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HomeMy WebLinkAbout062398 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 (909) 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 43200 BUSINESS PARK DRIVE JUNE 23, 1998 - 7:00 PM 5:30 PM - Closed Session of the City Council pursuant to Government Code Sections: 1. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the acquisition of real property located at the northwest corner of La Paz Road and State Route 79, APN 922-190-25 {approximately 3.09 acres). The negotiating parties are the City of Temecula, Riverside County and Mike Moramarco. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. 2. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the acquisition and leasing of real property located at 28497, 28485, 28559 & 28565 Pujol Street. The negotiating parties are the Redevelopment Agency of the City of Temecula and Affirmed Housing/Temecula Gardens, LLP. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. 3. Conference with City Attorney pursuant to Government Code Section 54956.9{b) with respect to two matters of potential litigation. With respect to each matter, the City Attorney has determined that a point has been reached where there is a significant exposure to litigation involving the City based on existing facts and circumstances. 4. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the acquisition of real property located at 42051 Main Street {APN 922-036-020). The negotiating parties are the City of Temecula/Redev®lopment Agency of the City of Temecula and Lorraine Clark. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. At approximately 9:45 PM, the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 PM 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 PM. R:\Agenda\062398 1 Next in Order: Ordinance: No. 98-11 Resolution: No. 98-51 CALL TO ORDER: Mayor Ron Roberts presiding Prelude Music: Katie Jones Invocation: Father Charles Patron, St. Catherine's Catholic Church Flag Salute: Councilman Comerchero ROLL CALL: Comerchero, Ford, Lindemans, Stone, Roberts PRESENTATIONS/ PROCLAMATIONS Presentation of Government Finance Officers Association Award for 1 997-98 Annual Operating Budget Presentation by Maintenance Superintendents' Association (MSA) Student of the Year Certificates Certificate of Appreciation to Sally Myers Certificate of Appreciation to Eve Craig Certificate of Achievement Award to Tyson Wells for Eagle Scout PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Council on items that appear within the Consent Calendar or ones that are not listed on the agenda. Speakers are limited to two (2) minutes each. If you desire to speak to the Council on an item which is listed on the Consent Calendar or a matter not listed on the agenda, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk before the Council gets to that item. There is a five (5) minute time limit for individual speakers. CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports. R:\Agenda\062398 2 CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless members of the City Council request specific items be removed from the Consent Calendar for separate action. 1 Standard Ordinance Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Approval of Minutes RECOMMENDATION: 2.1 Approve the minutes of May 26, 1998. 3 Resolution Approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO, 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 5 Contract Inspection Services for Building and Safety RECOMMENDATION: 4.1 Approve and authorize the Mayor to execute an Agreement with JAS Pacific, Inc. for Building Inspection Services for Fiscal Year 1998-1999 for an amount of thirty thousand dollars ($30,000.00). Appeal of ! 997-98 Temecula Parks/Street Lighting Tax: Temecula Creek Inn Golf Course - Request for Continuance RECOMMENDATION: 5.1 Approve the request for continuance off-calendar concerning the appeal of the Temecula Creek Inn Golf Course. R:\Agenda\062398 3 6 Resolution Adopting FY1998/99 Solid Waste Rates 8 RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SOLID WASTE RATES FOR FISCAL YEAR 1998/99 Acceptance of Grants of Easements for Tuscany Ridge Apartments PA97-0089 (Margarita Road easterly of Moraga Road) RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN GRANTS OF EASEMENTS FOR STREET RIGHT OF WAY, BUS TURN OUT, AND STORM DRAIN PURPOSES FOR TUSCANY RIDGE APARTMENTS PROJECT PA97-0089 BUT NOT ACCEPTING THESE EASEMENTS INTO THE CITY-MAINTAINED STREET SYSTEM AT THIS TIME Professional Services Agreement with Albert A, Webb Associates for Construction Contract Administration for the Old Town Streetscape Project - Project No. PW97-05 RECOMMENDATION: 8.1 Approve a Professional Services Agreement with Albert A. Webb Associates for Construction Contract Administration and Inspection Services for the Old Town Streetscape Project - Project No. PW97-05 - in the amount of $206,395.00 and authorize the Mayor to execute the contract; 8.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $20,639.50 which is equal to 10% of the contract amount. Professional Geotechnical Services Agreement for Old Town Streetscape Project - Project No. PW97-05 RECOMMENDATION: 9.1 Approve a Professional Geotechnical Services Agreement with C. H. J., Incorporated in an amount not to exceed $30,000.00 for geotechnical investigation of the storm drain R:\Agenda\062398 4 10 11 12 and street pavement structural sections for the Old Town Streetscape Project - Project No. PW97-O5 - and authorize the Mayor to execute the contract; 9.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $3,000.00 which is 10% of the contract amount. Solicitation of Construction Bids and Approval of the Plans and Specifications for the Winchester Road Sidewalk Project - Project No. PW97-19 RECOMMENDATION: 10.1 Approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit public construction bids for the Winchester Road Sidewalk Project - Project No. PW97-19. Amendment to Contract with David Turch and Associates RECOMMENDATION: 11.1 Approve an amendment to the contract with David Turch and Associates which extends the contract period to June 30, 1999 and increases the annual contract amount to $28,000. Acquisition of Real Property at Northeast Corner of Highway 79 South and La Paz Road (Moramarco) for Highway Widening and Park and Ride Facility RECOMMENDATION: 12.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN ACQUISITION AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE FOR THE ACQUISITION OF CERTAIN REAL PROPERTY AT THE NORTHWEST CORNER OF HIGHWAY 79 (SOUTH) AND LA PAZ ROAD RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF THE TEMECULA COMMUNITY SERVICES DISTRICT, THE CITY OF TEMECULA REDEVELOPMENT AGENCY AND WINCHESTER HILLS FINANCING AUTHORITY R:\Agenda\062398 5 TEMECULA COMMUNITY SERVICES DISTRICT MEETING Next in Order: Ordinance: No. CSD 98-01 Resolution: No. CSD 98-14 CALL TO ORDER: President Jeffrey E. Stone ROLL CALL: DIRECTORS: Comerchero, Ford, Lindemans, Roberts, Stone PUBLIC COMMENT: A total of 15 minutes is provided so members of the public may address the Board of Directors on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you desire to speak to the Board of Directors on an item not listed on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items a "Request to Speak" form must be filed with the City Clerk before the Board of Directors gets to that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors, should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of June 11, 1998. 2 Agreement for Softball Officiating Services RECOMMENDATION: 2.1 Approve agreement between the City of Temecula and the Margarita Officials Association to provide City softball league officiating services. R:\Agenda\062398 6 Release of Landscape Bonds - Taylor Woodrow HomesNintage Hills Development - (Pauba Road and Meadows Parkway) RECOMMENDATION: 3.1 Authorize the City Clerk to exonerate the remaining landscape/erosion control bonds for Tract Nos. 22916-0 and 22916-2. DISTRICT BUSINESS 4 Review and Approval of 1998-99 Annual Operating Budget RECOMMENDATION: 4.1 Adopt a resolution entitled: RESOLUTION NO. CSD 98- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS DEPARTMENTAL REPORT DIRECTOR OF COMMUNITY SERVICES REPORT GENERAL MANAGER'S REPORT BOARD OF DIRECTORS' REPORTS ADJOURNMENT Next regular meeting: July 14, 1998, scheduled to follow the City Council Consent Calendar, Council Chambers, 43200 Business Park Drive, Temecula, California. City R:\Agenda\062398 7 TEMECULA REDEVELOPMENT AGENCY MEETING CALL TO ORDER: ROLL CALL: PUBLIC COMMENT: Chairperson Karel Lindemans presiding Next in Order: Ordinance: No. RDA 98-01 Resolution: No. RDA 98-10 AGENCY MEMBERS: Comerchero, Ford, Roberts, Stone, Lindemans A total of 1 5 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you desire to speak to the Agency on an item n9l; listed on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items a "Request to Speak" form must be filed with the City Clerk before the Agency gets to that item. There is a five (5) minute time limit for individual speakers. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of June 11, 1998. AGENCY BUSINESS 2 Old Town Market Assessment RECOMMENDATION: 2.1 Review the Study and provide direction on an implementation strategy. 3 Review and Approval of 1998-99 Anngal Operating Budget RECOMMENDATION: 3.1 Adopt a resolution entitled: R:\Agenda\062398 8 RESOLUTION NO. RDA 98- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ADOPTING THE FY1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS DEPARTMENTAL REPORT EXECUTIVE DIRECTOR'S REPORT AGENCY MEMBERS' REPORTS ADJOURNMENT Next regular meeting: July 14, 1998, scheduled to follow the Community Services District Meeting, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda\062398 9 WINCHESTER HILLS FINANCING AUTHORITY CALL TO ORDER: ROLL CALL: PUBLIC COMMENT: Chairperson Jeff Comerchero Next in Order: Ordinance: No. WHFA 98-02 Resolution: No. WHFA 98-11 AUTHORITY MEMBERS: Ford, Lindemans, Roberts, Stone, Comerchero A total of 15 minutes is provided so members of the public may address the Winchester Hills Financing Authority on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you desire to speak to the Agency on an item not listed on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items a "Request to Speak" form must be filed with the City Clerk before the Agency gets to that item. There is a five (5) minute time limit for individual speakers. CONSENT CALENDAR 1 Minutes RECOMMENDATION: 1.1 Approve the minutes of June 16, 1998. AUTHORITY BUSINESS 2 Issuance of Bonds for Community Facilities District No. 98-1 {Winchester Hills) RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. WHFA 98- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WINCHESTER HILLS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS R:\Agenda\062398 10 EXECUTIVE DIRECTOR'S REPORT AUTHORITY MEMBERS' REPORTS ADJOURNMENT Adjourn to the next regular meeting: July 14, 1998, scheduled to follow the Redevelopment Agency meeting, City Council Chambers, 43200 Business Park Drive, Temecula, California R:\Agenda\062398 11 RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARINGS Any person may submit written comments to the City Council before a public hearing or may appear and be heard in support of or in opposition to the approval of the project(s) at the time of hearing. If you challenge any of the projects in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondences delivered to the City Clerk at, or prior to, the public hearing. 13 Planning Application No, PA95-0130 (Development Agreement Amendment) RECOMMENDATION: 13.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING A NEGATIVE DECLARATION AND THE MITIGATION MONITORING PROGRAM FOR PLANNING APPLICATION NO. PA95-0130 13.2 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 98- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN DEVELOPMENT AGREEMENT ENTITLED "SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1," WITH WESTSIDE BUSINESS CENTRE, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY 13.3 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "PARKLAND IMPROVEMENT AGREEMENT," FOR THE MURRIETA CREEK PILOT PARK 14 Annual Adjustment of Development Impact Fees RECOMMENDATION: 14.1 Adopt a resolution entitled: R:\Agenda\062398 12 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CONFIRMING THE ADJUSTMENT OF DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 1998-99, TO BE EFFECTIVE JULY 1, 1998, PURSUANT TO CHAPTER 15.06 OF THE TEMECULA MUNICIPAL CODE AND RESOLUTIONS 97-94 AND 98-30 COUNCIL BUSINESS 15 Murrieta Creek Pilot Project, Diaz Road at Winchester Road - Plan Check and Map Fees RECOMMENDATION: 15.1 Approve waiver of Plan Check and Inspection Fees for development of the Murrieta Creek Pilot Park Project. 16 Review and Adoption of FY 1998-99 Annual Operating Budget 16.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, ADOPTING THE FY1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS DEPARTMENT BUDGETS 16.2 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS 17 Adoption of the FY1999-03 Capital Improvement Program RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE CAPITAL IMPROVEMENT PROGRAM FOR FY1999-03 AND ADOPTING THE CAPITAL IMPROVEMENT BUDGET FOR FY1998-99 R:\Agenda\062398 13 18 Traffic Signal Update RECOMMENDATION: 19.1 Oral Report presented by Public Works Director Kicak. DEPARTMENTAL REPORTS CITY MANAGER'S REPORT CITY ATTORNEY'S REPORT ADJOURNMENT Next regular meeting: July 14, 1998, 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda\062398 14 PROCLAMATIONS AND PRESENTATIONS Cify of Temecula The City Council of the City of Temecula, commends &e outstanding achievement of and takes ~reat pleasure in congratulating him for having been selec~d the LinGeld Valley I-Ii~ School Student of the Year for the academic year, 1997-1998. She was chosen from among this year's ~roup of outstanding recipients of the Student of the Mont~ Awar& IN WITNESS WHEREOF, hereunto affixed my hand and seal this 23rd day of June, 1998. I hav~ official Ron Roberts, Mayor · Jones, cfing City Clerk City of Temecul The City Council of the City of Tem~ula, commen~]s/]xe outs/~n~llng achievement of and/akes great pleasure in congra/ulating him for having been selec/ed the Linfield High School Student of the Year for the academic year, 1997-1998. He was chosen from among this year's group of outstanding recipients of the Student of the Month Awar& IN WITNESS WHEREOF, ]: have hereunto affixed my hand and official seal this 2$rd day of June, 1998. Ron Robert, Maror Jones, C~c~g City Clerk of Temecul The City Council of the City of Temecula, commends the ou~stanelin$ achievement of and takes great pleasure in congratulating her for having been selected the Temecula Valley High School Student of the Year for the academic year, 1997-1998. She was chosen from among this year's group of outstanding recipients of the Student of the Month Award. IN WITNESS WHEREOF, hereunto affixed my hand and aeal this 23rd day of June, 1998. ][ have official Ron Roberts, Mayor S Jones, ctlng Ci~ Clerk City oi Temecula The City Council of the City of Temecula, eommenzls the out~nding achievement of and ~kes ~ pleasure in eon~ra~da6ng hi,, for having been selec~d ~e Teme~la V~W Hi~ School S~dent of ~e Y~ for the ~emic y~, 1997-1998. He w~ ~osen ~m ~ong ~s ~'s ~up of ~ts~nding recipients o~ the ~ent o~ ~e Mon~ Aw~A IN WITNESS WHEREOF, I hav~ hereunto affixed my hand and official seal this 23rd day of June, 1998. Ron Roberts, Mayor ~~ JoneS. C C~, ~ c6n~ ~ity Clerk City of Temecula The City Council of the City of Temecula, commends the outstanding achievement of and takes great pleasure in congratulating her for having been selected the Rancho Vista High School Student of the Year for the academic year, 1997-1998. She was chosen ~rom among this year's group of outstangling recipients of the Student of the Month Awar& IN VFITNESS VqHEREOF, ][ have hereunto affixed my hand and official seal this 2$rd day of June, 1998. Ron Roberts, Mayor Jones, CM , A~qdng City Cle~!, Ciey of The Ci~ Coum, il of achievemen~ of and takes great pleasure in congratulating hi,- for having [~een selected the RanchoVista High School Student of the Year for the a~ademic year, 199 7-1998. He was chosen from among this year's group of outsbinding recipients of the Student of the Month Award. IN WITNESS WHEREOF, ! ha, e hereun6o affixed my hand and official seal this 25rd day of June, ]1998. Ron Robert, Mayor .~,~ · 1~-,~--~ S Jones, ~, ~cfing Ci07 Clerk City of Temecula The City Council of the City of TemecuLa, commentIs tl~e ouf~s/antiing achievement of and f~kes gre~t pleasure in congratulating her for having been selecfed the Chaparral High School Student of the Year for the academic year, 1997-1998. She was chosen from among this year's group of ou~sf~mrling recipients of the S~dent of the Month Award. 1~ WITNESS WHEREOF, I have hereunto affixed my hanti and official seal this 2$rd day of June, 1998. Ron Roberts, Mayor S~..~ Jo-e,,, C~ang City Ch,rk Cif-y of Temecula '~e CiLy Council of ~e City of Temecula, commentIs f~le ou~s~n~in[ achievement of and {akea great pleasure in congratulating him for having been sele~ed the Chaparral High School Student of the Year for the academic year, 1997-1998. He waa chosen from a~nong this year's ~roup of ou~~tlg recipients of the Student of the Month Award. IN WITNESS WHEREOF, I have hereunto affixed my hand and official aeal thia 23rd day of June, 1998. Ron Robert, Ma~or S~ Jonea, ~c~ing City Clerk ITEM 1 ITEM 2 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL MAY 26, 1998 CLOSED SESSION A meeting of the City of Temecula City Council was called to order at 5:30 P.M. It was duly moved and seconded to adjourn to Closed Session, pursuant to Government Code Sections: 1. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the leasing of real property located at 28497, 28485, 28559, and 28565 Pujol Street. The negotiating parties are the City of Temecula and Affirmed Housing Group. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. 2. Conference with City Attorney and legal counsel pursuant to Government Code Section 54956.9(a) with respect to two matters of existing litigation involving the City and or the Agency. The following cases will be discussed: Strachota v. City of Temecula and Pratt v. City of Temecula. 3. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the acquisition of real property located at Front Street near 79 South (APN 922- 120-010). The negotiating parties are the City of Temecula and Redevelopment Agency of the City of Temecula and Quaid Harley Davidson. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. 4. Conference with real property negotiator pursuant to Government Code Section 54956.9 concerning the acquisition of real property located at the northeast corner of La Paz and Highway 79 South (APN 922-19-025). The negotiating parties are the City of Temecula and County of Riverside and Moramarco. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. 5. Conference with real property pursuant to Government Code Section 54956.8 concerning the acquisition of real property located on a portion of Palm Plaza Shopping Center on westside of Ynez Road, south of Winchester Road. The negotiating parties are the City of Temecula and KR Palm Plaza, Inc. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. Minutes~)52698 Temecula City Council May 26, 1998 6. Conference with City Attorney and legal counsel pursuant to Government Code Section 54956.9(b) with respect to one matter of potential litigation. With respect to each matter, the City Attorney has determined that a point has been reached where there is a significant exposure to litigation involving the City based on existing facts and circumstances. 7. Conference with real property negotiator pursuant to Government Code Section 54956.8 concerning the acquisition of interest in real property located northwesterly of Winchester Road and Margarita Road (approximately 537 acres). The negotiating parties are the City of Temecula, Winchester Hills I, LLC, and Lennar Homes, Inc. Under negotiation are the price and terms of payment of the real property interests proposed to be acquired. ROLL CALL PRESENT: ABSENT: PRELUDE MUSIC Councilmembers: Comerchero, Ford, Lindemans, Stone, and Roberts. Councilmember: None. The prelude and intermission music was provided Eve Craig and Daniel Stoermer. INVOCATION The invocation was given by Pastor Lyon of Christ the Vine. PLEDGE OF ALLEGIANCE The audience was led in the Flag salute by Councilman Lindemans. PRESENTATIONS/PROCLAMATIONS Presentation by Max Gilliss regarding the Pala Road Bridge Project City Manager Bradley briefly highlighted the item and introduced Mr. Max Gilliss. Mr. Gilliss proceeded with a detailed update and overview of upcoming project activities by addressing environmental concerns, historical issues, design, bridge logo, funding, and control of right-of-way. Noting that the project is on schedule and will be under budget, Mr. Gilliss Minutes~052698 Ternecula City Council 052698 advised that the bridge design is approximately 70% completed; that the roadway design is approximately 80% completed; and that the anticipated completion date is December 1999, which will be approximately three to four months ahead of schedule. Presentation by Colm Macken. Vice President of Forest City Development. regarding Mall Status Update City Manager Bradley introduced Mr. Colm Macken and briefly provided background information with regard to Forest City Development. By way of overheads, drawings, and a model, Mr. Macken provided an update as to the status of the construction of the Shopping Center and presented a detailed overview with regard to tenant list for the shopping center as well as the power center, proposed ice skating facility, and goals achieved by the developer and the City within the last two years. He advised that the power center will be concurrently opening with the shopping center. In closing, Mr. Macken thanked the City Council for its support and commended City staff on their efforts associated with this project. PUBLIC COMMENTS A. Having attended the Memorial Day ceremony at the Temecula Cemetery, Mr. Wayne Hall, 42131 Agena Street, apprised the City Council that the cemetery is lacking a flag pole and requested that the City spearhead, with the assistance of various organizations, a funding mechanism in order to ensure the installation of a flag pole. B. Presenting posters of the upcoming Arts Festival to the Councilmembers, Mr. Jim Meyler, 29930 Santiago Road, commented on the various events/activities planned for the Arts Festival (May 29 - June 6, 1998) and invited the public and Councilmembers to attend. C. In response to Ms. Jeanne Kearns, 27250 Madison Avenue, Mayor Roberts reassured Ms. Keams that the incident she had recently experienced with a City Code Enforcement Officer would be reviewed and that she would be contacted. D. Ms. Juliet Boysen, 44060 Margarita Road, apprised the Councilmembers of the following problems she has experienced on her property as a result of neighboring development: decreasing the width of her north and south entrances; removal of a magnolia tree; striping a double yellow line in front of her business, which prohibits left-hand turns into her property; damage to her fence; and drainage problems. Staff was requested to follow up on the matter. E. Presenting the year-end report for the Assistance League of Temecula Valley, Ms. Maryann Edwards, 42913 Calle Londe, commented on the success of the various programs such as Operation School Bell, Project Smile, and Kids on the Block. Minutes\052698 3 Ternecula Ci~ Council 052698 CITY COUNCIL REPORTS A. To ensure clear visibility of the newly painted mural at the Sixth Street parking lot, Councilman Comerchero requested that the existing as well as any future landscaping be addressed. In response to Councilman Comerchero, Acting Community Services Director Parker advised that the area of discussion is maintained by the Community Services Department and that after review, it was determined that approximately eight to nine trees should be removed and relocated to mitigate future visual impairment concerns. B. Commending the Town Association on another successful Rodeo event, Councilman Comerchero expressed appreciation to the Association for the sponsored Schoolchildren's Program, noting that this program in itself was well worth the funding the City provides for the overall event. C. Further elaborating on the intent of the ~Councilman's Night Innprogram, Councilman Comerchero informed the public that these meetings will be scheduled on the second Monday of each month and that the first meeting will be on Monday, July 13, 1998, 7:00 P.M. to 8:30 P.M. In order to make an appointment, receive further clarification, etc., Mr. Comerchero invited the public to call the City Manager's office. D. Concurring with Mr. Comerchero's comments relative to the Rodeo event, Mayor Pro Tem Ford thanked McDonald's for the donated meals, Temecula Town Association for hosting the event, and those individuals who participated in an effort to support this non-profit organization. E. Mayor Pro Tern Ford noted that he would be providing additional information with regard to the El Sobrante Landfill expansion at a future meeting. F. Having attended the Las Vegas International Conference of Shopping Centers, Councilman Stone relayed his delight with the future opening of ARC Ice Skating Rinks at the new shopping center. G. Having visited Washington, D.C. in an effort to lobby ISTEA funds for the Overland Overcrossing, Mayor Roberts advised that the City will receive a $3.75 million appropriation for the overcrossing and noted that $1 billion was set aside for the high-speed rail. Minutes\052698 4 Ternecula City Council 052698 CONSENT CALENDAR 1. Standard Ordinance Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2. Approval of Minutes RECOMMENDATION: 2.1 Approve the minutes of April 28, 1998; 2.2 Approve the minutes of May 12, 1998. 3. Resolution Approving List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO, 98-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4. Award of Professional Services Agreement for Weed Abatement Services RECOMMENDATION: Approve a Professional Services Agreement for weed abatement services with Fire Prevention Services, Inc. 5. Completion and Acceptance of the Installation of Traffic Signal Interconnect Phase I - Project No. PW95-16 RECOMMENDATION: 5.1 Accept the installation of the Traffic Signal Interconnect Phase II Project - Project No. PW95-16; Minutes\052698 5 Temecula City Council 052698 5.2 File Notice of Completion, release the Performance Bond, and accept a one- year (1) Maintenance Bond in the amount of 10% of the contract; 5.3 Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion if no liens have been filed. Partial Closure of Streets for Bike Race on May 31. 1998 (Business Park Drive and Single Oak Drive) RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 98-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING PARTIAL STREET CLOSURES OF BUSINESS PARK DRIVE AND SINGLE OAK DRIVE FOR THE TEMECULA CYCLING CLASSIC STAGE RACE ON MAY 31, 1998, AND AUTHORIZING THE CITY ENGINEER TO ISSUE SPECIAL EVENT PERMIT FOR THIS EVENT Contract Inspection Services for Building and Safety RECOMMENDATION: 7.1 Approve an appropriation of 912,800.00 to Account Number 001-1 62-999-5250 "Other Outside Services;" 7.2 Approve a First Amendment to an existing Agreement for Consultant Services with J. A. S. Pacific Consulting Services, Inc. in the amount of $12,800.00 to provide building inspection services to the Building and Safety Department. Pavement Management Program Update Report by Berryman & Henigar - Project No. PW96-13 RECOMMENDATION: 8.1 Receive and file the Pavement Management Program Update Report by Berryman & Henigar- Project No. PW96-13. Minutes\052698 6 Temecula Cit~ Council 052698 For Mayor Pro Tem Ford, staff clarified that approximately $900,000 has been budgeted for this item; that this item would be discussed in more detail at the upcoming Capital Improvement Project meeting; and that approval this evening will not set the maintenance zone designations. 9. Offer of Dedication for Future Trail - Margarita Road at Pauba Road RECOMMENDATION: 9.1 Adopt a resolution entitled: RESOLUTION NO. 98-44 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING THE OFFER OF DEDICATION FOR A FUTURE TRAIL EASEMENT ADJACENT TO PAUBA ROAD 9.2 Authorize the City Clerk to record said offer of dedication. 10. Amendment to Sales Tax Reimbursement Agreement for CFD 88-12 relating to Temecula Mall Property RECOMMENDATION: 10.1 Approve a resolution entitled: RESOLUTION NO. 98-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING AN AMENDMENT TO SALES TAX REIMBURSEMENT AGREEMENT FOR COMMUNITY FACILITIES DISTRICT NO. 88-12 RELATING TO THE TEMECULA MALL PROPERTY MOTION: Councilman Stone moved to approve Consent Calendar Item Nos. I - 10. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. After a short recess, at 8:26 P.M., the City Council convened as the Temecula Community Services District, the Temecula Redevelopment Agency, and the Winchester Hills Financing Authority. During which time, the following joint item was discussed with the Redevelopment Agency: The Disposition and Development Agreement and Ground Lease for North Pujol Redevelopment Project. At 8:37 P.M., the City Council resumed with regularly scheduled City Council business. Minutes\052698 7 Temecula City Council 052698 PUBLIC HEARINGS 11. Adoption of a Comprehensive Regulatory Scheme for signs and other advertising devices and making related changes to the Development Code RECOMMENDATION: 1 1.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 98-10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING CHAPTER 17.28 OF THE DEVELOPMENT CODE, A COMPREHENSIVE REGULATORY SCHEME FOR SIGNS AND OTHER ADVERTISING DEVICES, AND MAKING RELATED CHANGES TO THE DEVELOPMENT CODE Providing clarification with regard to this item, Community Development Director Thornhill presented the staff report (as per agenda material), advising that the auto dealerships are desirous of uniformly enforcing the section with regard to prohibiting any helium balloons to be more than 10' off the ground. Mr. Thornhill recognized Associate Planner Naaseh for his efforts associated with this project. City Attorney Thorson advised that the proposed ordinance would not change Section 17.28.600 (Temporary Business Advertising Signs in Commercial, Office, and Industrial Districts), noting that the current provisions for these signs, which are reflected in the temporary ordinance, will be incorporated into the new ordinance. Having thoroughly reviewed this ordinance, Councilman Comerchero commended staff on a job well done. With regard to the proposed provisions for the garage sale signs, Mr. Comerchero, echoed by Councilman Lindemans, viewed garage sales as a. part of family neighborhoods; voiced his objection to the recommendation of one sign per garage sale; and suggested that a stronger focus be directed toward ensuring the clean-up versus limiting the signs. Referencing the City's last election, Councilman Comerchero expressed concern with the proliferation of political signs and informed the Councilmembers that the City Attorney had informed him that political signs adhere to State and Federal regulations as well as First Amendment Rights and, therefore, the City is limited in its imposition of restrictions with regard to these signs. City Attorney Thorson suggested that the proliferation of political signs could be addressed with the candidates at the candidates' meeting. Mr. Thorson also noted that the courts have restricted the City's ability to limit the placement of political signs to a short period before the Minutes\052698 8 Temecula City Council 052698 election, advising that the proposed ordinance refers to a 90-day period in which the political signs may be placed on properties. Councilman Lindemans requested that letters of appreciation be sent to those individuals who served on the Sign Ordinance Committee for their efforts associated with this project. City Attorney Thorson read Ordinance No. 98-10 by title only. At this time, Mayor Roberts opened the public hearing. There being no input, the following motion was offered: MOTION: Councilman Stone moved to introduce and read by title only Ordinance No. 98-10 with the deletion of E. (Garage Sale Signs) under Section 17.28.050. The motion was seconded by Councilman Linderoans and voice vote reflected unanimous approval. COUNCIL BUSINESS 1 2. Annual Adjustment of Development Impact Fees RECOMMENDATION: 12.1 Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CONFIRMING THE ADJUSTMENT OF DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 1998-99, TO BE EFFECTIVE JULY 1, 1998, PURSUANT TO CHAPTER 15.06 OF THE TEMECULA MUNICIPAL CODE AND RESOLUTIONS 97-94 AND 98-30 Providing clarification with regard to commercial/industrial development and the issuance of associated building permits, Senior Management Analyst Kuhns presented the staff report (of record). Clarifying that a tremendous amount of industrial space has been constructed in the last year and a half, Community Development Director Thornhill noted that because the Development Impact Fees were not adopted until last year, all development prior to this time frame would not be reflected in the industrial development summary. Noting that there are two types of industrial developments, Ms. Kuhns noted that the planning permit system does not distinguish between the two. Minutes\052698 9 Temecula Citv Council 052698 Although supporting Councilman Lindemans' desire for more industrial development, Councilman Stone noted that the limited industrial development is not reflective of the Development Impact Fees and stated that it is as a result of other variables such as land prices, demographics, etc. Mayor Pro Tem Ford requested that staff provide updated information with regard to the developers and the amount of industrial square footage built in the last four years and that this information be presented in conjunction with the results of Dr. Husing's report. In response to Ms. Adrian McGregor's concern, 34553 Madera de Playa, staff clarified that the residential developer fees will not be lowered by the adoption of the proposed resolution. Councilman Stone noted that the City has adopted the maximum Development Impact Fees allowable for the City of Temecula ($3,000 per unit). MOTION: Mayor Pro Tern Ford moved to continue this agenda item to the June 23, 1998, City Council meeting at which time staff will present updated information relative to the developers and the amount of industrial square footage built in the last four years and that this information be presented in conjunction with the results of Dr. Husing's report. The motion was seconded by Councilman Comerchero and voice vote reflected unanimous approval. 13. Fiscal Year 1998/99 Funding Requests for the Temecula Valley Chamber of Commerce. Temecula Valley Film Council, and Inland Empire Economic Partnership RECOMMENDATION: 13.1 Review and provide direction regarding the funding requests for Temecula Valley Chamber of Commerce, Temecula Valley Film Council, and Inland Empire Economic Partnership. City Manager Bradley presented the staff report (as per agenda material). Temecula Valley Chamber of Commerce By way of overheads, Ms. Melody Brunsting presented the yearly report of services provided to the City of Temecula, noting that the City Council is funding 27% of the its budget. Councilman Lindemans encouraged the Chamber of Commerce to research the possibility of the City participating in the Rose Parade. Following Council discussion, the following motion was offered: MOTION: Councilman Lindemans moved to approve the requested amount of $117,900.00. The motion was seconded by Councilman Stone and voice vote reflected unanimous approval. Minutes\052698 10 Temecula City Council 052698 Temecula Valley Film Council Both Councilmembers Comerchero and Stone abstained with regard to this item. Ms. Sunny Thomas, 27740 Jefferson Avenue, commented on the Film Council's increased request of $50,000; highlighted on-going activities hosted by the Film Council; and noted that stronger funding efforts will be undertaken to ensure the City's funding could be matched. Considering the benefits the Film Council as well as all the other organizations provide to the City, Councilman Lindemans relayed his support of the increased request of 850,000.00. MOTION: Councilman Linderoans moved to approve a funding request in the amount of $50,000 to the Temecula Valley Film Council. The motion was seconded by Mayor Pro Tem Ford and voice vote reflected unanimous approval with the exception of Councilmembers Comerchero and Stone who abstained. Inland Empire Economic Partnership (IEEP) In light of the recent resignation of the Redevelopment Director, City Manager Bradley noted that the City, at this time, does not have Board representation but he recommended that the City remain an active member of the group. MOTION: Councilman Stone moved to approve the $10,775 funding request to Inland Empire Economic Partnership. The motion was seconded by Councilman Lindemans and voice vote reflected unanimous approval. Temecula Valley Economic Development Corporation (EDC) Mayor Roberts advised that the City of Murrieta has joined the EDC and that a meeting has been scheduled with the Mayor of Lake Elsinore to discuss the possibility of participation in the EDC. For the benefit of EDC, City Manager Bradley advised that a placeholder in the amount of $91,000 will be budgeted which is equivalent to last year's appropriation from the City. MOTION: Councilman Lindemans moved to approve the budgeting of a $91,000.00 placeholder for the Economic Development Corporation, noting that this amount may be lowered pending the participation by the City of Murrieta and City of Lake Elsinore. The motion was seconded by Councilman Stone and voice vote reflected unanimous with the exception of Mayor Roberts who abstained. Minutes\052698 11 Temecula City Council 052698 14. Traffic Signal Update RECOMMENDATION: 14.1 Oral Report presented by Public Works Director Kicak. Public Works Director Kicak advised that the traffic signal on Pauba Road at Fire Station No. 84 will be completed by the end of June 1998. 15. High-speed Rail Video Tape Presentation RECOMMENDATION: 15.1 Video Presentation. At this time, a video tape of the high-speed rail was presented. CITY MANAGER'S REPORT No comments. CITY ATTORNEY'S REPORT With regard to the real property items discussed in closed session, City Attorney Thorson advised that City Council provided staff and him with direction as to negotiations, noting that any approval of the items would occur in open session. With respect to the legal items, Mr. Thorson advised that the City Council gave the attorneys direction on how to proceed. Mr. Thorson noted that there were no other reportable actions. Minutes\052698 12 Temecula City Council 052698 ADJOURNMENT At 10:07 P.M., Mayor Roberts formally adjourned the City Council meeting to the CIP Workshop on Thursday, June 11, 1998, at 6:00 P.M. The next regularly scheduled meeting will be on Tuesday, June 16, 1998, 7:00 P.M. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC Acting City Clerk Minutes\052698 13 ITEM 3 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the following claims and demands as set forth in Exhibit A, on file in the Office of the City Clerk, have been audited by the City Manager, and that the same are hereby allowed in the amount of $916,559.20. Section 2. The City Clerk shall certify the adoption of this resolution. APPROVED AND ADOPTED, this 23rd day Of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] Resos 98- I STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, hereby do certify that the foregoing Resolution No. 98- was duly adopted at a regular meeting of the City Council of the City of Temecula on the 23rd day of June, 1998 by the following roll call vote: 0 COUNCILMEMBERS: None NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Susan W. Jones, CMC Acting City Clerk Resos 98- 2 CITY OF TEMECULA LIST OF DEMANDS 06/11/98 TOTAL CHECK RUN: 06/23/98 TOTAL CHECK RUN: 06/11/98 TOTAL PAYROLL RUN: TOTAL LIST OF DEMANDS FOR 06123198 COUNCIL MEETING: DISBURSEMENTS BY FUND: CHECKS: 001 GENERAL 165 R DA-LOW/MOD 190 COM M U N ITY S E RVICES DISTRICT 191 TCSD SERVICE LEVEL A 192 TCSD SERVICE LEVEL B 193 TCSD SERVICE LEVEL C 194 TCSD SERVICE LEVEL D 195 TCSD SERVICE LEVEL R 210 CAPITAL IMPROVEMENT PROJ (ClP) 280 RDA-ClP 300 INSURANCE 320 INFORMATIONS SYSTEMS 330 SUPPORT SERVICES 340 FACl LITI ES 531,146.72 12,210.59 50,976.76 1,796.72 41.94 18,999.88 305.39 112,410.18 22,615.63 339.39 2,544.47 6,848.56 3,231.15 $ $ 230,695.56 533,721.82 152,141.82 916,559.20 764,417.38 PAYROLL: 001 GENERAL 165 R DA-LOW/M OD 190 TCSD 191 TCSD SERVICE LEVEL A 192 TCSD SERVICE LEVEL B 193 TCSD SERVICE LEVEL C 194 TCSD SERVICE LEVEL D 280 RDA-CIP 300 INSURANCE 320 INFORMATION SYSTEMS 330 SUPPORT SERVICES 340 FACILITIES TOTAL BY FUND: PR EPAR~ THERESA A~I~EZ, ACCO~NTI NG SPECIALIST GENIE R~RTS, DIRECTOR OF FINANCE RONALD E. BRADLEY, CITY MANAGER ~. 105,179.11 2,680.48 29,467.59 69.14 179.03 2,217.22 980.24 4,226.30 272.24 2,687.55 783.00 3,399.92 152,141.82 916,559.20 , HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. , HEREBY CERTIFY THAT THE FOLLOWING IS TRUE AND CORRECT. VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE 11 FUND TITLE 001 GENERAL FUND 165 RDA DEV- LOW/MOD SET ASIDE 190 COMMUNITY SERVICES DISTRICT 191 TCSD SERVICE LEVEL A 192 TCSD SERVICE LEVEL B 193 TCSD SERVICE LEVEL C 194 TCSD SERVICE LEVEL D 195 TCSD SERVICE LEVEL R 210 CAPITAL IMPROVEMENT PROJ FUND 280 REDEVELOPMENT AGENCY - CIP 300 INSURANCE FUND 320 INFORMATION SYSTEMS 330 SUPPORT SERVICES 340 FACILITIES AMOUNT 94,155.93 5,489.96 24,453.49 809.72 41.94 1,297.66 305.39 950.00 83,708.90 7,015.00 339.39 2,544.47 6,848.56 2,735.15 TOTAL 230,695.56 VOUCHRE2 CITY OF TEMECULA 06/11/98 14:39 VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT NUMBER DATE NUMBER NAME DESCRIPTION NUMBER ITEM AMOUNT CHECK AMOUNT 49776 06/05/98 002185 POSTMASTER - TEMECULA 49777 06/09/98 HANALEI HOTEL POSTAGE:BULK MAIL:TRAF NWSLTR 001-110-999-5230 HTL:CPRS COURSE;6/10-11K.H. 190-180-999-5261 2,051.94 224.80 2,051.94 224.80 49780 06/11/98 000724 A & R CUSTOM SCREEN PRI T-SHIRTS FOR 4TH OF JULY 190-183-999-5370 49780 06/11/98 000724 A & R CUSTOM SCREEN PRI T-SHIRTS FOR 4TH OF JULY 190-183-999-5370 49780 06/11/98 000724 A & R CUSTOM SCREEN PRI SET-UP CHARGE 190-183-999-5370 49780 06/11/98 000724 A & R CUSTOM SCREEN PR! SALES TAX 190-183-999-5370 49780 06/11/98 000724 A & R CUSTOM SCREEN PRI CREDIT:T-SHIRTS FOR RE-SALE 190-183-999-5370 576.00 168.00 25.00 59.60 59.60- 769.00 49781 06/11/98 001515 A S A P TRUCK,TRACTOR/F WEED ABATEMENT - CITY PROPERTY 001-164-601-5402 80.00 80.00 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 001-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 165-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 190-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 193-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 280-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 300-2310 49782 06/11/98 000116 A V P VISION PLANS 000116 AVP 340-2310 587.56 12.90 73.12 1.72 14.64 4.30 21.50 715.74 49783 06/11/98 001700 A+ TEACHING MATERIALS RECREATION SUPPLIES 190-183-999-5320 49783 06/11/98 001700 A+ TEACHING MATERIALS RECREATION SUPPLIES 190-183-999-5320 49784 06/11/98 ABRAHAMS, RICK REFUND:GYMNASTICS 190-183-4982 49785 06/11/98 000400 ALEXANDER HAMILTON INST PUB:EMPLOYEE PROBLEM-SOLVER 001-162-999-5228 49786 06/11/98 001281 ALHAMBRA GROUP DESIGN SERVICES FOR ADA PARK 210-190-148-5802 49787 06/11/98 002877 ALTA LOMA CHARTER LINES BUS FOR STATELINE EXCURSION 190-183-999-5350 49788 06/11/98 000101 APPLE ONE, INC. TEMP HELP (2)W/E 5/23 WILLIAMS 280-199-999-5362 49789 06/11/98 001323 ARROWHEAD WATER, INC. DRINKING WATER FOR CRC 190-182-999-5250 49790 06/11/98 002648 AUTO CLUB OF SOUTHERN C MEMBERSHIP DUES:M.BERG 98/99 001-162-999-5214 49790 06/11/98 002648 AUTO CLUB OF SOUTHERN C MEMBERSHIP DUES:BRADLEY 98/99 001-110-999-5214 49790 06/11/98 002648 AUTO CLUB OF SOUTHERN C MEMBERSHIP DUES:R.SERVEN 98/99 190-180-999-5214 49791 06/11/98 002099 BUTTERFIELD ENTERPRISES MAY O.T. RESTROOM RENTAL 280-199-999-5212 49792 06/11/98 001260 C P R S AGENCY MEMBERSHIP DUES '98 190-180-999-5226 49793 06/11/98 003138 CAL MAT A.C. FOR PUBLIC NORKS MAINT 001-164-601-5218 49793 06/11/98 003138 CAL MAT A.C. FOR PUBLIC WORKS MAINT 001-164-601-5218 49794 06/11/98 003214 CAL MAT A.C. FOR PUBLIC WORKS MAINT. 