse * 3. Hon. Michael Antonovich * 4. Hon. Bruce Barrows * 5. Hon. Glen Becerra * 6. Hon. John J. Benoit 7. Hon. Russell Betts * 8. Hon. Stan Carroll 9. Hon. Jeff Cooper * 10. I-Ion. Mary Craton * 11. Hon. Gene Daniels 12. Hon. Steve Diets * 13. Hon. GIcnn Duncan * 14. Hon. Judy Dunlap * 15. Hon. Paul Eaton * 16. Hon. James Gazeley 17. Hon. Thomas Glancy 18. Hon. Mario Guerra * 19. Hon. Frank Gurul6 20. Hon. Bert Hack * 21. Hon. Don Hansen * 22. Hon. Matthew Harper * 23. Hon. Carol Herrera * 24. Hon. Jose Huizar * 25. Hon. Jim Hyatt 26. Hon. Ryan Kelley 27. Hon. Trish Kelley 28. Hon, Steven Ly SOUTHERN CALIFORNIA ms. ASSOCIATION of GOVERNMENTS Transportation Committee Membership — September 2011 Laguna Niguel Moorpark Cerritos Simi Valley Riverside County Desert Hot Springs La Habra Heights Culver City Canyon Lake Paramount Redondo Beach Chino Inglewood Montclair Lomita Thousand Oaks Downey Cudahy Laguna Woods Huntington Beach Huntington Beach Diamond Bar Los Angeles Calimesa Brawley Mission Viejo Rosemead Representing District 12 VCTC Los Angeles County District 23 District 46 Riverside County CV AG District 31 Westside Cities RCTC District. 24 SBCCOG District 10 District 28 District 9 District 39 VCOG GCCOG District 27 OCCOG OCTA District 64 District 37 District 61 District 3 ICTC OCCOG SGVCOG Page Iof2 Members * 29. Hon. Michele Martinez 30. Mr. James McCarthy 31. Hon. Brian McDonald 32. Hon. Ryan McEachron * 33. Hon. * 34. Hon. * 35. Hon. * 36. Hon. * 37. Hon. * 38. Hon. * 39. Hon. * 40. 1 -lon. * 41. Hon. 42. Hon. * 43. Hon. * 44. Hon. * 45. Hon. 46. Hon. 47. Hon. 48. Hon. 49. Hon. 50. Hon. 51. Hon. * 52. Hon. 53. Hon. * Regional Council Member SOUTHERN CALIFORNIA y ASSOCIATION Of GOVERNMENTS Marsha McLean Barbara Messina Leroy Mills Brett Murdock Steven Neal Shawn Nelson Pam O'Connor Gary Ovitt Bernard C. Parks Gregory Pettis Frank Quintero Sharon Quirk -Silva Ronald Roberts Don Robinson Mark Rutherford Damon Sandoval David Spence Karen Spiegel Tim Spohn Donald Voss Alan Wapner Transportation Committee Membership — September 2011 Santa Ana Victorville Santa Clarita Alhambra Cypress Brea Long Beach Santa Monica Los Angeles Cathedral City Glendale Fullerton Temecula Banning Westlake Village Representing La Canada /Flintridge Corona City of Industry La Canada /Flintridge Ontario District 16 Caltrans - District 7 Chemehuevi Indian Tribe SANBAG North L. A. County District 34 District 18 District 22 District 29 Orange County District 41 San Bernardino County District 55 District 2 • District 42 District 21 District 5 WRCOG LV MCOG Morongo Band of Mission Indians Arroyo - Verdugo Cities WRCOG SGVCOG District 36 SANBAG I'agc 2 of 2 TRANSPORTATION COMMITTEE AGENDA SEPTEMBER 1, 2011 The Transportation Committee may consider and act upon any of the items listed on the agenda regardless of whether they are listed as Information or Action Items. CALL TO ORDER & PLEDGE OF ALLEGIANCE (Hon. Paul Glaab, Chair) PUBLIC COMMENT PERIOD — Members of the public desiring to speak on items on the agenda, or items not on the agenda, but within the purview of the Transportation Committee, must fill out and present a speaker's card to the Assistant prior to speaking. Comments will be limited to three (3) minutes. The Chair may limit the total time for all comments to twenty (20) minutes. REVIEW AND PRIORITIZE AGENDA ITEMS CONSENT CALENDAR Time Page No. Approval Item 1. Minutes of the August 4, 2011 Meeting Attachment 1 Receive and File 2. Los Angeles - San Diego - San Luis Obispo (LOSSAN) Rail Corridor Attachment 9 Agency Amended Joint Exercise of Powers Agreement (IPA) INFORMATION ITEMS 3. 2012 Regional Transportation Plan /Sustainable Communities Strategy Attachment 15 mins. 22 (RTP /SCS) Public Outreach Workshops Update 4. Drall 2013 Federal Transportation Improvement Program (FTIP) Guidelines Attachment 15 mins. 24 http : / /www.scag.ca.gov /ftip /pdf /draft/ 2013 /Draft2013FTIPGuidelines.pdf REGIONAL TRANSPORTATION PLAN (RTP) SUBCOMMITTEE REPORT (Hon. Alan Wapner, Chair) 5. Regional Transportation Plan (RTP) Subcommittee Report /Overarching Attachment 15 mins. 26 Goals and Policies for the 2012 RTP Recommended Action: Receive and file the RTP Subcommittee report and approve recommendation of the 2012 RIP goals and guiding policies to the Regional Council. SOUTHERN CALIFORNIA ASSOCIATION of GOVERNMENTS i HIGH-SPEED RAIL (HSR) SUBCOMMITTEE REPORT (Hon. Keith. Millhouse, Chair) 