001-164-601-5218 49795 06/11/98 000128 CAL-SURANCE ASSOCIATES, WORKERS COMP INSURANCE MAY '98 001-2370 49795 06/11/98 000128 CAL-SURANCE ASSOCIATES, WORKERS COMP INSURANCE MAY '98 165-2370 49795 06/11/98 000128 CAL-SURANCE ASSOCIATES, WORKERS COMP INSURANCE MAY '98 190-2370 11.80 11.80 39.00 69.15 200.00 219.00 412.80 30.94 42.00 42.00 52.00 826.00 385.00 83.78 56.30 293.37 3,293.87 149.79 1,474.78 23.60 39.00 69.15 200.00 219.00 412.80 30.94 136.00 826.00 385.00 140.08 293.37 VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK NUMBER CHECK DATE VENDOR NUMBER VENDOR NAME ITEM DESCRIPTION ACCOUNT NUMBER ITEM AMOUNT CHECK AMOUNT 49795 49795 49795 49795 49795 49795 49795 49795 49795 49795 49795 49795 49796 49796 49796 49796 49796 49796 49796 49797 49798 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 000128 000128 000128 000128 000128 000128 000128 000128 000128 000128 000128 000128 000126 000126 000126 000126 000126 000126 000126 000151 000131 CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CAL-SURANCE ASSOCIATES, CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA SOCIETY OF C CARL WARREN & CO., INC. WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY ~98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 WORKERS COMP INSURANCE MAY '98 LDSC IMPROVEMENTS - SPORTS PRK LDSC IMPROVEMENTS - SPORTS PRK LDSC IMPROVEMENTS - SPORTS PRK APR LDSC MAINT - TMS BALLFIELD LDSC IMPROVEMENTS - SPORTS PRK LDSC IMPROVEMENTS - SPORTS PRK LDSC IMPROVEMENTS - R.C.MEDIAN MEMBERSHIP:179559 W. PATTISON CLAIM ADJUSTER SERVICES 191-2370 192-2370 193-2370 194-2370 280-2370 300-2370 320-2370 330-2370 340-2370 190-183-999-5112 190-180-999-5112 190-1990 190~180-999-5415 190-180-999-5415 190-180-999-5415 190-180-999-5415 190-180-999-5212 190-180-999-5212 191-180-999-5415 001-140-999-5226 300-199-999-5205 .8O 1.96 50.57 21.44 130.46 3.06 39.24 7.82 267.91 10.88 .23 1.45 245.00 245.00 1,470.00 920.00 531.50 240.75 790.00 190.00 244.00 5,454.26 4,442.25 190.00 244.00 49799 49799 49799 49799 49799 49800 49800 49801 49802 49802 49802 49802 49802 49802 49803 49803 49803 49804 49804 49804 49804 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 000135 000135 000135 000135 000135 001195 001195 001249 003029 003029 003029 003029 003029 003029 002782 002782 002782 000140 000140 000140 000140 CENTRAL CITIES SIGN SER CENTRAL CITIES SIGN SER CENTRAL CITIES SIGN SER CENTRAL CITIES SIGN SER CENTRAL CITIES SIGN SER CENTRAL SECURITY SERVIC CENTRAL SECURITY SERVIC CENTRE FOR ORG. EFFECTI CHICAGO TITLE COMPANY CHICAGO TITLE COMPANY CHICAGO TITLE COMPANY CHICAGO TITLE COMPANY CHICAGO TITLE COMPANY CHICAGO TITLE COMPANY CHICK'S SPORTING GOODS CHICK'S SPORTING GOODS CHICK'S SPORTING GOODS COLONIAL LIFE & ACCIDEN COLONIAL LIFE & ACCIDEN COLONIAL LIFE & ACCIDEN COLONIAL LIFE & ACCIDEN STREET SIGNS & MISC HARDWARE STREET SIGNS & MISC HARDWARE STREET SIGNS & MISC HARDWARE SALES TAX STREET SIGNS & MISC HARDWARE JUN ALARM SERVICES - CRC JUN ALARM SERVICES - SEN. CNTR SURVEYS/REPORTING AND RESULTS TITLE GUARANTEE-PALA RD BRIDGE TITLE GUARANTEE-PALA RD BRIDGE TITLE GUARANTEE-PALA RD BRIDGE TITLE GUARANTEE-PALA RD BRIDGE TITLE GUARANTEE-PALA RD BRIDGE TITLE GUARANTEE-PALA RD BRIDGE SPORT SUPPLIES FREIGHT SALES TAX 000140 1500 A&S 000140 600 A&S 000140 600 A&S 000140 800 A&S 165-199-999-5242 165-199-999-5242 190-183-999-5370 190-183-999-5370 001-164-601-5244 190-182-999-5250 190-181-999-5250 001-150-999-5248 001-1280 210-165-631-5700 210-165-631-5700 210-165-631-5700 210-165-631-5700 210-165-631-5700 190-183-999-5380 190-183-999-5380 190-183-999-5380 001-2330 001-2330 190-2330 001-2330 437.85 1,024.86 60.00 4.65 64.11 50.00 45.00 1,450.00 12,820.00 336.00 336.00 1,429.00 336.00 1,138.00 680.00 70.00 52.70 22.00 56.00 39.75 66.50 1,591.47 95.00 1,450.00 16,395.00 802.70 VOUCHRE2 CITY OF TEMECULA 06/11/98 14:39 VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM NUMBER DATE NUMBER NAME DESCRIPTION ACCOUNT NUMBER ITEM AMOUNT CHECK AMOUNT 49804 06/11/98 000140 COLONIAL LIFE & ACCIDEN 000140 800 A&S 49804 06/11/98 000140 COLONIAL LIFE & ACCIDEN 000140 CANCER 190-2330 001-2330 47.75 107.02 339.02 49805 06/11/98 002147 49805 06/11/98 002147 49805 06/11/98 002147 49805 06/11/98 002147 49805 06/11/98 002147 49805 06/11/98 002147 COMPLIMENTS, COMPLAINTS COMPLIMENTS, COMPLAINTS COMPLIMENTS, COMPLAINTS COMPLIMENTS, COMPLAINTS COMPLIMENTS, COMPLAINTS COMPLIMENTS, COMPLAINTS 49806 06/11/98 001716 DAN'S ROOFING ENTERTAINMENT:KITE DAY 5/17 ENTERTAINMENT-O.T. FESTIVITIES ENTERTAINMENT-O.T. FESTIVITIES ENTERTAINMENT-O.T. FESTIVITIES ENTERTAINMENT-O.T. FESTIVITIES ENTERTAINMENT-O.T. FESTIVITIES SENIOR CENTER ROOF REPAIR 190-183-999-5370 280-199-999-5362 280-199-999-5362 280-199-999-5362 280-199-999-5362 280-199-999-5362 190-181-999-5250 100.00 150.00 350.00 150.00 200.00 150.00 650.00 1,100.00 650.00 49807 06/11/98 002990 DAVID TURCH & ASSOCIATE RETAIN PUBLIC ADVOCACY FIRM 49808 06/11/98 002954 DIAMOND GARAGE DOOR, IN RES. IMPROV. PROM:MARTINEZ 001-110-999-5248 165-199-813-5804 2,000.00 950.00 2,000.00 950.00 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49809 06/11/98 001380 E S 49810 06/11/98 000164 49811 06/11/98 000165 49811 06/11/98 000165 49811 06/11/98 000165 49811 06/11/98 000165 49811 06/11/98 000165 49811 06/11/98 000165 49812 06/11/98 002894 49812 06/11/98 002894 49812 06/11/98 002894 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 49813 06/11/98 002002 EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC EMPLOYMENT SERVIC ESGIL CORPORATION FEDERAL EXPRESS, INC. FEDERAL EXPRESS, INC. FEDERAL EXPRESS, INC. FEDERAL EXPRESS, INC. FEDERAL EXPRESS, INC. FEDERAL EXPRESS, INC. FONTES, JOHNSON & ASSOC FONTES, JOHNSON & ASSOC FONTES, JOHNSON & ASSOC FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO TEMP HELP (2)W/E 4/24 DE GANGE TEMP HELP (2)W/E 4/24 SERVEN TEMP HELP (2)W/E 4/24 SERVEN TEMP HELP (2)W/E 4/24 SERVEN TEMP HELP (2)W/E 5/8 DE GANGE TEMP HELP (2)W/E 5/8 SERVEN TEMP HELP (2)W/E 5/8 SERVEN TEMP HELP (2)W/E 5/8 SERVEN TEMP HELP (2)W/E 5/22 HILLBERG APR PLAN CHECK SERVICES EXPRESS MAIL SERVICES EXPRESS MAIL SERVICES EXPRESS MAIL SERVICES EXPRESS MAIL SERVICES EXPRESS MAIL SERVICES EXPRESS MAIL SERVICES RESIDENTIAL REVIEW APPRAISALS RESIDENTIAL REVIEW APPRAISALS RESIDENTIAL REVIEW APPRAISALS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 002002 LIFE INS 001-161-999-5118 190-180-999-5118 193-180-999-5118 001-164-603-5118 001-161-999-5118 190-180-999-5118 193-180-999-5118 001-164-603-5118 165-199-999-5118 001-162-999-5248 190-180-999-5230 001-1280 001-165-999-5230 001-162-999-5230 001-150-999-5230 280-1990 165-199-999-5250 165-199-999-5250 165-199-999-5250 001-2360 165-2360 190-2360 191-2360 192-2360 193-2360 194-2360 280-2360 300-2360 320-2360 330-2360 340-2360 2,779.20 765.88 382.94 382.94 2,857.37 737.86 368.93 368.93 1,495.20 2,989.13 100.85 12.50 37.50 25.00 34.00 177.30 300.00 50.00 100.00 677.25 12.33 134.10 .45 1.35 14.85 8.10 19.17 2.25 18.00 9.00 21.15 10,139.25 2,989.13 387.15 450.00 VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK NUMBER CHECK DATE VENDOR NUMBER VENDOR NAME ITEM DESCRIPTION ACCOUNT NUMBER ITEM AMOUNT CHECK AHOUNT 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49813 49815 49816 49816 49816 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49817 49818 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 002002 000170 000184 000184 000184 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 000177 001609 FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FORTIS BENEFITS INS. CO FRANKLIN QUEST COMPANY, G T E CALIFORNIA - PAYM G T E CALIFORNIA - PAYM G T E CALIFORNIA - PAYM GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GLENNIES OFFICE PRODUCT GREATER ALARM COMPANY, 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTD 002002 LTO 002002 LTD OO2OO2 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD 002002 STD PR 06/11/98 SALAZAR DAY PLANNER BINDERS & REFILLS 909-308-1079-MAY-GENERAL USAGE 909-695-1409-MAY-GENERAL USAGE 909-695-3539-MAY-GENERAL USAGE MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES SMALL TOOLS AND EQUIPMENT SMALL TOOLS AND EQUIPMENT SMALL TOOLS AND EQUIPMENT SMALL TOOLS AND EQUIPMENT SALES TAX MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MISC. OFFICE SUPPLIES MAY ALARM SERVICES - SICATE PRK 001-2380 165-2380 190-2380 191-2380 192-2380 193-2380 194-2380 280-2380 300-2380 320-2380 330-2380 340-2380 001-2500 165-2500 190-2500 191-2500 192-2500 193-2500 194-2500 280-2500 300-2500 320-2500 330-2500 340-2500 001-1990 001-161-999-5220 320-199-999-5208 320-199-999-5208 320-199-999-5208 001-100-999-5220 001-120-999-5277 001-120-999-5220 001-120-999-5242 001-120-999-5242 001-120-999-5242 001-120-999-5242 001-120-999-5242 001-140-999-5220 001-162-999-5220 190-180-999-5220 190-184-999-5220 190-182-999-5220 001-171-999-5220 320-199-999-5221 190-180-999-5212 1,264.07 30.50 228.99 .90 2.22 27.46 13.01 39.76 3.50 44.71 8.91 32.01 1,394.94 32.77 245.99 .97 2.40 29.51 13.96 42.73 3.76 48.03 9.57 34.39 27.70 94.62 58.36 110.75 39.45 78.27 13.50 310.11 229.95 30.95 15.96 7.78 22.06 99.64 400.84 253.50 55.58 12.28 34.72 74.13 75.00 4,500.76 94.62 208.56 1,639.27 75.00 49819 06/11/98 000186 HANKS HARDWARE, INC. MISC HARDWARE SUPPLIES 190-183-999-5305 20.18 VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK CHECK VENDOR NUMBER DATE NUMBER 49819 06/11/98 0001~ 49819 06/11/98 000186 49819 06/11/98 000186 49819 06/11/98 000186 49819 06/11/98 000186 49820 06/11/98 002372 49820 06/11/98 002372 49821 06/11/98 001013 49822 06/11/98 000194 49822 06/11/98 000194 49822 06/11/98 000194 49822 06/11/98 000194 49823 06/11/98 001910 49823 06/11/98 001910 49823 06/11/98 001910 49824 06/11/98 000199 49825 06/11/98 002629 49826 06/11/98 000203 49827 06/11/98 001667 49827 06/11/98 001667 49827 06/11/98 001667 49827 06/11/98 001667 49827 06/11/98 001~7 49828 06/11/98 000996 49829 06/11/98 002890 49830 06/11/98 002229 49831 06/11/98 003243 49832 06/11/98 002367 49832 06/11/98 002367 49833 06/11/98 000220 49833 06/11/98 000220 49834 06/11/98 003076 49834 06/11/98 003076 49834 06/11/98 003076 49834 06/11/98 003076 49834 06/11/98 003076 VENDOR NAME HANKS HARDWARE, INC. HANKS HARDWARE, INC. HANKS HARDWARE, INC. HANKS HARDWARE, INC. HANKS NARDWARE, INC. HARMON, JUDY HARMON, JUDY HINDERLITER deLLAHAS AS I C M A RETIREMENT TRUS I C M A RETIREMENT TRUS I C M A RETIREMENT TRUS I C M A RETIREMENT TRUS IKON OFFICE SOLUTIONS, IKON OFFICE SOLUTIONS, IKON OFFICE SOLUTIONS, INTERNAL REVENUE SERVIC J S A PUBLISHING CONSUL JOBS AVAILABLE, INC. KELLY TEMPORARY SERVICE KELLY TEMPORARY SERVICE KELLY TEMPORARY SERVICE KELLY TEMPORARY SERVICE KELLY TEMPORARY SERVICE LOCAL GOVERNMENT PUBLIC LOS ANGELES CELLULAR TE LUCE PRESS CLIPPINGS, I MANSUR SERVICES, INC MARTA ELISE PHOTOGRAPHY MARTA ELISE PHOTOGRAPHY MAURICE PRINTERS~ INC. MAURICE PRINTERS, INC. MET LIFE INSURANCE COMP MET LIFE INSURANCE COMP MET LIFE INSURANCE COMP MET LIFE INSURANCE COMP MET LIFE INSURANCE COMP ITEM DESCRIPTION MISC HARDWARE SUPPLIES MISC HARDWARE SUPPLIES MISC HARDWARE SUPPLIES M1SC HARDWARE SUPPLIES MISC HARDWARE SUPPLIES TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS PROPERTY TAX CONSULTING SERVS. 000194 DEF COMP 000194 DEF COMP 000194 DEF COMP 000194 DEF COMP COPIER MAINT SUPPLIES FREIGHT SALES TAX 000199 IRS GARN 1998 TEMECULA VISITOR GUIDE RECRUITMENT ADVERTISING TEMP HELP W/E 5/17 FOWLER TEMP HELP W/E 5/17 MILES TEMP HELP W/E 5/17 MILES TEMP NELP W/E 5/17 GILBERT TEMP HELP W/E 5/24 FOWLER PUB:LONGTIN'S CA LAND-USE '98 909-223-1667-MAY-J.DOMENOE MAY PRESS CLIPPING SERVICES BUILD 12 L F SOUND WALL PHOTOS OF TEMECULA K-9 HUNTER SALES TAX TRAFFIC NEWSLETTER PRINTING SALES TAX 003076 DENTALML 003076 DENTALML 003076 DENTALML 003076 DENTALML 003076 DENTALML ACCOUNT NUMBER 340-199-701-5212 190-182-999-5212 190-182-999-5212 190-182-999-5212 190-184-999-5212 190-183-999-5330 190-183-999-5330 001-140-999-5248 001-2080 165-2080 190-2080 280-2080 330-199-999-5217 330-199-999-5217 330-199-999-5217 001-2140 280-199-999-5362 001-150-999-5254 001-150-999-5118 001-163-999-5118 001-164-604-5118 001-140-999-5118 001-150-999-5118 001-161-999-5228 001-170-999-5208 280-199-999-5250 001-162-999-5601 001-170-999-5222 001-170-999-5222 001-110-999-5222 001-110-999-5222 001-2340 165-2340 190-2340 193-2340 280-2340 ITEM AMOUNT 110.75 321.29 413.47 96.99 22.52 491.20 336.00 2,400.00 1,858.56 18.76 276.35 29.16 186.00 4.00 14.42 297.04 2,505.19 108.00 416.00 104.00 312.00 72.80 461.50 94.93 88.06 304.40 780.00 199.00 15.42 2,288.00 177.32 2,445.05 136.91 348.59 20.87 126.05 CHECK AMOUNT 985.20 827.20 2,400.00 2,182.83 204.42 297.04 2,505.19 108.00 1,366.30 94.93 88.06 304.40 780.00 214.42 2,465.32 VOUCHRE2 CITY OF TEMECULA 06/11/98 14:39 VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM NUMBER DATE NUMBER NAME DESCRIPTION ACCOUNT NUMBER ITEM AMOUNT CHECK AMOUNT 49834 06/11/98 003076 MET LIFE INSURANCE COMP 003076 DENTALML 49834 06/11/98 003076 MET LIFE INSURANCE COMP 003076 DENTALML 49834 06/11/98 003076 MET LIFE INSURANCE COMP PR 6/11/98 COBRA FLAMMER 49835 06/11/98 001905 MEYERS, DAVID WILLIAM TCSD INSTRUCTOR EARNINGS 300-2340 340-2340 001-1180 190-183-999-5330 19.56 78.23 28.27 928.00 3,203.53 928.00 49836 06/11/98 000883 49836 06/11/98 000883 MONTELEONE EXCAVATING MONTELEONE EXCAVATING 49837 06/11/98 McALISTER ELIZABETH EMERGENCY DIRT ROAD GRADING SILT/DEBRIS REMOVAL:VIA LOBO REFUND: SECURITY DEPOSIT 195-180-999-5402 001-164-601-5401 190-2900 950.00 4,985.00 100.00 5,935.00 100.00 49838 06/11/98 000718 NATIONAL RECREATION &PA PLAYGROUND SAFETY VIDEO 190-180-999-5261 49.00 49.00 49839 06/11/98 001394 NATIONAL SANITARY SUPPL DETERGENT FOR COM.REC.CENTER 49839 06/11/98 001394 NATIONAL SANITARY SUPPL SALES TAX 190-182-999-5212 190-182-999-5212 130.35 10.11 140.46 49840 06/11/98 000233 NELSON, SHAWN REIMB:ANNUAL CPRS CF:3/12-13 190-180-999-5258 6.00 6.00 49841 06/11/98 002037 NEXUS INTEGRATED SOLUTI MISC REPAIR & MAINT OF EQUIP 49842 06/11/98 002139 NORTH COUNTY TIMES - AT RECRUITMENT ADVERTISING 320-199-999-5215 001-150-999-5254 1,074.64 86.45 1,074.64 86.45 49843 06/11/98 OCANA, HENRY 49844 06/11/98 002105 49845 06/11/98 003224 OLD TOWN TIRE & SERVICE PECHANGA DEVELOPMENT CO REFUND: GROUP GOLF LESSONS CITY VEHICLE REPAIRS & MAINT REIMB:PALA RD BRIDGE PRJT 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 AETNA SO 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 AETNA SO 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 AETNA SO 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 BLSHIELD 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 BLSHIELD 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 BLSHIELD 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 CIGNA 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 CIGNA 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 HELTHNET 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 KAISERSO 49846 06/11/98 000245 PERS (HEALTH [NSUR. PRE 000245 KAISERSO 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 PAC[F[CR 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 PACIFICR 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 PACIFICR 49846 06/11/98 000245 PERS (HEALTH INSUR. PRE 000245 PACIFICR 190-183-4982 001-162-999-5214 210-165-668-5804 001-2090 165-2090 280-2090 001-2090 190-2090 280-2090 001-2090 300-2090 001-2090 190-2090 191-2090 192-2090 193-2090 194-2090 280-2090 330-2090 340-2090 001-2090 190-2090 001-2090 190-2090 193-2090 194-2090 50.00 299.64 77,220.00 161.59 212.83 70.93 1,123.94 359.62 1.19 844.50 39.46 5,178.34 1,052.18 15.57 31.05 310.50 46.53 1.89 155.25 791.97 1,705.53 148.83 3,758.26 674.45 19.00 104.45 50.00 299.64 77,220.00 VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK NUMBER CHECK DATE VENDOR NUMBER VENDOR ITEM ACCOUNT NAME DESCRIPTION NUMBER ITEM AMOUNT CHECK AMOUNT 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49846 49847 49848 49849 49850 49850 49850 49850 49850 49851 49852 49853 49854 49854 49855 49856 49857 49858 49858 49858 49858 49859 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 000245 001958 000254 000255 002930 002930 002930 002930 002930 000728 002072 000266 000266 000271 002226 002670 003002 003002 003002 003002 000519 PERS (HEALTH INSUR. PRE 000245 PC PERS (HEALTH INSUR. PRE 000245 PERS CHO PERS (HEALTH INSUR. PRE 000245 PERS CHO PERS (HEALTH INSUR. PRE 000245 PERS DED PERS (HEALTH INSUR. PRE 000245 PERS-ADM PERS (HEALTH INSUR. PRE 000245 AETNA SO PERS (HEALTH INSUR. PRE 000245 AETNA SO PERS (HEALTH INSUR. PRE 000245 BLSHIELD PERS (HEALTH INSUR. PRE 000245 HELTHNET PERS (HEALTH INSUR. PRE 000245 HELTHNET PERS (HEALTH INSUR. PRE 000245 HELTHNET PERS (HEALTH INSUR. PRE 000245 KAISERSO PERS (HEALTH INSUR. PRE 000245 PACIFICR PERS (HEALTH INSUR. PRE 000245 PACIFICR PERS (HEALTH INSUR. PRE 000245 PACIFICR PERS (HEALTH INSUR. PRE 000245 PERS CHO PERS (HEALTH INSUR. PRE 000245 PERS REV PERS LONG TERM CARE PRO 001958 PERS L-T PRESS-ENTERPRISE COMPAN PUBLIC NOTICES: 17.28 PRO LOCK & KEY LOCKSMITH SERVICES - PARKS PRUDENTIAL OVERALL SUPP PRUDENTIAL OVERALL SUPP PRUDENTIAL OVERALL SUPP PRUDENTIAL OVERALL SUPP PRUDENTIAL OVERALL SUPP FLOOR MAT RENTAL @ CITY HALL FLOOR MAT RENTAL @ CRC FLOOR MAT RENTAL @ MAINT FAC FLOOR MAT RENTAL @ SR CENTER FLOOR MAT RENTAL @ TCC RAMIREZ, GENEVIEVE REFUND: BIRCH AQUARIUM TRIP RAMSEY BACKFLOW & PLUMB LDSCP REPAIRS-SIXTH STREET RANCHO CALIF WATER DIST WTR METER HOOK-UP:4TH OF JULY RIGHTWAY RIGHTWAY PORTABLE TOILET RENTAL:INVEST RIVERTON PRK TOILET RENTAL ROBERT BEIN, NH FROST & APRIL PROF SVS:SANTA GERTRUDIS RUSSO, MARY ANNE TCSD INSTRUCTOR EARNINGS SCHNEIDER-LJUBENKOV, JU TCSD INSTRUCTOR EARNINGS SMOOTHILL SPORTS DISTRI SMOOTHILL SPORTS DISTRI SMOOTHILL SPORTS DISTRI SMOOTHILL SPORTS DISTRI RECTOR WRIST GUARD LARGE BLACK RECTOR WRIST GUARD NED BLACK FREIGHT SALES TAX SOUTH COUNTY PEST CONTR PEST CNTRL SVS:FIRE STATION#84 001-2090 001-2090 280-2090 001-2090 001-2090 165-2090 280-2090 190-2090 001-2090 190-2090 340-2090 001-2090 001-2090 190-2090 193-2090 001-2090 001-2090 001-2122 001-120-999-5256 190-180-999-5212 340-199-701-5250 190-182-999-5250 340-199-702-5212 190-181-999-5250 190-184-999-5250 190-183-4980 193-180-999-5415 190-183-999-5370 001-170-999-5238 190-180-999-5238 210-190-147-5802 190-183-999-5330 190-183-999-5330 190-183-999-5305 190-183-999-5305 190-183-999-5305 190-183-999-5305 001-171-999-5212 16.00 2,399.86 320.00 1,004.93 105.37 102.29 34.09 54.07 371.50 88.65 15.35 20.90 162.56 35.80 1.88 160.14 1,047.23- 50.77 6.25 114.40 107.00 44.80 54.28 69.40 12.00 30.00 750.00 145.78 62.89 2,713.90 700.00 313.60 118.80 52.80 4.67 12.44 48.00 20,654.02 50.77 6.25 8.07 389.88 12.00 30.00 750.00 208.67 2,713.90 700.00 313.60 188.71 48.00 VOUCHRE2 CITY OF TEMECULA 06/11/98 14:39 VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK CHECK VENDOR VENDOR ITEM ACCOUNT NUMBER DATE NUMBER NAME DESCRIPTION NUMBER ITEM AMOUNT CHECK AMOUNT 49860 06/11/98 000824 SOUTHERN CALIF ASSOC OF LIVABLE COMM SUMMIT:MEYER:6/12 280-199-999-5261 50.00 50.00 49861 06/11/98 000537 SOUTHERN CALIF EDISON 2-11-007-0455 SIXTH STREET 001-164-603-5240 49861 06/11/98 000537 SOUTHERN CALIF EDISON 2-10-331-2153 PUJOL ST 190-184-999-5240 49861 06/11/98 000537 SOUTHERN CALIF EDISON 2-02-502-8077 VARIOUS METERS 340-199-702-5240 49862 06/11/98 003242 SPORT SHOTS TRADING CARDS FOR K-9 "HUNTERm' 001-170-999-5327 250.34 658.02 507.51 174.29 1,415.87 174.29 49863 06/11/98 003246 STENOGRAPH, LLC. INK FOR STENO MACHINE #22100 001-120-999-5220 49863 06/11/98 003246 STENOGRAPH, LLC. RIBBON FOR STENO MACHINE 22103 001-120-999-5220 49863 06/11/98 003246 STENOGRAPH, LLC. FREIGHT 001-120-999-5220 49863 06/11/98 003246 STENOGRAPH, LLC. SALES TAX 001-120-999-5220 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 001-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 165-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 190-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 191-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 192-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 193-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 194-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 280-2125 49864 06/11/98 001547 TEAMSTERS LOCAL 911 001547 UN DUES 320-2125 49865 06/11/98 002686 49866 06/11/98 000168 49867 06/11/98 003265 49868 06/11/98 49869 06/11/98 000306 49870 06/11/98 000642 49870 06/11/98 000642 49870 06/11/98 000642 49870 06/11/98 000642 49870 06/11/98 000642 49870 06/11/98 000642 49871 06/11/98 49872 06/11/98 000320 49872 06/11/98 000320 49873 06/11/98 002107 49873 06/11/98 002107 49873 06/11/98 002107 49873 06/11/98 002107 49873 06/11/98 002107 49873 06/11/98 002107 TECH MARKETING GRAPHICS LOGO & POSTER DESIGN - TCSD TEMECULA FLOWER CORRAL SUNSHINE FUND TEMECULA SWIM CLUB 97-98 COMMUNITY SERVS FUNDING TEMECULA VALLEY CHRISTI REFUND: SECURITY DEPOSIT TEMECULA VALLEY PIPE & IRRIGATION & MAINT SUPPLIES TEMECULA, CITY OF - FLE TEMECULA, CITY OF - FLE TEMECULA, CITY OF - FLE TEMECULA, CITY OF - FLE TEMECULA, CITY OF - FLE TEMECULA, CITY OF - FLE EMPLOYEE CONTRIBUTION TO FLEX EMPLOYEE CONTRIBUTION TO FLEX EMPLOYEE CONTRIBUTION TO FLEX EMPLOYEE CONTRIBUTION TO FLEX EMPLOYEE CONTRIBUTION TO FLEX EMPLOYEE CONTRIBUTION TO FLEX TEMEKU HILLS DEVELOPMEN OVERPAYMENT ON PERMIT B98-1081 TOWNE CENTER STATIONERS MISC OFFICE SUPPLIES-LAND DEVE TOWNE CENTER STATIONERS MISC OFFICE SUPPLIES-PW ADMIN TRANS-GENERAL LIFE INS. TRANS-GENERAL LIFE INS. TRANS-GENERAL LIFE INS. TRANS-GENERAL LIFE INS. TRANS-GENERAL LIFE INS. TRANS-GENERAL LIFE INS. 002107 VL ADVAN 002107 VOL LIFE 002107 VOL LIFE 002107 VOL LIFE PR 6/11/98 SALAZAR 002107 VL REVER 190-180-999-5301 001-2170 001-101-999-5267 190-2900 190-180-999-5212 001-1020 165-1020 190-1020 280-1020 300-1020 320-1020 001-2660 001-163-999-5220 001-164-604-5220 001-2510 001-2510 190-2510 340-2510 001-1170 001-2510 10.90 23.50 5.00 3.05 543.25 2.46 82.00 1.03 2.05 14.35 3.07 7.79 20.50 300.00 54.95 3,000.00 100.00 157.77 3,579.84 271.25 480.00 183.75 9.50 350.00 2,405.60 386.27 49.82 175.45 159.35 12.10 4.00 9.10 203.20- 42.45 676.50 300.00 54.95 3,000.00 100.00 157.77 4,874.34 2,405.60 436.09 VOUCHRE2 06/11/98 14:39 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE VOUCHER/ CHECK NUMBER CHECK DATE VENDOR NUMBER VENDOR NAME ITEM DESCRIPTION ACCOUNT NUMBER ITEM AMOUNT CHECK AMOUNT 49873 4987"3 49873 06/11/98 06/11/98 06/11/98 002107 002107 002107 TRANS-GENERAL LIFE INS. 002107 TRANS-GENERAL LIFE INS. 002107 TRANS-GENERAL LIFE INS. 002107 VOL LIFE VOL LIFE VOL LIFE 001-2510 190-2510 340-2510 159.35 39.85 4.00 360.00 49874 49874 49874 49874 49874 49874 49874 49874 49874 49874 49875 49875 49875 49875 49875 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49876 49877 49877 49877 49877 49877 49877 49877 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 001065 001065 001065 001065 001065 001065 001065 001065 001065 001065 000389 000389 000389 000389 000389 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 002621 000325 000325 000325 000325 000325 000325 000325 U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO CDEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C U S C M /PEBSCO (DEF. C 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP 001065 DEF COMP U S C M /PEBSCO COBRA) 000389 PT RETIR U S C M /PEBSCO COBRA) 000389 PT RETIR U S C M /PEBSCO COBRA) 000389 PT RETIR U S C M /PEBSCO COBRA) 000389 PT RETIR U S C M /PEBSCO COBRA) 000389 PT RETIR BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CAL]F N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF, N. BANK OF CALIF, N. BANK OF CALIF, N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CALIF N. BANK OF CAL]F N. BANK OF CALIF N. BANK OF CALIF N. UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNION UNITED WAY UNITED WAY UNITED WAY UNITED WAY UNITED WAY UNITED WAY UNITED WAY 5415305002924984 JC/PALM SPRGS 5415305002924984 JC/PALM SPRGS 5415305002924984 JC/PALM SPRGS 5415305001995902 JS/LAS VEGAS 5415305001995860 KL/PALM SPRGS 5415305001995860 KL/PALM SPRGS 5415305001995894 RR/WSHGTN L.V 5415305001995894 RR/WSHGTN L.V 5415305002931146 SJ/IN TWN MTG 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995985 GY/MISC EXPEN 5415305001995910 RB/WSHGTN/L.V 5415305001995910 RB/WSHGTN/L.V 5415305001995944 AE/IN TWN MTG 5415305001995951 SN 000325 UW 000325 UW 000325 UW 000325 UW 000325 Ug 000325 UW 000325 UW 001-2080 165-2080 190-2080 192-2080 193-2080 194-2080 280-2080 300-2080 320-2080 340-2080 001-2160 165-2160 190-2160 280-2160 340-2160 001-100-999-5258 001-100-999-5250 001-1990 001-100-999-5258 001-100-999-5260 001-1990 001-1990 001-100-999-5258 001-100-999-5260 001-101-999-5280 001-1990 001-110-999-5220 001-1990 001-110-999-5260 001-1990 001-100-999-5254 001-1990 001-110-999-5263 001-110-999-5258 001-162-999-5260 190-180-999-5260 001-2120 165-2120 190-2120 192-2120 193-2120 194-2120 340-2120 3,877.22 21.73 1,239.64 .76 24.32 90.83 188.40 10.00 666.66 154.81 544.92 126.53 969.92 35.36 66.40 476.60 10.07 49.02 831.60 173.88 193.51 103.00 818.10 83.43 36.81 378.24 13.02 19.48 40.00 107.76 30.00 101.00 50.10 2,127.70 48.88 .50 152.00 1.00 24.80 .15 .76 4.00 .29 6,274.37 1,743.13 5,692.70 183.00 VOUCHRE2 06/11/98 VOUCNER/ CHECK NUMBER' 49878 49879 49880 49880 49880 49880 49880 49881 49882 49882 49882 49882 49883 49883 49883 49883 49883 49883 49884 49885 49886 49887 49888 14:39 CHECK DATE 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 06/11/98 VENDOR NUMBER 001890 003114 001342 001342 001342 001342 001342 000339 002092 002092 002092 002092 000345 000345 000345 000345 000345 000345 000348 003251 000697 000697 000697 VENDOR NAME VORTEX DOORS WASKA, CAROLYN WAXIE SANITARY SUPPLY, WAXIE SANITARY SUPPLY, WAXIE SANITARY SUPPLY, WAXIE SANITARY SUPPLY, WAXlE SANITARY SUPPLY, WEST PUBLISHING COMPANY WINTER GRAPHICS SOUTH WINTER GRAPHICS SOUTH WINTER GRAPHICS SOUTH WINTER GRAPHICS SOUTH XEROX CORPORATION BILLI XEROX CORPORATION BILLI XEROX CORPORATION BILL! XEROX CORPORATION BILLI XEROX CORPORATION BILLI XEROX CORPORATION BILLI ZIGLER, GAIL ZUFFI, DOHENIC SISTER CITIES INTERNAT[ SISTER CITIES INTERNATI SISTER CITIES INTERNATI CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS ITEM DESCRIPTION CRC DOOR REPAIRS & MAINT TCSD INSTRUCTOR EARNING MAINT SUPPLIES - CITY HALL MAINT SUPPLIES-PARKS MAINT SUPPLIES-MAINT FACILITY MAINT SUPPLIES - CITY HALL MAINT SUPPLIES - CRC CITY HALL LEGAL PUBLICATIONS GUEST INFORMANT AD ON DISK SALES TAX RODEO ADVERTISEMENT SALES TAX MAY LEASE PMT 5021 COPIER MAY LEASE PMT 5100 COPIER MAY LEASE PMT 5100 COPIER APRIL POOLED MAINT & SUPPLIES APRIL POOLED MAINT & SUPPLIES APRIL POOLED MAINT & SUPPLIES REIMB:SUPPLIES FOR CITY PICNIC SUMMER NIGHTS ENTERTAINMENT ACCOUNT NUMBER 190-182-999-5212 190-183-999-5330 340-199-701-5212 190-180-999-5212 340-199-702-5212 340-199-701-5212 190-182-999-5212 001-120'999-5228 280-199-999-5270 280-199-999-5270 280-199-999-5270 280-199-999-5270 330-199-999-5239 330-2800 330-199-999-5391 330-199-999-5217 190-182-999-5217 190-182-999-5217 001-150-999-5265 280-199-999-5362 ANNUAL CF:J. DORSO:7/30-8/1/98 001-101'999-5280 ANNUAL CF:C.MACKEN:7/30-8/1/98 001-101-999-5280 ANNUAL CF:D.VENNE:7/30-8/1/98 001-101-999-5280 ITEM AMOUNT 294.55 132.00 197.59 73.16 212.87 55.22 98.83 148.15 90.00 6.97 90.00 6.97 67.08 1,637.07 482.96 4,266.48 120.40 24.42 516.02 300.00 380.00 380.00 380.00 PAGE 10 CHECK AMOUNT 294.55 132.00 637.67 148.15 193.94 6,598.41 516.02 300.00 380.00 380.00 380.00 TOTAL CHECKS 230,695.56 VOUCHRE2 06/11/98 16:30 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS PAGE FUND TITLE 001 GENERAL FUND 165 RDA DEV- LOW/MOD SET ASIDE 190 COMMUNITY SERVICES DISTRICT 191 TCSD SERVICE LEVEL A 193 TCSD SERVICE LEVEL C 210 CAPITAL IMPROVEMENT PROJ FUND 280 REDEVELOPMENT AGENCY - 340 FACILITIES AMOUNT 436,990.79 6,720.63 26,523.27 987.00 17,702.22 28,701.28 15,600.63 496.00 TOTAL 533,721.82 VOUCHRE2 06/11/98 VOUCHER/ CHECK NUMBER 49891 49892 49892 49893 49893 49893 49893 49893 49893 49893 49893 49893 49893 49894 49894 49894 49894 49895 49895 49896 49897 49898 49899 49900 49901 16:30 CHECK DATE 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 06/23/98 CITY OF TEMECULA VOUCHER/CHECK REGISTER FOR ALL PERIODS VENDOR VENDOR ITEM ACCOUNT ITEM NUMBER NAME DESCRIPTION NUMBER AMOUNT 002348 001916 001916 000126 000126 000126 000126 000126 000126 000126 000126 000126 000126 001056 001056 001056 001056 001383 001383 002800 003218 000267 000406 000271 A-PARK AVENUE BUILDERS ALBERT A. WEBB ASSOCIAT ALBERT A. WEBB ASSOCIAT CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA CALIFORNIA LANDSCAPE MA EXCEL LANDSCAPE EXCEL LANDSCAPE EXCEL LANDSCAPE EXCEL LANDSCAPE P M W ASSOCIATES, INC. P M W ASSOCIATES, INC. PACIFIC STRIPING, INC PELA RIVERSIDE CO. FIRE DEPT RIVERSIDE CO. SHERIFF'S ROBERT BEIN, WM FROST & SOUTHERN SIERRA CONSTRU 003131 AC BERM/NEW PAVING PW97-98-010 001-164-601-5402 O.T. STREETSCAPE PROF SRVCS APR PROF SRVCS-I-15 BRIDGE 280-199-824-5802 210-165-601-5801 MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT-MEDIANS/SLOPES MAY LDSC MAINT - FIRE ST #84 MAY LDSC MAINT - CITY HALL CREDIT:MAY LDSC MAINT CREDIT:MAY LDSC MAINT 190-180-999-5415 190-181-999-5415 190-182-999-5415 190-184-999-5415 191-180-999-5415 193-180-999-5415 001-171-999-5212 340-199-701-5415 190-180-999-5415 193-180-999-5415 MAY LDSC MAINT - PARKS MAY LDSC MAINT - NORTH SLOPES CREDIT:MAY LDSC MAINT CREDIT:MAY LDSC MAINT 190-180-999-5415 193-180-999-5415 190-180-999-5415 193-180-999-5415 MAY RDA/HOUSING CONSULTING SVS 165-199-999-5248 MAY RDA/HOUSING CONSULTING SVS 280-199-999-5248 CITY WIDE STREET STRIPING 001-164-601-5410 REVIEW LNDSCPE PLANS FOR PLANN 001-161-999-5250 FIRE DEPT SVS:OCT 97 TO DEC 97 001-171-999-5251 APRIL 98 BOOKING FEES 001-170-999-5273 APRIL PROF SERVS-WINCH MEDIAN 210-165-686-5802 DIAZ & BLACK DEER LOOP GRADING 001-164-601-5401 24,900.00 8,880.00 26,232.93 17,250.00 246.00 1,593.00 325.00 987.00 11,521.00 250.00 496.00 1,717.00- 2,390.00- 8,961.00 8,813.00 134.;~3- 241.78- 6,720.63 6,720.63 78,150.50 7,875.00 310,966.29 8,832.00 2,468.35 6,017.00 PAGE 1 CHECK AMOUNT 24,900.00 35,112.93 28,561.00 17,397.49 13,441.26 78,150.50 ?,875.00 310,966.29 8,832.00 2,468.35 6,017.00 TOTAL CHECKS 533,721.82 ITEM 4 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Council/City Manager Anthony J. Elmo, Chief Building Official/'~_._ June 23, 1998 Contract Inspection Services for Building and Safety RECOMMENDATION: That the City Council approve and authorize the Mayor to execute an Agreement with JAS Pacific, Inc. for Building Inspection Services for Fiscal Year 1998- 1999 for an amount of thirty thousand dollars (30,000.00). BACKGROUND: The Building and Safety Department has experienced an increase in the volume of inspection activity. In an effort to service this increased volume of inspection requests, part-time contract building inspection assistance has been used to supplement the department's core inspection staff. The use of contract inspection services on an as needed basis, gives the Chief Building Official the ability to manage increases in inspection workload in a timely manner, as they occur. On July 8, 1997 and December 16, 1997 the City Council approved Agreements with JAS Pacific, Inc. in the total amount of 965,000.00. Due to the anticipated continued heavy volume of construction workload it is necessary to continue these inspection services for the next fiscal year. FISCAL IMPACT: Upon approval of the 1998-99 Operating Budget, adequate funds will be available in "Temporary Help". ATTACHMENT: Agreement for Fiscal Year 1998-1999 R: IBROCKMEI~4GENDA iJAS98. WPD 1 6/17/98 CITY OF TEMECULA AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of July 1. 1998, between the City of Temecula, a municipal corporation ("City") and JAS Pacific. Inc., ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on July 1. 1998 and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30. 1999. unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultam shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 3. PERFORMANCE. Consultant shall at all times faithfully, competerely and to the best of his or her ability, experience, and talere, 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 her eunder in meeting its obligations under this Agreement. 4. PAYMENT. a. The City agrees to pay Consultant monthly, in accordance with the paymere rates and terms and the schedule of paymere as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spem on the above tasks. This amoum shall not exceed thirty thousand dollars ($30,000.00) for the total term of the Agreemere unless additional paymere is approved as provided in this Agreemere. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreemere which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultam shall be compensated for any additional services in the amoums 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 not to exceed ten percem (10%) of the amoum of the Agreement, but in no evem shall such sum exceed ten thousand dollars ($10,000.00). Any additional work in excess of this amoum shall be approved by the City Council. c. Consultam will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, for services provide d in the previous month. Paymere shall be made within thirty (30) days of receipt of each invoice R:\BROCKMEI\AGMTS'dASI.WPD 6/15/98 cb -1- as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. e 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 3. 6. DEFAULT OF CONSULTANT. a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts therefrom as R:\BROCKMEI\AGMTS~JASI.WPD 6/15198 cb -2- 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, 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, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. c. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. 8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the sole negligence of the City. 9. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Errors and omissions liability insurance appropriate to the consultant's profession. Minimum Limits of Insurance. Consultant shall maintain limits no less than: R:\BROCKMEI\AGMTSkIASI.WPD 6/15/98 ¢b -3- (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Employer's Liability: $1,000,000 per accident for bodily injury or disease. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. (2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. R:\BROCKMEI\AGMTSXJASI.WPD 6/15/98 cb -4- Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.' f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees or agents 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 State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. R:\BROCKMEI\AGMTS~JAS1.WPD 6/15/98 cb -5- 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 thereunder 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: To City: City of Temecula 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Consultant: JAS, Pacific, Inc. 320 S. Milliken, Ste. C Ontario, CA 91761 Attn: Jason Smith 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. Because of the personal nature of the services to be rendered pursuant to this Agreement, only JAS. Pacific. Inc. shall perform the services described in this Agreement. JAS, Pacific. Inc. may use assistants, under their direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of Assistant from Consultant's employ. Should he or she leave Consultant's employ, R:\BROCKMEI\AGMTS~JASI.WPD 6/15/98 cb -6- the city shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. 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 jurisdiction over the City of Temecula. 17. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this' Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 18. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of 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. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By Attest: Ronald H. Roberts Mayor Susan W. Jones, CMC Acting City Clerk R:\BROCKMEI\AGMTS~JASi.WPD 6/15/98 cb -7- Approved As to Form: Peter M. Thorson City Attorney CONSULTANT JAS PACIFIC, INC. By Jason Smith R:\BROCKMEI\AGMTS'dAS1.WPD 6/15/98 cb -8- EXHIBIT A TASKS TO BE PERFORMED Perform combination building inspection on an as-needed basis. R:\BROCKMEI\AGMTS\JAS1.WPD 6/15/98 cb -9- EXHIBIT B PAYMENT SCHEDULE For and in consideration of the Contractor's services, inspection services shall be provided at the rate of $29.00 per hour, plus $.30 per mile for each mile accumulated while performing inspection services for the City. Should the City provide vehicular transportation for Contractor's use, no fees shall be charged for mileage. R:\BROCKMEI\AGMTS~JAS1 .WPD 6/15/98 cb -10- ITEM 5 CITY ATTORNEY DIRECTOR OF FINAliCE CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council '~Herman D. Parker, Acting Director of Community Services June 23, 1998 Appeal of 1997-98 Temecula Parks/Street Lighting Tax: Temecula Creek Inn Golf Course - Request for Continuance. PREPARED BY: RECOMMENDATION:  /~eryl Yasinosky, Development Services Analyst. That the City Council: Approve the request for continuance off-calendar concerning the appeal of the Temecula Creek Inn Golf Course. BACKGROUND: On April 28, 1998 the City Council approved the appellant's request for continuance of the aforementioned appeal to the June 23, 1998, Council Meeting to allow the appellant additional time to identify improved golf course areas and specific parcel information within the subject property. However, due to unforseen delays in preparing the appeal, the appellant has been unable to provide staff with this information. As a result, a verbal request has been made from the appellant's representative, Larry Markham, of Markham and Associates, to continue this item off-calendar. It is staff's recommendation that the City Council approve this request in order to allow the appellant additional time to complete their submittal and allow staff the necessary time to review the information. FISCAL IMPACT: None. R: \yasinobk\agendas\temcrkin. con 042898 ITEM 6 A PPRO VA~,, ~,,-'""- CITY ATTORNEY DIRECTOR OF FINAI~,C'~ CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council ~erman D. Parker, Acting Director of Community Services June 23, 1998 Resolution Adopting FY 1998/99 Solid Waste Rates PREPARED BY: ~"~-Phyllis L. Ruse, Development Services Administrator RECOMMENDATION: That the City Council adopt a Resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SOLID WASTE RATES FOR FISCAL YEAR 1998/99 DISCUSSION: Pursuant to the existing solid waste franchise agreement with C R & R Incorporated the rates charged for refuse and recycling services in the City of Temecula are subject to annual review and modification. The franchise agreement provides for adjustments based upon changes in the Consumer Price Index (CPI) and Riverside County landfill tipping fees. The CPI increase as reported by the U.S. Department of Labor Bureau of Labor Statistics is 1.6%. The County of Riverside Waste Resources Management District has determined that there will be no tipping fee increase in FY 1998/99 at county landfills. The solid waste rates for fiscal year 1998/99 reflect the 1.6% CPI increase and no change in the tipping fee. The single family residential refuse and recycling collection rate was heard by the TCSD Board of Directors at the June 16, 1998 public hearing for the TCSD Rates and Charges for FY 1998/99. The attached Exhibit "D" reflects the new rates for solid waste collection for all collection services to become effective July 1, 1998. FISCAL IMPACT: The fee adjustments represent appropriate collection rates based on provisions in the solid waste franchise agreement. The franchised waste hauler will begin collecting the new fees as of July 1, 1998. No additional costs will be borne by the City of Temecula since these services are paid for directly by the customers receiving the services. Attachments: Resolution Exhibit "D" U.S. Department of Labor, Consumer Price Index r:\c\agendas\98swrates.cc RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SOLID WASTE RATES FOR FISCAL YEAR 1998/99 THE CITY COUNCIl, OF THE CITY OF TEMECULA DOES RESOLVE AS FOLLOWS: Section 1. declare that: The City Council of the City of Temecula does find, determine and a. The City of Temecula (the "City") and CR & R Incorporated ( the "Grantee") entered into an exclusive franchise agreement on May 28, 1991 for the collection, transportation, recycling, composting, and disposal of solid waste and construction debris and for providing temporary bin/rolloff services in the City. b. The franchise agreement provides for periodic rate adjustments based on certain predefmed criteria, specifically annual Consumer Price Index CCPI") adjustments and landfill tipping fee adjustments. c. The franchise agreement further provides a formula to calculate the fee adjustments to be made to the agreement on an annual basis. do The CPI adjustment is 1.6% for fiscal year 1998/99. There is no tipping fee adjustment for fiscal year 1998/99. The franchise agreement provides that the solid waste fee adjustments are to be adopted by the City Council by Resolution Section 2. That the City of Temecula approves the solid waste fee adjustments as shown in Exhibit "D" for fiscal year 1998/99. Resolution. Section 3. The City Clerk shall certify to the passage and adoption of the p:\rusep\98rate~w. rso of Temecula this PASSED, APPROVED, AND ADOPTED, by the City Council of the City day of , 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF TEMECULA ) SS I, Susan W. Jones, Acting City Clerk of the City of Temecula, California, do hereby certify that Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the ~ day of , 1998, by the following vote: AYES: C OUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS' p: \msep\98ratesw. rso CITY of TEMECULA Exhibit "D" Schedule of Rates (effective July 1, 1998) Mechanized single family detached residential collection, recycling, composting, transfer, and disposal grantee billing Monthly Rate: $ 14:.22 Mechanized single family detached residential collection, recycling, composting, transfer, and disposal parcel charge Monthly Rate: $ 14.22 Mechanized single family detached residential additional refuse, cornposting, and recycling container - grantee billing Monthly Rate: $ 5.41 Single family detached residential additional bulky item pick up - grantee billing Pick Up Rate: $ 6.54 Commercial. industrial, and multi-family residential refuse monthly bin rates ( one 2 cubic yard bin) with the following pick ups per week: 1 x week 2 x week 3 x week 4 x week 5 x week 6 x week 7 x week Compacted 2 Cubic Yard monthly rate: $ 64.18 $ 128.36 $ 192.54 $ 256.72 $ 320.90 $ 385.08 $ 449.26 2.5 x monthly rate Commercial, industrial, and multi-family residential refuse monthly bin rates (one 3 cubic yard bin ) with the following pick ups per week: 1 x week $ 74.22 2 x week $ 148.44 3 x week $ 222.66 4 x week $ 296.88 5 x week $ 371.10 6 x week $ 445.32 7 x week $ 519.54 Compacted 3 Cubic Yard monthly: 2.5xmonthly rate Commercial, industrial, and multi-family residential recvclinu monthly bin rates ( one 3 cubic yard bin ) with the following pick ups per week: 1 xweek $ 33.69 2xweek $ 67.38 3 x week $ 101.07 4 x week $ 134.76 5 x week $ 168.45 6 x week $ 202.14 7 x Week $ 235.83 Commercial, industrial, and multi-family residential refuse monthly bin rates ( one 4 cubic yard bin ) with the following pick ups per week: 1 x week $ 84.29 2 x week $ 168.58 3 x week $ 252.87 4 x week $ 337.16 5 x week $ 421.45 6 x week $ 505.74 7 x week $ 590.03 Compacted 4 Cubic Yard monthly rate: 2.5 x monthly rate Commercial, industrial, and multi-family residential recvclin~ monthly bin rates ( one 4 cubic yard bin ) with the following pick ups per week: 1 xweek $ 44.59 2 x week $ 89.18 3 x week $ ~133.77 4 x week $ 178.36 5 x week $ -222.95 6 x week $ 267.54 7 x week $ 312.13 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Temporary 3 cubic yard bin rate: Extra 3 cubic yard pick up: Redeliver and reinstatement rate: Roll-off disposal rate: Roll-off recycling rate: Roll-off compactor rate: Roll-off recycling compactor rate: "Hard to service" vehicle usage rate: "Hard to service" bin moving rate: Special bin lids (1ocking/CBL) rate: Deodorizing / replacing bin rate: $ 64.93 $ 33.63 $ 27.92 $148.74 + landfill/recycle fee $148.74 minus market value $ 297.48+ landfill/recycle fee $ 297.48 minus market value no charge no charge no charge no charge CITY OF TEMECULA Methodoloev The below methodology to pass through the CPI increase has been extracted from Exhibit "D", Section 21. Schedule of Rates 1. CPI: $14.04 per month x78% x 1.6% CPI = $. !8 Total Increase: $. 18 per month 2. Same as Number # 1 3. CPI: $5.34 per month x 78% x 1.6% CPI = $.07 Total Increase: $.07 per month 4. CPI: $6.46 per month x 78% x 1.6% CPI -- $.08 Total Increase: $:08 per month 5. CPI: $63.45 per month x 71.5% x 1.6% CPI = $.73 Total Increase: $.73 per month 6. CPI: $73.38 per month x 71.5% x 1.6% CPI = $.84 Total Increase: $.84 per month 7. CPI: $33.31 per month x 71.5% x 1.6% CPI = $.38 Total Increase: $.38 per month 8. CPI: $83.34 per month x 71.5% x 1.6% CPI = $.95 Total Increase: $.95 per month 9. CPI: $44.09 per month x 71.5% x 1.6% CPI = $.50 Total Increase: $.50 per month 10. CPI: $64.20 per load x 71.5% x 1.6% CPI = $.73 Total Increase: $.73 per load 11. CPI: $33.25 per pick up x 71.5% x 1.6% CPI = $.38 Total Increase: $.38 per pick up 12. CPI: $27.60 per occurrence x 71.5% x 1.6% CPI = $.32 Total Increase: $.32 per occurrence 13. CPI: $146.40 per load x 1.6% CPI = $2.34 Total Increase: $2.34 per load 14. Same as Number # 13 15. CPI: $292.80 per load x 1.6% CPI = $4.68 Total Increase: $4.68 per load 16. Same as Number #15 BUREAU OF LABOR STATISTICS (415) 975-4567 03-83-98 Oa:a3p Page 08 ITEM 7 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 Acceptance of Irrevocable Offers of Dedication for recordation purposes for Grants of Easements for Tuscany Ridge Apartments PA97- 0089 (Margarita Road Easterly of Moraga Road) PREPARED BY: Ronald J. Parks, Deputy Director of Public Works Albert K. Crisp, Permit Engineer RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN IRREVOCABLE OFFERS OF DEDICATION OF GRANTS OF EASEMENTS FOR RECORDATION PURPOSES FOR STREET RIGHT OF WAY, BUS TURN OUT, AND STORM DRAIN PURPOSES FOR TUSCANY RIDGE APARTMENTS PROJECT PA97-0089 BUT NOT ACCEPTING THESE EASEMENTS AT THIS TIME. BACKGROUND: Public Improvement requirements for the Tuscany Ridge Apartments approved under PA97-0089, necessitated the dedication of easements to conform to the Circulation Element of the General Plan, the provision of a bus turn out, and the construction of a storm drain system. The Developer has submitted irrevocable offers of dedication of grants of easements to facilitate the installation of the required improvements and to provide public rights of access for street, public utility, and drainage facility installation and maintenance purposes. Staff recommends that the City Council accept the irrevocable offers of dedication for grants of easements for recordation purposes, but not accept the offers of dedication until the work is satisfactorily completed and recommended for improvement acceptance and inclusion in the City Street-Maintenance system. The easements and improvements will be accepted by the City Council when these conditions have been met. FISCAL IMPACT: None. R:~4GDRPTI98iO6231TUSCANYR. ID2 ATTACHMENTS: 1. Resolution 98- , with Exhibits "A" and Exhibits "B" 2. Location Map 3. Grant of Easement (On File) 2 R:tAGDRPT~98i0623i TUSCANYR. ID2 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ACCEPTING CERTAIN IRREVOCABLE OFFERS OF DEDICATION OF GRANTS OF EASEMENTS FOR RECORDATION PURPOSES FOR STREET RIGHT OF WAY, BUS TURN OUT, AND STORM DRAIN PURPOSES FOR TUSCANY RIDGE APARTMENTS PROJECT PA97-0089 BUT NOT ACCEPTING THESE EASEMENTS AT THIS TIME. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: WHEREAS, The City Council of the City of Temecula does hereby find, determine and declare that: A. City Staff has established the requirement for certain improvements as conditions of approval for the development of the Tuscany Ridge Apartment Project PA97-0089 B. As part of the construction of the required improvements it is necessary for the developer, The Spanos Corporation, a California Corporation, to provide easements for construction and access for maintenance purposes, C. The developer, The Spanos Corporation, a California Corporation, has submitted irrevocable offers of dedication for grants of easement for street fight of way, bus turn out, and storm drain purposes, WHEREAS, The City Council of the City of Temecula hereby desires to accept the irrevocable offers of dedication of Grants of Easements by The Spanos Corporation, a California Corporation, for recordation for street fight of way, bus turn out, and storm drain purposes as attached hereto as Exhibits "A" and Exhibits "B", but does not desire to accept the offers at this time. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula hereby accepts the irrevocable offer of dedication of Grants of Easements by The Spanos Corporation, a California Corporation, for recordation for street fight of way, bus turn out, and storm drain purposes, but does not accept the offers at this time. Council acceptance shall be by Resolution of the City Council. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 23rd day of June, 1998. Ron Roberts, Mayor 3 R:tAGDRPT198tO6231TUSCANYR. ID2 ATTEST: Susan W. Jones, CMC Acting City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 98- was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 23rd day of June, 1998, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 COUNCILMEMBERS: ABSENT: 0 COUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk 4 R:b4GDRPTI98106231TUSCANYR. ID2 EXEMPT RECORDING REQUESTED BY City of Temecula PER GOVT. CODE 6103 AND WHEN RECORDED MAIL TO City ofTemecula - City Clerk P.O. Box 9033.43200 Business Park Dr. Temecula, CA 92589-9033 MAlL TAX STATEMENTS TO City of Temecula P.O. Box 9033, 43200 Business Park Dr. Temecula, CA 92589-9033 IRREVOCABLE OFFER OF DEDICATION OF GRANT OF EASEMENT The undersigned. being the present title owner(s) of record of the herein described parcel of land. do hereby make an irrevocable offer of dedication to the City ofTemecula a political subdivision of the State of California, and its successors or assigns, for easements for street right-of-way, bus turn-out. and storm drain purposes. the real property situated in the City of Temecula, County of Riverside. State of California, described in Exhibits "A" (written description) and shown on Exhibits "B" (plat map) attached hereto and by this reference made a part hereof. It is understood and at, reed that the Ci~ of Temecula and its successors or assigns shall incur no liability with respect to such offer of dedication. arid shall not assume any responsibility for the offered parcel of land or any ~mprovements thereon or therein. until such offer has been accepted l~y appropriate action of the City Council. or of the local governing bodies or its successors or assigns. The provisions hereof shall inure to the benefit of and be binding upon heirs, successors. assigns and person representatives of the respective parties hereto. SEE NEXT PAGE FOR SIGNATURES IN WITNESS THEREOF, these presents have executed this instrument this ~ day of , 199 STATE OF CALIFORNIA } SS. COUNTY OF RIVERSIDE} On . before me the undersigned. a Notary Public in and for the State of California, personally appe, ated personally known to me for proved to me on the basis of satisfactory evidence to be the person(s)) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies~ and that by his/her/their signature(s) on the instrument. the person(sl or the entity upon behalf of which the persontsl acted. executed the instrument. WITNESS my hand and official seal. Signature ACCEPTANCE CERTIFICATE This is to certify, that the interests in real property, as set forth in the irrevocable Offer to Dedicate to the City ofTemecula. a municipal corporation, is hereby accepted for purposes of recordation bv order of the City Council on and City consents to the recordation thereof by its duly authorized officer wlth the understanding that the City does not, at this time. accept the offer of dedication. DATED: City of Temecula By: ATTEST: Ron Roberts, Mayor BY: Susan W. Jones. CMC. Acting City Clerk F:UOBDATA\FORMS~ASEMENT.TEM By: TIlE SPANOS CORPORATION a Califomia Corporation It~ y By: Vj./~ ~ '- Its: ?.~.~_.t S ~4 T' BENEFICIARY: By: Its: By: Its: By: Its: IN WITNESS THEREOF, these presents have executed this instrument this II day of [J [/~'~Q"~ , 199__~_ STATE OF CALIFORNIA } SS. COUNTy OF RIVER~IDF~ On ,I IJ[Ih~' lt, Id~ ~t~. belbre me the undersigned a Notary Public in and f~ khe.Sta, t~ of.q'ulitbrnia.- personally appeared personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(its) and that by his/her/their signature(s) on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Signature t.,4J ~, xlff ~,'"q~ I [ . i,..,.~~ KENDRA L KELLEY, Notary Public - Nevada Clark County My appt. exp. Feb. 17, 1999 IN WITNESS TttEREOF, these presents have executed this instrument this __day of , 199 STATE OF CALIFORNIA } SS. COUNTY OF RIVERSIDE} On , before me the undersigned, a Notary Public in and/br the State of California, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence to be the person(s)) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature F:LIOBDATA\FORMSXEASEMENT.TEM EXHIBIT "A" MAY 81 CITY OF ENGINEERING DEPARTMb, STORM DRAIN EASEMENT A portion of Lot 27, as shown on Tract Map 3334, on file in Book 54, Pages 25 thru 30, of Maps, Records of Riverside County, State of California, lying within Rancho Temecula, also being within the City of Temecula, County of Riverside, State of California and more particularly described as follows: COMMENCING at the most Westerly comer of said Lot 27, said comer being on the Southerly 44.00 foot half-width sideline of Margarita Road, per said map; THENCE along the Westerly line of said Lot 27, South 16° 17'31" East, 11.00 feet, to a point being the beginning of a non-tangent 1655.00 foot radius curve concave Northwesterly, a radial bears South 16 °17'31" East, said point also being the TRUE POINT OF BEGINNING; THENCE Northeasterly along the arc of said curve, through a central angle of 3 ° 18'04", a distance of 95.36 feet; THENCE South 47°03'35" West 106.63 feet to the Westerly line of said Lot 27; THENCE along said Westerly line North 16 ° 17'31" West 45.08 feet to the TRUE POINT OF BEGINNING. Containing 0.05 acres, more or less. Thomas G. Harrington, L.-:S~. ¢~41 License Expires 9-30-00 Date: O1 leas.lgl EXHIBIT 'B' P.O.B.-- \ ~'~ \ \ \ \ NO. DIRECTION DISTANCE LI N 47'03'35' E 106.63 L2 N 16'17'31' W 45,08 RAD L3 N 16'17'31' W I1,00 RAD NO, DELTA RAOIUS LENGTH CI 3°18'04' 1655.00 95.36 EXHIBIT 'B' STORM DRAIN EASEMENT /usr/pt o Jd~t ~/r_grp/d_13011/OIIplt 2.d~n RICK ENGINEERING COMPANY CIVIL ENGINEERS SURVEYORS PLANNERS 3050 CHICAGO AVE., SUITE I00. RIVERSIDE. CA 92507 SCALE i'=200' ~ DATE FEBRUARY 12. 1998 PLOT DATE: 12-MAY-1998 JN 13011 EXHIBIT "A" RIGHT OF WAY DEDICATION A portion of Lot 27, as shown on Tract Map 3334, on file in Book 54, Pages 25 thru 30, of Maps, Records of Riverside County., State of California, lying within Rancho Temecula, also being within the City of Temecula, County of Riverside, State of California and more particularly described as follows: BEGINNING at a point being the most Westerly comer of said Lot 27, said point being on the Southerly 44.00 foot half-width sideline of Margarita Road, said point also being the beginning of a non-tangent 1644.00 foot radius curve concave Northwesterly, a radial bears South 16°17'31" East; THENCE Northeasterly along said sideline and the arc of said curve, through a central angle of 23 °56'20" a distance of 686.88 feet; THENCE South 37° 14'52" East a distance of 11.01 feet, to the beginning of a non-tangent 1655.00 radius curve, concave Northwesterly, a radial bears South 40© 12'39" East; THENCE Southwesterly along the arc of said curve, through a central angle of 23 o 55'08", a distance of 690.91 feet to the Westerly line of said Lot 27; THENCE along said Westerly line North 16 °17'31" West 11.00 feet to the POINT OF BEGINNING. Containing 0.17 acres, more or less. Thomas G. Harrington, L.S. 5441 License Expires 9-30-00 Date: 01 leas.lgl EXHIBIT 'B' P.O.B.-- \ \ LI 0 A?N 92J-370-002 / A?N 92]-370-003 ~ 333z} 25-30 27 TRACT LOT LOT 26 LOT 25 NO. DIRECTION DISTANCE LI N 37°14'52' W I1.01 RAD L2 N 16°17'31' W I1.00 RAD EXHIBIT 'B' RIGHT OF WAY DEDICATION /usr/projdat o/r_grp/d_13011/OIIpltl.dgn RICK ENGINEERING COMPANYi CIVIL ENGINEERS SURVEYORS PLANNERS 3050 CHICAGO AVE., SUITE I00, RIVERSIDE. CA 92507! SCALE 1':200' I DATE 2-10-98 PLOT DAT£= 12-MA¥-1998 JN 1301 EXHIBIT "A" BUS TURN OUT EASEMENT A portion of Lot 27, as shown on Tract Map 3334, on file in Book 54, Pages 25 thru 30, of Maps, Records of Riverside County, State of California, lying within Rancho Temecula, also being within the City of Temecula, County of Riverside, State of California and more particularly described as follows: COMMENCING at the most Westerly comer of said Lot 27, also being on the Southerly 44.00 foot half-width sideline of Margarita Road, per said map; THENCE South 16°17'31" East 11.00 feet, to a non-tangent 1655.00 foot radius curve concave Northerly to which a radial bears South 16 ° 17'31" East; THENCE Northeasterly along the arc of said curve through a central angle of 12 °41'41" a distance of 366.69 feet to the TRUE POINT OF BEGINNING; THENCE continuing Northeasterly along the arc of said 1655.00 foot radius curve through a central angle of 4°25'12" a distance of 127.67 feet to a point of cusp with a non-tangent 38.33 foot radius concave Southeasterly to which a radial bears North 41 °03'04" West; THENCE Westerly along the arc of said curve through a central angle of 17°37'21" a distance of 11.79 feet to the beginning of a non-tangent 61.67 foot radius reversing curve concave Northwesterly, a radial bears North 58 °40'24" West; THENCE Southwesterly along the arc of said curve through a central angle 26 °36'37" a distance of 28.64 feet to the beginning of a tangent compound 1664.67 foot radius curve concave Northwesterly, a radial bears South 32 °03'47" East; THENCE Southwesterly along the arc of said curve through a central angle of 1 °43'59" a distance of 50.35 feet to the beginning of a tangent compound 61.67 foot radius curve concave Northwesterly, a radial bears South 30 ° 19"48"East; THENCE Southwesterly along the arc of said curve through a central angle of 26°36'37" a distance of 28.64 feet to the beginning of a non-tangent reversing 38.33 foot radius curve concave Southerly, a radial bears North 03 °43'11" East; THENCE Westerly along the arc of said curve through a central angle of 17°37'21" a distance of 11.79 feet to the TRUE POINT OF BEGINNING; Containing 0.022 acres, more or less. ~"~oi~as'Gi i-Iarrington, L.~441 License Expires 9-30-00 Date: \ P.O,C.-- \ EXHIBIT \ \ \ 'B' A?N 921-370- 002 TRACT LOT LOT 26 No. DIRECTION DISTANCE LI N 16°17'31' W fl.00 RAD EXHIBIT 'B' BUS TURNOUT EASEMENT lust/pt o Jdo,a/r_grp/d_13011/OIIDIt 3,don SEE DETAIL APN --'22 ]-370-003 3334 2o-30 -' _ o. LOT 25 No. DELTA RADIUS LENOTH CI 17'37'21' 38.33 11.79 C2 26'36'37' 61.67 28.64 C3 1'43'59" 1664.67 50.35 C4 26'36'37' 61.67 28.64 C5 17'37'21' 38.33 II.79 C6 4'25'12' 1655.00 127.67 RICK ENGINEERING COMPANY CIVIL ENGINEERS SURVEYORS PLANNERS 3050 CHICAGO AVE., SUITE I00, RIVERSIDE, CA 92507 SCALE 1'=200' I DATE 2-10-98 ~( ~T r~kT~. '~I_IIAV-IO(~(3 Ikl I"~AII ITEM 8 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE/' CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 SUBJECT: Professional Services Agreement with Albert A. Webb Associates for Construction Contract Administration for the Old Town Streetscape Project - Project No. PW97-05 PREPARED BY: .~illiam G. Hughes, Senior Engineer - Capital Projects John Pourkazemi, Associate Engineer - Land Development RECOMMENDATION: That the City Council: Approve a Professional Services Agreement with Albert A. Webb Associates for Construction Contract Administration and Inspection Services for the Old Town Streetscape Project, Project No. PW97-05 in the amount of $206,395.00 and authorize the Mayor to execute the contract. Authorize the City Manager to approve change orders not to exceed the contingency amount of $20,639.50 which is equal to 10% of the contract amount. BACKGROUND: On June 11, City Council awarded a construction contract to Valley Crest Landscape, Inc. to construct the Old Town Streetscape project. This project will require special attention to minimize field conflicts, resolve coordination issues and attend to our merchants needs. Albert A. Webb Associates is familiar with the design, project constraints and merchant needs. To assure that the Old Town Streetscape Project is completed timely and with minimum impact on the merchants, it is recommended that the construction contract administration and inspection services be conducted by the design engineers Albert A. Webb Associates. FISCAL IMPACT: This project is a Capital Improvement Project funded through Redevelopment Agency bond proceeds. Adequate funds are available for this agreement of $206,395.00 and the contingency amount of 820,639.50 for a total agreement cost of $227,034.50 in account No. 280-199-824-5804. ATTACHMENT: Agreement Albert A. Webb Associates, Scope of Services and Manpower Estimates R:IA GDRPT'I98106231PR097-05. WEB,/ejp CITY OF TEMECULA PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION CONTRACT ADMINISTRATION OLD TOWN STREETSCAPE PROJECT PROJECT NO. PW97-05 THIS AGREEMENT, is made and effective as of June 23, 1998, between the City of Temecula, a municipal corporation ("City") and Albert A. Webb Associates, ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. ~RM. This Agreement shall commence on June 23, 1998, and shall remain and conlinue in effect until tasks described herein are completed, but in no event later than June 23, 1999, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the 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 times faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. PAYMENT. a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed Two Hundred Six Thousand Three Hundred Ninety Five Dollars and No Cents ($206,395.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City 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 not to exceed ten percent (10%) of the amount of the Agreement, but in no event shall such sum exceed ten thousand dollars ($10,000.00). Any additional work in excess of this amount shall be approved by the City Council. c. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all nondisputed fees. If the City disputes any of consultant's fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. - 1 - r: \cip\projects\pw97\pw 97-05 \webb. agr/ajp 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 lifts 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 3. 6. DEFAUI,T OF CONSUI.TANT. a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS. a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consullant 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 therefrom 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, 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, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. c. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. -2- r: \cip\projects\pw97\pw97-05\webb. agr/ajp 8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence of the City. 9. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Errors and omissions liability insurance appropriate to the consultant's profession. b. Minimum l.imits of Insurance. Consultant shall maintain limits no less than: General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Empioyer's Liability: $1,000,000 per accident for bodily injury or disease. (4) Errors and omissions liability: $1,000,000 per occurrence. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or -3- r: \cip\projecls\pw97\pw97-05\webb.agr/ajp automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. (2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. f. Verification of Coverage. Consultant shall furnish the City with original endorsements eftcoting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR. a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all limes be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees or agents 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. IJEGAL RESPONSIBILITIF$. The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. -4- r:\cip\projects\pw97\pw97-05\wcbb.agr/ajp 12. REI.EASE 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 thereunder 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: To City: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Consultant: Albert A. Webb Associates 3788 McCray Street Riverside, CA 92506 Attention: Wally Franz, P.E. (909) 686-1070 -5- r:\cip\projects\pw97\pw97-05\webb.agr/ajp 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. Because of the personal nature of the services to be rendered pursuant to this Agreement, only Wally Franz, P.E. shall perform the services described in this Agreement. Wally Franz, P.E. may use assistants, under their direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of Wally Franz, P.E. from Consultant's employ. Should he or she leave Consultant's employ, the city shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. 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 I.AW. 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 of litigation between the parties concerning this Agreement, the prevailing party as determined by the Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation. 17. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 18. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute fids Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA Ron Roberts, Mayor Attest: Susan W. Jones, CMC, Acting City Clerk -6- r:\cip\projects\pw97\pw97-O5\webb.agr/ajp Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT Albert A. Webb Associates 3788 McCray Street Riverside, CA 92506 (909) 686-1070 By: -7- r:\cip\projects\pw97\pw97-05\webb.agr/ajp EXHIBIT A TASKS TO RE PERFORMED -8- r: \cip\projecta\pw 97\pw97-05 \webb. agr/ajp Monday June 15, 1998 5:33am -- Fro~ '909 788 1256' -- Page 08/15/98 ]ION 08:12 FAX 909 788 1256 A A WEBB ASSOC ~1002 SECTION 4 PROJECT APPROACH AND PROPOSED SCOPE OF SERVICES BASIC APPROACH Webb Associates' basic approach to construction management for public works projects centers around the Project Manage', who will be involved throughout aH phaaes of the construction and who will be the primary contact for the City and for the Contractor. The Project Manager will have the responsibility of assigning and d~Iegating, if appwpfiatc, separate rusks to other Webb Associates' personnel, City, City Consultants, and Design Engineer personnel involved in the project. The project manager's responsibilities include review of partial pay estimates, change orders, Contmetor's submittals, drawings, utility coordination, survey requests, material testing coordination and requests for clarification or information (RFI - "Request for Information"). PROJECT APPROACH The general scope of services, duties, and project guidelines is shown in the following section and provides a list of the services that will be provided by Webb Associates. This generali?ed project approach is provided as follows and is an "overview" of Webb Associates' approach to this construction project. Our project approach is divided into three phases: Preconstmcfion Services, Construction Services, and Project Closeout. Preconstruction Services Project site investigation (walk project limits). Thorough review of project plan~ and specifieafiong with emphasis on "eonstmetability" of the design baaed upon Webb Associates construction expertise. - Verification of possession of all required R-O-W, agency permits, etc. · Preliminary contact/coordination with affected utilifies/agenciedpmperty OWI1CPS. · Assist City in the review of Contract Documents submitted by the Contractor for conformance with the requirements of the Specifications. 44 AlbertA. Webb Associates IMonday June 15, 1998 5:33am -- From '909 788 1256' -- Page 06/15/98 MON 08:13 FAX 909 788 1256 A A WEBB ASSOC [~003 Attend preconsmacfion conferences. Arrange a schedule of progress meetings and other job conferences as required in consultation with the City, and notify those expected to _sUerid in advance. * Review the construction achedMe prepared by h~e Contractor for compliance with the Conlract and give advice to the City concerning its acceptability. Coordinate others for the Checking of all shop drawings, diagrams, illustrations, schedules, samples and other data which the City is required to submit and make recommc-mdafions thereon_ Construction Services · Video and "still" photographic documentation of project site at the start of construction. - Consult and advise with the City and act as his representative in dealings with the Contractor as directed. * Issue h~trucfions of the City to the Contractor. · Monitor Contmctor's eomplian~ with all Federal, State and local laws and regulations applicable to the work including NPDES and SWPPP compliance. Make recommendations in writing to the City regarding requests of lite Contractor for moditications in the plans or specifications. · Prepare change orders as required,. and, after approval by the City, provide for proper execution thereof. Coordinate the construction staking, and testing required for performance of the work and perform all construction inspection work. · Monitor the Contractor's traffic control and safety provisions. Perform on-site observations of the work in progress for the City as a basis for determining that the project is proceeding in accordance with the Contract Documents and on schedule. Assist the City in the interpretation of Contract Documents and deliver the City's interpretations to the Contractor. Prepare the daily construction inspection reports Ibr the project work. 9v~,.~0~s~ 4-2 Albert ~. ~Vebb Associates IMonday June 15, 1998 5:33am -- From '909 788 1256f -- Page 06/15/98 I!0N 08:13 FAX 909 788 1256 A A WEBB A$SOC ~004 Furnish the City with periodic reports as required of progress of the project and the Contractor's compliance with the approved construction schedule. Review weekly reports of the status of conWact working days. Prepare the Contractoffs monthly progress estimates and forward ~em to the City for payment. Assist the City in responding to Contracmr's construction claims. Recommend to the City the stoppage of work or the requiremere of special examination or testing whenever it is necessary or advisable to insure the proper carrying out of the intent of the Contract Documents. Cooperate with the City and Contractor in dealings with the various local agencies having jurisdiction over the project and with the various utilities pertbrming work in the project in order to facilitate completion of the work. Maintain orderly project files for correspondence, reports of job conferences, shop drawings and other submittals, reproductions of ori~naI Contract Docmnents including all addenda, change orders and additional drawings issued subsequent to the award of contract, the Ciofs interpretations of the Contract Documents, inspection reports, test reports, progress reports and other project related documents. Coordinate effective pedestrian and traffic access. Act as public liaison with local property owners and businesses. Provide all engineering and plan revisions necessary to interpret, modify or detail contract plans and specifications. Review all hardware, fixtures. workmanghip, materiMs and supplieg to ensure compliance with the Coaltact Plans and Specifications. Furnish weekly written reports (Friday at noon) of the projcct's progress, the following week activities, and the contractor's compliance with the approved construction schedule. Coordinate and ensure safe and reasonable pedestrian and ~raftic control to all merchants during business hours. Respond to all City, merchant and property owner demands to ensure access and site cleanliness to the satisfaction of the merchants. 4-3 Albert.4. IVebb ~4ssociates lMonday ,~une 15, 1998 5:33am -- From '909 788 ~256' -- Page 51 06/15/98 !iON 08:14 FAX 909 788 1.256 A A WEBB A$SOC I~1005 Provide immediate written notification to merchants of disruptions to access. The writtea notice shall dcscribc clearly the typ~ of disruption and pcriod of time. · Provide contiguous 24-hour telephone accessibility. Closeout of Project Prior to final inspection, assist the City in prepaxing and submitting to Contractor a list of ob~rved items requiring correction and verify that each corrcction has [men made. - Maintain a ILs-t, including addresses and telephone numbers, of all Contractors, subcontractors, major material suppliers and utility contracts. - In company with the City, the Contractor and other agency inspectors, perform final inspection of the project. · Assist the City in preparation of ~Noticc of Completion." · Perform such other project related duties as may be required by the City. Albert /f Webb Associates 06~.'09/98 TI.~ 08:39 FAX 909 788 1256 A A ~EBB ASSOC ~002 ITEM 9 APPROVAL CITY ATTORNEY CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: City Manager/City Council (~Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 SUBJECT: Professional Geotechnical Services Agreement for Old Town Streetscape Project - Project No. PW97-05 PREPARED BY: ,~Villiam G. Hughes, Senior Engineer - Capital Projects RECOMMENDATION: That the City Council: 1. Approve a Professional Geotechnical Services Agreement with C.H.J., Incorporated in an amount not to exceed $30,000.00 for geotechnical investigation of the storm drain and street pavement structural sections for the Old Town Streetscape Project, Project No. PW97o 05, and authorize the Mayor to execute the contract. 2. Authorize the City Manager to approve change orders not to exceed the contingency amount of $3,000.00 which is 10% of the contract amount. BACKGROUND: On June 11, the City Council awarded a construction contract to Valley Crest Landscape, Inc. to construct the Old Town Streetscape Project. This special Service Agreement will provide for the construction soil testing. C.H.J, Incorporated preformed the initial soils studies for this project. FISCAL IMPACT: This is an RDA Capital Improvement Project and is funded with existing RDA bond proceeds. Adequate funds are available for the contract amount of $30,000.00 and the contingency amount of $3,000.00 for a total contract cost of $33,000.00 in Account No. 280-199-824-5804. ATTACHMENT: 1. Professional Geotechnical Services Agreement R: IA GDRPT19,910623~PW9 ?-05. GEO/ajp CITY OF TEMECULA AGREEMENT FOR PROFESSIONAL GEOTECHNICAL SERVICES OLD TOWN STREETSCAPE PROJECT PROJECT NO. PW97-05 THIS AGREEMENT, is made and effective as of June 23, 1998, between the City of Temecula, a municipal corporation ("City") and C.H.J., Incorporated, ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM. This Agreement shall commence on June 23, 1998, 1998, and shall remain and continue in effect until tasks described herein are completed, but in no event later than March 1, 1999, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES. Consultant shall perform the 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 times faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. PAYMENT. a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed Thirty Thousand Dollars and No Cents ($30,000.00) for the total term of the Agreement unless additional payment is approved as provided in this Agreement. b. Consultant shah 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 not to exceed ten percent (10%) of the amount of the Agreement, but in no event shall such sum exceed ten thousand dollars ($10,000.00). Any additional work in excess of this amount shall be approved by the City Council. c. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all nondisputed fees. If the City disputes any of consul~mt's fees it shall give written notice to Consultant within 30 days of receipt of a invoice of any disputed fees set forth on the invoice. -1- r: \¢ip\projects\pw97\pw97-05 \¢hjgeo. agr/ajp 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 3. 6. DEFAULT OF CONSUI.TANT. a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNE. RSHIP 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 therefrom 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 complelion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, 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, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. c. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant. -2- r:\cip\projects\pw97\pw97~O5\chjgeo.agr/ajp 8. INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence of the City. 9. INSURANCE REQUIREMENTS. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Errors and omissions liability insurance appropriate to the consultant's profession. b. Minimum I,imits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Employer's Liability: $1,000,000 per accident for bodily injury or disease. (4) Errors and omissions liability: $1,000,000 per occurrence. c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City Manager. At the option of the City Manager, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Other ln,mrance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) The City, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or -3 - r:\cip\projects\pw97\pw97-O5\chjgeo. agr/ajp automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. (2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. (3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees or volunteers. (4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. e. Acceptability of Imurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed 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 eftcoting 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 or agents 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. I.EGAI. RESPONSIBII,ITIES. The Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. -4- r: \cip\projecls\pw97\pw97-05\chjgeo.agr/ajp 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 thereunder 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 opporlnnity 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: To City: City of Temecula Mailing Address: P.O. Box 9033 Temecula, California 92589-9033 43200 Business Park Drive Temecula, California 92590 Attention: City Manager To Consultant: C.H.J. Incorporated Mailing Address: P.O. Box 231 Colton, California 92324 1355 E. Cooley Dr. Colton, California 92324 Attn: Robert Johnson, P.E. -5- r: \cip\projecla\pw97\pw97-05\chjgeo.agr/ajp 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. Because of the personal nature of the services to be rendered pursuant to this Agreement, only Robert Johnson P.E. shall perform the services described in this Agreement. Robert Johnson, P.E. may use assistants, under their direct supervision, to perform some of the services under this Agreement. Consultant shall provide City fourteen (14) days' notice prior to the departure of Robert Johnson, P.E. from Consultant's employ. Should he or she leave Consultant's employ, the city shall have the option to immediately terminate this Agreement, within three (3) days of the close of said notice period. 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. I,ICENSES. 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 I,AW. 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 lake place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event of litigation between the parties concerning this Agreement, the prevailing party as determined by the Court, shall be entitled to actual and reasonable attorney fees and litigation costs incurred in the litigation. 17. ENTIRE AGREE1VIF~NT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 18. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute lifts Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By Ron Roberts, Mayor Attest: Susan W. Jones, CMC, Acting City Clerk -6- r: \cip\projecta\pw97\pw97-O5\¢hjgeo.agrlajp Approved As to Form: Peter M. Thorson, City Attorney CONSULTANT C.H.J. Incorporated P.O. Box 231 Colton, CA 92324 (909) 824-7210 Robert Johnson, P.E., Senior Vice President -7- r: \cip\projects\pw97\pw97-05\chjgeo. agr/ajp EXHIBIT A TASKS TO BE PERFORMED -8- r: \cip\projects\pw97\pw97- 05\chjgeo. ag r/ajp INCORPORATED P.O. Box 231 · 1355 E. Cooley Dr., Colton, CA92324 · Phone(909) 824-7210 · Fax(909) 824-7209 May 21, 1998 RECEIVED MAY 2 6 1998 CITY OF TEMECULA ENGINEERING DEPARTMENT City of Temecula Department of Public Works 43200 Business Park Drive Temecula, California 92589-9033 Attention: Mr. Bill Hughes Subject: Geotechnical Services Old Town Streetscape Project Project No. PW97-05 Dear Mr. Hughes: Thank you for the opportunity to review the "Plans, Specifications, and Contract Documents" for the Old Town Streetscape Project. It appears that the project will be a high visibility project which should revitalize the image of the City of Temecula in a very positive manner. As you know, C.H.J., Incorporated has prepared the geotechnical investigation for the storm drain and the street pavement structural sections. It has been a pleasure providing geotechnical services for the preliminary stage of the project, and we would appreciate the opportunity to provide geotechnical and materials testing services for the remainder of the project. Due to the central location of the project and the desire of the City of Tem¢cula to avoid undue inconvenience to merchants and property owners, we anticipate that the project will be handled on a priority basis with the time frame being of the utmost importance. C.H.J., Incorporated has the SOILS ENGINEERING "' GEOLOGY · ENVIRONMENTAL · MATERIALS TESTING & EVALUATION · CONSTRUCTION INSPECTION City of Temecula Page No. 2 May 21. 1998 man power and expertise to provide the required services in an expeditious, reliable and professional manner. Our review of the Plans and Specifications for the project indicate that geotechnical and materials testing services may be necessary for the following items. Storm Drain: It is anticipated that, from a geotechnical perspective, the storm drain will require observation of the backfill procedures, compaction testing and laboratory testing, such as maximum density-optimum moisture content determinations, sieve analysis and sand equivalent testing. In addition, materials testing may be necessary for the concrete and any reinforcing steel. Street Subgrade and Aggregate Base: The reconstruction of the street pavement will involve verification of the R-value quality of the final subgrade soils, compaction testing of the subgrade soils, as well as compaction testing of aggregate base materials. In addition, the City of Temecula may desire to have additional testing of the aggregate base materials in order to verify their suitability as a Class II Base. Street Pavement: In order to adequately monitor the paving operation, as a minimum, compaction testing of the asphalt concrete (A.C.) needs to be performed and the maximum density of the A.C. will need to be determined. In addition, other A.C. tests, such as extraction, gradation and oil content, may be desired. Concrete: Various items, such as driveway approaches, curb and gutter, sidewalks and headwalls, constructed of concrete may require a deputy inspector and laboratory compression testing. We feel that C.H.J., Incorporated is best qualified to provide the geotechnical and materials testing services for the Old Town Streetscape Project. If possible, we would like to meet with you at your convenience and discuss the details of a testing program for the Old Town Streetscape Project. We will call you within the next few days to arrange the meeting. City of Temecula Page No. 3 May 21, 1998 We look forward to working with you and seeing this project through to its successful completion. Should questions arise, please do not hesitate to contact us at your convenience. Respectfully submitted, C.H.J., INCORPORATED Ben.