6. HIiih Speed Rail (HSR) Subcommittee Update Attachment 15 mins. 53 CHAIR'S REPORT STAFF REPORT (Jonathan Nadler, SLAG Staff) FUTURE AGENDA ITEMS Any Committee member or staff desiring to place items on a future agenda may make such a request. ANNOUNCEMENTS ADJOURNMENT The next regular meeting of the Transportation Committee will be held on Thursday, October 6, 2011 at the SLAG Los Angeles Office. SOUTNERN CALIFORNIA ASSOCIATION Of GOVERNMENTS TRANSPORTATION COMMITTEE AGENDA SEPTEMBER 1, 2011 i t Time Page No. SOUTIIERN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017 -3435 t (213) 236-1800 ( (213)236 -1825 www.scag.ca eov Officers ()resident Pam O'Connor, Santa Monica First Vice President Glen Borers, Simi Valley Second Vice President Greg Pettis, Cathedral City Immediate Past President Larry MrCallon, Highland Executive /Administration Committee Chair Pam O'Connor, Santa Monica Policy Committee Chairs Community, Economic and Human Development Bill Jahn, Big bear Lake Energy & Environment Margaret Clark, finsemead Transportation Paul Glaab, Laguna Niguel No. 531 MEETING OF THE Thursday, September 1, 2011 12:15 p.m. — 2:00 p.m. SCAG Main Office 818 W. 7 Street, 12 Floor Board Room Los Angeles, CA 90017 (213) 236 -1800 If members of the public wish to review the attachments or have any questions on any of the agenda items, please contact Deby Salcido at (213) 236 -1993 or via email at salcido@scao.ca.gov. In addition, regular meetings of the Regional Council may be viewed five or on- demand at www.scao.ca.gov /scagty Agendas & Minutes for the Regional Council are also available at: www.scag.ca.gov/committees/rc.htm SCAG, in accordance with the Americans with Disabilities Act (ADA), will accommodate persons who require a modification of accommodation in order to participate in this meeting. If you require such assistance, please contact SCAG at (213) 236 -1928 at least 72 hours in advance of the meeting to enable SCAG to make reasonable arrangements. To request documents related to this document in an alternative format, please contact (213) 236 -1928. The. Regional Council is comprised of 84 elected officials representing 191 cities, six counties, six County Transportation Commissions and a Tribal Government representative within Southern California. The Regional Council may consider and act upon any of the items listed on the agenda regardless of whether they are listed as information or action items. CALL TO ORDER & PLEDGE OF ALLEGIANCE (Hon. Pam O'Connor, President) PUBLIC COMMENT PERIOD — Members of the public desiring to speak on items on the agenda, or items not on the agenda, but within the purview of the Council, must fill out and present a Public Comment Card to the Assistant prior to speaking. Comments will be limited to two (2) minutes. The President may limit the total time for all comments to twenty (20) minutes. REVIEW AND PRIORITIZE AGENDA ITEMS PRESIDENT'S REPORT J . New Committee Appointments EXECUTIVE DIRECTOR'S REPORT (Hasan Ikhrata, Executive Director) REGIONAL COUNCIL AGENDA SEPTEMBER 1, 2011 2. Regional Transportation Plan/Sustainable Communities Strategy (RTP /SCS) and Regional Housing Needs Assessment (RHNA) Update 3. Monthly Report COMMITTEE REPORTS /ACTION ITEMS Executive /Administration Committee (EAC) Report (Hon. Pam O'Connor, Chair) 4. Assessment of Regional Housing Needs Assessment (RHNA) Fee for Attachment SCAG Non - Member Cities for 2012 RHNA Cycle Recommended Action: Authorize the Executive Director or his designee to send invoices to non - member cities for the RI-INA fee for the 5 cycle RHNA. Community, Economic and human Development Committee (CEI- D) Report (Hon. Bill Jahn, Chair) Regional Housing Needs Assessment (RHNA) Subcommittee Report (Hon. Bill Jahn, Chair) SOUTHERN CALIFORNIA ^F ASSOCIATION Of GOVERNMENTS L Attachment will be distributed under separate cover Page No. Energy and Environment Committee (EEC) Report (Hon. Margaret Clark, Chair) Transportation Committee (TC) Report (Hon. Paul Glaab, Chair) 5. Regional Transportation Plan (RTP) and High -Speed Rail (HSR) Subcommittee Charters Recommended Action: Approve the RTP Subcommittee and HSR Subcommittee Charters. Legislative /Communications and Membership Committee (LCMC) Report (Hon. Judy Mitchell, Chair) CONSENT CALENDAR Approval Items 6. Minutes of the June 2, 2011 Meeting 7. Minutes of the July 7, 2011 Regional Council and Policy