~illiams, Senior Staff Engineer / Robert J: Johnscan, G.E. Senior Vice PreSident BW/RJJ:bw/tlw EXHIBIT B PAYMENT SCHF, DUI ,E -9- r:\cip\projects\pw97\pw97-O5\¢hjgeo.agr/ajp INCORPORATED P.O. Box 231 · 1355 E. Cooley Dr., Colton, CA 92324 · Phone (909) 824o7210 · Fax (909) 824-7209 June 9, 1998 City of Temecula 43200 Business Park Drive Temecula, California 92589-9033 Attention: Mr. William Hughes Subject: Old Town Streetscape Project Dear Bill: Thank you for taking the time to meet with me. As we discussed, it is difficult to put an accurate price on a project such as this. So much is dependent upon the contractor's operations, the weather, and the cooperation. Based upon our conversation, I have enclosed a Schedule of Fees for your review. We propose to conduct our testing, generally in accordance with the Schedule of Fees, except that we have lowered our technician rate to $45.00 per hour. Concrete cylinders will be broken and reported for $15.00 each. Other laboratory tests will discounted 5 percent off of the published rate. I trust this information is sufficient. Should you have any questions or require more information, please do not hesitate to contact me. I look forward to working with you on this project and bringing it to a successful conclusion. R J J: tlw Enclosure: Schedule of Fees Sincerely, Senior Vice President SOILS ENGINEERING · GEOLOGY · ENVIRONMENTAL * MATERIALS TESTING & EVALUATION · CONSTRUCTION INSPECTION SCHEDULE OF FEES (EFFECTIVE JANUARY 1, 1998) INCLUDED IN THIS SCHEDULE OF FEES ARE COSTS FOR SERVICES AND TESTS COMMONLY PERFORMED BY THIS FIRM. OTHER SERVICES OR TESTS, AS WELL AS COSTS FOR THESE SERVICES OR TESTS, CAN BE SUPPLIED UPON REQUEST. C. It. J., INCORPORATED 1355 East Cooley Drive Colton, California 92324 909/824-7210 TABLE OF CONTENTS Page Professional Services and Support (Soil Engineering/Material Engineering/ Geology/Environmental) 1-2 Soil Engineering / Field Observation Services 3 Materials Engineering / Field Observation Services 4 Conditions and Working Hours for Deputy Inspectors 5-6 Laboratory Testing Services 7 - 14 PROFESSIONAL SERVICES AND SUPPORT Soil Engineering/Material Engineering/Geology/Environmental SERVICES RATE PER HOUR Principal Engineer Project Engineer/Geologist/Scientist (Registered/Review) Senior Staff Engineer/Geologist/Scientist (Calculations/Data) Environmental Assessor Staff Engineer/Geologist/Scientist (Field Management/ Project Coordination) Exploration Geologist (Exploratory Drilling/Logging) Drafting Typing/Clerical Litigation, Expert Witness & Preparation by Professional Engineer - 8 Hour M'mimum (Plus Expenses) Subsistence and Lodging - Per Day (Subject to Review for Specific Projects) 115.00 90.00 75.00 75.00 55.00 52.00 32.00 30.00 220.00 70.00 PREMIUM RATES (See Pages 5 and 6) Overtime iat Client's Request), add 25.00 -1- PROFESSIONAL SERVICES AND SUPPORT (continued) Soil Engineering/Material Engineering/Geology/Environmental SERVICES - OTHER Printing and Photographic Work Subcontract Services RATE PER HOUR Cost + 20% Cost + 20% ENVIRONMENTAL LABORATORY ANALYSIS Quotation FIELD EOUIPMENT Pick Up Truck and Automobile Mileage No Charge EXPLORATORY EOUIPMENT Drill Equipment Backhoe Cost + 20% Cost + 20% REPORTS - EXTRA COPIES Current Files (Not Over One Year Old) Minimum Service Charge,' Per Report Copies, Per Sheet Inactive Files (One Year or Older) Minimum Service Charge, Per Report Copies, Per Sheet 7.50 0.15 25.00 0.15 -2- SOIL ENGINEERING/FIELD OBSERVATION SERVICES SERVICES RATE PER HOUR Field/Laboratory Supervisor Senior Field/Laboratory Technician Field/Laboratory Technician Field Technician (Nuclear Gauge) Subsistence and Lodging - Per Day (Subject to Review for Specific Projects) Services Performed by Others 55.00 52.00 4o oo 70.00 Cost + 20% PREMIUM RATE (See Pages 5 and 6) Overtime (at Client's Request), add $ 18.00 NOTE: The hourly rates quoted above include all costs for field equipment and vehicle, for which our Client's will pay no additional fee. -3- MATERIAL ENGINEERING / FIELD OBSERVATION SERVICES SERVICES RATE PER HOUR Laboratory/Field Supervisor Senior Laboratory/Field Technician Laboratory/Field Technician Code Designated Deputy (Special) Inspector a. Concrete Batch Plant b. Field Concrete c. Masonry d. Reinforcing Steel e. Pre-stressed Concrete f. Shop Welding g. Field Welding h. Slmcmral Steel i. Field Gunire Non-Destructive Testing a. Ultrasonic b. Magnetic Particle c. Dye Penerrant d. Pachometer/Schmidt Hammer Services Performed by Others Pick Up Test Sample Premium Rates for Deputy (Special) Inspector (See Pages 5 and 6 for Details) a. Overtime, add $ 55.00 52.00 53.00 60.00 60.00 60.00 55.00 Cost + 20% 39.00 18.00 -4- CONDITIONS AND WORKING HOURS FOR DEPUTY (SPECIAL) INSPECTORS ADVANCE NOTICE: MINIMUM CHARGES: Twenty-four (24) hours advance notice required for scheduling inspector to report to designated job site. Show-up, no inspection performed I - 4 hours inspection performed Over 4 hours up to 6 hours Over 6 hours up to 8 hours 2 hours minimum 4 hours minimum 6 hours minimum 8 hours minimum CANCELLATION: COMPLETION: TRAVEL TIME / MILEAGE / SUBSISTENCE CHARGES: PARKING: REGULAR TIME: OVERTIME RATE: No charge, if made before 4:00 pm of the preceding day. Inspector will remain on job until discharged by competent authority. Depending on the physical distance of job site from our laboratory, charges will be applied as follows: (1) Within 40 mile radius - No mileage and no travel time will be charged. (2) Over 40 miles, but within 100 miles - Mileage will be charged at the rate of $ 0.45 per mile. (3) Over 100 miles - Mileage will be charged at the rate of $0.45 per mile and travel time will be charged at our regular hourly rate at the beginning and ending of each job duration. If subsistence and lodging are not furnished for inspector, pe.r-diem will be charged at the rate of $ 70.00 per day on a 7-day week basis for each job duration. When not furnished for the inspector, parking will be charged as paid by the inspector. First 8 hours, Monday through Friday. After 8 hours Monday through Friday and all hours on Saturday, Sunday and the following holidays. -5- HOLIDAYS: o 2. 3. 4. $. 6. New Years Day Memorial Day Independence Day Labor Day Thanksgiving and the day after Thanksgiving Christmas TERMS OF PAYMENT: Net - Invoices are for Professional Services and are due upon presentation. -6- LABORATORY TESTING SERVICES A full range of laboratory testing equipment is provided for testing of soil, aggregate, concrete, masonry, asphalt, and other consauction materials. Other services are also available upon request. Laboratory personnel consist of a Laboratory Manager and trained Laboratory Technicians. The testing of materials is conducted with the use of calibrated laboratory equipment. All work is performed under the supervision of Registered Professional Engineers. -7- ASTM Designation D 2345 D 3080 D 1557 / D 698 D 558 D 422 D 2216 D 2434 D 4318 D 2844 D 2419 C 136 C 117 D 1633 D 560 D 559 D 854 D 2488 SOILS Test Unit Chemical Analysis Each Consolidation Test - without time rates Each - with time rates Each Direct Shear Test - undisturbed Each - remolded Each Expansion Tests, U B C Method Each Maximum Density - Optimum Moisture Determination A S T M Method Each Cal Impact Method (CAL 216) Each Soil-Cement (1 cement content) Each Mechanical Analysis with Hydrometer Analysis Each Moisture Content Each Permeability Test (Constant Head) Each Plasticity Index (Plastic and Liquid Limit) Each R-Value Determination (Cal 301) Natural Soil Each Aggregate Base Each Lime or Cement Treated Soil Each Sand Equivalent (CAL 217) Each Sieve Analysis (Pit Run) Each Sieve Analysis Washed on No. 200 Sieve Each Soil Cement Molding & Compressire Set Strength Test (Set of 3 Specimens, I Cement Content) Soil Cement Molding and Freeze - Thaw Test (Set of 3 Specimens, 1 Cement Content) Set Soil Cement Molding and Wet - Dry Test (Set of 3 Specimens, 1 Cement Content) Set Specific Gravity Each Visual Classification Each Rate Der test Quotation $ 120.00 300.00 120.00 180.00 90.00 110.00 140.00 150.00 130.00 20.00 190.00 120.00 200.00 280.00 Quotation 50.00 80.00 50.00 315.00 500.00 500.00 75.00 18.00 -8- ASTM Desienation C 131, C 535 C 142 D 3744 C 123 D 4791 D 693 C 566 C 87 C 40 D 2419 C 136 C 136 C 117 C 235 C 88 C 127 C 128 C 29 D 422 C 289 C 295 C 1260 AGGREGATES Test Unit Abrasion Resistance (L.A. Rattler)(CAL 211) Each Clay Lumps and Friable Particles (CRD 142) Each Cleanness Value (CAL 227) Each Durability Index, Coarse (CAL 229) Each Durability Index, Fine (CAL 229) Each Lightweight Pieces Each Percent of Flat / Elongated Pieces (CRD 119) Each Percent of Flat / Elongated Particles (CRD 120) Each Percent of Crushed Particles (CAL 205) Each Moisture Content by Drying (CAL 226) Each Mortar Making Properties of Fine Aggregate Each Organic Impurities (Cal 213) Each Relative Mortar Strength to Ottawa Sand (Cal 515) Each Sand Equivalent (Cal 217) Each Sieve Analysis, (Pit Run) Each Sieve Analysis, Processed Coarse Each Sieve Analysis, Sands, Washed on #200 Sieve Each Soft Particles (Scratch Hardness) Each Soundness Test, Sodium Sulfate (CAL 214) Each Specific Gravity and Absorption, Coarse (Cal 206) Each Specific Gravity and Absorption, Fine (Cal 207) Each Unit Weight and Percent Voids (CAL 212) Each Percent of Clay, Hydrometer Method Each Potential Alkali Reactivity, Chemical Method Each Potential Alkali Reactivity, Petrographic Method Each Potential Alkali Reactivity, Rapid Mortar Bar Each Method Rate per test $ 110.00 90.00 80.00 200.00 120.00 90.00 80.00 160.00 60.00 20.00 315.00 45.00 315.00 50.00 80.00 45.00 50.00 50.00 200.00 50.00 95.00 53.00 105.00 Quotation Quotation 480.00 -9- ASTM Desimaation C 192 C 684 C 39 C 42 C 1084 C 567 C 78 C 174 C 469 C 157, C 341 C 496 C 642 C 227 C 856 CONCRETE Test Unit Concrete Mix Design (Excluding Aggregate Test) Each Review of Concrete Mix Design Each Concrete Trial Mix (each mix) Equipment and Labor Each Molding, Curing and Testing per Specimen 6" x 12" Cylinder Each 6" x 6" Flexural Beam Each Soecial Curin~ Process Hot Water Curing (per specimen) Each Rapid Curing, Boiling Water (per specimen) Each Compressive Strength, Concrete Cylinder (CAL 521) Each Compressive Strength, Concrete Core ' Each Compressive Strength, Gunite Cylinder Each Compressive Strength, Gunite Core Each Compressive Strength, Insulating Concrete Each Core Trimming (if needed) Each Cement Content (Chemical Method) Each Dry Unit Weight, Lightweight Concrete Each Dry Unit Weight of Insulating Concrete Each Flexural Strength, 6" x 6" Beam Each Length Measuring of Drilled Core Each Static Modulus of Elasticity Each Drying Shrinkage (set of 3, up to 28 days) Set Splitting Tensile Test Each Specific Gravity, Absorption, Voids in Hardened Set Concrete (Set of 3) Potential Alkali Reactivity of Cement-Aggregate Each Combinations (Mortar Bar Method) Petrographic Examination of Hardened Concrete Each Rate per Test 90.00 90.00 200.00 25.00 60.00 52.00 90.00 25.00 25.00 25.00 25.00 25.00 Quomtion 25.00 30.00 40.00 50.00 100.00 220.00 35.00 200.00 Quotation Quotation -10- ASTM Desienation C 67 C 140 C 426 C 270 C 476 C 109 C 942 C 42 E 447 MASONRY Test Brick Test (Set of 5 Specimens) 24-Hour Absorption, Cold Water 5- Hour Absorption, Boiling Water Compression Test Modulus of Rupture Concrete Block Test (Set of 3 Specimens) Moisture Content and Absorption Compression Test Unit Weight (including Dimension Measurement) Linear Drying Shrinkage (set of 3 Specimens) Mortar Mix Design (excluding Aggregate Test) Grout Mix Design (excluding Aggregate Test) Mortar Strength (2" cube or cylinder) Grout Prism Test (3" x 3" x 6") Trimming, included Masonry Core, Compression Test Masonry Core, Shear Test Masonry Core Trimming (if needed) Masonry Prism (Assemblage) 8" x 16" x 16" (Per Specimen) 12" x 16" x 16" (Per Specimen) Larger than 12" x 16" x 16" Unit Set Set Set Set Set Set Set Set Each Each Each Each Each Each Each Each Each Rate per Test 150.00 150.00 125.00 125.00 120.00 105.00 75.00 210.00 90.00 90.00 18.00 38.00 25.00 50.00 23.00 125.00 175.00 Quotation -11- ASTM Desimaation D 2172 D 1188, D 2726 D 5148 D 1074 D 1664 D 1559. D 1560 D 1561 C 128 D 2041 D 113 D 5 D 36 D 71 D 3407 D 1075 D 4867, T 283 D 1559 ASPHALT Test Asphalt Pavement Mix Design (Hveem Method) Asphalt Pavement Mix Design (Marshall Method) Asphalt Content by Extraction Asphalt Content by Ignition Oven (CAL 382) Asphalt Content and Gradation by Extraction Specific Gravity of Compacted Specimen (CAL 308) Centrifuge Kerosene Equivalent (CAL 303) Compressive Strength of Bituminous Mixture Film Stripping Test (Cal 302) Moisture Vapor Susceptibility (CAL 307) Marshall Stability and Flow Test Hveem Stability Value by Stabilometer (CAL 366) Kneading Compacted Maximum Density (CAL 304) Marshall Maximum Density Specific Gravity of Extracted Aggregates Swell Test (CAL 305) Theoretical Maximum Density of Asphalt Mixture (Rice's Method) Ductility of Bituminous Materials Penetration of Bituminous Materials Softening Point of Bituminous Materials Relative Density of Solid Pitch and Asphalt Resilience of Bituminous Materials Index of Retained S~'ength (set of 6) Tensile Strength Ratio (TSR Test)(set of 6) Retained Stability Test (set of 6) Unit Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Set Set Set Rate Der test Quotation Quotation $ 140.00 140.00 190.00 32.00 175.00 25.00 67.00 125.00 100.00 100.00 150.00 100.00 75.00 85.00 110.00 55.00 40.00 75.00 40.00 40.00 600.00 660.00 480.00 -12- ASTM Desienation A 421 A 416 A 325, A 490 E 18 E8 STEEL Test Reinforcine Steel Test: Tensile Strength and Elongation #I 1 bar and smaller #14 bar #18 bar (Proof Test) Bend Test, #11 bar and smaller Tensile Test Mechanically Spliced Bar #11 bar and smaller #14 bar and larger Structural Steel Test: Machining and Preparation of Test Specimen Tensile Strength and Elongation Up to 200,000 pounds 200,000 - 300,000 pounds 300,000 - 400,000 pounds Bend Test Prestressing Wire and Tendon Test: Tensile Strength, Single Wire Tensile Strength, 7-Wire Strand Bolt and Nut Test: Full Size Bolt Tension Test (1" and Smaller) Full Size Bolt Tension Test (Larger than 1") Nut, Proof Load Test (1" and Smaller) Nut, Proof Load Test (Larger than 1") Washer, Hardness Test Shear Stud Test (AWS D. 1.1 Type A and B) Welding Specimen Test: Ultrasonic Examination Machining and Preparation of Test Specimen Macroetch Test (3 faces) Reduced Section, Tensile Strength Bend Test Unit Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Each Rate per Test $ 35.00 60.00 80.00 35.00 100.00 150.00 Cost + 20% 35.00 60.00 80.00 35.00 50.00 95.00 25.00 45.00 18.00 35.00 15.00 40.00 60.00 Cost + 20% 45.00 35.00 35.00 -13- MISCELLANEOUS Test Calibration of Hydraulic Ram 100 Ton and under 101 Ton - 200 Ton Laboratory Equipment Use of 60,000 pound Universal (with one operator) Use of 400,000 pound Baldwin (with one operator) Additional Technician (when required) Roof Materials New Roof Membrane (ASTM D 3617)' Built-Up Roof Assembly (ASTM D 2829) Roof Tile (Breaking Strength & Absorption) (Set of 5 Specimens) Unit Each Each Hour Hour Hour Each Each Set Rate $100.00 120.00 100.00 200.00 49.00 180.00 250.00 225.00 Spray-Applied Fire Proof'rag In-Place Density (ASTM E 605) Each 50.00 P V C Conduit (ASTM F 512) Stiffness Test (per specimen) Flattening Test (per specimen) Crashing Resistance (per. specimen) Verification of Dimensions Impact Resistance (per specimen) Each Each Each Each Each 20.00 20.00 20.00 30.00 15.00 Coring (Concrete, Masonry, Gunite & AC Pavement) Equipment and Labor Bit Charge (per inch length of core) Additional Technician By Others Hour Each Hour 75.00 2.00 49.00 Cost+2~& -14- ITEM 10 APPROVAL CITY ATTORNEY DIRECTOR OF FINANC~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: City Manager/City Council  Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 SUBJECT: Solicitation of Construction Bids and Approval of the Plans and Specifications for the Winchester Road Sidewalk Project, Project No. PW97-19 PREPARED BY: ~Villiam G. Hughes, Senior Engineer - Capital Projects Scott Harvey, Associate Engineer RECOMMENDATION: That the City Council approve the Construction Plans and Specifications and authorize the Department of Public Works to solicit public construction bids for the Winchester Road Sidewalk Project, Project No. PW97-19. BACKGROUND: The City Council has approved the proposed Winchester Road Sidewalk Project in this year's Capital Improvement Program. The plans, specifications and contract documents have been completed and the project is ready to be advertised for construction bids. This project will provide a continuous sidewalk for the Chaparral High School students along the west side of Winchester Road from Margarita Road to 500 feet north of Rustic Glen Drive. The sidewalk from Margarita Road to Roriparugh Road may be revised based on the schedule of improvements that will be constructed by the developer of the property at the north east corner of Winchester Road and Margarita Road. Each fiscal year 2% of the Local Transportation Funds (SB821) in the County of Riverside are set aside for local agencies for the exclusive use of pedestrian and bicyclist facilities. This project was one of twenty proposals that the Riverside County Transportation Commission approved for funding. The estimated total cost for the construction is $115,000. SB821 will fund $72,800 and the City will pay the remaining through Capital Project Reserves. FISCAL IMPACT: This project is a Capital Improvement Project and the project will receive $72,800 from SB 821 funds which are administrated by the Riverside County Transportation Commission with the balance $42,200 funded through the Capital Project Reserves. These funds have been appropriated in Accounts No. 210-165-695-5804. ITEM 11 APPROVAL CITY ATTORNEY DIRECTOR OF FINAN~..~ CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Council Ronald E. Bradley, City Manager June 23, 1998 Amendment to Contract with David Turch and Associates PREPARED BY: Allie Kuhns, Senior Management Analyst~;~ RECOMMENDATION: That the City Council approve an amendment to the contract with David Turch and Associates which extends the contract period to June 30, 1999 and increases the annual contract amount to $28,000. BACKGROUND: During the May 27, 1997 meeting, the City Council approved a contact with David Turch and Associates to pursue federal funding opportunities for infrastructure needs. This contract was awarded in the amount of $2,000 per month, plus expenses. (Note: David Turch and Associates did not bill for any additional expenses during this contract period.) When this contract was approved in May of 1997, the City had submitted applications for federal funding assistance for five transportation and one floodway project totaling $53 million. Due to the support provided by David Turch and Associates to our delegations who lobbied for federal funds in Washington, D.C., the City will receive $3.7 million in Highway Transportation Funds, which will be available on October 1, 1998. Considering that this funding is available to all cities which submitted applications, regardless of size, this amount is very significant for a City the size of Temecula. FISCAL IMPACT: Funding has been budgeted in the 1998-99 Annual Operating Budget to fund this amendment. FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND DAVID TURCH AND ASSOCIATES THIS AMENDMENT is made and entered into as of July 1, 1998 by and between the City of Temecula, a municipal corporation ("City") and David Turch and Associates ("Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with respect to the following facts and purposes: A. On May 27, 1997 the City and Consultant entered into that certain agreement entitled "City of Temecula Agreement for Consultant Services" ("Agreement"). B. The parties now desire to amend the Agreement as set forth in this Amendment. 2. Section i of the Agreement is hereby amended to read as follows: "1. TERM. This Agreement shall commence on July 1, 1997 and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 1999, unless sooner terminated pursuant to the provisions of this Agreement." 3. Section 4 of the Agreement is hereby amended to read as follows: "4. PAYMENT. The City agrees to pay Consultant Twenty-Eight Thousand Dollars ($28,000) per year. Such compensation is to be paid according to the following schedule: The first month's payment of Four Thousand Dollars ($4,000) to accompany this contract amendment. Thereafter, each month's payment of Two Thousand Dollars ($2,000) is agreed to be due and payable, without additional notice or demand, on or before the first day of each calendar month, beginning on August 1, 1998. The final month payment due on June 1, 1999, shall be in the amount of Four Thousand Dollars ($4,000). Expenses: City agrees to reimburse Consultant for all ordinary and reasonable expenses incurred on its behalf. Consultant agrees to bill Temecula monthly for such expenses, such billing to be mailed on or before the fifth day of each calendar month. Such expense statements are agreed to be paid by Temecula on or before the fifteenth day of the calendar month following such billing." 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreemere to be executed the day and year first above written. CITY OF TEMECULA BY: Ron Roberts, Mayor ATTEST: BY: Susan W. Jones, Acting City Clerk Approved As to Form: BY: Peter M. Thorson, City Attorney CONSULTANT BY: NAME: TITLE: ITEM 12 APPROVAL ~//~ CITY ATTORNEY I ~w, DIRECTOR OF FINANCL~ _~///~ CITY MANAGER ~' TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 Acquisition of Real Property at the Northeast Corner of Highway 79 South and La Paz Road (Moramarco) for Highway Widening and Park and Ride Facility PREPARED BY: Peter M. Thorson, City Attorney RECOMMENDATION: That the City Council adopt a Resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN ACQUISITION AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE FOR THE ACQUISITION OF CERTAIN REAL PROPERTY AT THE NORTHWEST CORNER OF HIGHWAY 79 (SOUTH) AND LA PAZ ROAD BACKGROUND: The County of Riverside is undertaking the widening of Highway 79 South. As part of that Project, the County needed to condemn property for the new right-of- way. A portion of the right-of-way is not needed for the roadway under the County's proposed plan. The County, with the cooperation of the property owners, now proposes to sell to the City a portion of the right-of-way. The Property is an irregular shaped parcel approximately 150 feet by 750 feet (2.4 acres). By acquiring the property, the City can avoid the construction of a 11,500 square foot (ranging in height from 2 feet to 18 feet) retaining wall adjacent to Highway 79 South and can use the property for a park and ride facility. The Purchase Agreement provides for the City to review the physical condition of the land and the condition of title encumbrances to the Property as a condition to closing the purchase of the Property. Staff has reviewed the soils and geotechnical reports and did not find any problems with the Property. The Title Report disclosed that the Property would be subject to Los Ranchitos Homeowner's Association's CC&Rs, however, it appears the City will receive written approval from the Board of Directors in recordable form to construct a park and ride facility on the Property. 1 R: IA GDRPTI98i 0623iPRKRIDE. RES/AJP Staff has reviewed the County appraisal summary for the Property appraised. The Purchase Price of $187,530.00 is consistent with the appraisal and does not exceed the fair market value of the property. FISCAL IMPACT: This Project is funded through Capital Project Reserve Funds in the amount of $200,000.00 for the purchase of the Property in the amount of $187,530.00. Adequate funds are available in Account No. 210-165-693-5804. ATTACHMENTS: 1. Resolution 98- 2. Acquisition Agreement 3. Location Map 2 R:~A GDRP~98i 0623iPRKRIDE. RES/AJP RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN ACQUISITION AGREEMENT BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE FOR THE ACQUISITION OF CERTAIN REAL PROPERTY AT THE NORTHWEST CORNER OF HIGHWAY 79 (SOUTH) AND LA PAZ ROAD THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE AS FOLLOWS: Section 1: declare that: The City Council of the City of Temecula does hereby find, determine and A. The County of Riverside proposes to sell a portion of property it is acquiring for right-of-way to facilitate the widening of Highway 79 (South). B. The Property is described in the Acquisition Agreement attached hereto. C. The Purchase Price of $187,530.00 for the Property does not exceed the fair market value of the Property. Section 2: The City Council hereby approves the Acquisition Agreement for the purchase of the Property and hereby authorizes the May to execute the Agreement on behalf of the City in substantially the form of the Agreement attached hereto as Exhibit "A". The City Manager (or his designee), is hereby authorized, on behalf of the City, to take all actions necessary and appropriate to carry out and implement the Agreement and to administer the City's obligations, responsibilities and duties to be performed under the Agreement and related documents, including but not limited to, escrow instructions, certificates of acceptance, and implementing agreements. Section 3: The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk 3 R:iA GDRPTI98i06231PRKRIDE. RES/AJP STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, Califomia, do hereby certify that Resolution No. 98- was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 23rd day of June, 1998, by the following vote: AYES: 0 COUNCILMEMBERS: NOES: 0 ABSENT: 0 COUNCILMEMBERS: C OUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk 4 R:[A GDRPTI98[O6231PRKRIDE. RES/AJP (') DENOTES RECORD DA ?A PER ~ $7/8~-~7 Trans-Pacific Consultants 27447 Enterprise Circle West. Terneculo, CA., 92590 THIS PLAT IS SO(.ELY AN AID IN LOCATING THE PARCEL(S) DESCRIBED IN THE ATTACHED DOCUMENT. IT IS NOT PART OF THE WRITTEN DESCRIPTION THEREIN. f m# m = 100 SCALE: 1"= !00' DRAWN BY TB OA'rE9/15/971 EXHIBIT FOR SEC. 18, TBS. RRW ('PROJ.. CIVIL ENGINEERS LAND SURVEYORS. SHEET 1 OF I REMAINDER PLANNER.~ w.o. ~ 130-3~ PARCEL P~! ~R N~.W 15 JUN-16-98 TUE 02:49 PM P, 02/07 Project: State Highway 79 (South) Parcel: APN: Portion 922-190-025 ACQUISITION AGR~,~'._MENT This Acquisition Agreement ("Agreement") is made this day of February, 1998, by and between the COUNTY OF RIVERSIDE ('County") and the c-ITY OF TEMECULA, a municipal corporation ("City") (collectively the "Parties"). In consideration of the premises and mutual promises set forth herein, the Parties agree as follows: 1. This Agreement is made with respect to the following facts, which each party acknowledges and agrees to be true and correct: a. County has reached agreement with the owners of the property described in the Stipulation for ludgment in Condemnation (hereinafter "Stipulation") for the acquisition of the property in Co.ungt of Rivera_de v. Rancho Community Reformed Church, etc.. e_t..aI., Riverside Superior Court Case No. 277673 ("Condemnation Action"). A'~py o.f the Stipulation is attached hereto as Exhibit A. b. County desires to sell and City desires to acquire a portion of the property described in the Stipn!a. tfon, which propcay is more particularly described on Exhibit B (hereinafter the "Property"). c. County has provided to City true and correct copies of a Preliminary Title Report for the Property dated as of July 27, 1995, attached hereto as F_.xhibit C. d. A Pha~ I Environmental Site Assessment prepared by Geotechnical & Environmental Engineers, Inc., dated December 10, I997, is attached hereto as Exhibit D. e. Exhibits A,'B, C and D are attached hereto and incorporated .herein by this reference as though set forth in full. ~ A condition_ for the Stipulation, attached_ as Exhibit A, is the execution of this Agr.eement and paym~mt of the Pm'cha..~ Price (defined in paragraph. ~' below) by City to ~oun.ty. ' '- ' - - 3. The total purchase price .for the .Property to be paid by Buyer is the sum of One Hundred Eighty-Seven Thousand Five Hundred Thirty Dollar~ and Zero Cents ($187,530.00) (the "Purchase Price"). JUN-16-98 TUE 02:50 PM P, 03/07 4, The Property shall be conveyed to the City by Grant Dcc, d, free and clear of any and all liens, encumbrances, easements, leases (recorded or unrecorded) and taxes, except those approved in writing by the City..The conveyance shall be.. made without .an escrow,.after Coun~ has duly. recorded 4. certified copy o~; the Ju_dgment'_in the Condemhation A, gtion. 5_= _.The following .apply. to. City.-. a~ City has approved the Sfi, pulation, attached hereto as Exhibit A. b._., City, .._in its_. sole discretion. has appro_ved the condition o.f title and accep_table excepfions_.to rifle: -' c. First American Tire Company has committed to issue in_favor of City a C. LTA Owner's Standard Coverage Policy of Title Insurance-in the amount of the Purchase Price. sho .wi.'ng the. Proper~ vested in Buyer su_bjec. t only. to tfile rifle exceptions a~pp. roved by the Property: and City has approved., in its sole di._sc'retion, .the physical con~iition~..gf ~¢ City ha$ approved .the form of.the Grant _Deed_.. 6. The property owners described in the Stipulation, Mark Moramarco, Mike Moramarco and the Temecula Land Trust (hereinafter "Property Owners") shall indemnify, defend, protect and hold City, its officers, cmployees, agents, successors and assigns free and harmless from and against any and an claims, liabilities, penalties, forfeitures, losses, or expenses, including without limitation, attorneys' fees, arising from or mused in whole or in part, directly or indirectly, by either (a) the presence in, on, within, under, or about the Property of hazardous materials, toxic substances, or hazardous substances, or Ca) Property Owners' or Property Owners' predecessors' failure to comply with any federal, state, or local laws relating to such materials or substances. For the purpose of this Agreement, such materials or substances shall include without limitation hazardous subsmaces, hazardous materials, or toxic substances as defined in the Comprehensive Environmental Response, Compensation, and Liability .Act of 1980, as mended, 42 U.S.C. Section 9601, et ,seq., the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et ,seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 690I, et seq., and thom substances defined as hazardous wastes in Section 25117 of the California Health and Safety Code or haTardous substances in Section 25316 of the California Health and Safety Code, and in the regulations adopted in the publications promulgated pursuant to said laws. Property Owners shall be obligated hereunder to include without limitation, and whether foreseeable or unforeseeable, an costs of any required or necessitated repair, cleanup, detoxification, or decontamlnafion of the Property, and the prepmat/on and implementation of any closure, remedial action, or other required plans in connection therewith, and such obligation shall continue until the Property has been rendered in compliance with applicable federal, state, and local laws, statutes, ordinances, regulations and rules. -2- JUN-lB-B8 TUE 02:80 PH P, 04707 7. City agrees to cooperate with County in allowing access, exportation of sub-grade dirt material and otherwise grade within the Property without compensation, as needed by County, its contractors, designees and assigns in order to perform actual improvements along State Highway 79 (South) associated with the Property. The City Man_a. ger is authorized to approve any such work and execute on behalf of the City such documents as may be necessary to permit such work. 8. City agree~ to allow CalTrans the right to enter that portion of the Property identified on Exhibit B, for the purpose~ of maintaining, opem~g, landscaping, stabilizing, and any and other uses related to the operation of State Highway 79 (South) until such time as the City develops the Property. 9. The City Manager is hereby directed and authorized to execute such other documents, including without 'limitation certificates of acceptance or other documents or certifications as may be necessary or convenient to implement the terms of this Agreement and to approve the condition of the Property and title to the Property as provided in this Agreement. 10. This Agreement suitorseries any prior agreement, oral or written, and together with the Exhibits hereto and any agreements delivered pursuant hereto, contains the entire agreement between County and City with respect to the subject matter of this Agreement. No subsequent agreement, representation or promise made by either party hereto, or by or to any employee, officer, agent or representative of either pazty, Sh~11 be of any effect unless it is in writing and executed by the party to be bound thereby. No person is authorized to make, and by execution hereof County and City acknowledge that no person has made, any representation, warranty, guaranty or promise except as set forth herein; and no agreement, statement, representation or promise made by any such person which is not contained herein shall be valid or binding on Seller or Buyer. 11. I//// The Parties acknowledge that time is of the essence in this Agreement. IIIII II!11 IIII! II111 IIIII -3- JUN-16-98 TUE 02:81PR P, 08707 IN WITNESS WNN-RF_~F, the Parties hereto have executed this Agreement as of the aay and year first written above. "Count~" COUNTY OF RIVEI~IDE ATrEST: Gerald A. Maloney Clerk of the Board Dated: ~rson or t~e'-~ard of Supervisors By: APPROV~ AS TO FORM: William C. gatzensteia By: ~o~s. ~ ........ Assistant County Counsel RECOMM~.NDED FOR APPROVAL: By: Richard L. ('Chip~) Hord Real Property Agent JUN-16-98 TUE 02:51PH P. 06/07 By: Director, Trans~rtation Department "City- CITY OF TEMECULA, a municipal corporation By: Ronald Rol~erts, Mayor ATTEST: By: Susan Jones, Acting ~2ity Clerk APPROVED AS TO FORM: By: Peter' M. Thorson City Attorney "Propert~ Owners' M' 'lI~. MORA~ARCO JUN-16-98 TUE 02:52 PH P, 07/07 TEMECLrLA LAND TRUST Mark Mornmarco Mike Moramarco APPROV~.!) AS TO FORM: LORENZ ALHADEFF CANNON & ROSE, LLP By: Samuel C. "Alhadeff, Esq. Attorneys for Defendant MARK MORAMARCO, and M]KE MO .RAMARCO and the TEMF~ULA LAND TRUST TEMECULA COMMUNITY SERVICES DISTRICT ITEM 1 MINUTES OF A SPECIAL MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT JUNE 11, 1998 A special meeting of the Temecula Community Services District was called to order at 6:19 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. President Jeffrey E. Stone presiding. ROLL CALL PRESENT: § DIRECTORS: Comerchero, Ford, Lindemans, Roberts, and Stone. ABSENT: 0 DIRECTORS: None. Also present were General Manager Bradley, City Attorney Thorson, and Acting City Clerk Jones. PUBLIC COMMENTS None. CONSENT CALENDAR 1. Minutes 1.1 Approve the minutes of May 26, 1998. MOTION: Director Comerchero moved to approve Consent Calendar Item No. 1. The motion was seconded by Director Ford and voice vote reflected unanimous approval. DIRECTOR OF COMMUNITY SERVICES REPORT No comments. GENERAL MANAGER'S REPORT No comments. BOARD OF DIRECTORS' REPORTS No comments. Minutes. CSD\061198 1 Temecula Communitv Services District June 11, 1998 ADJOURNMENT At 6:21 P.M., President Stone formally adjourned the meeting to Tuesday, June 16, 1998, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. ATTEST: Jeffrey E. Stone, President Susan W. Jones, CMC Acting City Clerk/District Secretary [SEAL] Minutes. CSD\061198 2 ITEM 2 APPRO V~d:~l,~l, CITY ATTORNEY D RectOR OF F na E CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT Board of Directors -J~Herman D. Parker, Acting Director of Community Services June 23, 1998 Agreement for Softball Officiating Services PREPARED BY: Julie Crowe-Pelletier, Recreation Superintendent RECOMMENDATION: That the Board of Directors: Approve agreement between the City of Temecula and the Margarita Officials Association to provide City softball league officiating services. BACKGROUND: The City of Temecula, Community Services Department offers year round adult softball leagues as part of the city-wide sports program. The Softball Leagues generally run fourteen weeks in duration, with two (2) seasons per year. The program attracts approximately 130 softball teams per year consisting of 1,800 individual participants. On May 5, 1998, the City of Temecula released a Request for Proposal (RFP) to select a qualified firm to provide officiating services for the City's Adult Softball Program. Officiating services are considered a professional service and are essential to the operation of a successful and well organized adult sport league/program. Two (2) firms responded to the RFP: Margarita Officials Association; and Valley Umpires Association. A Review Committee reviewed the proposals and ranked the firms based on references, years of experience, past performance, and the ability to provide officiating services. As a result, the Margarita Officials Association was selected as the highest ranked firm to provide this service. This Association has thirty (30) years of softball officiating experience and has been providing this service to the City of Temecula since February, 1991. Their performance in providing officiating services to the City of Temecula for the past seven (7) years has been excellent. FISCAL IMPACT: Adult softball team registration will generate revenue to off set the cost of officiating services. The cost per official is 922.00 per game, for an annual estimated cost of 919,800. Unencumbered funds exist in account # 190-183-999-5380. AGREEMENT BETWEEN MARGARITA OFFICIALS ASSOCIATION AND THE COMMUNITY SERVICES DEPARTMENT, TF. aMECULA, CALIFORNIA This Agreement is made and entered into as of July 1, 1998 by and between the Temecula Community Services District, Temecula, California CCSD") and Margarita Officials Association ("Association"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM OF AGREEMENT. The terms of this Agreement shall be in force commencing July 1, 1998, and term'mating June 30, 2000, with an option to continue the agreement for a third year should both parties agree. This Agreement is subject to prior termination as set forth in paragraph 8 below. 2. RF~PONSIRH.ITIKq OF THE ASSOCIATION. The Association shall be responsible for assigning Qualified Officials for all scheduled CSD softball games in accordance with Exhibit A, Scope of Work, and the following provisions: a. "Qualified Officials" are those softball officials who (I) are registered umpires with Amateur Softball Association; and (ii) maintain general liability insurance with a qualified and reputable insurer of not less that $1,000,000 per occurrence for bodily injury, death and property damage naming the CSD and the City of Temecula as additional insureds; b. Within five business days of the date of this Agreement, Association shall provide CSD with a list of the Qualified Official,~ it will draw from in making assignments and a certificate of insurance from each such official to be approved by the Director of Community Services and Association shall update the list and the certificate of insurance each time a new official is added; c. Association shall assist the CSD in handling protests including, but not limited to, representing the official(s) at protest meetings, as required; d. When a grievance has been fried with Association, the Association shall notify the CSD in writing not more than five (5) days after the grievance is fried with the Association and provide a copy of the grievance; and e. Association shall be responsible for providing, maintaining, and repairing the equipment, materials, supplies, and similar items, necessary for the proper conduct of the officiating to be performed. 3. RI~SPONSIBILITrES OF THE CSD. a. The CSD has the right to refuse the services of any Association official, with or without cause, provided the CSD notifies the Association of its decision and Association shall not assign any such official to CSD games; b. The CSD shall provide fields in playable condition and set up necessary equipment for games. c. The CSD is to provide the Association with a copy of all By-Laws and rules unique to the conduct of their games. 4. COMPENSATION. The CSD shall pay to the Association the fees set forth on Exhibit A., Scope of Work. Billing by the Association shall be made to the CSD monthly, in writing, for all games played the previous month. The fees are payable to the Association no later than thirty (30) working days from receipt of the billing. Association shall be responsible for paying all wages, taxes and other compensation, if any, of the officials and shall defend, protect, indemnify and hold CSD harmless from any claim for such payments. 5. SC]FIEDUIJNG. The CSD shall schedule all games as to the time and location. A complete schedule of games shall be furnished to the Association in sufficient time as to allow for scheduling of officials. When a game is rescheduled or canceled after notification, the Association shall be apprised at least three (3) hours in advance. If this time frame is not met, the CSD shall pay all fees due as if the game was played. 6. FORFEITURES. Officials shall appear at the game site at least fifteen (15) minutes prior to the scheduled starting time. Should officials fail to appear for a game, the Association shall forfeit the fee for each official who did not show. Games not played due to the nonappearance of one or both scheduled teams, inclement weather, or other misfortune will be paid for by CSD at the rate of $20.00 per official, provided an official(s) is present. Should a game in progress be canceled or terminated for any reason, the CSD shall pay all fees due as if the game was played. 7. PROTESTS. Should an official, for any reason within his/her control, cause a game to be protested, the Association shall submit a verbal report to the CSD of the circumstances on the following day and a written report shall be provided, if required, within five (5) days. Officials shall be provided by the Association, at no cost to the CSD for any rescheduled game resulting from a protest that is upheld. 8. TERMINATION. This agreement shall terminate on the prescribed date. Either party retains the right and option to terminate this Agreement prior to such date for any reason upon fifteen (15) days prior written notice to the other. 9. A,qSIGNMENT. Neither CSD nor the Association shall have the right or power to assign or transfer this Agreement, or any interest in it, without the written consent of the other. -2- 10. PERFORMANCE. Association shall at all times faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Association shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Association hereunder in meeting its obligations under this Agreement. 11. INDEMNIFICATION. The Association agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Association's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence of the City. 12. ASSOCIATION INSURANCE. The Association 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 Association, its agents, representatives, or employees in an amount of not less than one million dollars ($1,000,000.00) naming the City and the TCSD as additional insureds with policies and insurers acceptable to the Director of Community Services. 13. INDEPENDENT CONTRACTOR. Association 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 Association shall at all times be under Assoc'lation's exclusive direction and control. Neither City nor any of its officers, employees or agents shall have control over the conduct of Association or any of Association's officers, employees or agents, except as set forth in this Agreement. Association 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. Association shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. 14. T,EGAI, RESPONSI!IIIJTrES. The Association shall keep itseft informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Association shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Association to comply with this section. 15. 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 ('lii) 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: 3 To City: City of Temecula 43200 Business Park Drive Temecula, California 92590 Attention: Director of Community Services To Association: Margarita Officials Association P.O. Box 1291 Oceanside, California 92051-1291 16. GOVERNING !,AW. The City and Association understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of Temecula. 17. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 18. AUTHORITY TO EXECUTE THIS AGREEMENT. The person or persons executing this Agreement on behalf of Association warrants and represents that he or she has the authority to execute this Agreement on behalf of the Association and has the authority to bind Association to the performance of its obligations hereunder. 