Committees Joint Retreat 8. SCAG Conflict -of- Interest Code Amendments REGIONAL COUNCIL AGENDA SEPTEMBER 1, 2011 9. SCAG Sponsorship of Annual Events — 1) UCLA Lewis Center and Institute of Transportation Studies Transportation Land -Use Environment Connection Symposium, Oct. 16 - 18 ($10,000); 2) l l th Annual New Partners for Smart Growth Event, Feb. 2 - 4, 2012 (in -kind sponsorship) 10. SCAG Sponsorship of Annual Events and Fellowship — 1) METRANS 2011 National Urban Freight Conference ($3,000); 2) 2011 Coro Southern California's Executive Fellows Program ($5,000); 3) Air Quality & Transportation Regional Conference; and 4) Clean Tech Los Angeles Membership ($2,500) 11. Los Angeles - San Diego - San Luis Obispo (LOSSAN) Rail Corridor Agency Amended Joint Exercise of Powers Agreement ASSOCIATION CALIFORNIA Of GOVERNMENTS Attachment 3 Page No. Attachment 7 Attachment 15 Attachment 20 Attachment 28 Attachment 30 Attachment 32 ADJOURNMENT REGIONAL COUNCIL AGENDA SEPTEMBER 1, 2011 CONSENT CALENDAR - continued Page No. 12. Invitation to "Green Korea 2011" Conference in Seoul, South Korea Attachment 45 13. H.R. 2766 (Miller) — "Breaking Down Barriers Act of 2011" Attachment 49 14. AB 61 (Jeffries) — Neighborhood Electric Vehicles (NEVs) Attachment 61 15. Contracts $200,000 or Greater: Arroyo Seco Corridor Management Plan Attachment 63 16. Resolution to Enter into an Agreement with the California Energy Attachment 67 Commission (CEC) for up to $200,000 toward a Regional Plug -In Electric Vehicle (PEV) Readiness Plan 17. U.S. Housing and Urban Development (HUD) Sustainable Communities Attachment 71 Regional Planning Grant Application 18. Resolution Accepting the Federal Highway Administration (FHWA) Attachment 84 Funding Grant of $3.2M for Express Travel Choices Phase II - Value Pricing Pilot Program 19. Amendments $75,000 or Greater: Contract No. 09- 008 -C1, Attachment 88 Comprehensive Regional Goods Movements Plan and Implementation Strategy Study Receive & File 20. Contracts /Purchase Orders and /or Amendments Between $5,000 - $200,000 Attachment 94 21. September 2011 Federal and State Legislative Update INFORMATION ITEM 22. CFO Monthly Report Attachment 117 FUTURE AGENDA ITEM(S) CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9 (c): One potential case The next regular meeting of the Regional Council will be held on Thursday, October 6, 2011 at the SCAG Los Angeles Office. SOUTHERN CALIFORNIA • y ASSOCIATIONOfGOVERNMENTS ttt SOOT RN CALIFORNIA ASSOCIATION of GOVERNMENTS Main Office 818 West Seventh Street 12th Floor Los Angeles, California 90017.3435 t 01312 36• t 800 (r7.1 236.1f125 sctiwv Sc ag.r.a.yov Officers President Pam l)'C,:ongor. Santa Monica First VILe Presidenl Glen Recerra. Simi Valley $Mond Vice President Greg Pettis. (:atliedr l City Immediate Past Pi •arlrm m,y McC alter.. 1110111 ,10 Executive /Administration Committee Chair Pam O'Connor, Santa Monrca Policy Committee Chairs (OI) w nity, ticmtoni1( and H uman Development (Sill Jrdur ligl Beal take Energy & Cnvimnment Margaret Clark. Rose +mc lul Transportation Paul Claab• Laguna Niguel ADDENDUM TO THE REGIONAL COUNCIL AGENDA THURSDAY, SEPTEMBER 1, 2011 COMMITTEE REPORTS /ACTION ITEMS Regional Housing Needs Assessment (RHNA) Subcommittee Report Proposed RHNA Methodology the Regional Countil is comprised of 84 elected officials representing 191 cities, six counties; six County Ti'anspottation Commissions and a Tribal Government representative within Southern California: Posted 10:00 a.m. 08 -29 -201 1 Recommended Action: Approve the proposed RHNA Methodology for distribution. (Attachment will be distributed under separate cover) MEl I‹. SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY SPECIAL BOARD OF DIRECTORS ANNUAL STRATEGIC SESSION AUGUST 26-27, 2011 Los Angeles County Metropolitan Transportation Authority Orange County Transportation Authority Riverside County Transportation Commission San Bernardino Associated Governments Ventura County Transportation Commission County Los Angeles: 4 votes San Bernardino: 2 votes Orange: 2 votes Riverside: 2 votes SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY METROLINK BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY Member Richard Katz (Chair) Member, Metro Board of Directors City of Los Angeles Mayor Appointee Michael Antonovich Supervisor, 5 District County of Los Angeles Don Knabe Supervisor, 4 District County of Los Angeles Chairman, Metro Board of Directors Ara Najarian Councilman City of Glendale Patrick Morris (Vice- Chair) Mayor City of San Bernardino Paul Eaton Mayor City of Montclair Paul Glaab Mayor Pro Tem City of Laguna Niguel Carolyn Cavecche Mayor City of Orange Ron Roberts Mayor City of Temecula Daryl Busch Mayor City of Perris Alternate Jaime de la Vega General Manager, City of Los Angeles Department of Transportation Robert T. Bartlett Appointed by Metro Beatrice Proo Appointed by Metro One Gateway Plaza, 12th Floor, Los Angeles, CA 90012 Maureen Micheline Transportation Deputy Metro Larry McCallon* Mayor City of Highland Alan D. Wapner* Council Member City of Ontario Don Bankhead* Mayor Pro Tem City of Fullerton Greg Pettis* Council Member Cathedral City Karen Spiegel* Council Member City of Corona SCRRA Board of Directors Roster Page 2 Ventura: 1 vote EX OFFICIO MEMBERS Southern California Association of Governments: San Diego Association of Governments: State of California: Keith Millhouse Brian Humphrey Mayor Pro Tem Commission Member City of Moorpark VCTC Michele Martinez Councilwoman City of Santa Ana [CURRENTLY AWAITING APPOINTMENT] Contact: Linda Culp Senior Transportation Planner [CURRENTLY AWAITING APPOINTMENT] Secretary of Business, Transportation and Housing Agency Alternate: Michael Miles Director, Caltrans District 7 *Alternates represent either member Revised 07.14.11 FRIDAY, AUGUST 26, 2011 8:00A.M. — 5:OOP.M. HILTON LOS ANGELES /UNIVERSAL CITY HIRO ROOM 555 UNIVERSAL HOLLYWOOD DRIVE UNIVERSAL CITY, CA 91608 METROLINK SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY SPECIAL SCRRA BOARD OF DIRECTORS' ANNUAL STRATEGIC SESSION SATURDAY, AUGUST 27, 2011 9:00A.M. — 12:OOP.M. HILTON LOS ANGELES /UNIVERSAL CITY HIRO ROOM 555 UNIVERSAL HOLLYWOOD DRIVE UNIVERSAL CITY, CA 91608 AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. A person with a disability may contact the Board Secretary's office at (213) 452 -0255 or via email brozowskikscrra.net at least 24 -hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability - related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at One Gateway Plaza, 12 Floor, Los Angeles, CA 90012 and on the Metrolink website at www.metrolinktrains.com under the Board Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda, may do so by completing a Speaker's Form and submitting it to the Board Secretary. Speakers will be recognized by the Chairman at the time the agenda item is to be considered. When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker's comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item not on the agenda, but within the subject matter jurisdiction of the Board, will be taken under Public Comment, listed as Item 4 on Friday and Item 2 on Saturday, and will be subject to the same guidelines as noted above One Gateway Plaza, 12th Floor, Los Angeles, CA 90012 Special SCRRA Board of Directors' Annual Strategic Session Transmittal Date: August 19, 2011 Meeting Date: August 26 -27, 2011 Page 2 FRIDAY, AUGUST 26, 2011 1. Call to Order 2. Pledge of Allegiance 3. Safety Briefing 4. Public Comment REGULAR CALENDAR SESSION I — Customer and You 5. Welcome Remarks 6. Overview Fiscal Year 2010 -11 Staff will review positive changes and challenges in the areas of strategic planning, operations, sales and marketing, finance and information technology. 7. Session A — Customer and You During this session staff will focus discussions on the customer perspective of the value that Metrolink and public transit provides. This will include a video presentation highlighting some of our customers' comments on topics including safety, security, connectivity, convenience, pricing, and signage. 8. Session B — Agency Transformation Mr. Richard Kuhn, with the Vaughn Weeden Kuhn firm, will lead this session focusing on the customer by giving an impression of what a customer might experience today while riding Metrolink. He will discuss the opportunity Metrolink has to transform itself and how other private and public entities have accomplished this through effective communication and public awareness initiatives. SESSION II — Understanding the Customer 9. Understanding the Customer Ms. Michele Joseph with Master Connection Associates, will lead this session focusing on service excellence. The presentation will highlight tools to help us understand how to manage and lead the process to achieve