4 IN WITNESS WItEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES DISTRICT Attest: Jeffrey E. Stone President Susan Jones, CMC City Clerk Approved As to Form: Peter M. Thorson City Attorney MARGARITA OFFICIALS ASSOCIATION By: By: 5 ITEM 3 A PPR O ~j~ ,L. CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: ,~) Board of Directors Herman D. Parker, Acting Director of Community Services DATE: June 23, 1998 SUBJECT: Release of Landscape Bonds - Taylor Woodrow Homes/Vintage Hills Development - (Pauba Road and Meadows Parkway) PREPARED BY: RECOMMENDATION:  '~ryl Yasinosky, Development Services Analyst That the Board of Directors: Authorize the City Clerk to exonerate the remaining landscape/erosion control bonds for Tract Nos. 22916-0 and 22916-2. BACKGROUND: Landscape/Erosion Control Bonds for the above referenced tract numbers were originally posted with the County of Riverside Building and Safety Department. The developer has provided the City with riders for the original bonds which transfer the obligee from the County to the City of Temecula. The surety bonds were issued by American Home Assurance Company and are identified as follows. 1. Tract No. 22916-0; Bond No. PB30012643 in the amount of $48,000. 2. Tract No. 22916-0: Bond No. PB30012644 in the amount of $177,000. 3. Tract No. 22916-2; Bond No. PB30012646 in the amount of ~70,000. Since the original landscape bonds did not distinguish TCSD maintenance areas from HOA or private landscape areas, any reduction or release of the bonds requires the approval of the TCSD and the Planning Department. As a result, the TCSD has determined that the perimeter slopes have been constructed in accordance with the approved plans. The Planning Department has also determined that the developer installed the landscaping for these tracts in accordance with the approved plans. The maintenance of the perimeter landscaping is currently provided by the TCSD through Service Level C. A copy of the clearance letter from Planning is attached for your review. FISCAL IMPACT: None. ATTACHMENTS: 1. Clearance from Planning Department. r :\yasinobk\taywood.bdr 062398 CITY OF TEMECULA COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION MEMORANDUM TO: FROM: DATE: SUBJECT: Beryl Yasinosky Linda Beaudoin, Community Developmere Technician June 9, 1998 TRACTS 22916-0, 22916-2 The above mentioned tracts are built out and have all landscape installed. Please release the landscape an/or erosion control bonds for TRACTS 22916-0 and 22916-2. Tha,~ks ( , . ITEM 4 TO: FROM: DATE: SUBJECT: APPROVAL CITY ATTORNEY DIR. OF FINANCE CITY MANAGER TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT Board of Directors Ronald E. Bradley, General Manager June 23, 1998 Review and Approval of the FY 1998-99 Annual Operating Budget PREPARED BY: Genie Roberts, Director of Finance ~'r~ect Tim McDermott, Assistant Finance or ~ RECOMMENDATION: That the Board of Directors adopt a resolution entitled: RESOLUTION NO. CSD 98- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS DISCUSSION: The proposed FY 1998-99 TCSD operating budget includes the operation and maintenance of district-wide parks and recreation facilities, debt service on the certificates of participation issued for the construction of the Community Recreation Center, arterial street lighting and traffic signals, and median landscaping. Benefit assessment zones are also established for residential street lighting, slope maintenance, refuse collection and street sweeping, and emergency street and road construction and maintenance. Parks and recreation services, as well as arterial street lighting and traffic signals, and median landscaping are primarily funded by the special tax assessed to property owners as approved by the voters as Measure C in March, 1997. The maximum level of special tax that was approved by the voters is $74.44 per single-family dwelling unit. In the 1997-98 fiscal year, the special tax was assessed at a rate of $71.44 per single-family dwelling unit, with the $3.00 per dwelling unit difference being funded by the City's General Fund through the Revenue Excess Sharing for Temecula ("REST") program. The 1998-99 budget proposes to reduce the special tax rate by an additional $3.00 per single-family dwelling unit to $68.44. This special tax will result in a projected 1998-99 revenue of $2,569,590. Residential street lighting, slope maintenance, refuse collection and street sweeping, and emergency street and road construction and maintenance services provided by the TCSD are funded primarily by rates and charges assessed to property owners within the District. The rates and charges are proposed to be assessed in 1998-99 at the same levels as in the current fiscal year for all services other than refuse collection. There is a very slight increase in the proposed rate and charge for refuse collection, due to the use of reserves to reduce the charge in the current fiscal year and a CPI adjustment for the proposed budget year. The total revenue to be generated by the rates and charges is projected to be $3,086,000. As discussed above, the REST program contribution from the City's General Fund is proposed to be increased from the current level of 9637,060 in 1997-98 to 9850,020 in 1998-99 (an increase of $212,960). The operating budget for the TCSD totals 97,456,320 (a 9297,594 or 4.2% increase from 1997-98), and by fund is as follows: City-Wide Parks and Recreation (including debt service operating transfer) Service Level A (Arterial Street Lighting) Service Level B (Residential Street Lighting) Service Level C (Slope Maintenance) Service Level D (Refuse Hauling) Service Level R (Street and Road Maintenance) Total 3,915,850 281,800 350,840 616,910 2,277,690 13.230 7.456.320 PARKS AND RECREATION The 1998-99 Parks and Recreation proposed budget reflects a slight increase of 835,571 (0.9%) from the current fiscal year. SERVICE LFVEL "A" (ARTERIAL STREET LIGHTING) The 1998-99 Service Level "A" proposed budget reflects an increase of $62,563 (28.5%) from the current fiscal year due primarily to additions to the City's arterial street lighting system. SERVICE LEVEL "B" (RESIDENTIAL STREET LIGHTING) The 1998-99 Service Level "B" proposed budget reflects a $42,840 increase (13.9%) from the current fiscal year due to new street lights being added to the City's residential street light system. SERVICE LEVEL "C" (SLOP[: MAINTENANCE) The 1998-99 Service Level "C" proposed budget reflects a 910,590 increase (1.7%) from the current fiscal year. SERVICE LEVEL "D" (REFUSE HAULING) The 1998-99 Service Level "D" proposed budget reflects a 9152,660 increase (7.2%) from the current fiscal year due to an increase in the number of parcels being served. SERVICE LEVEL "R" (STREET AND ROAD MAINTENANCE) The 1998-99 Service Level "R" proposed budget reflects a 95,990 decrease (31.2%) from the current fiscal year due to a reduction in the number of parcel being assessed as a result of street paving over the past year. The attached budget adoption resolution reflects an increase in the General Manager's expenditure authorization to $25,000. Since incorporation, the General Manager has had the authority to approve expenditures up to $10,000. Any proposed expenditure greater than $10,000 has required the prior approval of the Board of Directors. Since that time, the District's budget has grown from approximately $1.8 million to almost $7.5 million. Purchasing activity has grown accordingly. The proposed increase in the General Manager's expenditure authorization will assist staff in being able to respond to operational needs in a more timely manner (reducing the approval process by two weeks on contracts and purchases of $10,000 to $25,000), while still providing the necessary oversight and control on the award of purchases and contracts based on the City's solid purchasing procedures. FISCAL IMPACT: The services provided by the District are funded primarily by the special tax that was approved by the voters as Measure C in March, 1997, as well as by the rates and charges assessed to property owners which were approved during a public hearing held on June 16, 1998. Attachments: Resolution No. CSD 98- Proposed 1998-99 Operating Budget RESOLUTION NO. CSD 98- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING THE 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS WHEREAS, the Board of Directors of the Temecula Community Services District has reviewed the proposed final 1998-99 annual operating budget and has held such public meetings as are necessary prior to adoption of the final operating budget. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Community Services District as follows: Section 1. That the 1998-99 TCSD operating budget is hereby adopted. Section 2. That the following controls are hereby placed on the use and transfers of budget appropriations: A. No expenditure of funds shall be made unless there is an unencumbered appropriation available to cover the expenditure. B. The Department Director may prepare a transfer of appropriations within departmental budget accounts, with the approval of the General Manager. C. The Board of Directors must authorize transfers (appropriations) of funds from the Unreserved Fund Balance and transfers between departmental budget accounts. D. The Board of Directors must authorize any increase in regular personnel positions above the level indicated in the final budget. The General Manager may authorize the hiring of temporary or part time staff as necessary within the limits imposed by the controls listed above. E. The General Manager may authorize expenditures of funds in amounts up to $25,000. Any expenditure of funds in excess of $25,000 requires Board of Directors action. F. Pursuant to Section 3.32.050 of the Temecula Municipal Code, the General Manager may authorize Public Works contracts in amounts up to $25,000. Any expenditures of Public Works funds in excess of $25,000 require Board of Directors action, except that the General Manager may approve change orders on Public Works contracts approved by the Board in amounts up to project contingency established by the Board. Section 3. Outstanding encumbrances shown on the District books at June 30, 1998, are hereby appropriated for such contracts or obligations for 1998-99. Section 4. The Board Secretary shall certify adoption of the resolution. PASSED, APPROVED AND ADOPTED this 23rd day of June, 1998. ATTEST: Jeffrey E. Stone, President Susan W. Jones, CMC Board Secretary [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Board of Directors of the Temecula Community Services District at a regular meeting thereof, held on the 23rd day of June, 1998, by the following vote of the Board of Directors: AYES: B OARDMEMBERS: NOES: B OARDMEMBERS: AB SENT: BOARDMEMBERS: Susan W. Jones, CMC Board Secretary TEMECULA COMMUNITY SERVICES DISTRICT 1998-99 OPERATING BUDGET (This Page Intentionally Let~ Blank) City of Temecula REVENUES BY FUND - COMMUNITY SERVICES DISTRICT Actual Actual FY 1995-96 FY 1996-97 City-Wide $ 2,985,093 $ 3,359,968 $ Service Level A 149,414 196,788 Service Level B 253,141 273,242 Service Level C 499,097 535,273 Service Level D 1,856,425 1,868,205 Service Level R 19,172 19,220 Debt Service * 35,454 36,487 Total $ 5,797,796 $ 6,289,183 $ * Does not include operating transfer from City-Wide Fund. FOUR YEAR COMPARISON $8 $6 I$5'797 I I$6.289 I [$6.724 Estimated FY"1997-98 3,533,670 224,500 286,050 571,460 2,055,500 19,210 34,000 6,724,390 $ $ $7.146 Projected FY 1998-99 3,632,610 281,800 313,840 591,180 2,277,690 12,800 35,600 7,145,520 $0 ~ ~ ~ ~ Actual 1995-96 Actual 1996-97 Estimated 1997-98 Projected 1998-99 City-Wide Service Level D Service Level A / Service Level B :~"~ Service Level C Service Level R ':'"'~:~ Debt Service City of Temecula EXPENDITURE SUMMARY BY CATEGORY- COMMUNITY SERVICES DIST. FUNDS Operations Capital Operating Fund Personnel & Maintenance Outlay Transfers City Wide* $ 1,426,330 $ 2,012,650 $ 10,500 $ $ Service Level A 2,850 278,950 Service Level B 7,430 343,410 Service Level C 119,490 497,420 Service Level D 44,680 2,233,010 Service Level R 13,230 Debt Service 501,980 Total $ 1,600,780 $ 5,880,650 $ 10,500 $ $ Total 3,449,480 281,800 350,84O 616,910 2,277,690 13,230 501,980 7,491,930 * Does not include $466,370 operating transfer to the Debt Service Fund. Service Level D ($2,277,690~ Service Level C ($616,910) Service Level B ($.~5, .,~.1 .'. Service Level R ($13,230) / ' ####$ ........lllllall I aa il'.:.!.!~,. !!!:,.;?.!! ~:::!~ ? -~,.,.~,.,.,.,.,.,.,.,.,.,.,.,.,.,,~ ...... Service Level A ($281,800) Debt Service ($501,980) ~Parks & Recreation ($3,449,480) City of Temecula EXPENDITURE SUMMARY BY FUND - COMMUNITY SERVICES DISTRICT Four Year Comparison Actual Actual Budgeted CITY-WIDE * FY 1995-96 FY 1996-97 FY 1997-98 Personnel $ 968,191 $ 1,124,006 $ 1,376,610 Operations & Maintenance 1,454,818 1,628,368 1,969,711 Capital Outlay 30,186 22,846 2,638 Total $ 2,453,195 $ 2,775,220 $ 3,348,959 SERVICE LEVEL A Personnel $ 22,858 $ 2,678 $ 2,790 Operations & Maintenance 171,917 194,303 216,447 Capital Outlay Total $ 194,775 $ 196,981 $ 219,237 SERVICE LEVEL B Personnel $ 27,678 $ 6,839 $ 7,230 Operations & Maintenance 244,224 280,124 300,770 Capital Outlay Total $ 271,902 $ 286,963 $ 308,000 SERVICE LEVEL C Personnel $ 90,956 $ 113,930 $ 98,920 Operations & Maintenance 441,958 440,037 507,400 Capital Outlay Operating Transfers Out Toml $ 532,914 $ 553,967 $ 606,320 Proposed FY1998-99 1,426,330 2,012,650 10,500 3,449,480 2,850 278,950 281,800 7,430 343,410 350,840 119,490 497,420 616,910 * Does not include operating transfer to the Debt Service Fund. City of Temecula EXPENDITURE SUMMARY BY FUND - COMMUNITY SERVICES DISTRICT Four Year Comparison (Continued) SERVICE LEVEL D Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 16,575 $ 43,846 $ 43,170 Operations & Maintenance 1,839,594 1,754,111 2,081,860 Capital Outlay Total $ 1,856,169 $ 1,797,957 $ 2,125,030 $ 44,680 2,233,010 2,277,690 SERVICE LEVEL R Personnel Operations & Maintenance Capital Outlay Total 15,523 $ 9,940$ 19,220$ 13,230 $ 15,523 $ 9,940 $ 19,220 $ 13,230 DEBT SERVICE Personnel Operations & Maintenance Capital Outlay Total $ 502,863 $ 501,600 $ 502,620 $ $ 502,863 $ 501,600 $ 502,620 $ 501,980 501,980 City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 (Continued) Revenues Other Sources: Operating Transfers In City Wide Total Revenues and Other Sources Expenditures (Appropriations) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 3,632,610 $ 3,632,610 (3,449,480) (466,370) Community Servicez District Service Service Level A Level B 281,800 $ 313,840 Service Level C 591,180 681,320 21,685 6,765 237,978 (283,240) (37,000) (25,730) 964,560 21,685 43,765 263,708 681,320 21,685 6,765 237,978 281,800 313,840 591,180 (281,800) (350,840) (616,910) City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 (Continued) Revenues Other Sources: Operating Transfers In Total Revenues and Other Sources Expenditures (Appropriations) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies Con6numg Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 Community Services District Service Level D 2,277,690 2,277,690 (2,277,690) Service Level R 12,880 12,880 (13,230) Debt Service 35,600 466,370 501,970 (501,980) 166,038 166,038 050) 12,920 12,570 (10) 529,020 529,010 67,230 3,640 26,320 98,808 8,930 502,690 6 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES DIRECTOR OF COMMUNITY SERVICES Herman Parker I RECREATION SERVICES DEPUTY DIRECTOR OF COMMUNITY SERVICES (Vacam) DEVELOPMENT SERVICES I MAINTENANCE SERVICES Youth & Adult Sports Special Events Volunteer & Cultural Services Teen & Recreational Services Senior & Hutnan Services Park Acquisition Park Development Assessment Administration Development Review Solid Waste Administration Park Maintenance Median Maintenance Slope Maintenance Facility Maintenance City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) Funding Source: CITYWIDE * Actual Actual Expenditure Summary FY 1995-96 FY 1996-97 Personnel $ 968,191 $ 1,124,006 Operations and Maintenance 1,454,818 1,628,368 Capital Outlay 30,186 22,846 Total $ 2,453,195 $ 2,775,220 Special Tax Benefit Assessments General Fund Budgeted FY 1997-98 $ 1,376,610 $ 1,969,711 2,638 $ 3,348,959 $ Proposed FY 1998-99 1,426,330 2,012,650 10,500 3,449,480 SERVICE LEVEL A Actual Actual Expenditure Summary FY 1995-96 FY 1996-97 Personnel $ 22,858 $ 2,678 Operations and Maintenance 171,917 194,303 Capital Outlay Total $ 194,775 $ 196,981 Budgeted FY 1997-98 $ 2,790 $ 216,447 $ 219,237 $ Proposed FY 1998-99 2,850 278,950 281,800 SERVICE LEVEL B Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 27,678 $ 6,839 Operations and Maintenance 244,224 280,124 Capital Outlay Total $ 271,902 $ 286,963 * Does not include operating transfer to the Debt Service Fund. $ 7,230 $ 7,430 300,770 343,410 $ 308,000 $ 350,840 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) SERVICE LEVEL C Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 90,956 Operations and Maintenance 441,958 Capital Outlay Operating Transfers Out $ 113,930 440,037 Total $ 532,914 $ 553,967 $ 98,920 507,400 $ 606,320 $ 119,490 497,420 $ 616,910 SERVICE LEVEL D Exoenditure Summary Personnel Operations and Maintenance Capital Outlay Total Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 16,575 $ 43,846 1,839,594 1,754,111 $ 1,856,169 $ 1,797,957 $ 43,170 2,081,860 $ 2,125,030 $ $ 44,680 2,233,010 2,277,690 SERVICE LEVEL R Expenditure Summary Personnel Operations and Maintenance Capital Outlay Total Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 15,523 $ 9,940 $ 15,523 $ 9,940 $ 19,220 $ 13,230 $ 19,220 $ 13,230 DEBT SERVICE Expenditure Summary Personnel Operations and Maintenance Capital Outlay Total Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 502,863 $ 501,600 $ 502,863 $ 501,600 $ 502,620 $ 502,620 $ 501,980 $ 501,980 City of Tetnecula DEPARTMENT: COMMUNITY SERVICES (Continued) Personnel Allocation Authorized 1997-98 CITYWIDE Director of Community Services Deputy Director of Community Services Maintenance Superintendent Development Services Administrator Recreation Superintendent Maintenance Supervisor Senior Landscape Inspector Recreation Supervisor Administrative Secretary Recreation Coordinator Maintenance Worker Office Assistant Custodian 1.00 1.00 0.70 0.75 1.00 0.95 0.40 2.00 1.00 3.00 1.00 2.10 1.00 Total 15.90 Proposed Chan~es 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recommended 1998-99 1.00 1.00 0.70 0.75 1.00 0.95 0.40 2.00 1.00 3.00 1.00 2.10 1.00 15.90 SERVICE LEVEL A Development Services Analyst 0.05 0.05 SERVICE LEVEL B Development Services Analyst Office Assistant Total 0.10 0.05 0.15 0.10 0.05 0.15 l0 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) -Personnel Allocation Authorized 1997-98 P~O_ posed Changes Recommended 1998-99 SERVICE LEVEL C Maintenance Superintendent Maintenance Supervisor Senior Landscape Inspector Development Services Analyst Office Assistant 0.05 0.05 0.60 0.70 0.25 0.00 0.00 0.00 0.00 0.00 0.05 0.05 0.60 0.70 0.25 Total 1.65 1.65 SERVICE LEVEL D Development Services Administrator Development Services Analyst Office Assistant 0.25 0.15 0.50 0.00 0.00 0.00 0.25 0.15 0.50 Total Community Services Total 18.65 18.65 11 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services MISSION: The Recreation Services Program is responsible for providing a comprehensive, City-wide recreation program that meets the recreation and human service needs within the community. 1997-98 ACCOMPLISltMENTS: · Implemented a series of three concerts at Sam Hick's Monument Park. · Provided Citywide CPR/First Aid Training for all City staff. · Provided a minimum of six professional development opportunities for Recreation staff. · Expanded innovative recreational contract class opportunities, generating additional revenues. · Coordinated and implemented a regional Skate Board Competition at Temecula Skate Park. GOAL 1: OBJECTIVE: DEVELOP AND IMPLEMENT A MARKETING PLAN FOR THE CITYMDE VOLUNTEER PROGRAM. Increase community awareness of volunteers. Provide a minimum of 250 volunteer opportunities within the Police Department, Fire Department, Community Services Department, as well as City Hall. PERFORMANCE MEASURES: Number of volunteers serving the community Promote the volunteer program in the Recreation Brochure Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 100 150 250 0 0 2 GOAL 2: OBJECTIVE: · ."INCREASE TH]g NUMBER OF EXCURSION OPPORTUNITIES OFFERED TO TEMECULA RESIDENTS. Increase the number of excursion opportunities for all ages.to a minimum of 15. PERFORMANCE MEASURES: Number of excursions provided by the Community Services Department Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 10 12 15 12 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services (Continued) GOAL 3: OBJECTIVE: DEVELOP AND IMPLEMENT A CITYWIDE SPECIAL EVENTS BANNER DISPLAY PROGRAM. Increase community awareness of Citywide special events by purchasing a minimum of four (4) banners promoting Citywide special events and displaying the banners in the main hallway of the Community Recreation Center prior to each event. PERFORMANCE MEASURES: Number of outdoor banners for Special Event promotions Permanent Site Locations for Display Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 3 6 10 N/A N/A ! GOAL 4: OBJECTIVE: DEVELOP A "TEMECULA PRIDE" CAMPAIGN. Plan, program and implement a comprehensive campaign which educates and encourages Temecula residents to respect, enjoy, and to maintain their community. Special events, bun~r stickers, special recognition awards are several suggested avenues for promotions. PERFORMANCE MEASURES: Number of events promoting "Temecula Pride" Number of "Temecula Pride" campaign promotional materials Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 2 N/A N/A 2 Program: Development Services MISSION: The Development Services Program is responsible for parksite acquisition and development, assessment engineering, development review, and solid waste administration. 1997-98 ACCOMPLISItMENTS: · Completed construction of the ADA Improvement Project · Began construction of Margarita Community Park. · Began construction of Winchester Creek Park. · Began design for an undercrossing at Santa Gertrudis Creek trail under Winchester Road. 13 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services (Continued) · Developed and implemented processes to address the impacts of Proposition 218. · Developed and implemented dedication processes to ensure collection of energy fees. GOAL 1: OBJECTIVES: PROVIDE A COMPREHENSIVE AND BALANCED NEIGHBORHOOD AND COMMUNITY PARK SYSTEM THROUGHOUT THE CITY OF TEMECULA. Complete the construction of Margarita Community Park - Phase I. Complete the construction of Winchester Creek Park. Complete the construction of the Temecula Duck Pond - Phase II. Condition developers to provide park land to the community that meets City standards. PERFORMANCE MEASURES: Number of new City parks and facilities dedicated Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 3 0 3 GOAL 2: OBJECTIVES: GOAL 3: OBJECTIVES: EXPAND THE TRAILS ACQUISITION AND DEVELOPMENT PROGRAM. Construct the undercrossing facility at Santa Gertrudis Creek Trail under Winchester Road. Condition development projects for trail easements and/or improvements as appropriate. PROVIDE INNOVATIVE AND COMMUNITY RELEVANT PUBLIC EDUCATION WITH GOVERNMENT (PEG) PROGRAMMING THROUGH CABLE FRANCHISE. Program a block of time during the weekend to broadcast local high school sporting events and other local events of interest to the community. Coordinate with Temecula Valley Unified School District. Appropriately program Community Bulletin Board. PERFORMANCE MEASURES: Number of televised local area events on PEG station Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 0 3 6 14 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Maintenance Services MISSION: The Maintenance Division is responsible for providing effective landscape and facility maintenance services to parks, slopes, medians, recreation facilities an City administrative offices. 1997-98 ACCOMPLISHMENTS: · Developed and implemented the Standby/Callout Program, which enables staff to respond to emergencies at any time of day or night. · Coordinated the cleanup, painting and lighting installation of the two City Monument Signs on Interstate 15. · Installed new carpet and interior and exterior paint at the Senior Center. · Replastered the Temecula Elementary School swimming pool. GOAL 1: OBJECTIVES: DEVELOP AND IMPLEMENT A SERVICE ORDER MANAGEMENT SYSTEM. Assess and improve customer service. Assess and improve contract services. Complete emergency repairs within 24 hours. Establish and implement a preventive maintenance program for City facilities. PERFORMANCE MEASURES: Number of days to complete general maintenance items Average time to complete emergency repairs Percent of reduction unscheduled repairs Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 5 N/A N/A 24 hrs N/A N/A 10 % GOAL 2: OBJECTIVES: DEVELOP AND IMPLEMENT A COMPREHENSIVE MANAGEMENT SYSTEM FOR CITY FACILITIES. Establish effective key management system. Establish Citywide alarm monitoring system (Fire & Security) Train staff on operation of City Security System. SECURITY 15 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Maintenance Services (Continued) PERFORMANCE MEASURES: Staff trainings per year Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 4 Program: Debt Service MISSION: The Debt Service Program is the operating budget for the Temecula Community Services District. Items budgeted include debt service principal and interest, property tax administrative fees, and pass-through agreements. 1997-98 ACCOMPLISHMENTS: · All debt service and related costs for the 1992 Certificates of Participation were made in a timely manner. GOAL 1: ENSURE TIMELY PAYMENT OF DEBT SERVICE AND RELATED COSTS. 16 TCSD DEPARTMENTAL REPORT CITY ATTORNEY /~'~'~'/'L,/ DIRECTOR OF FINANC_..~ f,..~/' - CITY MANAGER ~ TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT Board of Directors '~-Ierman D. Parker, Acting Director of Community Services June 23, 1998 Departmental Report PREPARED BY: J~ Gall L. Zigler, Administrative Secretary On February 10, 1998, the City Council awarded a contract to Edge Construction for $1.35 million, for the construction of Margarita Community Park. A preconstruction meeting was held on March 11, 1998, and the project is currently under construction. The Master Plan includes parking, lighting, tot lots, picnic facilities, landscaping, irrigation, pedestrian walkways, a roller hockey rink, tennis courts, and ballfield lighting. It is anticipated this project will be completed in the Spring, 1999. The City Council awarded a contract on October 7, 1997, to ModCraft for the ADA upgrades project and this project is currently under construction. This project provides handicap accessibility to the following park sites: John McGee Park, Calle Aragon Park, Bahia Vista Park, Rancho California Sports Park and Veteran's Park. ADA upgrades are complete at all four park sites. Staff will need to inspect and accept the construction improvements. On February 10, 1998, the City Council awarded a contract to Terra Cal Construction for $601,000, for the construction of Winchester Creek Park. A preconstruction meeting was held on March 16, 1998, and this project is currently under construction. Winchester Creek Park is a 4.5 acre passive use park consisting of a tot lot, picnic facilities, an outdoor basketball court, a sand volleyball court and open turf areas. On March 17, 1998, the Board of Directors approved a Professional Services Agreement and Scope of Services, in the amount of $55,000, with AMS Planning and Research, for the preparation of a ten (10) year Cultural Arts Master Plan for the City of Temecula. The first project committee meeting was held on June 16, 1998, with the consultant and members of the community. On June 17, the consultant held individual interviews with various members of the arts organizations in the community. The Cultural Arts Master Plan process will take approximately seven months. Library architect interviews were held on February 9, 1998, with follow-up interviews held on February 26, 1998. Council awarded a design contract to cover site selection, programming and master planning of the site to LPA, Inc., on May 12, 1998, in the amount of $58,000. R:~A~AGE~DAS~dp~806 Ju~e 16, 1998 City Council awarded a contract to Dahl, Taylor & Associates for the design of a temperature control system at the Community Recreation Center gymnasium. Bid opening was held March 26, 1998, and the City Council awarded a contract on April 14, 1998 to 1st Mechanical. This project is currently under construction. Staff anticipates this project will be completed by mid August 1998. At the request of the several homeowners who live in the area of Butterfield Stage Park, staff is currently in the process of designing a half court basketball court at Butterfield Stage Park. Staff has reviewed the second set of plans and they have been returned to the architect for corrections. It is anticipated this project will go out to bid in July, 1998. The Sports Park Sidewalk Project is currently in third plan check. Modifications were made to the landscaping and irrigation plans. Staff anticipates this project will be out to bid in July, 1998. The Community Recreation Center swimming pool is currently open for the summer swimming season with public swimming on Monday through Friday from 12:15 - 3:30 p.m., and Saturdays and Sundays from 1:00 p.m. to 5:00 p.m. Additionally, Family Swim Night is held every Wednesday from 6:15 p.m. - 8:00 p.m. Swim lessons will be held throughout the summer from June 15, 1998 to September 30, 1998, at the Temecula Elementary School Pool and the Community Recreation Center Swimming Pool. The City of Temecula Community Services Department held a Family Fun Night event at the Community Recreation Center on Friday, June 12, 1998. The theme was baseball, and staff provided crafts, games, refreshments and a movie. There was approximately 35 people in attendance. R:~AYAG~DAS~dp~9806 June 16, 1998 REDEVELOPMENT AGENCY ITEM 1 MINUTES OF A SPECIAL MEETING OF THE TEMECULA REDEVELOPMENT AGENCY JUNE 11, 1998 A special meeting of the City of Temecula Redevelopment Agency was called to order at 6:21 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. Chairman Lindemans presiding. ROLL CALL PRESENT: 5 AGENCY MEMBERS: Comerchero, Ford, Roberts, Stone, and Lindemans. ABSENT: 0 AGENCY MEMBER: None. Also present were Executive Director Bradley, City Attorney Thorson, and Acting City Clerk Jones. PUBLIC COMMENTS None. CONSENT CALENDAR 1. Minutes 1.1 Approve the minutes of May 26, 1998. MOTION: Agency Member Stone moved to approve Consent Calendar Item No.1. The motion was seconded by Agency Member Comerchero and voice vote reflected unanimous approval. At this time, the City Council reconvened. JOINT CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING 2. Award of Construction Contract for Old Town Streetscape Project - Project No PW97-05 RECOMMENDATION: That the Redevelopment Agency: 2.1 Appropriate $1,800,000.00 of RDA Bond proceeds to the Redevelopment Agency (RDA) Capital Improvement Project Fund of the Old Town Streetscape Project- Project No. PW97-05; minutes. RDA\061198 1 Temecula Redevelopment Aqencv June 11, 1998 That the City Council: 2.2 Accept Mallcraft's request to withdraw their bid due to a clerical error conforming to Section 5103 of the Public Contract Code; 2.3 Award a construction contract for the Old Town Streetscape Project to Valley Crest Landscape, Inc., San Diego, CA, in the amount of $3,903,910.00 (contract after deleting bid additives totaling $387,705.00) and authorize the Mayor to execute the contract; 2.4 Authorize the City Manager to approve change orders not to exceed the contingency amount of $390,391.00 which is equal to 10% of the recommended contract amount. Housing and Redevelopment Manager Meyer presented the staff report (of record), noting that the bid was written to include the base work and several bid additives and that staff is recommending the approval of some bid additives but not all, advising that the arch entry monuments were pulled out of the bid. In response to Agency Member Comerchero, Housing and Redevelopment Manager Meyer advised that the cost of each arch entry monument will be $150,000.00. Viewing these entry monuments as essential to the entire project, Agency Member Comerchero, echoed by Chairman Lindemans, requested that these monuments be included in this project. Chairman Lindemans also requested that the ornamental crates and barrels at $25,000 and the graded trail (Paseo along the west side of Front Street from Moreno to Rancho California Road) at $208,000 be included in the project. Concurring with Chairman Lindemans, Housing and Redevelopment Manager Meyer noted that the graded trail would create a visual sense of entering Old Town. Viewing the entry monuments as a main feature, Agency Member Roberts as well relayed his desire to include them in this project and noted that the graded trail could be completed as a second phase. In response to Agency Member Roberts' concern with regard to the cost of the sound system, City Manager Bradley and Mr. Meyer provided clarification, noting that the speakers would be built into the poles and that the control panels, etc. will be secured in a building and, therefore, will be covered by insurance. Agency Member Ford relayed his support to include the arch entry monuments in this project. minutes. RDA\061198 2 Temecula Redevelopment Aqencv June 11, 1998 For Agency Member Ford, Finance Director Roberts provided clarification with regard to funding sources for the bid additives including the graded trail, advising that RDA bond proceeds initially intended for the Old Town Southside Parking Lot Project will be reduced by approximately $600,000.00 and utilized to cover the cost of the recommended additives. Although he initially questioned the feasibility of constructing the graded trail, Agency Member Comerchero advised that after clarification from the Finance Director, he would support the inclusion of this additive with this project. MOTION: Chairman Lindemans moved to appropriate $2,413,215.00 of RDA Bond proceeds to the Redevelopment Agency (RDA) Capital Improvement Project Fund of the Old Town Streetscape Project - Project No. PW97-05. The motion was seconded by Agency Member Ford and voice vote reflected unanimous approval with the exception of Agency Member Stone who abstained. MOTION: Councilman Lindemans moved to accept Mallcraft's request to withdraw their bid due to a clerical error conforming to Section 5103 of the Public Contract Code; to award a construction contract for the Old Town Streetscape Project to Valley Crest Landscape, Inc., San Diego, CA, in the amount of $4,137,665.00 (contract after deleting bid additives totaling $153,950.00); to authorize the Mayor to execute the contract; to authorize the City Manager to approve change orders not to exceed the contingency amount $413,767.00 which is equal to 10% of the recommended contract amount. The motion was seconded by Councilman Ford and voice vote reflected unanimous approval with the exception of Councilman Stone who abstained. City Attorney Thorson clarified that the additional additives would change the amounts of the initially proposed contract. At this time, the City Council recessed. EXECUTIVE DIRECTOR'S REPORT Because of the significant impact this project will have on the appearance of Old Town, Executive Director Bradley relayed his delight with the approval of this project. AGENCY MEMBERS' REPORTS In response to Chairman Lindemans' comment, it was noted by several Agency Members that meetings have been scheduled with Mr. Harry Clark in order to discuss the possibility of a 250- seat theater in Old Town. It was noted that once these meetings have concluded, the matter would be agendized for a City Council meeting for further discussion. minutes. RDA\061198 3 Temecula Redevelopment Aqencv June 11, 1998 ADJOURNMENT At 6:43 P.M., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, June 16, 1998, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Karel F. Lindemans, Chairman ATTEST: Susan W. Jones, CMC Acting City Clerk/District Secretary [SEAL] minutes. RDA\061198 4 ITEM 2 APPROVAL CITY ATTORNEY FINANCE DIRECT(~R~ CITY MANAGER TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Redevelopment Agency Members FROM: Ronald E. Bradley, Executive Director DATE: June 23, 1998 SUBJECT: Old Town Market Assessment Prepared by.' John Meyer, Housing and Redevelopment Manager RECOMMENDATION: That the Agency Members review the Study and provide direction on an implementation strategy. DISCUSSION: On January 13, 1998, the RDA entered into an agreement with Keyser Marston and Associates (KMA) to perform an Old Town Market Assessment. As part of the assessment, telephone and shopper intercept surveys were conducted in March and April of this year. In addition, KMA conducted separate stakeholder workshops with merchants, property owners, community leaders, city department heads, and individually interviewed the Agency Board. The market assessment establishes recommendations on the amount and type of retail and restaurant uses that Old Town may potentially capture over the next five and ten year period. It discusses opportunities for office and hotel and the need for additional residential units in and around Old Town. The assessment also discusses other concepts including government, art and cultural uses, the enhancement of Murrieta Creek and other strategic and recruitment strategies. The Executive Summary has been attached for your review. IMPLEMENTATION: The RDA has a number of implementation tasks that can be used to stimulate new investment and development in the Old Town area. Among these are: 1) Acquisition/Disposition of Old Town Property The RDA can acquire property on a negotiated basis, prepare a development plan and re-sell the property to a qualified developer for fair market value based on the agreed upon re-use value. Development conditions can be enforced by r:\ready2go\bradley\agenda\kmastudy.cc means of a Disposition and Development Agreement between the RDA and the purchaser. Typically, Requests for Proposals are issued by the RDA to solicit development proposals for RDA owned properties. 2) Owner Participation The RDA can work with existing property owners and/or new investors who acquire Old Town properties. The RDA and owner can jointly issue Requests for Proposals for development by a third party, or the property owner can directly submit a development proposal to the RDA. 3) Financial Incentives The RDA can provide financial incentives to make new development economically feasible by means of: Write-down of property owned by the RDA to a fair market value that reflects the intended re-use of the property. Provision of off-site improvements. Waiver or deferral of development fees. Acquisition of leasehold interests required to make property available for new users. Participation in tax sharing arrangements. It should be noted that financial incentives are limited to those necessary to make the agreed upon re-use financially feasible and must be based on the requirements of the California Community Redevelopment Law. Implementation techniques are applied on a case-by-case basis depending on the opportunities and constraints unique to each development site. FISCAL IMPACT: There is no direct fiscal impact as a result of this market assessment. Future projects or programs will be brought back to the RDA in the future. ATTACHMENTS: Old Town Market Executive Summary r:\ready2go\bradley\agenda98\kmastudy.cc FINAL REPORT: MARKET ASSESSMENT OLD TOWN TEMECULA Prepared for: CITY OF TEMECULA Prepared by: KEYSER MARSTON ASSOCIATES, INC. Date: JUNE 8, 1998 A. EXECUTIVE SUMMARY 1, District Identity Old Town Temecula provides a unique and historic environment for specialty shopping, dining, and entertainment uses for both local residents and tourists. In order for Old Town to continue to thrive, it will need to strengthen its appeal to residents of the local trade area. The City and Old Town stakeholders should consider positioning Old Town as Temecula's "downtown," offering a special destination for "lifestyle" shopping and services, eating and drinking, entertainment, and special events. To further these goals, the City should also consider siting public projects such as the proposed new Civic Center within Old Town in order to attract local patronage to the area. Other public gathering places, including arts facilities, parks and plazas, and community centers, could be linked to a Civic Center project in order to leverage public investment in these facilities. 