excellence in customer service. Ms. Joseph will also facilitate a panel of customers to provide direct feedback about Metrolink service levels. The panel is composed of Metrolink customers including Employee Transportation Coordinators from our Corporate Pass Partners. Special SCRRA Board of Directors' Annual Strategic Session Transmittal Date: August 19, 2011 Meeting Date: August 26 -27, 2011 Page 3 SESSION III — Breakouts 10. Breakouts Staff will lead two concurrent small breakout sessions which are designed to generate discussion on the topics "what is connectivity ?" and "what is the railroad of the future ?" Following these sessions, a representative from each group will summarize the discussion. 11. Wrap -Up 12. Adjournment SATURDAY, AUGUST 27, 2011 1. Call to Order 2. Public Comment REGULAR CALENDAR SESSION IV — Benchmarking 3. Benchmarking Staff will benchmark Metrolink against other similar sized commuter rail agencies on service level and characteristics, productivity and financial statistics. Presentation will include a discussion regarding the possibility of increasing service through the efficient utilization of train crews. SESSION V — Agency Initiatives 4. Locomotive and Fleet Plan Update Staff will update the Board on locomotive rehabilitation options and discuss potential funding and timing for a future Fleet Plan. SESSION VI — Organization Safety Culture 5. Organizational Safety Culture A video from the Metrolink/USC Safety Summit of a presentation lead by Honorable Robert L. Sumwalt will be shown on organizational safety culture. 6. Closing Remarks 7. CEO Report o Agency Update 8. Board Member Comments 9. Adjournment 1 CITY OF TEMECULA AGENDA REPORT TO: City Manager /City Council FROM: Greg Butler, Director of Public Works /City Engineer DATE: September 27, 2011 SUBJECT: Public Works Department Monthly Report Approvals City Attorney Director of Finance City Manager (10L RECOMMENDATION: Receive and file the attached Department of Public Works Monthly Activity Reports for the month of August 2011. I1I. ASPHALT REPAIRS MEMORANDUM TO: Greg Butler, Director of Public Works FROM: Rodney Tidwell, Maintenance Supervisor '�� DATE: September 7, 2011 SUBJECT: Monthly Activity Report - August, 2011 The following activities were performed by Public Works Department, Street Maintenance Division in - house personnel for the month of August, 2011: SIGNS A. Total signs replaced B. Total signs installed C. Total signs repaired D. Banners Replaced II. TREES A. Total trees trimmed for sight distance and street sweeping concerns A. Total square feet of A. C. repairs V. RIGHT -OF -WAY WEED ABATEMENT A. Total square footage for right -of -way abatement 109 11 77 141 173 3,121 B. Total Tons 80.75 IV. CATCH BASINS A. Total catch basins cleaned 135 B. Down Spouts 0 C. Under sidewalks 0 D. Bowls 6 100 VI. GRAFFITI REMOVAL A. Total locations 150 B. Total S.F. 5,422 VII. STENCILING A. 703 New and repainted legends B. 1,814 L.F. of new and repainted red curb and striping C. 540 Bull Nose D. 7 Thermal Plastic E. 0 RPMs Installed R-IMARJTAIMMOACTRPT Also, City Maintenance staff' responded to 67 service order requests ranging from weed abatement, tree trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is compared to 36 service order requests for the month of July, 2011. The Maintenance Crew has also put in 113.5 hours of overtime which includes standby time, special events and response to street emergencies. The total cost for Street Maintenance performed by Contractors for the month of August, 2011 was $ 8,050.00 compared to $ - 0 - for the month of July, 2011. Account No. 5402 Account No. 5401 Account No. 999 -5402 $ -0- $ 8,050.00 $ - 0 - Electronic Copies: Amer Attar, Principal Engineer - Capital Improvements Mayra De La Torre, Senior Engineer - Land Development Jerry Gonzalez, Associate Engineer - Traffic Division R:IMAINTAINNOACTRPT N- 0 Cs/ a) " (1) H > , E 03 a) 11' a) P c p o co CD CC 5, • • co co > , - o a) P E ID n co 11 rx O 1 - 1 - 1 ‘-- 11 0 0 Z • < Z 1.11 5 1 2 c P .7 O _ < < w >- >- w ce LLI < ° Z U 2 O (i) YEAR -TO -DATE 0 0 0 1 00 0 CD 00'05 n CD 00 00090'8$ ££Z I .91. 601. I 1.t71. 1 69Z Ig9Z 1 00L IL98 199z I £01. L8Z'L 00 1ST HALF TOTALS 0 0 0 00 0 00 00•08 00'090'88 '££Z 1.91. 604 1.44 r 69? 