2, Market Opportunities Retail / Restaurant Old Town has the potential to capture 35,000 to 58,000 SF of new retail and restaurant uses over the next five years (1998-2003) and an additional 60,000 to 100,000 SF during the following five years (2003-2008). KMA has identified three major retailing opportunities: (a) Eating and Drinking Establishments: Old Town has the potential to capture between 14,000 and 21,000 SF of restaurant/bar uses over the next five years. KMA recommends establishment of a "restaurant row" as an important first phase for district revitalization. Possible tenant types include: Micro-breweries, sports bars, Western-style saloons, diners, barbeque-style restaurants, steak houses, and ice cream and candy stores. Old Town Temecula Market Assessment Keyser Marston Associates, Inc. 98051ndh Final/June 8, 1998 Page 5 (b) Specialty Stores: KMA recommends two specific themes in particular: sporting goods and apparel and outdoor recreation supply. Examples include hiking and camping gear, Western-oriented apparel and gear, athletic supply and shoes, and theme bookstores. (c) Home Furnishings and Design: The existing concentration of antiques stores in Old Town provides the foundation to add other household furnishing and decor stores. Examples include stores that sell: new furniture, lighting, wall art, patio furniture, and specialty hardware stores. (d) Long-Term Targets: With the introduction of significant new residential in Old Town and vicinity, the district may be successful in attracting upscale "lifestyle" retailers such as Restoration Hardware, Pottery Barn, and Smith & Hawken, as well as a specialty grocery store. Office Space There are relatively limited opportunities for office development within Old Town. Where possible, KMA recommends that the City encourage development of office uses, particularly "hybrid" live/work space, on upper floors. Location of the Temecula Civic Center within Old Town would reinforce the district's role as Temecula's downtown and enhance the desirability of Old Town as an office location for architects, engineers, and other development industry tenants. Hotel The Old Town environment is well-suited for development of several moderate to upscale bed and breakfast inns or small lodges. Key opportunities would involve adaptive re-use of one of the area's historic hotels or older buildings. In addition, KMA recommends that the City pursue limited-service or extended-stay hotels in nearby locations outside of Old Town. Old Town Temecula Market Assessment Keyser Marston Associates, Inc. 98051ndh Final/June 8, 1998 Page 7 Residential Significant expansion of residential uses within Old Town and vicinity will be an important component of the area's revitalization, as new residents will provide an important patronage base for specialty retailers, convenience shopping and services, and restaurants in Old Town. Key opportunities are: (1) development of new senior apartments; (2) adaptive re-use of older structures as lofts; (3) in-fill multi-family development along Pujol Street; and (4) medium- and high-density housing within the Westside Specific Plan. 3. Other Development Concepts (a) Arts and Cultural Uses: Old Town needs an expanded mix of arts and cultural uses if the district is to be successful in maintaining its current share of local trade area expenditures as well as regional tourism spending. Comparable districts include entertainment or cultural facilities such as museums and theatres. KMA recommends that the City consider siting new arts and cultural uses within Old Town to enhance the district's draw and leverage the City's investment to date. Possible uses include: a playhouse theatre; Western or Native American museums or galleries; and working artisans' craft shops. (b) Enhancement of Murrieta Creek: Murrieta Creek is a key asset and should play a prominent role in the Old Town revitalization program. The creek offers a natural setting that could be developed as a recreational/pedestrian promenade lined with restaurants and specialty shops. (c) Cooperation with Wineries: Old Town stakeholders should consider structuring a cooperative marketing arrangement with the vintners. Additional representations of the wine country could also be incorporated within Old Town. Old Town Temecula Market Assessment Keyser Marston Associates, Inc. 98051ndh Final / June 8, 1998 Page 8 4. Other Strategic Recommendations (a) Business Improvement District (BID): Old Town stakeholders should consider formation of either a business- or property-based Business Improvement District (BID). BIDs can provide marketing and promotion, security, parking services, and maintenance, as well as other revitalization activities and improvements. BIDs appeal to property and business owners because funds are controlled by the private sector, allowing the business community to decrease its reliance on uncertain, public financial support. The City should consider providing the seed capital to implement an Old Town BID. (b) Uniform Shopping Environment: Old Town stakeholders should also consider uniform operating hours, standardized parking arrangements, and enhanced wayfinding signage. (c) Freeway Visibility: The City and Old Town stakeholders should consider pursuing one or more of the available means to enhance Old Town's visibility from the freeway. (d) Recruitment Strategies: Strategies available to the City/Redevelopment Agency to attract new development, business, and arts and cultural uses to Old Town include: · Solicit developer investment through Requests for Proposals (RFPs) for targeted properties. · Encourage or assist adaptive re-use of historic buildings. · Direct solicitations to end users such as restaurants or hotel operators. · Partial financial sponsorship for arts and cultural facilities. · Continued investment in public improvements. Old Town Temecula Market Assessment Keyser Marston Associates, Inc. 98051ndh Final/June 8, 1998 Page 9 ITEM 3 APPROVAL CITY ATTORNEY FINANCE OFFICER CITY MANAGER TO: FROM: DATE: SUBJECT: TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT Agency Directors Ronald E. Bradley, Executive Director ~ June 23, 1998 Review and Approval of the FY 1998-99 Annual Operating Budget PREPARED BY: Genie Roberts, Director of Finance Tim McDermott, Assistant Finance Director RECOMMENDATION: Adopt a resolution entitled: RESOLUTION NO. RDA 98- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS DISCUSSION: The Temecula Redevelopment Agency (RDA) consists of three funds, the Low/Moderate Income Housing Fund, the Capital Projects Fund, and the Debt Service Fund. REVENUES Overall operating revenues of the RDA are anticipated to decrease in 1998-99 by approximately $210,000 from the current year. A slight increase of $133,600 (2%) in property tax increment revenue is projected. A $130,000 decrease in investment interest is anticipated, due to the continued expenditure of RDA tax allocation bond proceeds on capital improvement projects. A decrease of $204,000 in rental income is anticipated, due to the planned sale of the Pujol and Sherwood Apartments. EXPENDITURES The proposed RDA budget reflects the transfer of all costs relating to the City's Economic Development/Marketing program to the General Fund. Included in this restructuring is the elimination of the Redevelopment Director position, the transfer of the Marketing Coordinator position to the City Manager's ("Economic Development/Marketing") Department, the addition of a Senior Management Analyst for redevelopment and housing related issues, and the transfer of a .5 full time equivalent Associate Planner position to the Planning Department. The result is a net personnel cost savings to the RDA of $186,000. Other significant items in the proposed RDA budget are as follows: A proposed increase in the Old Town Promotion budget from 872,000 to ~ 133,000. The proposed budget includes amounts for special event promotions, billboard advertisement, and construction relief for business owners during the streetscape construction. A proposed increase in the Old Town Banner Program to $33,000. A reduction in the Debt Service Fund transfer required to reimburse for operating costs of the RDA from ~1,100,000 to 8625,000. The attached budget adoption resolution reflects an increase in the Executive Director's expenditure authorization to $25,000. Since 1991, the Executive Director has had the authority to approve expenditures up to 810,000. Any proposed expenditure greater than $10,000 has required the prior approval of the Agency Members. Since that time, the Agency's budget has grown substantially, as has the Agency's purchasing activity. The proposed increase in the Executive Director's expenditure authorization will assist staff in being able to respond to operational needs in a more timely manner (reducing the approval process by two weeks on contracts and purchases of $10,000 to $25,000), while still providing the necessary oversight and control on the award of purchases and contracts based on the Agency's solid purchasing procedures. FISCAl. IMPACT: The proposed RDA operating budget reflects an overall excess of revenues over expenditures of $253,403 for the 1998-99 fiscal year. Attachments: Resolution No. 98- Proposed 1998-99 Operating Budget 2 RESOLUTION NO. 98- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS WItEREAS, the Board of Directors of the Temecula Redevelopment Agency has reviewed the proposed final FY 1998-99 annual operating budget and has held such public meetings as are necessary prior to adoption of the final operating budget. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Redevelopment Agency as follows: Section 1. That the FY 1998-99 RDA operating budget is hereby adopted. Section 2. That the following controls are hereby placed on the use and transfers of budget appropriations: A. No expenditure of funds shall be made unless there is an unencumbered appropriation available to cover the expenditure. B. The Department Director may prepare a transfer of appropriations within departmental budget accounts, with the approval of the Executive Director. C. The Agency Members must authorize transfers (appropriations) of funds from the Unreserved Fund Balance and transfers between departmental budget accounts. D. The Agency Members must authorize any increase in regular personnel positions above the level indicated in the final budget. The Executive Director may authorize the hiring of temporary or part time staff as necessary within the limits imposed by the controls listed above. E. The Executive Director may authorize expenditures of funds in amounts up to $25,000. Any expenditure of funds in excess of $25,000 requires Agency Member action. F. Pursuant to Section 3.32.050 of the Temecula Municipal Code, the Executive Director may authorize Public Works contracts in amounts up to $25,000. Any expenditures of Public Works funds in excess of $25,000 require Agency Member action, except that the Executive Director may approve change orders on Public Works contracts approved by the Agency Members in amounts up to project contingency established by the Agency Members. Section 3. Outstanding encumbrances shown on the Agency books at June 30, 1998, are hereby appropriated for such contracts or obligations for 1998-99. Section 4. The Agency Secretary shall certify adoption of the resolution. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temecula Redevelopment Agency this 23rd day of June, 1998. Karel F. Lindemans, Chairperson ATTEST: Susan W. Jones, CMC Acting Agency Secretary/City Clerk [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA) I, Susan W. Jones, Acting Agency Secretary of the Temecula Redevelopmere Agency, do hereby certify that the foregoing Resolution No. RDA 98- was duly and regularly adopted by the Board of Directors of the Temecula Redevelopment Agency at a regular meeting thereof held on the 23rd day of June, 1998, by the following vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: AB SENT: AGENCY MEMBERS: Susan W. Jones, CMC Acting Agency Secretary/City Clerk TEMECULA REDEVELOPMENT AGENCY 1998-99 OPERATING BUDGET (This Pago Intentionally Lef~ Blank) City of Temecula REVENUES BY FUND - REDEVELOPMENT AGENCY Actual Actual Es "tunated Projected FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Low/Moderate Income Set Aside $ 1,387,146 $ 1,575,790 $ 1,551,400 $ CIP/Redevelopment 2,218,189 738,934 1,568,000 Debt Service 5,930,961 6,360,602 5,886,750 Total $ 9,536,296 $ 8,675,326 $ 9,006,150 $ 1,384,000 993,12}00 5,976,650 8,353,650 FOUR YEAR COMPARISON .j $9.536 $2 $0 ~ Actual 1995-96 Actual 1996-97 Estimated 1997-98 Projected 1998-99 Low/Mod Set Aside ~ CIP Debt Service Ci~ of Temecula EXPENDITURE SUMMARY BY CATEGORY- REDEVELOPMENT AGENCY FUNDS Fund Personnel Low/Moderate Income Set Aside $ 162,270 Operations Capital Operating & Maintenance Outlay Transfers $ 865,660 Total 1,027.930 CIP/Redevelopment 89,730 810,620 $ 3,000 Debt Service 5,050,820 $ Total $ 252,000 $ 6.727,100 $ 3,000 $ 625,000 625,000 903,350 5,675,820 7,607,100 Low/Mod Set Aside ($1,027,930) CIP ($903,350) Debt Service ($5,675,820) City of Temecula EXPENDITURE SUMMARY BY FUND- REDEVELOPMENT AGENCY Four Year Comparison LOW/MODERATE INCOME SET ASIDE Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 19,027 $ 65,777 $ 205,720 Operations & Maintenance 79,302 664,458 1,125,860 Capital Outlay 4,000 Operating Transfers Out Total $ 98,329 $ 730,235 $ 1,335,580 CIP/REDEVELOPMENT Personnel $ 79,631 $ 136,249 $ 169,350 Operations & Maintenance 695,458 726,479 607,979 Capital Outlay 4,590 160,444 Operating Transfers Out Total $ 775,089 $ 867,318 $ 937,773 $ DEBT SERVICE Personnel Operations & Maintenance Capital Outlay $ 5,134,207 $ 5,312,902 $ 6,239,650 $ Total $ 5,134,207 $ 5,312,902 $ 6,239,650 $ $ 162,270 865,660 $ 1,027,930 89,730 695,620 118,000 903,350 5,675,820 5,675,820 City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 Revenues Other Sources: Operating Transfers In Total Revenues and Other Sources Expenditures (Appropriations) (1) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies (30 %) Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 Redevelopment Agency Low/Moderate Housing 1,384,000 1,384,000 (3,962,930) Capital Projects $ 368,000 $ 625,000 993,000 (9,175,750) (2,578,930) 4,899,400 2,320,470 (8,182,750) 8,528,500 345,750 900,000 1,420,470 345,750 $ $ $ Debt Service 5,976,650 5,976,650 (5,050,820) (625,000) 300,830 4,928,426 5,229,256 3,780,336 1,448,920 (1) Includes amounts budgeted for capital outlay through the seperate capital improvement program budget document. City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY ASSISTANT CITY MANAGER (Open) HOUSING 8,: REDEVELOPMENT MANAGER John Meyer HOUSING REDEVELOPMENT ECONOMIC DEVELOPMENT* Temecula -- Capital Projects ~.N.E. -- Old Town First Time Specific Plan Homebuyer Implementation Residential ~ Old Town Improvement Advisory Programs Committee Land Acquisition -- Mainstreet Affordable Association Housing Project ~ Community Development Liaison Business Attraction Business Retention Marketing Labor Development *Information relating to this program may be found in the City Manager Department Summary section. City of Temecula REDEVELOPMENT AGENCY (Continued) Low/Moderate Income Housing Set Aside Funding Source: Tax Increment Exoenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 19,027 $ 65,777 $ 205,720 $ 162,270 Operations and Maintenance 79,302 664,458 1,125,860 865,660 Capital Outlay 4,000 Operating Transfers Out Total $ 98,329 $ 730,235 $ 1,335,580 $ 1,027,930 CIP/Redevelopment Expenditure Summary Funding Source: Tax Increment Tax Allocation Bond Proeceds Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 79,631 $ 136,249 $ 169,350 $ 89,730 Operations and Maintenance 695,458 726,479 607,979 695,620 Capital Outlay 4,590 160,444 118,000 Operating Transfers Out Total $ 775,089 $ 867,318 $ 937,773 $ 903,350 Debt Service Funding Source: Tax Increment Actual Actual Budgeted Proposed Expenditure Summary FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel Operations and Maintenance Capital Outlay Total $ 5,134,207 $ 5,312,902 $ 6,239,650 $ 5,675,820 $ 5,134,207 $ 5,312,902 $ 6,239,650 $ 5,675,820 City of Temecula REDEVELOPMENT AGENCY (Continued) Personnel Allocation Authorized Proposed Recommended 1997-98 Changes 1998-99 LOW/MOD HOUSING Redevelopment Director Housing/Redevelopment Manager Senior Management Analyst Associate Planner Administrative Secretary 0.50 (0.50) o.oo 0.75 0.00 0.75 0.00 0.75 0.75 0.12 (0.12) 0.00 0.50 0.00 0.50 Sub-Total 1.87 0.13 2.00 CIP/REDEVELOPMENT Redevelopment Director Housing/Redevelopment Manager Senior Management Analyst Associate Planner Marketing Coordinator Administrative Secretary 0.50 (O.50) 0.00 0.25 0.00 0.25 0.00 0.25 0.25 0.38 (0.38) 0.00 1.00 (1.00) 0.00 0.50 0.00 0.50 Sub-Total 2.63 (1.63) 1.00 Redevelopment Agency Total 4.50 (1.50) 3.00 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Program: Housing MISSION: The Housing Program is response'hie for providing public facilities and other types of housing assistance to low and moderate income citizens. 1997-98 ACCOMPLISHMENTS: · Funded 18 first time homebuyers. · Funded 30 residential improvements, consisting of painting, roofing and fencing repairs. GOAL 1: OBJECTIVES: PROVIDE QUALITY HOUSING OPPORTUNITIES FOR LOW AND MODERATE INCOME CITIZENS. Ensure compliance with all HUD regulations. Obtain property for the purpose of providing low and moderate income housing. Assist 10 parties through the First Time Homebuyer's Program. Assist with the rehabilitation of 50 housing units. PERFORMANCE MEASURES: Number of low/moderate income housing units provided Number of properties acquired for housing projects Number of first time homebuyers assisted Number of housing units rehabilitated Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 30 0 76 2 3 10 18 18 20 6 30 36 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Program: Redevelopment MISSION: The Redevelopment program is responsible for encouraging investment and upgrading the physical appearance in the project area. 1997-98 ACCOMPLISHMENTS: · Completed three projects through the Facade Improvement Program in Old Town. GOAL 1: OBJECTIVES: IMPLEMENT THE OLD TOWN SPECIFIC PLAN. Develop standards that will assist the development community in making private and public improvements in Old Town. Assist in the private rehabilitation of buildings in Old Town. Manage the design of the Old Town Streetscape Improvement Plan. Process applications for the Facade Improvement and Nonconforming Sign Removal Programs. PERFORMANCE MEASURES Number of facade improvements Number of nonconforming signs removed Number of processing fees waived for historic structures Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 1 6 6 2 6 10 1 2 3 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Debt Service MISSION: The Debt Service Program is the operating budget for the Redevelopment Agency. Items budgeted include debt service principal and interest, property tax admimstrative fees, and passthrough agreements. 1997-98 ACCOMPLISHMENTS: · All debt service and related costs for the 1993 Tax Allocation Bonds were made in a timely manner. GOAL 1: ENSURE TIMELY PAYMENT OF DEBT SERVICE AND RELATED COSTS. RDA DEPARTMENTAL REPORT APPROVAL CITY ATTORNEY FINANCE DIRECTOR CITY MANAGER TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: FROM: DATE: SUBJECT: Executive Director/Redevelopment Agency Members John Meyer, Housing&Redevelopment Manager June 23, 1998 Monthly Departmental Report Attached for your information is the monthly report as of June 23, 1998 for the Redevelopment Department. This report covers housing, redevelopment and economic development. HOUSING First Time Homebuyers Program Eighteen families have been funded for FY 97-98. Residential Improvement Programs Since the program started, twenty eight projects have been completed and 13 are in process. The majority of these projects are roof repairs, repainting and fence replacement. Temecula O.N.E. Crime Free Multi-Housing Program certificates have been awarded to Rancho West, View, Morning Ridge, Summer Breeze, Creekside, Sycamore Terrace and Acacia Apartments. Vintage Currently, we are working with the Alcohol Beverage Control on a juvenile decoy-buy program to enhance Operation ERACIT. The P.O.P. Team is working with community services and RDA to sponsor the 3rd Annual Pujol Street 4th of July picnic. We are currently continuing with the TAG Program. We now have fourteen trained resident volunteers for the P.O.P. Team. North Pujol Redevelopment Project The Affirmed Housing Group of Escondido is finalizing the financing plan which includes Mortgage Revenue Bonds and Tax Credits. Plans have been submitted for Development Plan approval. The proposed project will rehabilitate the existing 38 apartment units and develop 18 new units on the vacant acre of land. In addition, Affirmed is negotiating with an adjacent property owner to enlarge the project. The additional property would yield 20 more units. OLD TOWN Old Town Streetscape Improvement Projects The Council/Agency awarded the construction contract to Valley Crest Landscaping on June 11, 1998. Construction is anticipated to begin July 1, 1998. Facade Improvement Non-Conforming Sign Program The following facade improvement projects are underway: Long Branch Antiques (Formerly NAPA Auto Parts) - facade renovation R:\SYERSK',MONTHLLYX.IOHN.MAY 6/17/98 k~ The following facade improvement project is completed: · Temecula Creek Plaza (southwest corner of Sixth and Front) -paint and minor repairs · The Bank Restaurant - paint The following facade improvement applications are being processed: · Second Street Automotive - complete facade renovation · Rancon Building - repaint trim Staff has also met with several other interested property and business owners. Old Town Temecula Market Study · Keyser Marston Associates of San Diego has submitted a draft of the market study for staff review. Upon completion of this review KMA will make the changes and a presentation will be made to the Council on June 23. R:~SYERSK~IOlqTHLLYXJOHlq. MAY 6/17/98 kga Old Town Promotion Traditionally Old Town Summer Nights were held on Friday evenings. To accommodate Old Town's construction schedule, Summer Nights will be held on Saturday evenings through September. A survey was also distributed to merchants and the consensus showed that they preferred holding Summer Nights on Saturday evenings as well. Some merchants have indicated that they will stay open both Friday & Saturday nights. In addition to dining and shopping, visitors can experience live entertainment and special events geared toward the whole family throughout Old Town. A sample of these activities includes: clowns, pony rides, mimes, carriage and stagecoach rides, live entertainment, as well as static displays and speciality vendors. Each week, the entertainment will vary and many times will be scheduled around a specific theme. ECONOMIC DEVELOPMENT Final finishes on Temecula's corporate brochure are being made. The brochure will be ready to distribute in June. Brochures will be distributed at trade shows and to prospective businesses looking to expand or relocate. The Corporate Personnel Relocation Assistance marketing insert will be printed on the same run as the corporate brochure. Through the City's Housing Assistance Program, selected businesses who relocate or expand in Temecula may take advantage of financial assistance programs which provide eligible employees with deferred payment loans to assist in purchasing homes or rental assistance payments. The insert will be printed along with the corporate brochure to cut down on costs. The insert will be included in Temecula's business kit. The City now has up-to-date information from the Community Profile on the ("SelecTOWN" web site) which is visited by major corporations and site selectors throughout the U.S. The City has the ability to update our information at any time. We will also provide specific property information on this site in the near future. The Temecula Valley Film Council will report next month on their recent activities including their recent Show Biz Expo and Temecula Showcase. Publicity Monthly calendar of events and Old Town special events press releases continue to go out to the media. Western Association News, a publication for meeting planners, highlighted the Inland Empire region in their April issue. The City worked with the publication supplying them with information and photos on Temecula (see attached). San Diego This Week published an article in the April edition of their relocation guide on Temecula (see attached). R:~YERSK~IONTHI..LY~-IYNE. 23 6/17/9g kgs Leads and Inauiries In the month of May, we responded to 2 leads and 1 5 inquiries. Fast Track Appleton Electronics located in the Westside Business Center and will be utilizing the City's Fast Track Program. The Bostik building will consist of 140,000 sq. ft.; Phase I - 45,625 sq.ft.; Phase II - 94,375 sq. ft. They are planning to open July 1998. Four-Sher's 226,000 sq. ft. industrial office building is currently under construction. Completion date is slated for early summer '98. Soeculative Building Approximately 300,000 sq. ft. of speculative industrial space are in various stages of development in Temecula. Four-Sher Development is developing two speculative buildings which are planned to serve either manufacturing, distribution or assembly business users. One development includes a 38,300 sq. ft. industrial building and the second encompasses 28,700 sq. ft. both located on Business Park Drive within the Rancho California Business Park. Utilizing the City's Fast Track program, SPT Holdings currently has two 46,000 sq. ft. speculative buildings under construction in the Winchester Highlands Business Park. The developments are designed for an industrial/warehouse or office user. San Diego-based CW Assets have currently constructed five light industrial buildings using the Fast Track program. The buildings range in size from 9,490 sq. ft. up to 11,492 sq. ft. and are located in the Winchester Business Center. TOURISM Publicity Temecula's tourism newsletter, Escape to Temecula, is currently being designed and written. The newsletter highlights major tourism activities and attractions in Temecula. It is distributed to travel writers, tour operators, destination management companies hotel concierges, travel agents across the U.S., and entertainment media. Award Com0etition The City has submitted six entries to 3CMA, a City-County Communications & Marketing Association, for the 10th annual SAVVY Awards Competition. Entries include: Real Estate Outlook Newsletter, Escape to Temecula tourism newsletter, Dr. Husing's Community Profile, Dicken's Christmas in Old Town Promotion, Fourth of July Celebration Poster, and Temecula Traffic News. Last year the City received four SAVVY Awards. R:~SYERSK~,MONTHLLYx.Fu-NE.23 6/17/98 kgs Assemblyman Bruce Thompson recently wrote a letter of congratulations to the Temecula City Council on receiving CALED's Economic Development Promotion Award for the Economic Development Marketing Plan. The California Association for Local Economic Development organization is a statewide association dedicated to serving professionals involved in the business of economic development. The City received from The American Economic Development Council (AEDC) an Honorable mention Award for its Escape to Temecula tourism newsletter which is distributed to the travel industry and entertainment media. The Right Fit Brochure also received an Award of Excellence for its design promoting a specific type of activity. Attachments: Magazine & Newspaper Clippings Temecula Valley Chamber of Commerce Report Temecula Valley Economic Development Corp. Report R:~SYERSK~IONTHLLY~UNE. 23 6/17/98 k~ Big Bear Lake and the San Bernardino Mountains offer year-round recreational opportunities just east of the Ontario International A?~p rp~t~~ in_q~the final stages of a major expansion (inset). THE RIGHT ENVIRONMENT FOR !~EETINGS by Frankie Lyon wide assortment of environments awaits state and regional associa- .. tions to choosing gather in California's Inland Empire. In the south l..,lies a wine-growing area that now produces award-winning vintages. To the north and east, the San Gabriel and San Bernardino mountains pro- vide alpine adventure. And in the middle of it all, the Ontario Internation- al Airport offers convenient access to all points, including a new conven- tion center. With a surprising array of hotels and meeting venues to chose from, meeting planners seeking less hassle, good value for their dollar, and a warm welcome need look no further than the Inland Empire. ONTARIO: GROWING TO MEET EXPECTATIONS Ontario started as an agricultural center. Today its diversified economv includes commercial and industrial de- velopment. An extensive transportation network provides case access to three major freeways, two fail lines and an hTtt. rnational airport !with an expan- sion due to be completed this fall). Still, Ontario retains the charm and warmth of a small town, and its central location makes it a fine base for excursions. The new S66 rnillion 225,000-square- foot Ontario Convention Center, which opened in December, is one of the most technically advanced meeting facilities m the country. The exhibit hail ha> fuliv integrated fiber-optic port~ every feet for computers, telephones and fax machines, and a new state-of-the-art teleconferencing center. The exhibit hall offers 70,000 square feet of column-free space, a 20,000-square-foot ballroom and 21,000 square feet of flexible meet- ing space. Less than two minutes from the On- tario International Airport, the conven- tion center is within walking distance of more than 2,000 hotel guest rooms. An additional 700 rooms are within two miles of the center. Hotels with meeting facilities near the convention center include the 30S- room Hilton/Ontario Airport, with 14,000 square feet of meeting space; the 340-room Doubletree Hotel/Ontario, with 24,000 square feet of space that can accommt~date groups of up to 2,t~t)0: DESTINATION: CALIFORNIA'S INLAND EMPIRE riott, with meeting space for groups of up to 725 people. Additional hotels near the convention center include the Best Western Ontario Airport, the Dou- bletree Club, the Days Inn and the Resi- dence Inn by Marriott. hmSuites, with 150 guest rooms, of- fers three large meeting rooms and six boardroom suites. Both the 107-suite Country Side Suites/Ontario and the 167-suite Country Suites by Ayers fea- ture European elegance and meeting space for up to 300 people. The 120- room Country Suites by Carlson, the 200-suite Residence hm by Marriott, the 186-room Good Nite Inn and the 150-suite Holiday inn Express/Ontario Airport hotels also offer meeting space. Nearby, the 184-room Radisson Ho- tel/Diamond Bar-Ontario features meeting space for groups of up to 200 people, and the 174-room Holiday hm/Monrovia has meeting space for groups of up to 400 people. Golf tournaments may be scheduled at one of several area courses. Auto en- thusiasts may enjoy a visit to the Califor- nia Speedway, a two-mile tri-oval track. The Ontario Mills Shopping Center fea- tures 15 anchor and major stores, 200 One of the more popular attractions in California's Inland Empire is the Glen ivy Hot Springs Day Spa in Corona, California, which offers a California red-clay mud bath and mineral water pools. specialty stores, a 15-screen movie com- plex and an IMAX large-screen theater. Route 66, once the best way to get from Chicago to Los Angeles, cut right through the center of the Inland Em- pire. Miles of the highway are still in use in the area. The Route 66 Territory Tucson Naturalist. Summe,' Meeting Special - Only $79* Includes complimentary planner's room, 15% off banquet menus b,_, complimentary am/pro breaks. Now more than ever, Tucson's most authentic Southwestern resort is the ideal destination for your next meeting. Meeting rex>ms of all sizes ofl'er sensible functionality, and direct access to our 8o acre desert setting. · 244 redecorated deluxe guest rooms * Two restaurants, plus live entertainment with balcony or patio * 11 meeting r~ras for up to 300 · Wellness Center and Fitness Club * Destrt site and 4,000 sq. fi terrace for · Eight tennis courts, thru pools and spaaoutd~orfunaions Spring Value Dates also available. Call for details. WESTWARD LOOK RESORT co~ N~ ~9~,~ - ~ ~ ~ Southwestern Hospitality Since 1912 T~ M~,9~*'~ 800-722-2500 'q'op50"Rmotts 2-1-5 E. lna [~oaJ ' % ........ '\Z ° weslwarcllooL-.c Circle 94 on Reader Service Card Visitors Center & Museum is housed in an old winery building. POMONA: MEETING YOUR MEETING NEEDS Northwest of Ontario, Pomona is a thriving university town and the home of the 4,887-acre Fairplex Exposition Complex. The big event at Fairplex each year is the Los Angeles County Fair, {he largest in the world. The fair combines exhibits of homemade foods and crafts, horse races, entertainment and carnival rides. With 250,000 square feet of exhibit space, Fairplex also hosts trade and consumer shows during the year. Tilt' flexible exhibit halls have from 33,000 to 105,000 square feet of column-free space and can be used individually or in combination. The complex also of- fers parking spaces for 45,000 vehicles. Fairplex has hosted the Recreational Vehicle Industry Association's annual California RV Show, the National Hot Rod Association and many other trade shows and meetings. Located at tile trance to the fairgrounds, the 247-suite Sheraton Suites Fairplex offers 11 square feet of meeting space in seven meeting rooms. At California State Polvtechnic Uni- versit?5 Pomona, the W.K. Kellogg Ara- bian lqorse Center is open daily and presents horse shows each month. The Kellogg West Convention Center & t tel, located on the campus among tall trees, provides meeting facilities that can accommodate up to 300 people. DESTINATION' CALIFORNIA'S INLAND EMPIRE meeting space. The Shilo Inn/Pomona Hilltop Suites Hotel offers 11 meeting rooms and a convention center for groups of up to 500 people. The 129- suite hotel provides a panoramic view of the surrounding valley. Just down the road, the Shilo Inn/Diamond Bar-Pomona offers 162 guest rooms and meeting space for groups of up to 125 people. North of Pomona on the slopes of the San Gabriel Mountains, the city of Clare- mont is a blend of New England charm and Southern California warmth. The city is the home of the academically ac- claimed Claremont Colleges. Historic houses and the remnants of citrus and oak groves are evident throughout the area. The Candlelight Pavilion Dinner Theateb which offers group rates, stages several productions throughout the vean The 270-room Claremont Inn Hotel & Conference Center offers meeting space for groups of up to 400 people. Additional hotels properties with meet- ing space include the Ramada Inn, with 124 guest rooms, the 62-room Howard Johnson and the Claremont Travelodge. SAN BERNARDINO: A CENTRAL LOCATION Just northeast of the Ontario airport, San Bernardino is centrally located within an hour's drive of mountains, deserts and beaches. Palm Springs is an easy trip to the east, and the resorts of the San Bernardino Mountains are min- utes away. There are also a number of activities going on in the city itself. Each spring, the Renaissance Pleasure Faire brings the spirit and activities of Shake- speare's England to Glen Helen gional Park. In May, the National Or- ange Show, one of the biggest events in the Inland Empire, arrives at the Or- ange Show Fairgrounds. In September, the Route 06 Rendezvous draws car buffs to classic-car displays, street com- petitions and social activities. Concerts on the Plaza and performances of the Inland Empire Symphony and the Civic Light Opera supply the culture. In downtown San Bernardino, the National Orange Show Events Center ~eatnres the 24,000-square-foot Citrus Building, with space for meetings, ban- quets, trade shows and special events, concerts and other performances for up to 2,500 people. The events center also ~ffers a ballroom and conference center, the OYan? Pavilion, the Citrus The Temecula Valley is known for its wineries the Mission Inn in Riverside features carriage and as a popular spot for hot-air ballooning, while rides and docent-led tours of its historic grounds. San Bernardino hotels with meeting space include the 231-room Radisson Hotel & Convention Center, with 19,000 square feet of meeting space for groups of up to 1,500 people; the 248- room San Bernardino Hilton, with meeting space for groups of up to 650 people; the 136-room Econo Lodge, with meeting space for groups of up to 200 people; and the 125-room Ramada Inn, with meeting space for gronps of up to 125 people. THE SAN BERNARDINO MOUNTAINS: YEAR-ROUND BEAUTY The San Bernardino Mountains offer alpine vistas with pine trees, rustic cab- ins, sparkling lakes and conference cen- ters. But Santa Claus, who has had a mountain retreat here since 1955, moving on. Santa's Village, a homey, low-key amusement park, is closing. The ~an Bernardino Mountains Wildlife Society is hoping to take over the property, which would allow the buildings and surrounding natural habitat to remain intact. The picturesque mountains draw visitors in the winter who enjoy skiing, ice skating and relaxing around a fire. In the wanuer seasons, visitors flock mountabes for fishing, hiking, biking and water skiing. Lake Arrowhead, a picturesque vil- lage at the water's edge, offers a tion of fine restaurants and small inns. Attractions include a children's mu~c- urn, a 50-minute lakt, tour aboard the Training Center, where both amateur and professional ice skaters train. The largest meeting facilities in Lake Arrowhead are at the 261-room Lake Arrowhead Resort, with 16,400 square feet of meeting space that includes a ballroom for groups of up to 300 peo- ple. There are 12 meeting rooms, and the resort has its own beach. Complete packages offered by the UCLA Conference Center at Lake Ar- rowhead include lodging, meals, coffee breaks, audiovisuals, conference and social rooms, all in a European-style fa- cility. Several smaller properties, in- cluding Saddleback Inn, Romantique Lakeview Lodge and Arrowhead Tree Top Lodge, are ideal for board retreats. East of Lake Arrowhead past the Snow Valley ski area, Big Bear Lake Vil- lage, 6,700 feet above sea level, is sur- rounded bv a national forest. Big Bear Lake actM{ies include Old Miners Days, Oktobcrfest, the Scottish Highland Games and winter skiing at nearby Bear Mountain and Snow Summit resorts. The Big Bear Lake Convention Cen- ter offers three meeting rooms that hold 200 people each, theater style, and the large Twin Bear Room, which can ac- commodate up to 940 people. Housing is available in nearby alpine-style tels and inns. The 153-room Northwoods Resort & Conference Center is Big Bear I~ake'~ first tull-service hotel, coufcrencc ten ter and retaiI complex. Breakout hospitality suites and 7,000 square feet or up to 300 people for meetings. The Big Bear Inn offers 77 guest rooms, three suites, and meeting space for groups of up to 230 people. The Annerican Youth Foundation Cedar Lake Educational Center can accommodate groups of up to 150 people and offers a variety of leadership-training and team- building programs. Additional meeting space is available at the Lagonita Lodge. The Moonridge Manor bed-and-break- fast inn often hosts executive meetings, with four guest rooms, a living room and a library. RIVERSIDE: IT ALL BEGAN WITH ORANGES In 1895, Riverside was the metropol- itan center of Southern California and the wealthiest city per capita in the countrv--and it was mainly due to the citv's vast orange groves. Riverside is a citv with rich soil and a mild climate. And its history is in its buildings. The Italian Renaissance-style City Hall and elaborate Victorian homes are among the attractions. The many fine exam- ples of mission architecture and adobe houses reflect the city's early wealth and prestige. The Queen Anne-style Heritage House is also open for tours. Riverside's museums of natural his- tory and photography enjoy national prominence. The Riverside Art Muse- um is in a former home designed by Ju- lia Morgan, architect of Hearst Castle. Riverside's Municipal Museum dis- plays feature the early settlers and the area's natural history. The Botanical Gardens on the campus of UC River- side occupy 39 hilly acres where more than 3,000 species of dry-climate plants grow. Fairmont Park has lawn bowling, a nine-hole public golf course, a band shell, an all-American rose garden and fishing and boating. Citrus is still king at the 377-acre Citrus Heritage Park. The Sunkist Ac- tivitv Center, Orange Court, gazebo and amphitheater are available for group events. Nearby, Hemet puts on the Ramona Pageant from April through June each year, and in April the Orange Blossom Festival includes family activities, entertainment, cook- ing demonstrations and fireworks. Narrated tours by horse-drawn car- riages are available in the historic dis- trict. A free trolley stops at meeting fa- cilities and hotels downtown. The trolley also runs to the train station, where visitors can then ride the Metrolink to Los Angeles. APRIL 1998/WEST£RN ASSOCIATION NEWS The newIv renovated Riverside Con- vention Center offers 70,000 square feet of flexible meeting space that can accom- modate groups of tip to 2,500 people. Next to the convention center, the 296- room Holiday bin/Riverside offers nine meeting rooms for groups of up to 290. Filling an entire city block, the Mis- sion Inn is the centerpiece of down- town Riverside. Located a block from the convention center, the 237-room inn offers docent-led tours that include the Chapel of St. Francis of Assisi, a popu- lar place for weddings. Rooms and un- derground passages visited on the tour are filled with European, Asian and California art. The inn's 14,000 square feet of indoor meeting space in 11 meet- ing rooms and 5,000 square feet of out- door courtyard function space can ac- commodate groups of up to 300 people. The 2,300-square-foot ballroom can ac- commodate up to 250 people. Also providing meeting space, the Hampton Inn features 116 guest rooms and a conference center, and the 163- ~en hoosmo a:!~fiOh, for,'~.~ C~-~aoa'; '".' "" '" '' ' - , ' '. ' . ~ ,- ,~ ~.N , ~'~~,,.~ .'.-~.-..- · - ~"~h,- ..'~' ,? .-.'"~ ...... ~' ~5. ~ terog~. - . .~,~-~ ~er 4~,000 squ~e feet · of indoor meeting and ~ 3' ~ · . ~_~.=:.~ · . .. , , xhibit ' =, * · Spacious, well-~t outdoor pl~ for open-~ e~bi~ ~d 2ade shows · Wofid-cl~s cate~g led by ~ssion ~ ~ecufive chef G~ P~ Historic L=~k Mission I= =d me newly remodeled Ho~aa'~:'::J~: :-. :~ ~ ~lect. ~d a sho2 ~o~ey fide on ~e ~ge Blossom E~ress - · . t~es you to ~e ~d..~ M~o~ ~d:~e..H~pton~. Circle 9~ on Reader Service Card DESTINATION' California's InLand Empire room Days Inn/Riverside offers facili- ties for groups of up to 150 people. TEMECULA: SOMETHING OLD, SOMETHING NEW The city of Temecula, about 30 miles south of Riverside, is a colorful island of wooden sidewalks and antique shops. Temecula Valley hillsides are fill- ing with tile-roofed homes. New winer- ies are already winning blue ribbons. Golf and tennis are available. Wine and balloon festivals, tractor pulls and hot- rod shows fill busy weekends. Once a stop on the route of the old Butterfield Stage, the valley continues to attract writers, painters and performers. Many of the valley's 12 wineries have tasting rooms, candlelight dinners and musical programs. The city's annu- al wine festival attracts visitors from all over. Self-guided map tours are avail- able from the Temecula Valley Vintners Association. Both Callaway and Thorn- ton wineries offer cooking classes, wine-maker dinners and small elegant A Hotel That Has It All In The Heart O-' It All tl(ni %hfiute~ from the spectacular Ontariu \,lill~ *hoppm~: Nferin¢ racquetball tennis ba4:eff,,}ll po,,I and ~p~: %dlJtl~l ONTARIO AIRPORT & CONFEPENCE CEN~ER 2200 East Holt BlYd Ontnric CA 91761 (90e) 97~,-5000 For ioll l ...... ,I ..... I) (800) 228-9290 Circle 97 on Reader Service Card executive dinners. The Thornton Win- ery features champagne and jazz con- certs. An outdoor patio area seats 350 people, and indoor meeting facilities can accommodate up to 80. The Call- away Vineyard & Winery has several rooms suitable for tasting parties. Temecula hotels with meeting facili- ties include the 80-room Temecula Creek Inn, a sprawling resort that over- looks the Temecula Valley and offers 27 holes of golf. The inn's 2,788-square- foot conference center can accommo- date groups of up to 284 people. Its cor- porate-challenge ropes course facility is used by associations to enhance team- building skills. The 136-suite Embassy Suites/Temecula has a lakeside view and offers 4,000 square feet of meeting space. Forty additional suites are being built, with completion expected in June. Additional Temecula area properties with meeting facilities include the 133- room Pala Mesa Resort, with champi- onship golf and tennis as well as 6,000 square feet of meeting space for groups of up to 200 people, and the Temecula Meeting Center, with space for groups of up to 90 people. THE INLAND EMPIRE: A NICE CHANGE OF PACE Centrally located, reasonably priced and filled with locales that range from alpine to agricultural, the Inland Empire offers a rich history and a warm spirit-- in short, the ideal environment for state and regional association gatherings. FOR MORE INFORMATION: Big Bear Lake Resort Association Circh' 133 on Reader Service Card Clare~nont Chamber of Co~nmerce Circh' 134 on Reader Service Card Lake Arrowhead Communities Chamber of Commerce Circle 135 on Reader Service Card Ontario CVB Circle 136 on Reader Service Card Pomona Econo~nic Development Corporation Circle 137 on Reader Service Card Riverside VCB Circle 138 on Reader Service Card San Bernardino CVB Circh' 139 on Reader Service Card Temecula Valley Cha~nber of Commerce Circle 140 on Reader Service Card PHOTO CREDITS: Page 6: William G. ~artsborn/Pboto~apbi¢ ~omposibons Page 8: Western Association News Photos Page 10: Temecula Valley Chamber of Commerce (inset) Michole & Tom Grimm"Riverside CVB 12 WESTERN ASSOCIATION NEws/APRIL 1998 APRIL 16 - 30, 1998 OFFICIAL GUIDE TO SAN DIEGO YOUR UP-TO-DATE GUIDE TO THE SAN DIEGO AREA SIGHTSEEING, SHOPPING, DINING, MAPS AND MORE... Come face to muzzle with manatees at Sea World THE VISITORS' CHOICE FROM BAJA TO ORANGE COUNTY While more than two million people- reside in San Diego County (and about half that amount in the City of San Diego), thi~ temperate, sunny re,eton t)f Southern California feels more like clusters of small, friendly neighborhoods than a large mctrol~olitan area. An uasv drive away Mexico, the Pacific ()ccan, rural mountains and even Las Vegas. warm. laid-back San I)ie~, boasts thriving c{(~wntown and btlsinuss communities nestled in a year- round vacatiun atm()sphcrc. Add in good schools, ~ood rustaurants. live theatre and why San l)ic.