99Z 001. L88 89? I£0L ',L8Z'G 00 CONTRACTORS JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Asphalt Square Feet 0 0 Concrete Square Feet 0 0 Drainage Channels 0 0 TOTAL COSTS S0.00 S0.00 CONTRACT STRIPING Sandblasting Linear Feet 0 0 TOTAL COSTS S0.00 $0.00 TREE CONTRACTORS Trees Removed 0 0 TOTAL COSTS S0.00 S0.00 I R.O.W. SPRAYING SQ. FT. 0 TOTAL COSTS S0.00 $8.050.00 CITY MAINTENANCE CREW Signs Replaced 42 109 Signs Installed 98 11 Signs Repaired 64 77 Catch Basins Cleaned 124 135 Trees Trimmed 92 173 R.O.W. Weed Abatement 0 100 New & Repainted Legends 184 703 After Hours Call Outs 154 114 Service Order Requests 36 67 it ZZb'9 998'1. Id bS - lenowai{ !Tg}el0 TOTAL COSTS 80.00 S8,050.00 -J J W J 0 1. } O. 0 w • 0 Z u 0 CD 0 • 7 CC • co E MI co co cp 111 • Z 111 .7c DATE STREET /CHANNEL /BRIDGE DESCRIPTION TOTAL COST ACCOUNT OF WORK SIZE CONTRACTOR: RENE'S COMMERCIAL MANAGEMENT Date: 08/04/11 # 11 -11 CITYWIDE APPLICATION OF AQUAMASTER IN CITY MAINTAINED CHANNELS TOTAL COST $ 8,050.00 Date: # TOTAL COST Date: # TOTAL COST Date: TOTAL COST CONTRACTOR: Date: TOTAL COST Date: # TOTAL COST CONTRACTOR: Date: TOTAL COST Date: TOTAL COST TOTAL COST ACCOUNT #5401 $ 8,050.00 TOTAL COST ACCOUNT #5402 - 0 - TOTAL COST ACCOUNT #99 -5402 - 0 - STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of August, 2011 R:\ MAINTAIMMOACTRPT 0000000000 00000 00000000 0 0 0 00000 00000 000 0 0 0 0 0 0 0 00 0 000 00 000 00000 0 00 0000000000 0 0 0 O) LOM•t am- tom %-O)I- %- Oh- L()- 0d' d'dtd' :1MM MM MNN NN N z 1- U 0 ti n. w 0) 0 >- Q LL 0 w V) z a - J_ 0. Q m w z Q N N N �? O 00 • [ ∎D M try G1 \D '" 4 t(l rE U C) GE CL � p • C.14 't ti ti E CAPITAL IMPROVEMENT PROJECTS Monthly Activity Report August / September 2011 PROJECTS UNDER CONSTRUCTION Prepared by: Amer Attar Submitted by: Greg Butler Date: 9/27/2011 Roripaugh Ranch Fire Station The majority of work was completed by April of 2006. The remaining work will be completed when the mainline utilities are installed, which the City is undertaking - estimated start in December of 2011. A fire engine /truck venting system (requested /added on 2/06) will be installed when the Contractor re- mobilizes, this cost is also included in the approved change order total. Temporary power, initially established in 2003 by the developer, had to re- established in May of 2010. City Property at Diaz Road and Dendy Parkway (Northwest RDA Property) - Rough Grading This project provided for the rough grading of the vacant City property at Diaz Road and Dendy Parkway. All work was completed on March 28, 2007. Site restoration, including hydroseeding, was completed in December of 2008. A notice of completion was approved by the City Council at the 1/13/09 meeting. Ongoing maintenance expenses will be incurred for NPDES measures until such time the property is developed. Minor BMP improvements were completed in April of 2010. Old Town Infrastructure Project -Town Square and Mercedes & Main Street This project involves construction of the Town Square and street improvements on Mercedes & Main Streets. The project was awarded on March 18, 2008. Final work items involve completion of the show power which is in design and set to be constructed in Fall 2011. Old Town Infrastructure Projects - Parking Structure & Office /Retail Frontage The structure was opened to the public on March 1, 2010. Also, a long term (5 year) maintenance contract for landscaping in the Caltrans right of way was awarded at the 10/26/10 City Council meeting. Old Town Civic Center This project will construct the Old Town Civic Center. City Council awarded the contract to Edge Development, Inc. on 09/09/08. Edge began work on 4/8/09. Dedication ceremony was held on 12/9/10 and the City started operations from the new structure on 12/20/2010. Resolution of punchlist and added work items are ongoing. Temecula Community Center Expansion - Phase 2, Renovation of Historical Buildings Phase 2 of this project will renovate the Escallier House and Barn. The landscape is in maintenance. Contract is being closed out. Staff will file a Notice Of Completion upon receipt of appropriate documentation from the contractor. 1 Pedestrian /Bicycle Bridge Over Santa Gertrudis Creek This project includes the construction of an approx. 150' long ped /bike bridge over Santa Gertrudis Creek near Chaparral H.S. Bids were opened August 16, 2011 - Bowcon Company is the apparent low bidder. Contract was awarded at the 9/13/11 City Council meeting. Pre - construction meeting to be held on 9/21/11. Redhawk Park Improvements This project added amenities, which included ADA accessible parking, a restroom, a half -court basketball court, and permanent dog park at Redhawk Community Park. As part of this project, a seatwall was installed at Sunset Park. The project is complete. The City Council accepted the project at the 09/13/11 City Council meeting. Winchester Road / State Route 79 North - North Corridor Beautification This federally funded project will design and construct landscaping and irrigation enhancements to the existing raised medians along Winchester Road between Ynez Road and the easterly City limits. The City hired a contractor recommended by the bonding company to replace the dead and missing plants. The planting started during the week of September 12th. Traffic Signal Installation - Citywide This project installed traffic signals on Rancho California Road at Yukon Road. This project is complete. The City Council accepted the project at the 09/13/11 meeting. Ronald Reagan Sports Park Desilting Basin Environmental Mitigation This project involves the installation of landscape and irrigation improvements on a .26 acre Habitat Creation Area and maintaining it for five (5) years in accordance with a Habitat Mitigation and Monitoring Program. The work was completed on 1/20/11. The project is now in the 5 -year maintenance /monitoring program. Coordination efforts with the Regional Conservation Authority (RCA) to establish a conservation easement on the 0.26 acre parcel, in accordance with the requirements of the DFG permit, have been concluded. Dedication of the easement to be presented to the City Council at the 9/27/11 meeting. Margarita Road Right -of -Way Enhancement This project will enhance the east side of Margarita Road parkway from Ramsey Court to Avenida Cima Del Sol. A contract was awarded to KASA Construction at the 07/26/11 City Council meeting. The pre - construction meeting was held on 8/24/11 and a Notice to Proceed was issued for 9/12/11 start date. The Contractor has mobilized and construction is scheduled for completion by the end of November 2011. Citywide Slurry Seal Project FY 2010 -11 This is the annual citywide slurry seal project that will slurry various streets through out the City. This project will slurry Chardonnay Hills and a Portion of Paseo Del Sol. This project is complete. The notice of Completion will be processed once the City receives the final invoice and the necessary paperwork from the contractor. Citywide Concrete Repairs - FY2010 -11 2 This project is an annual maintenance project. The project involves removing and replacing various damaged concrete facilities throughout the city. The contractor has begun work and completion is anticipated by the end of October. Pavement Rehabilitation Program - Margarita Road Project 1 This project will rehabilitate Margarita Road between Rancho California Road and Avenida Barca. Construction contract was awarded at the 7/26/11 City Council meeting. The pre- construction meeting was held on 8/8/2011. Construction is to begin in mid - September. Pavement Rehabilitation Program - Winchester Road This project will rehabilitate Winchester Road between Roripaugh Road and Nicolas Road. The Notice to Proceed was issued to the contractor to start on September 19, 2011. 3 PROJECTS BEING ADVERTISED FOR BIDS Roripaugh Ranch Street Improvements - Phase 1 Phase I improvements involve wet and dry utilities, sidewalks, medians and new roadway section on Butterfield Stage Road (BSR) from Murrieta Hot Springs Road (MHSR) to CaIIe Chapos, a portion of MHSR, CaIIe Chapos, South Loop Road. The project will also utilities to the Fire Station and future amenities (e.g, traffic signals, park, ..etc.). The project is being advertised for construction bids. Bid opening is scheduled for 09/20/11. 4 Pechanga Parkway Storm Drain Improvements - Environmental Mitigation This project includes construction of new wetlands for the Wolf Valley Creek Channel Improvements - Stage I. Site visits for a new proposed location was conducted with the Department of Fish &Game (DFG) and Regional Water Board in May. City will contract with a consultant to map the new proposed area and obtain resource agencies approval. Murrieta Creek Bridge and Overland Drive Extension from Commerce Center to Diaz Rd The project includes the extension of Overland Drive from Commerce Center Drive to Diaz Road with a bridge over Murrieta Creek. The design is complete and the City has the mylars. Main Street Bridge Over Murrieta Creek (Replacement) This project will replace the existing Main Street Bridge over Murrieta Creek. All resource agency permits have been acquired, with the Army Corps of Engineers (ACOE) 404 permit having been obtained on 8/16/11. Riverside County Flood Control District encroachment permit application is currently being processed, and once this permit is issued, the Request for Authorization (RFA) to construct will be submitted to Caltrans. Western Bypass Bridge Over Murrieta Creek This project involves the design, environmental clearance, and construction of a new bridge over Murrieta Creek at the westerly terminus of Western Bypass and an extension of Pujol Street to the new structure. Once constructed, this will serve as the southerly connection of the Western Bypass Corridor. The Mitigated Negative Declaration was adopted. Applications to the various environmental agencies have been submitted. Review of the 100% Plans and Specs is on- going. Temecula Park and Ride (79 South) This project will design and construct a park and ride facility on Temecula Parkway (formerly 79 South) at La Paz. The City just received the 100% plans and all reports. The design is complete. This project will be shelved until construction funds are identified. French Valley Parkway / Interstate 15 Over - Crossing and Interchange Improvements - Phase 1 (PS &E) A southbound off -Ramp to Jefferson, an auxiliary lane, and widening the bridge over Santa Gertrudis Creek at the Winchester southbound off -ramp are the components of Phase 1. City continued the design work. Status is as follows: > Final PS &E - City /Caltrans coordinating final revisions. > Right of Way - R/W Appraisal Map under Caltrans review. > Utilities - Utility Agreements for SCE, Verizon & EMWD expected to be authorized at 09/27/2011 City Council meeting. RCWD relocation work expected to start at end of October 2011 Old Town Gymnasium PROJECTS IN DESIGN 5 This projects involves the design of the approximately 9,000 square foot gymnasium adjacent the Boys & Girls Club on Pujol Street. The City Council adopted the Mitigated Negative Declaration (MND) and authorized staff to solicit construction bids for Phase I at the 06/14/11 meeting. Consultant is finalizing the plans. Santa Gertrudis Creek Pedestrian /Bicycle Trail Extension and Interconnect The project will provide a Class I bicycle trail that connects the existing Santa Gertrudis Creek Pedestrian /Bicycle Trail at Ynez Road to the Murrieta Creek Multi- Purpose Trail at Diaz Road. The alignment study has been completed. Extension of time for the Bicycle Transportation Account funds was approved on 05/01/09. The consultant is working on 90% plans, specifications and estimate. Nicolas Valley - Assessment District (Liefer Road) This project will study assessment district feasibility and formation, including completing the street and minor storm drain improvements on the unimproved portions of certain streets within Nicolas Valley (Liefer Road) area. Consultant is finalizing 100% plans for signature. 1 -15 / SR -79S Ultimate Interchange 95% PS &E (2nd Submittal) - Caltrans comments received. Pavement Rehabilitation Program These rehabilitation projects will rehabilitate portions of Winchester, Rancho California, Ynez, Margarita Road and Rancho Vista Road's. City has received final plans for Margarita Road, Project 1, Winchester Road and Rancho Vista Road. The consultant continues to finalize the design for the rest of the projects. French Valley Parkway / Interstate -15 OverCrossing and Interchange Improvements - Phase II The City Council approved the design agreement with TY Lin at the 09/13/2011 City Council meeting. Citywide Storm Drain Improvements - Calle Fiesta This project consists of extending an existing City- maintained storm drain line an additional 200 feet to eliminate slope erosion at the current storm drain discharge point. The necessary drainage easement for future City access and maintenance of the new pipe will be presented to the City Council for approval at the 09/27/11 City Council meeting. The project will be bid for construction shortly. Library Parking Expansion This project will add on- street parking adjacent to the Temecula Library and Fire Station #84 on Pauba Road. The Consultant is preparing the Water Quality Management Plan (WQMP). The City received the 100% plans. 6