~o's pul>ulati()n has doubled in Lvurv area uf thu ~()untv has s()nqcthJllg l]~'arbv d[Cil ()I T~-nlU('ll The 1 5()() f~>ot elevation gives the Temecula Vallex"s hillsides beautiful sunny days and cool summer ~ights. Tcmec'uh~ is known as Southern Caliiornia's wine and balh>on country. This is due to the many award- winning wineries that find Tcmccula the pcrl~'ct ~Iimate for ~roxvin~ prcmiunq wine grape,, and. because it has more "perfect weather days" t'.r ball.on flying than al/VXvJlurt-u'lsu in tile United States. During April. ~,x'ur 50 h.t air 10alloon aeronauts c'(~nxonc un thu nearby shoreline of Lake elocatFo Division of Prudential Dunn, Realtors The name you can trust whether you're moving across town or across country... 888-579-2803 · Locally call 619-579-2803 Serving all of San Diego County Home BuyeF Relocation Pocket · School & Community Info rccrdational area, to celebrate the annual Temecula Valley Balloon ~uad XX/inc Festival. The city is alsu known fi~r its award-winning ~olf'courscs, which ~[ru ol~en [o the public seven days a week. Tcmccula offers impeccably maintaincot championshil~ golf courses, ycar-rt>unc] Family activities, affi)rclablc housing, and an attractive quality oF lif'e. More importantly, it's all witlain proximity of'sunny San Diego's best Features and attractions. San Diego Relocation Center - Division of Prudential Dunn Realtors. 888-579-2803/(619)579-2803, e-mail at Rwood2sd@aol.com. These are the relocation Pros. "Destination Counseling" helps you determine which of San Diego's diverse areas will suit your lifestyle. A free reiDcation packet for home-buyers provides information on neighborhoods, schools, cultural activities, taxes, demographics and all the things you need to know to assure your new neighborhood is the perfect fit for you. Corporate packages and rental reiDcation assis- tance are also available. Says Rose Anne Wood, Director of Destination Services, "We're here to make you feel at home in America's Finest City." s -= ~ rNorth County ,~To Or~no~ Camp Joseph H Pendleton · ' -_. &'k~/~Ot, t~ ,~O Marine Corps Base · ~To Riverside County r' '~OI~'£R ~ 0ASTLE FiD Mission ~%~, San Luis San ~ PALOf,tAR AIR?'ORT RO Marco.~ ~.ALL[¥ RD ~ p~--~._NO HIGHLAND Rancho ~ ~,~L~ ~o Santa a~.c.o ~,~oo~o ~' Fe ' Rancho ~ ~ Bernardo ~ Poway ~ POWAY Mar ~ ~O ~acelra~ & ~ :airg~nds ~ ~o Escondido San Diego ,~_.~' Wild Animal SAN PASQUAL Park 27450 Ynez Road, Suite 104 Temecula, CA 92591 Phone (909) 676-5090 · Fax (909) 694-0201 June 8, 1998 Ronald E. Bradley, City Manager City of Temecula 43200 Business Park Drive Temecula CA 92590 Dear Ron: Attached please find the Monthly Activity Report provided as per our contract with the City of Temecula. This is the month of May at a glance: Business Inquiry Highlights · 16 businesses requested information on starting or relocating their business in Temecula. Committee Highlights · Membership Committee's Chamber Ambassadors attended 7 ribbon cuttings. · Tourism Committee has been busy "stuffing" Travel Packets that are distributed to out-of- town visitors. (See Tourism Highlights for a recap of Travel Packets that have been distributed.) · Ways & Means Committee is accepting applications for the Temecula Valley Pageant to be held in August. The committee is also busy planning the 1998 Monte Carlo Nite at Embassy Suites. · Local Business Promotions Committee is hosting the Spring Shop Temecula First Campaign for the entire month of June. 110 businesses are participating and the $1,000 Cash Giveaway sponsored by The Press Enterprise entices shoppers to support Temecula businesses. · Education Committee is updating the School Brochure which is scheduled for distribution to housing tracts, Realtors and the Weekend Visitor Center in July. In addition, the Chamber office distributes these brochures to prospective residents. · The Governmental Action Committee offered support to Pacific Bell regarding their 271 filing to provide long distance service. Members have also been in Sacramento on behalf of Indian Gaming issues. · The Chamber provided members and the public with a special insert concerning traffic updates from City Hall. Tourism Highlights · 100 Temecula Brochures to 76 Fast Break for distribution to visitors to Temecula. · 50 School Brochures, 50 Temecula Brochures and 50 Relocation packets to Kelly Temporary Services for distribution to new companies coming to Temecula. · 50 City Maps and 50 Temecula Brochures to International Rectifier for potential employees. · 40 Visitor's Guides, 40 Winery Brochures and 40 Pechanga Brochures to Ruth Webb for a family reunion in Temecula. · 40 School Brochures to Re-Max for distribution to clients. · 20 Travel Packets and 20 Visitor's Guides to Corvettes Limited for a Corvette rally in October. · 15 Visitor's Guides to Coldwell Banker for inserts in Family Motorhome Association. · 15 Travel Packets, Old Town Maps and 15 Winery Brochure, to Robin Knutson for overnight guests attending a company picnic in Temecula. · 10 Travel Packets to Old Town Travel for distribution to clients. · 10 Temecula Brochures, 10 Visitor's Guides, 10 Winery Brochures to Piersons Country Place for distribution to guests. Activity Report · Overall phone calls are up 39.33 percent from last year. · Overall walk-ins up by 57.03 percent from last year. Also attached are the Meeting Minutes for the Local Business Promotions, Tourism, Education and Governmental Action Committees. If you have any question regarding this information, please contact me at the Chamber. Executive Director Mayor Ronald H. Roberts Mayor Pro Tem Steven J. Ford Councilman Jeff Comerchero Councilman Karel F. Lindemans Councilman Jeffcry E. Stone Ron Bradley, City Manager Marilyn Whisenand, Redevelopment Consultant Gloria Wolnick, Marketing Coordinator TVCC Board of Directors PHONE CALLS TOURISM TOURISM REFERRALS Calendar of Events Special Events General Information TOTAL TOURISM CALLS RELOCATION DEMOGRAPHICS CHAMBER CHAMBER REFERRALS MISCELLANEOUS TOTAL PHONE CALLS WALK-INS TOURISM CALENDAR OF EVENTS SPECIAL EVENTS GENERAL INFORMATION RELOCATION DEMOGRAPHICS CHAMBER MISCELLANEOUS TOTAL WALK-INS MAILINGS TOURISM RELOCATION DEMOGRAPHICS TOTAL MAILINGS TEMECULA VALLEY CHAMBER OF COMMERCE MONTHLY ACTIVITY REPORT For May, 1998 Chamber Vis. Center This Month This Month Total Year-To-Date 316 72 254 940 1,582 2130 512 2623 4,248 9,514 127 41 1,155 5,506 84 8,495 888 343 7,330 33,415 497 43,492 71 49 26 309 96 31 685 19 1,286 98 10 11 161 9 289 1,398 508 261 3,052 782 392 4,260 279 10,754 100 109 84 293 1058 617 565 2,240 GRAND TOTALS PHONE CALLS WALK-INS MAILINGS THIS MONTH 8,495 1,575 293 YEAR-TO-DATE 51,987 12,329 2533 ANNUAL VOLUME COMPARISONS Chamber May, 1997 Chamber May, 1998 Percentage Increase PHONE CALLS TOURISM Tourism Referrals 513 316 -38.40 Calendar of Events 306 72 -76.47 Special Events 257 254 -1.17 * General Information N/A 940 N/A TOTAL TOURISM CALLS 1,076 1,582 47.03 RELOCATION 330 127 -61.52 DEMOGRAPHICS 227 41 -81.94 CHAMBER 1,929 1,155 -40.12 CHAMBER REFERRALS 2,320 5,506 N/A MISCELLANEOUS 215 84 N/A TOTAL PHONE CALLS 6,097 8,495 39.33 WALK-INS TOURISM 140 71 -49.29 * CALENDAR OF EVENTS N/A 49 N/A * SPECIAL EVENTS N/A 26 N/A * GENERAL INFORMATION N/A 309 N/A RELOCATION 228 96 -57.89 * DEMOGRAPHICS N/A 31 N/A CHAMBER 635 685 7.87 * MISCELLANEOUS N/A 19 N/A VISITOR CENTER WALK-INS N/A 289 N/A TOTAL WALK-INS 1,003 1,575 57.03 MAILINGS TOURISM 190 100 -47.37 RELOCATION 78 109 39.74 DEMOGRAPHICS 130 84 -35.38 TOTAL MAILINGS 398 293 -26.38 * Categories adjusted in 1998 to more accurately track volume. Economic  velopment orporation ]bmecula I?dkg' June 15,1998 Temecula Redevelopment Agency City of Temecula P.O. Box 9033 Temecula, CA 92589-9033 RE: Agency/TVEDC Contract- Activity Summary The following highlights the activities of the TVEDC during the month of May: Business Development: The TVEDC responded to five inquiries received during the month of May. These inquiries included a food distribution company, a furniture manufacturer, medicinals and botanicals producer, electric lamps and a comprehensive response to an electric distribution company. Three site searches received from IEEP could not be responded to due to project requirements. TVEDC received a direct request from a site selection firm also dealing with IEEP for a class A office building. Response was given directly to site selector. We responded to ten requests for demographic and labor information packets for unidentified sources. A comprehensive package was sent to an eastern hotel/motel owner operator. The lead for this request was generated as a result of marketing follow-up with Site Selection magazine. Staff began planning for comprehensive community tour for company relocating to Temecula. Staff continues to work on incubator project. Marketing/Outreach TVEDC assisted local developer with set up of a focus group to supplement a feasibility study for possible hotel/convention center. RFP was finalized and published to secure public relations services. Work progressed on the annual golf tournament. Staff assisted City in final review of the new marketing promotional piece. Staff attended the Riverside County Welfare to Work Kiosk workshop. Post ()fficc Box 1388 · Tcmccula. CA 92S93-1388 · ()fficc 909/69S-~, 130 · FAX t)09/69%S 126 Temecula Redevelopment Agency June 15, 1998 Page Two Business Relations TVEDC staff and volunteers have visited 45 businesses to date. Staff coordinated a meeting between the planning dept, representative and Adex Medical to address some onsite parking/delivery concerns. Staff assisted new company with contract questions. Administration/Organization Completed and mailed ballot for annual election of Board of Directors. Interviewed candidates for Executive Director position. Prepared preliminary budget and work plan for sub-regional organization. Staff met with officials of Murrieta and Lake Elsinore and the County of Riverside to discuss organizational issues and review preliminary budget for sub-regional organization This concludes the written summary of activity for the month of May. (695-5130) if there are questions concerning this report. Ve ly, /Judi Staats for Thomas A. Eidem Executive Director Please call WINCHESTER HILLS FINANCING AUTHORITY ITEM 1 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE TEMECULA WINCHESTER HILLS FINANCING AUTHORITY JUNE 16, 1998 An adjourned regular meeting of the City of Temecula Winchester Hills Financing Authority was called to order at 8:51 P.M., at the City Council Chambers, 43200 Business Park Drive, Temecula, California. Chairman Comerchero presiding. PRESENT: 5 AUTHORITY MEMBERS: Ford, Lindemans, Roberts, Stone, and Comerchero. ABSENT: O AUTHORITY MEMBER: None. Also present were Executive Director Bradley, City Attorney Thorson, and Acting City Clerk Jones. PUBLIC COMMENTS None. CONSENT CALENDAR 1. Minutes 1.1 Approve the minutes of June 11, 1998. MOTION: Authority Member Ford moved to approve Consent Calendar Item No. 1. The motion was seconded by Authority Member Lindemans and voice vote reflected unanimous approval. EXECUTIVE DIRECTOR'S REPORT No comments. AUTHORITY MEMBERS' REPORTS No comments. Minutes.WH FA\061698 1 Temecula Winchester Hills Financina Authority 061698 ADJOURNMENT At 8:52 P.M., the Temecula Winchester Hills Financing Authority meeting was formally adjourned to Tuesday, July 14, 1998, at 7:00 P.M., City Council Chambers, 43200 Business Park Drive, Temecula, California. Jeff Comerchero, Chairman ATTEST: Susan W. Jones, CMC Acting City Clerk/Authority Secretary [SEAL] Minutes. WHFA~)61698 2 ITEM 2 CITY DIR. CITY APPROVAL ATTORNEY OF FINANCE ,~. MANAGER WINCHESTER HILLS FINANCING AUTHORITY AGENDA REPORT TO: FROM: DATE: SUBJECT: Winchester Hills Financing Authority Executive Director Ronald E. Bradley June 23,1998 Issuance of Bonds for Community Facilities District No. 98-1 (Winchester Hills) RECOMMENDATION: That the Board of Directors adopt a resolution entitled: RESOLUTION NO. WHFA 9B- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WINCHESTER HILLS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS BACKGROUND: The Authority was created pursuant to a joint exercise of powers agreement between the City and the Redevelopment Agency to assist in the refinancing of public improvements or bonds in connection with fixed special assessment liens in the Winchester Hills area of the City. On February 24, 1998, the Authority adopted two resolutions of intention relative to a proposed community facilities district (the "District"). The resolutions of intention called for public hearings on the formation of the District, the levy of special taxes therein and the issuance of bonded indebtedness for the District, and provided that the public hearings called pursuant to the resolutions of intention would be held on April 14, 1998. The purpose of the District, as set forth in the resolutions of intention, is to refinance certain public infrastructure improvements in the Winchester Hills area of the City by means of the refinancing of fixed lien special assessments levied by the County of Riverside on land located within the District. The District boundaries only include land owned, as of the date of adoption of the resolutions of intention and as of the April 14th public hearings, by Winchester Hills I LLC, a California limited liability company ("Winchester"), and only such land within the District would be subject to the levy of special taxes to repay bonds issued by the Authority to refinance the special assessments. R:INOR TONL [A GENDA SiS TAFFRPT. WPD On April 14, 1998, the Authority held public hearings on the formation of the District and the issuance of bonds of the Authority for the District. On April 14, 1998, following the public hearings the Authority adopted resolutions forming the District, declaring the necessity to incur bonded indebtedness of the District and calling a special election on the formation of and issuance of bonds for the District. Winchester, as the sole owner of the land in the District on April 14th, voted in favor of the District and the issuance of the bonds. The Authority then canvassed the special election and adopted a resolution confirming the results of the election. Winchester has entered into an agreement with Lennar Homes of California, Inc., a California corporation ("Lennar") to sell a portion of the land in the District, and the sale is expected to be completed prior to the sale of bonds by the Authority for the District. An appraisal of the land in the District and an absorption study relative to the development of the land in the District have been completed. SPECIFIC ACTIONS: Various documents have been prepared relative to the issuance of the bonds, including a Preliminary Official Statement describing the terms of the bonds. The appraised value of the land in the District is less than three times the proposed principal amount of the bonds, as required by the Authority's adopted Local Goals and Policies (the "Policies") for community facilities district; however Lennar has agreed to provide a letter of credit securing payment of the bonds for the first five years following the date of issuance of the bonds, all as described in the Preliminary Official Statement. Based upon the additional security provided by the letter of credit, Lennar and Winchester have requested that the Authority grant a waiver of the requirement in the Policies for a three to one value to lien ratio for bonds of the District. Staff supports such waiver. The Authority will consider adoption of a resolution containing the above-mentioned waiver, and authorizing the issuance of the bonds and approving the documents necessary to the issuance of the bonds. The bonds would be issued in two series, one tax-exempt, the other taxable, with the taxable series necessary to pay certain costs related to the refinancing of the assessment liens not amenable to tax-exempt financing. FISCAL IMPACT: The bonds will not be obligations of the City of Temecula, or general obligations of the District, but will be limited obligations of the District secured solely by the special taxes levied in the District, the letter of credit provided by Lennar and amounts held in a reserve fund to be established with bond proceeds. All costs of issuance of the bonds will be paid from the proceeds of the bonds. All administrative costs of the District and the bonds will be paid from proceeds of the special taxes levied in the District. Attachments: Resolution No. WHFA 98-_ Preliminary Official Statement Bond Purchase Contract Fiscal Agent Agreement Escrow Agreement Continuing Disclosure Agreement R:INORTONL[AGENDAS[STAFFRPT. WPD RESOLUTION NO. WHFA 98_ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WINCHESTER HILLS FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT, AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS WHEREAS, this Board of Directors has conducted proceedings under and pursuant to Chapter 2.5 of Pan 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the "Act"), to form the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District"), to authorize the levy of special taxes upon the land within the District and to issue bonds secured by said special taxes the proceeds of which are to be used to refinance certain assessment liens (the "Liens"), all as described in the Resolutions entitled "A Resolution of the Board of Directors of the Winchester Hills Financing Authority of Formation of Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills), Authorizing the Levy of a Special Tax Within the District and Preliminarily Establishing an Appropriations Limit for the District and Submitting Levy of the Special Tax and the Establishment of the Appropriations Limit to the Qualified Electors of the District," and "A Resolution of the Board of Directors of the Winchester Hills Financing Authority Determining the Necessity to Incur Bonded Indebtedness Within the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) and Submitting Proposition to the Qualified Electors of the District", each adopted by the Board of Directors on April 14, 1998, as applicable; and WltEREAS, pursuant to said resolutions, an election was held within the District on April 14, 1998 and on that date the applicable qualified electors approved the propositions of the incurrence of the bonded debt and the levy of the special tax by more than two-thirds of the votes cast at said special election; and WHEREAS, there have been submitted to this Board of Directors certain documents providing for the issuance of bonds of the Winchester Hills Financing Authority (the "Authority") for the District and the use of the proceeds of those bonds to refinance the Liens and this Board of Directors, with the aid of its staff, has reviewed said documents and found them to be in proper order; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of said bonds and the levy of said special taxes as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act. R:iNORTONL~4GENDASIR£SOAUTH. WPD 1 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Winchester Hills Financing Authority as follows: Section 1. Pursuant to the Act, this Resolution and the Fiscal Agent Agreement (hereafter defined), special tax bonds of the Authority for the District designated as "Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds" (the "Bonds") in an aggregate principal amount not to exceed $16,000,000 are hereby authorized to be issued and sold as provided herein. The Bonds shall be issued in two series, 1998 Series A and 1998 Series B, each in the form set forth in and as otherwise as provided in the Fiscal Agent Agreement referred to below. The Authority hereby grants a waiver of the requirement set forth in the Local Goals and Policies for Community Facilities Districts adopted by the Board of Directors on February 24, 1998 to the effect that the value of the land in the District be at least three times the principal amount of the Bonds to be issued, based upon the provisions of the Fiscal Agent Agreement which require that a letter of credit be provided that may be drawn upon in the event of delinquencies of special taxes, the proceeds of which draws to used to pay debt service on the Bonds. The Board of Directors hereby finds and determines that the Bonds are in compliance with all other applicable provisions of said Local Goals and Policies. Section 2. The Fiscal Agent Agreement (the "Fiscal Agent Agreement") with respect to the Bonds, in the form presented to this Board of Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and directed to execute and deliver the Fiscal Agent Agreement in said form, with such additions thereto or changes therein as are approved by the Executive Director upon consultation with Bond Counsel including such additions or changes as are necessary or advisable in accordance with Section 8 hereof, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by the Executive Director. The Fiscal Agent Agreement, as so executed, shall be in compliance with Section 3 hereof; and the date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Fiscal Agent Agreement as finally executed. Section 3. The purchase contract (the "Purchase Contract") between the Authority and Stone & Youngberg LLC (the "Underwriter"), in the form presented to this Board of Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the offer of the Underwriter to purchase the Bonds contained in the Purchase Contract (provided that the aggregate principal amount of the Bonds sold thereby is not in excess $16,000,000, the true interest cost on the Bonds is not in excess of 7% per annum and the underwriters' discount is not in excess of 3% of the aggregate principal amount of the Bonds) and to execute and deliver the Purchase Contract in said form, with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Purchase Contract by the Executive Director. R : INOR TONL IA GEND ASIRE$OA UTH. WPD 2 This Board of Directors hereby finds and determines that the sale of the Bonds at negotiated sale as contemplated by the Purchase Contract will result in a lower overall cost. Section 4. The official statement relating to the Bonds (the "Official Statement"), in the form presented to this Board of Directors at this meeting, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute the Official Statement in said form, with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with Bond Counsel, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of said Official Statement by the Executive Director. The Underwriter is hereby authorized to distribute copies of said Official Statement to persons who may be interested in the purchase of the Bonds and is directed to deliver such copies to all actual purchasers of the Bonds. Distribution by the Underwriter of a preliminary official statement relating to the Bonds is hereby approved and authorized. The Executive Director is hereby authorized to execute a certificate or certificates to the effect that the Official Statement and such preliminary official statement were deemed "final" as of their respective dates for purposes of Rule 15c2-12 of the Securities Exchange Act of 1934, and is authorized to so deem such statements final. Section 5. The Authority hereby covenants, for the benefit of the Bondowners, to commence and diligently pursue to completion any foreclosure action regarding delinquent installments of any amount levied as a special tax for the payment of interest or principal of the Bonds, said foreclosure action to be commenced and pursued as more completely set forth in the Fiscal Agent Agreement. Section 6. The escrow agreement (with respect to the payoff of the Liens) and the Continuing Disclosure Agreement (collectively, the "Agreements") in the respective forms presented to this Board of Directors at this meeting, are hereby approved. The Executive Director is hereby authorized and directed to execute and deliver the Agreements in said forms, with such additions thereto or changes therein as are recommended or approved by such officer upon consultation with Bond Counsel (including such additions or changes therein as are necessary or advisable in accordance with Section 8 hereof), the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Agreements by the Executive Director. Section 7. The Bonds, when executed, shall be delivered to the Fiscal Agent for authentication. The Fiscal Agent is hereby requested and directed to authenticate the Bonds by executing the Fiscal Agent's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the Underwriter in accordance with written instructions executed on behalf of the Authority by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver to the Fiscal Agent. Such instructions shall provide for the delivery of the Bonds to the Underwriter in accordance with the Purchase Contract, upon payment of the purchase price therefor. R:INORTONLMGENDASIRESOA UTH. WPD 3 Section 8. All actions heretofore taken by the officers and agents of the Authority with respect to the establishment of the District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the Authority are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, and any certificate, agreement, and other document described in the documents herein approved. Execution and delivery of an agreement or certificate with the County of Riverside in respect of the payment of the Liens is hereby expressly authorized. Section 9. This resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Winchester Hills Financing Authority at a regular meeting held on the 23rd day of June, 1998. Jeff Comerchero, Chairperson ATTEST: Susan W. Jones, CMC Acting City Clerk/Authority Secretary R:~NORTONLIAGENDA$~RESOAUTH. WPD 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting Secretary of the Winchester Hills Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. WHFA 98- was duly adopted at a regular meeting of the Board of Directors of the Winchester Hills Financing Authority on the 23rd day of June, 1998, by the following roll call vote: AYES: BOARDMEMBERS: NOES: BOARDMEMBERS: ABSENT: BOARDMEMBERS: Susan W. Jones, CMC Acting City Clerk/Authority Secretary R: INORTONLL4GENDASIRESOA UTH. WPD 5 PRELIMINARY OFFICIAL STATEMENT DATED ,1998 NEW ISSUE NONRATED [n the opinion of Quint & Thimmig LL?, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth herein, under existing law, interest payable on the Series A Bonds is excluded from gross income for federa! income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; provided, however, that for the purpose of computing the alternative minimum tax on corporations (as defined for federal income tax purposes) such interest is taken into account in determining certain income and earnings. In the further opinion of Bond Counsel, interest on the Series A Bonds is exempt from Cahfornia personal income taxes. See "CONCLUDING INFORMATION- Tax Exemption" herein. WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) SPECIAL TAX BONDS $ 1998 SERIES A BONDS $ 1998 SERIES B BONDS (TAXABLE) Dated: Date of Delivery Due: September 1, as shown on inside cover The Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A (the "Series A Bonds") and the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series B (the "Series B Bonds" and, together with the Series A Bonds, the "Bonds") are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, (the "Act") and a Fiscal Agent Agreement, dated as of July 1, 1998 (the "Fiscal Agent Agreement"), by and between the Winchester Hills Financing Authority (the "Authority"), for and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (the "District") and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent"). The Bonds are payable from the Special Tax Revenues derived by the District from the levy of the Special Taxes (as such terms are defined herein), and are secured by a first pledge of all of the Special Tax Revenues and moneys deposited in certain funds established under the Fiscal Agent Agreement. The Special Taxes will be levied according to the rate and method of apportionment of special taxes for the District. The Bonds are being issued to (1) refinance certain assessment liens levied by the County of Riverside on the property in the District, (2) fund a reserve fund for the Bonds, and (3) pay the costs of issuing the Bonds. See "PLAN OF FINANCE," and "ESTIMATED SOURCES AND USES OF FUNDS" herein. The Bonds are being issued as fully registered bonds without coupons, in denominations of $100,000 or any integral multiple of $5,000 in excess thereof. Interest on the Bonds is payable semiannually on March I and September I of each year (the "Interest Payment Dates") (commencing September l, 1998). Interest on the Bonds is payable (i) by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered owners of the Bonds as of the Record Date (as defined herein) for such Interest Payment Date, or (ii) by wire transfer to an account within the United States made on such interest Payment Date upon written instructions of any owner of $1,000,000 or more in aggregate principal amount of the Bonds. The principal of and any premium on the Bonds are payable by check in lawful money of the United States of America upon surrender of the Bonds at the principal office of the Fiscal Agent in St. Paul, Minnesota. The Bonds are subject to redemption prior to maturity as described herein. See "THE BONDS - Redemption of the Bonds" herein. THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY ON BEHALF OF THE DISTRICT, PAYABLE SOLELY FROM THE SPECIAL TAX REVENUES (EXCEPT FOR SPECIAL TAX REVENUES REMITTED TO AN ISSUER OF A LETTER OF CREDIT PROVIDED AS AN ADDITIONAL SOURCE OF PAYMENT OF THE SPECIAL TAXES, FOR AMOUNTS DRAWN UNDER SUCH LETTER OF CREDIT, AS DESCRIBED HEREIN) AND THE FUNDS PLEDGED THEREFOR UNDER THE FISCAL AGENT AGREEMENT. NEITHER THE FAITIt AND CREDIT NOR THE TAXING POWER OF THE AUTHORITY (EXCEPT TO THE LIMITED EXTENT SET FORTIt IN THE FISCAL AGENT AGREEMENT), OR OF THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION TItEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. MATURITY SCHEDULE' (See Inside Cover) Investment in the Bonds involves risks which may not be appropriate for some investors. See "SPECIAL RISK FACTORS" for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds. This cover page contains information for quick reference only. It is not a complete summary of the Bonds. Investors should read the entire Official Statement to obtain information essential to the making of an informed investment decision. The Bonds are offered when, as and if issued and delivered to the Underwriter, subject to the approval as to their legality Quint & Thimmig LLP, San Francisco, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Underwriter by its counsel, Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, and for the Authority by Richards, Watson & Gershon, Los Angeles, California, Authority Counsel. It is anticipated that the Bonds will be available for delivery on or about , 1998. STONE & YOUNGBERG LLC Preliminary, subject to change. DOCSLA 1:248027.3 4048443-JK2 MATURITY SCHEDULE' Maturity Date Principal (September 1) Amount $ Interest Rate % SERIES A BONDS $ Serial Bonds Price/ Maturity Date Principal Yield (September 1 ) Amount $ Interest Rate % Price/ Yield Maturity Date Principal (September 1) Amount $ Interest Rate % % Term Bonds due September 1, __ - Price: __ Price/ Yield SERIES B BONDS Serial Bonds Maturity Date Principal (September 1) Amount $ Interest Rate % Price/ Yield % Term Bonds due September 1, - Price: __ Preliminary, subject to change DOCSLA 1:248027.3 40484-43-JK2 No dealer, broker, salesperson or other person has been authorized by the Authority, the District or the Underwriter to give any information or to make any representations with respect to the Authority, the District or the Bonds other than the information contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized by the Authority, the District or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not be construed as a representation of facts. The information set forth herein has been obtained from official sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness. The information and expressions of opinions herein are subject to change without notice, and neither delivery of this Official Statement nor any sale hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority, the District, or the property ownership within the District since the date hereof. All summaries of the Fiscal Agent Agreement or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the District for further information in connection therewith. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SUCH PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. DOCSLA 1:248027.3 4048443-JK2 WINCHESTER HILLS FINANCING AUTHORITY Board of Directors Jeff Comerchero, Chairperson Steven J. Ford, Vice Chairperson Karel F. Lindemans, Member Jeffrey E. Stone, Member Ronald H. Roberts, Member SPECIAL SERVICES Bond Counsel Quint & Thimmig LLP San Francisco, Califomia Authority Counsel Richards, Watson & Gershon Los' Angeles, California Fiscal Agent U.S. Bank Trust National Association Los Angeles, California Financial Advisor Fieldman, Rolapp & Associates Irvine, California Special Tax Administrator David Taussig & Associates, Inc. Newport Beach, California Appraiser Interstate Appraisal Corporation Newport Beach, California Market Absorption Consultant Empire Economics Capistrano Beach, California DOCSLA 1:248027.3 40484-43-JK2 [INSERT LOCATION MAP] DOCSLA 1:248027.3 40484--43-JK2 TABLE OF CONTENTS INTRODUCTION .........................................................................................................................1 THE BONDS .................................................................................................................................4 Authority for Issuance ........................................................................................................4 Description of the Bonds ...................................................................................................4 Redemption of the Bonds ...................................................................................................5 Debt Service Schedule .......................................................................................................9 ESTIMATED SOURCES AND USES OF FUNDS ...................................................................10 PLAN OF FINANCE ...................................................................................................................10 SECURITY FOR THE BONDS ..................................................................................................11 General .............................................................................................................................11 The Special Tax Revenues ...............................................................................................11 Special Tax Fund .............................................................................................................13 Reserve Fund ...................................................................................................................13 Standby Letter of Credit ...................................................................................................14 Covenant for Superior Court Foreclosure ........................................................................16 Agreement and Covenants Running With the Land ........................................................18 Property Values ................................................................................................................19 Market Absorption ...........................................................................................................19 Direct and Overlapping Debt ...........................................................................................20 DIRECT AND OVERLAPPING DEBT .....................................................................................21 THE COMMUNITY FACILITIES DISTRICT ..........................................................................22 Location and Description of the District ..........................................................................22 Summary of District Proceedings ....................................................................................24 Rate and Method of Apportionment ................................................................................24 Zoning and Specific Plans ...............................................................................................25 Development Agreement .................................................................................................26 Environmental Review .....................................................................................................26 THE WINCHESTER HILLS DEVELOPMENT ........................................................................26 Land Ownership ...............................................................................................................26 The Developers ................................................................................................................27 Plan of Development ........................................................................................................28 Plan of Finance ................................................................................................................31 SPECIAL TAX COVERAGE .....................................................................................................32 SPECIAL RISK FACTORS ........................................................................................................33 Concentration of Ownerships ..........................................................................................33 Failure to Develop Property .............................................................................................33 Appraised Values .............................................................................................................34 Insufficiency of Special Taxes .........................................................................................34 Bankruptcy .......................................................................................................................36 Disclosures to Future Buyers ...........................................................................................36 Earthquakes ......................................................................................................................36 DOCSLA1:248027.3 4048443-JK2 i TABLE OF CONTENTS (continued) Pa~e Payments by FDIC ...........................................................................................................37 Endangered Species .....................................~ ...................................................................38 Hazardous Substances ......................................................................................................38 Cumulative Burden of Parity Taxes and Special Assessments ........................................39 No Acceleration ...............................................................................................................40 Right to Vote on Taxes Act .............................................................................................40 Loss of Tax Exemption ....................................................................................................40 THE AUTHORITY .....................................................................................................................41 LITIGATION ...............................................................................................................................41 CONTINUING DISCLOSURE ...................................................................................................41 CONCLUDING INFORMATION ..............................................................................................42 Legal Opinions .................................................................................................................42 Tax Exemption .................................................................................................................42 Underwriting ....................................................................................................................43 Ratings .............................................................................................................................43 Miscellaneous ..................................................................................................................43 APPENDIX A - SUMMARY APPRAISAL REPORT .....................................................i .......A-1 APPENDIX B - MARKET ABSORPTION STUDY ...............................................................B-1 APPENDIX C - RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX ......... C-1 APPENDIX D - PROPOSED FORM OF OPINION OF BOND COUNSEL .......................... D-1 APPENDIX E - SUMMARY OF FISCAL AGENT AGREEMENT ................................. ...... E-1 DOCSLA 1:248027.3 4048443-JK2 ii PRELIMINARY OFFICIAL STATEMENT WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) SPECIAL TAX BONDS * 1998 SERIES A BONDS * 1998 SERIES B BONDS (TAXABLE) INTRODUCTION The purpose of this Official Statement, including the cover, table of contents and the Appendices, is to provide certain information concerning the issuance of and sale by the Winchester Hills Financing Authority (the "Authority"), on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (the "District") of $ aggregate principal amount of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A (the "Series A Bonds") and $ ' aggregate principal amount of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series B (Taxable) (the "Series B Bonds" and, together with the Series A Bonds, the "Bonds"). This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and Appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The sale and delivery of the Bonds to potential investors is made only by means of the entire Official Statement. The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Act"), and a Fiscal Agent Agreement, dated as of July 1, 1998 (the "Fiscal Agent Agreement"), by and between the Authority, for and on behalf of the District, and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent"). The Bonds will be issued as fully registered bonds without coupons, in denominations of $100,000 or any integral multiple of $5,000 in excess thereof, and will be dated as of and bear interest their date of delivery at the rates set forth on the cover page hereof. The Bonds are payable from the Special Tax Revenues derived by the District from the levy of the Special Taxes (as such terms are defined herein), and are secured by a first pledge of all of the Special Tax Revenues (except for Special Tax Revenues remitted to an issuer of a letter Preliminary, subject to change. DOCSLA 1:248027.3 40484-43-JK2 of credit) provided as an additional source of payment for the Special Taxes, for amounts drawn under such letter of credit and moneys deposited in certain funds established under the Fiscal Agent Agreement, as described herein. See "SECURITY FOR THE BONDS" and "APPENDIX E - Summary of Fiscal Agent Agreement." On the date of issuance and delivery of the Bonds, Lennar Homes of California, Inc., a California corporation ("Lennar"), as owner and developer of a majority of the property in the District, will deliver to the Fiscal Agent an irrevocable standby letter of credit in the amount of $ (the "Initial Letter of Credit") issued by The First National Bank of Chicago in favor of the Fiscal Agent. The Fiscal Agent will hold the Letter of Credit for the benefit of the Reserve Fund (as hereinafter defined) and will draw on the Initial Letter of Credit in the event of a delinquency in the payment of the Special Taxes. The Initial Letter of Credit may be reduced in certain circumstances and may be replaced with a substitute letter of credit upon satisfaction of the conditions in the Fiscal Agent Agreement. See "SECURITY FOR THE BONDS - Standby Letter of Credit" herein. The District is comprised of approximately 558 gross acres of undeveloped land located in the northern portion of the City of Temecula, California (the "City"). The District is bounded generally on the north by the boundary line of the City of Murrieta, California, on the west by Interstate 15, on the east by Margarita Road and on the south by Winchester Hills Road. Approximately 440 acres of the property in the District (the "Lennar Property") is currently owned by Lennar. The remaining 120 acres of property in the District (the "Winchester Property") is owned by Winchester Hills LLC, a California limited liability company ("Winchester"). The property in the District is currently undeveloped and unentitled. Pursuant to an Agreement and Covenants Running with the Land, dated July 1, 1998 (the "Agreement and Covenants") between Lennar and Winchester, Lennar has agreed to undertake certain obligations with respect to the property in the District (including the Winchester Property), including (i) payment of all taxes and assessments on the Winchester Property for a period of five years from the date of recording of the Agreement and Covenants, (ii) application for and processing of all entitlements necessary for development of the Winchester Property and the Lennar Property, (iii) construction and landscaping of certain major streets within the District, and (iv) sheet grading of the Winchester Property. See "THE WINCHESTER HILLS DEVELOPMENT - Plan of Development." The owners of the Bonds are third party beneficiaries to the Agreement and Covenants, and have the right to enforce Lennar's obligations thereunder in the event that Winchester fails to enforce such obligations. See "SECURITY FOR THE BONDS - Agreement and Covenants Running With the Land." The Lennar Property is currently planned for development with approximately 1,505 single family homes within approximately 339 acres, and 167 apartment units within approximately 9 acres. The Lennar Property is also planned to include an approximately 10 acre school site, approximately 20 acres of parks, approximately 15 acres of open space, and approximately 50 acres of roads and other miscellaneous uses. The Winchester Property is planned to be developed with commercial and business park uses. See "THE WINCHESTER HILLS DEVELOPMENT" herein. DOCSLA 1:248027.3 40484--43-JK2 2 The District was formed on April 14, 1998 by the Board of Directors of the Authority (the "Board"). The Authority was formed on February 10, 1998, pursuant to Joint Exercise of Powers Agreement between the City and the Redevelopment Agency of the City Temecula, in accordance with Articles 1 through 4 (commencing with Section 6500) of Chapters 5, Division 7, Title 1 of the Government Code of the State of California. See "THE COMMUNITY FACILITIES DISTRICT - Summary of District Proceedings" and "THE AUTHORITY." The Bonds are being issued to (1)refinance certain assessment liens levied on the property in the District by the County of Riverside, (2) fund a reserve fund for the Bonds, and (3) pay the costs of issuing the Bonds. See "THE PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF FUNDS" herein. Certain risk factors should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. See "SPECIAL RISK FACTORS" herein. THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY ON BEHALF OF THE DISTRICT, PAYABLE SOLELY FROM AND SECURED SOLELY BY THE SPECIAL TAX REVENUES (EXCEPT FOR SPECIAL TAX REVENUES REMITTED TO AN ISSUER OF A LETTER OF CREDIT PROVIDED AS AN ADDITIONAL SOURCE OF PAYMENT OF THE SPECIAL TAXES, FOR AMOUNTS DRAWN UNDER SUCH LETTER OF CREDIT) AND THE FUNDS PLEDGED THEREFOR UNDER THE FISCAL AGENT AGREEMENT. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE DISTRICT (EXCEPT TO THE LIMITED EXTENT SET FORTH IN THE FISCAL AGENT AGREEMENT), THE CITY OR THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER. Brief descriptions of the Bonds, the Fiscal Agent Agreement, the security for the Bonds, the District, the status of development within the District and certain other information are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. The descriptions herein of the Bonds, the Fiscal Agent Agreement and other documents are qualified in their entirety by reference to the forms thereof and the information with respect thereto included in the Bonds, the Fiscal Agent Agreement and other documents. Capitalized undefined terms used herein shall have the meanings ascribed thereto in the Fiscal Agent Agreement. Copies of such documents may be obtained from the Authority c/o City Clerk of the City of Temecula, 43174 Business Park Drive, Temecula, California 92590. DOCSLA1:248027.3 40484--43-JK2 3 THE BONDS Authority for Issuance The Bonds were authorized at a special election held in the District on April 14, 1998. The Bonds will be issued pursuant to the Act and the Fiscal Agent Agreement Description of the Bonds The Bonds will be issued as fully registered bonds without coupons, in denominations of $100,000 or any integral multiple of $5,000 in excess thereof. The Bonds will be dated as of and bear interest from their date of delivery at the rates set forth on the cover page hereof. Upon receipt by the Fiscal Agent of an Officer's Certificate executed by the Executive Director of the Authority to the effect that the value of the land and improvements in the District subject to the levy of the Special Taxes (as hereinafter defined) is at least equal to four times (i) the principal amount of Bonds then outstanding, plus (ii) the principal amount of any other bonds or indebtedness secured by and attributable to assessment liens or special taxes levied or to be levied on the land and/or improvements in the District, the Bonds may be transferred or exchanged in denominations of $5,000 or any integral multiple thereof. The principal of the Bonds and any premium due upon the redemption thereof will be payable by check in lawful money of the United States of America upon surrender thereof at maturity or earlier redemption at the principal corporate trust office of the Fiscal Agent in St. Paul, Minnesota. The Bonds will mature as indicated on the cover hereof, and are subject to optional and mandatory redemption as set forth herein. Interest on the Bonds will be paid semiannually on March 1 and September 1 (the "Interest Payment Dates") of each year, commencing September 1, 1998. Interest on the Bonds will be calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on any Bond will be paid by check of the Fiscal Agent, mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner's address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the fifteenth day of the month (the "Record Date") next preceding the Interest Payment Date, or by wire transfer to an account within the United States made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 in aggregate principal amount of Bonds. Interest on any Bond will be payable from the Interest Payment Date next preceding the date of authentication that Bond, unless (i) it is authenticated on an Interest Payment Date, in which event it will bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it will bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it will bear interest from the date of initial issuance of the Bonds; provided, however, that if at the time of authentication of any Bond, interest is in default thereon, interest DOCSLA! :248027.3 40484-43-JK2 such Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. Redemption of the Bonds Optional Redemption The Bonds are subject to optional redemption prior to their stated maturities on any Interest Payment Date, as a whole or in part, pro rata among maturities and by lot within a maturity, at the redemption prices (expressed as a percentage of the principal amount of Bonds to be redeemed) set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Dates Any Interest Payment Date on or before Redemption Price 103% March 1, September 1, __ and March 1, __ 102 September 1, __ and March 1, __ 101 September 1, __ and any Interest 100 Payment Date thereafter Notwithstanding the foregoing, any optional redemption of the Bonds prior to September 1, __ will be made solely from amounts in the Bond Fund as a result of prepayment of the Special Taxes, causing transfers from the Special Tax Prepayments Account established within the Bond Fund and the Reserve Fund. Mandatory Sinking Payment Redemption The Series A Bonds maturing on September 1, __, are subject to mandatory sinking payment redemption in part on September 1 .... and on each September .1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, from sinking payments as follows: Redemption Date (September 1) Aiilount DOCSLA 1:248027.3 40484-43-JK2 5 The Series B Bonds maturing on September 1, __, are subject to mandatory sinking payment redemption in part on September 1, , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, from sinking payments as follows: Redemption Date (September 1) Amount $ The amounts in the foregoing tables will be reduced pro rata, in order to maintain substantially level debt service, as a result of any prior partial redemption of the corresponding Series A or Series B Bonds due to optional redemption, as specified by the Finance Director of the City (the "Finance Director") to the Fiscal Agent, in inverse order of sinking fund payment date. Purchase in Lieu of Redemption In lieu of redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Bonds, upon the filing with the Fiscal Agent of an Officer's Certificate from the Authority requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer's Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, any redemption premium due thereon, plus interest accrued to the date of purchase. Redemption Procedure by Fiscal Agent The Fiscal Agent will cause notice of any redemption to be mailed by first class mail, postage prepaid, at least thirty days but not more than sixty days prior to the date fixed for redemption, to the Securities Depositories, to one or more of the Information Services designated in the Fiscal Agent Agreement, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books kept in the principal corporate trust office of the Fiscal Agent; provided, however, that such mailing is not a condition precedent to such redemption and the failure to mail or to receive any such notice, or any defect therein, will not affect the validity of the proceedings for the redemption of such Bonds. Such notice will state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, will state as to any Bond called in part, among other things, the principal amount thereof to be redeemed, and will require that such Bonds be then surrendered at the principal corporate trust office of the Fiscal Agent in Los DOCSLA 1:248027.3 40484-43-JK2 6 Angeles, Califomia for redemption at the said redemption price, and will state that further interest on such Bonds will not accrue from and after the redemption date. Whenever provision is made in the Fiscal Agent Agreement for redemption of less than all of the Bonds or any given portion thereof, the Fiscal Agent will select the Bonds to be redeemed, from all Bonds or such given portion thereof not previously called for redemption, among maturities as directed in writing by the Finance Director, and by lot within a maturity, such selection within a maturity to be done in any manner which the Fiscal Agent deems appropriate. Upon surrender of Bonds redeemed in part only, the City will execute and the Fiscal Agent will authenticate and deliver to the registered Owner, at the expense of the City, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. Effect of Redemption From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption have been deposited in the Bond Fund, such Bonds so called will cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in the notice of redemption. Transfer of Bonds Any Bond may, in accordance with its terms, be transferred, upon the bond registration books required to be kept by the Fiscal Agent pursuant to the Fiscal Agent Agreement, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer will be paid by the Authority. The Fiscal Agent will collect from the owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond or Bonds are surrendered for transfer, the Authority will execute and the Fiscal Agent will authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of authorized denomination(s). No transfers of Bonds will be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bonds after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. DOCSLA 1:248027.3 40484-43-JK2 7 Exchange of Bonds Bonds may be exchanged at the principal office of the Fiscal Agent in Los Angeles, California for a like aggregate principal amount of Bonds of authorized denominations and of the same series and maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange will be paid by the Authority. The Fiscal Agent will collect from the owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange. No exchanges of Bonds will be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bonds after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. DOCSLA ! :248027.3 404.84-43oJK2 8 Debt Service Schedule The debt service schedule for the Bonds is set forth below: Year Ending September 1 Principal Interest 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 $ $ $ Total Debt Service Total $ $ $ DOCSLA 1:248027.3 40484-43-JK2 9 ESTIMATED SOURCES AND USES OF FUNDS The estimated sources and uses of funds with respect to the Bonds are set forth in the following table: Sources: Principal Amount of Bonds Series A Bonds Series B Bonds $ $ Total Sources Uses: Bond Fund Administrative Expense Fund Refunding Fund Reserve Fund(~) Underwriter's Discount Costs of Issuance(2) $ $ Total Uses $ $ (I) Equals Reserve Requirement. (2) Includes amounts to pay legal fees, financial advisory fees and other issuance costs. PLAN OF FINANCE The proceeds of the Bonds in the amount of $ will be applied to pay delinquent assessments, and to prepay all future assessments, levied on the property in the District by the County of Riverside (the "County"), acting through its Assessment District 161 CAD 161") and its Assessment District 156 ("AD 156"). The property in the District is delinquent in the payment of the assessments levied thereon by AD 161 beginning with the fiscal year 1994-95 and continuing through the first installment for fiscal year 1997-98 (the "AD 161 Assessments"). The property in the District is also delinquent in the payment of assessments levied thereon by AD 156 beginning with fiscal year 1995-96 and continuing through the first installment for fiscal year 1997-98 (the "AD 156 Assessments," and, together with the AD 161 Assessments, the "Assessment Liens"). Consequently, the County has received judgments in foreclosure proceedings against the property in the District for nonpayment of the Assessment Liens. Pursuant to an Agreement, dated January 23, 1998 (the "Agreement"), between the County and Winchester, as the previous owner of all of the property in the District, the County has agreed to waive all penalties relating to the delinquent assessments if Winchester pays the past due and prepays all future Assessment Liens on the property in the District, certain costs of foreclosure, and certain costs of the County, AD 161 and AD 156 (the "Settlement Amount"), on or before September 2, 1998. Upon receipt Settlement Amount, the County will prepare, file and DOCSLA 1:248027.3 40484.-43-JK2 1 0 record notices of satisfaction of judgment and request that the Sheriff release the levy on the property in the District entered in connection with the foreclosure judgments. SECURITY FOR THE BONDS General Pursuant to the Act and the Fiscal Agent Agreement, payment of the principal of, premium, if any, and interest on the Bonds is secured by a first pledge of all of the Special Tax Revenues (except for Special Tax Revenues remitted to an issuer of a standby letter of credit provided as an additional source of payment of the Special Taxes, including the provider of the Initial Letter of Credit, as repayment for amounts drawn under such standby letter of credit) and all moneys deposited in the Bond Fund and the Reserve Fund and, until disbursed as provided under the Fiscal Agent Agreement, the Special Tax Fund (except for Special Tax Revenues remitted to an issuer of a standby letter of credit provided as an additional source of payment of the Special Taxes, including the provider of the Initial Letter of Credit, as repayment for amounts drawn under Such standby letter of credit). Amounts in the Administrative Expense Fund, the Costs of Issuance Fund and the Refunding Fund are not pledged to the repayment of the Bonds. Any moneys held by the Fiscal Agent or otherwise to be used to satisfy and retire the Assessment Liens are not pledged to the repayment of the Bonds. "Special Tax Revenues" is defined under the Fiscal Agent Agreement to mean the proceeds of the Special Taxes received by the Authority, including any scheduled payments and prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon. Special Tax Revenues does not include any penalties collected in connection with delinquent Special Taxes. "Special Taxes" is defined under the Fiscal Agent Agreement to mean the special taxes levied within the District pursuant to the Act, the ordinance of the Authority levying the Special Taxes (the "Ordinance") and the Fiscal Agent Agreement. The amount of Special Taxes that may be levied within the District in any fiscal year is strictly limited by the maximum special tax rates established by the rate and method of apportionment (the "Rate and Method") that was approved by the qualified electors within the District. See "THE COMMUNITY FACILITIES DISTRICT Rate and Method of Apportionment" herein. The Special Tax Revenues The Authority has covenanted in the Fiscal Agent Agreement to comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including, without limitation, the enforcement of delinquent Special Taxes. Pursuant to the Fiscal Agent Agreement, the Finance Director will effect the levy of the Special Taxes each fiscal year, in accordance with the Ordinance, by each August 1 that the Bonds are Outstanding, or otherwise such that the computation of the levy is complete before the final date on which the auditor/controller of the County (the "Auditor") will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next real property tax roll. Upon DOCSLA 1:248027.3 40484-43-JK2 1 1 the completion of the computation of the amount of the levy, the Finance Director will prepare or cause to be prepared, and will transmit to the Auditor such data as the Auditor requires to include the levy of the Special Taxes on the next real property tax roll. The Finance Director will fix and levy the amount of Special Taxes within the District required for the payment of principal of and interest on any outstanding Bonds of the District becoming due and payable during the ensuing fiscal year, including any necessary replenishment or expenditure of the Reserve Fund, and an amount estimated to be sufficient to pay the Administrative Expenses during such fiscal year. The Special Taxes so levied on any parcel in any fiscal year may not exceed the maximum Special Tax rate as set forth in the Rate and Method. See "THE COMMUNITY FACILITIES DISTRICT - Rate and Method of Apportionment" and Appendix C hereto. Because each Special Tax levy is limited to the maximum Special Tax rates authorized by the qualified electors of the District as set forth in the Rate and Method, no assurance can be given that the an amount sufficient for the required annual Special Tax levy can be levied. The Authority has covertanted under the Fiscal Agent Agreement to take such actions as are necessary under the Act to reduce the Maximum Special Taxes that may be levied in the District to an amount estimated to be 110% of Maximum Annual Debt Service. Moreover, it is possible that under certain circumstances the maximum Special Tax rates could be reduced from current levels. "SPECIAL RISK FACTORS - Right to Vote on Taxes Act" below. The Rate and Method provides that each fiscal year the Finance Director will determine the amount of Special Taxes required to pay (i) Administrative Expenses (as defined in the Rate and Method), (ii) debt service for the calendar year that commences in such fiscal year on any bonds or other indebtedness of the District, (iii)any amount required to replenish any reserve fund established in connection with bonds issued by or for the District, and (iv)the costs of remarketing, credit enhancement and liquidity facility fees (including fees for instruments that serve as the basis of a reserve fund in lieu of cash related to any such indebtedness (collectively, the "Special Tax Requirement"). Once the Special Tax Requirement is determined, the Special Taxes will be levied in an amount equal to the Special Tax Requirement pursuant to the Rate and Method, provided that the Special Tax levied on each parcel may not exceed a Maximum Special Tax rate of $1,960 per acre for Non-Residential Property and $3,212 per acre for Residential Property (as such terms are defined in the Rate and Method). See Exhibit C hereto and "THE COMMUNITY FACILITIES DISTRICT - Rate and Method of Apportionment." The Special Taxes are payable and will be collected in the same manner and at the same time and in the same installments as the general taxes on real property are payable, and will have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do general taxes on real property; provided, however, that the Finance Director has the discretion under the Fiscal Agent Agreement to cause the collection of any Special Taxes by direct, first class mail billing to the then owner of each parcel in lieu of billing for such Special Taxes in the same manner as general taxes. Pursuant to the Fiscal Agent Agreement, the Finance Director will deposit, immediately upon receipt, all Special Tax Revenues received by the City and certain other amounts to the Special Tax Fund established under the Fiscal Agent Agreement, to be held for DOCSLA1:248027.3 4048443-JK2 12 the benefit of the District and the Owners of the Bonds. See "SECURITY FOR THE BONDS - Special Tax Fund." Although the Special Taxes will be levied against, and constitute a lien against, taxable parcels within the District, they do not constitute a personal indebtedness of the respective property owners. There is no assurance that the property owners will be financially able to pay the annual Special Taxes or that they will pay such taxes even if financially able to do so. See "SPECIAL RISK FACTORS." Special Tax Fund The Special Tax Fund is created and established under the Fiscal Agent Agreement, is held by the Finance Director for the benefit of the Authority and the Owners of the Bonds (except as described in clause (ii) below) and, pending any disbursement, is subject to a lien in favor of the Owners of the Bonds and the Authority. The Authority shall deposit, as soon as practicable after receipt thereof, all Special Tax Revenues and any excess amounts transferred from the Administrative Expense Fund pursuant to the Fiscal Agent Agreement; provided that (i) the proceeds of any Special Tax prepayments, less any administrative fees or penalties collected as part of such prepayment (the "Special Tax Prepayments") will be transferred by the Finance Director to the Fiscal Agent for deposit in the Special Tax Prepayments Account established under the Fiscal Agent Agreement, and (ii) any proceeds of delinquent Special Tax levies with respect to which a draw has been made on a standby letter of credit pursuant to the Fiscal Agent Agreement will be remitted to the issuer of such standby letter of credit, but only in an amount up to the amount of proceeds of any such draw received by the Fiscal Agent. See "- Standby Letter of Credit" below. From time to time as needed to pay the Obligations of the District, but no later than five Business Days before each Interest Payment Date, the Finance Director will withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority: (a) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any expected transfers from the Reserve Fund and the Special Tax Prepayments Account, such that the amount in the Bond Fund equals the principal (including any sinking payment), premium, if any, and interest due on the Bonds on the next Interest Payment Date, and (b) to the Reserve Fund an amount, taking into account amounts then on deposit in the Reserve Fund, such that the amount in the Reserve Fund equals the Reserve Requirement. In addition to the foregoing, amounts in the Special Tax Fund will be transferred by the Finance Director to the Administrative Expense Fund from time to time as necessary for purposes of the Administrative Expense Fund, provided that any such transfers shall not exceed the portion of the Special Taxes collected by the District that was levied in respect of Administrative Expenses. See "APPENDIX E - Summary of Fiscal Agent Agreement." Reserve Fund The Fiscal Agent Agreement provides that the Reserve Fund will be maintained in an amount equal to the Reserve Requirement (as hereinafter defined). On the date of issuance of the Bonds, the Fiscal Agent will deposit $ of the proceeds of the Bonds to the Reserve DOCSLA 1:248027.3 4048443-JK2 1 3 Fund in satisfaction of the Reserve Requirement. See "ESTIMATED SOURCES AND USES OF FUNDS." Except as otherwise provided in the Fiscal Agent Agreement, all amounts deposited in the Reserve Fund will be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the Bond Fund of the amount then required for payment of the principal of, and interest and any premium on, the Bonds or, in accordance with the provisions of the Fiscal Agent Agreement, for the purpose of redeeming Bonds from the Bond Fund. The term "Reserve Requirement" is defined under the Fiscal Agent Agreement to mean, as of any date of calculation, an amount equal to the lesser of (a) Maximum Annual Debt Service, (b) 125% of the then average Annual Debt Service, or (c) 10% of the initial principal amount of the Bonds. Pursuant to the Fiscal Agent Agreement, the Finance Director will transfer amounts from the Special Tax Fund to the Reserve Fund as necessary to satisfy the Reserve Requirement. See "SECURITY FOR THE BONDS - Special Tax Fund." Whenever, on the Business Day prior to any Interest Payment Date, or any other date at the request of the Finance Director, the amount in the Reserve Fund exceeds the Reserve Requirement, the Fiscal Agent will provide written notice to the Finance Director of the amount of the excess and will transfer an amount equal to the excess from the Reserve Fund to the Bond Fund to be used to pay interest on the Bonds on the next Interest Payment Date. Whenever the balance in the Reserve Fund exceeds the amount required to redeem or pay the Outstanding Bonds, including interest accrued to the date of payment or redemption and premium, if any due upon redemption, the Fiscal Agent will, upon the written request of the Finance Director, transfer any amounts in the Reserve Fund to the Bond Fund to be applied, on the next succeeding Interest Payment Date, to the payment and redemption of all of the Outstanding Bonds. In the event that the amount so transferred from the Reserve Fund to the Bond Fund exceeds the amount required to pay and redeem the Outstanding Bonds, the balance in the Reserve Fund will be transferred to the Finance Director to be used by the Authority for any lawful purpose of the Authority. Whenever Special Taxes are prepaid and Bonds are to be redeemed with the proceeds of such prepayment, a proportionate amount in the Reserve Fund (determined on the basis of the principal of Bonds to be redeemed, and the original principal of the Bonds) will be transferred on the Business Day prior to the redemption date by the Fiscal Agent to the Bond Fund to be applied to the optional redemption of the Bonds. See "THE BONDS - Redemption of the Bonds - Optional Redemption." Standby Letter of Credit On the date of issuance and delivery of the Bonds, Lennar will deliver to the Fiscal Agent the Initial Letter of Credit, as an additional source of payment of the Special Taxes in the event of a delinquency in the payment thereof, which Initial Letter of Credit will satisfy the DOCSLA 1:248027.3 4048443-JK2 14 requirements of the Fiscal Agent Agreement. The Fiscal Agent Agreement defines "Letter of Credit" to mean a standby letter of credit, which is (i) irrevocable during its term; (ii) in a form acceptable to the Fiscal Agent and the Finance Director; (iii) for the benefit of the Fiscal Agent; (iv) issued by (a) a national banking association organized under the National Banking Act, or any successor law, or (b)a banking corporation organized under the laws of any state of the United States of America, or (c) a savings and loan association or corporation or savings bank organized under the laws of the United States of America or any state thereof, which provider has its long term unsecured debt obligations rated "A+" or better by Standard & Poor's Ranges Services or "AI" or better by Moody's Investors Service; (v) accompanied by a legal opinion regarding the enforceability of the Letter of Credit; (vi) for a term of at least one year, effective from no later than the date it is delivered to the Fiscal Agent, and any Letter of Credit provided in substitution for any then outstanding Letter of Credit must be for a term of at least one year commencing not later than the expiration date of the term of the prior Letter of Credit; (vii) for the account of any entity other than the Authority, the City or any other governmental entity, and (viii) not secured, as to the reimbursement of any draws thereon, by any property located in the District, or if so secured, any such security must be expressly subordinate to the lien of the Special Taxes. Any Letter of Credit must be accompanied by a written certificate which identifies the parcels in the District to which such Letter of Credit pertains. [Describe Initial Letter of Credit]. The Fiscal Agent will hold any Letter of Credit delivered to it for the benefit of the Reserve Fund. Pursuant to the Fiscal Agent Agreement, the Fiscal Agent will draw upon a Letter of Credit promptly following receipt by the Fiscal Agent of a written direction of the Finance Director instructing the Fiscal Agent to draw on a Letter of Credit, identifying the Letter of Credit and the amount to be so drawn, and to the effect that Special Taxes levied in the District on the parcels to which such Letter of Credit pertains are then delinquent in the amount to be so drawn under the Letter of Credit. The amount received pursuant to any draw on a Letter of Credit will in no way reduce or act as a credit in respect of the amount of any Special Taxes that have been levied in the District on any parcel. In addition to the foregoing, on or prior to July 29, 2003, the Fiscal Agent will draw upon the full amount available under a Letter of Credit ten days prior to the expiration of such Letter of Credit, unless the Fiscal Agent receives a replacement thereof, in such amount, prior to such date which satisfies the requirements of the definition of "Letter of Credit" as described above. The proceeds of any such draw on a Letter of Credit will be applied as a credit against future Special Taxes to be levied on parcels to which such Letter of Credit pertains. Proceeds of any draw on a Letter of Credit received by the Fiscal Agent will be held by the Fiscal Agent in a separate subaccount within the Reserve Fund created by the Fiscal Agent for such purpose, to be disposed of as follows: (1) if the Finance Director certifies in writing to the Fiscal Agent, within 30 days of the draw by the Fiscal Agent on the Letter of Credit, that the Special Tax delinquency with respect to which the draw was made has been fully cured by payment of the Special Taxes due (together with any applicable penalties and interest), the Fiscal Agent will remit the proceeds of the draw to the provider of the Letter of Credit upon which the DOCSLA 1:248027.3 4048443-JK2 1 5 draw was made, and (2) if no such certification has been received by the Fiscal Agent, the Fiscal Agent will on the 31 st day following the date of the draw remit the proceeds of the draw to the Bond Fund, to be used for the purposes of the Bond Fund. The Finance Director will take into account, in determining future Special Tax levies, any amount so transferred to the Bond Fund, and will apply the amount so transferred as a credit against future Special Tax levies against the parcel or parcels with respect to which the draw was made (no credit, however, will be given with respect to Special Taxes theretofore levied on any such parcel). The Fiscal Agent will cooperate with the Finance Director and the provider of any Letter of Credit to reduce the amount available to be drawn on such Letter of Credit as follows: (a) upon receipt by the Finance Director of any Special Taxes levied in the District which are paid on or prior to their due date, the Finance Director will direct the Fiscal Agent to reduce the amount available to be drawn under such Letter of Credit furnished in respect of the applicable parcel, by the amount of Special Taxes so received by the Authority; and (b) upon the written request of a provider of a Letter of Credit or the account party thereon to the Finance Director accompanied-by a certification to the effect that, with respect Riverside County Assessor's Parcel Numbers identified therein, all Special Taxes and ad valorem property taxes levied on such parcels have been paid in full, (1) a tentative tract map has been approved by the City for such parcels, and the assessed or appraised value of the parcels is at least three times the Special Tax prepayment amount (based upon the Rate and Method) for such parcels, and evidence acceptable to the Finance Director is provided that an amount equal to two times the Special Tax prepayment amount has been expended towards the cost of improvements of benefit to each such parcel; or (2) if the parcels are zoned for commercial development, a certificate of occupancy has been issued for a structure or structures located on each of such parcels, or (3) if such parcel is zoned for residential development, an escrow has closed with respect to the sale of the respective parcel, improved with a residential structure, to a prospective homeowner. If the above- described conditions are satisfied, then the Finance Director will direct the Fiscal agent to reduce the amount available to be drawn under such Letter of Credit by an amount equal to the amount of Special Taxes reasonably estimated by the Finance Director that would be levied on such parcels from the date of receipt of such written request to July 29, 2003. In addition, upon receipt by the Fiscal Agent of a Letter of Credit which satisfies the requirements set forth in the definition of "Letter of Credit" described above in substitution or replacement for all or a portion of the amount available to be drawn under any Letter of Credit then held by the Fiscal Agent, accompanied by a written statement of the provider of or account party under such new Letter of Credit as to the parcels and the outstanding Letter of Credit to which such new Letter of Credit pertains, the amount under the then applicable outstanding Letter of Credit may be reduced by the amount available to be drawn under the new Letter of Credit. Covenant for Superior Court Foreclosure In the event of a delinquency in the payment of any installment of Special Taxes, the City is authorized by the Act to order institution of an action in the superior courts of the State to DOCSLA ! :248027.3 4048443-JK2 1 6 foreclose any lien therefor. In such action the real property subject to the Special Taxes may be sold at a judicial foreclosure sale. Such judicial foreclosure proceedings are not mandatory. However, in the Fiscal Agent Agreement, the Authority has covenanted for the benefit of the Owners of the Bonds that it will order, and cause to be commenced as provided in the Fiscal Agent Agreement and described below, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due. The Finance Director will notify the City Attorney of any such delinquency of which it is aware, and the City Attorney will commence, or cause to be commenced, such proceedings. On or before July 1 of each fiscal year, the Finance Director will compare the amount of Special Taxes theretofore levied in the District to the amount of Special Tax Revenues theretofore received by the Authority and (a) with respect to individual delinquencies, if the Finance Director determines that any single parcel subject to the Special Tax in the District is delinquent in the payment of Special Taxes in the aggregate amount of $2,500 or more, then the Finance Director will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) foreclosure proceedings will be commenced by the Authority within 90 days of such determination, or (b) with respect to aggregate delinquencies, if the Finance Director determines that (i) the total amount of delinquent Special Tax for the prior fiscal year for the entire District (including the total of all individual delinquencies) exceeds 5% of the total Special Tax due and payable for the prior fiscal year, or (ii) there are 10 or fewer owners of real property within the District, determined by reference to the latest available secured property tax roll of the County, the Authority shall notify or cause to be notified property owners who are then delinquent in the payment of Special Taxes (and demand immediate payment of the delinquency) within 45 days of such determination, and shall commence foreclosure proceedings within 90 days of such determination against each parcel of land in the District with a Special Tax delinquency. The fees, costs and expenses incurred by the Authority in pursuing such foreclosure actions constitute an Administrative Expense under the Fiscal Agent Agreement. The ability of the Authority to foreclose the lien of delinquent unpaid Special Taxes may be limited in certain instances and may require prior consent of the obligee in the event the property is owned by or in receivership of FDIC. See "SPECIAL RISK FACTORS Bankruptcy" and "- Payments by FDIC." If the Reserve Fund is depleted, there could be a default or a delay in payments to the Owners of the Bonds pending prosecution of foreclosure proceedings and receipt by the City of foreclosure sale proceeds, if any. However, within the limits of the Rate and Method, the City may adjust the Special Taxes levied on all property within the District to provide an amount required to pay debt service on the Bonds and to replenish the Reserve Fund. DOCSLA 1:248027.3 4048443-JK2 17 No assurances can be given that a judicial foreclosure action, once commenced, will be completed or that it will be completed in a timely manner. If a judgment of foreclosure and order of sale is obtained, the judgment creditor (the City, on behalf of the District) must cause a Notice of Levy to be issued. Under current law, a judgment debtor (property owner) has 120 days from the date of service of the Notice of Levy in which to redeem the property to be sold, which period under recent legislation may be reduced to 20 days for parcels other than those on which a dwelling unit for not more than four persons is located. If a judgment debtor fails to redeem and the property is sold, his only remedy is an action to set aside the sale, which must be brought within 90 days of the date of sale. If, as a result of such an action, a foreclosure sale is set aside, the judgment is revived and the judgment creditor is entitled to interest on the revived judgment as if the sale had not been made (Section 701.680 of the California Code of Civil Procedure). The constitutionality of the aforementioned legislation, which repeals the former one-year redemption period, has not been tested; and there can be no assurance that, if tested, such legislation will be upheld. Any parcel subject to foreclosure sale must be sold at the minimum bid price (equal to the sum of delinquent Special Tax installments, penalties, interest, attorney's fees and costs of collection and sale) unless a lesser minimum bid price is authorized by the Owners of 75% of the principal amount of the Bonds Outstanding. Agreement and Covenants Running With the Land On July 1, 1998, Lennar and Winchester entered into the Agreement and Covenants, which sets forth the rights and obligations of such parties with respect to the development of the property in the District. The Agreement and Covenants also provides that the owners of the Bonds are third party beneficiaries thereto, with the right to enforce Lennar's obligations thereunder. In addition, any amendment to the Agreement that would materially adversely impact the value of the land in the District must be approved by a majority of the owners of the outstanding Bonds. The Agreement and Covenants was recorded in the Official Records of the County of Riverside, California on ,1998. The Agreement and Covenants provides, among other things, that (i) Lennar will pay all of the taxes and assessments on the Winchester Property for a period of five years from the date of recording of the Agreement and Covenants, except with respect to portions of the Winchester Property that are leased or sold to third parties or that have vertical construction thereon, (ii) Lennar will apply for and diligently process applications for specific plan approval (no later than 15 months after the date of recording the Agreement and Covenants, and including an environmental impact report) and tentative subdivision map approvals for the Lennar Property and the Winchester Property, and if Lennar negotiates a development agreement with the City such agreement shall cover the Winchester Property, (iii) Lennar will grade and construct certain main streets within the District, including all utilities as required by governmental agencies, and all landscaping required in connection with the construction of such streets, and (iv) Lennar will sheet grade the Winchester Property, including any necessary storm drain improvements through the Winchester Property, and shall commence such grading within three years of the recording of the Agreement and Covenants. Winchester has the right under the Agreement and Covenants to perform the sheet grading at Lennar's expense, after first giving Lennar the opportunity to do so. The Agreement and Covenants contains certain other provisions relating to the parties rights and DOCSLA 1:248027.3 41M84-43-JK2 1 8 obligations thereunder, including the provision that such rights may be enforced through an action for specific performance and other equitable relief allowed by law. The Authority and the Fiscal Agent have covenanted under the Fiscal Agent Agreement to cooperate with the Owners of the Bonds in enforcing rights granted under the Agreement and Covenants, but the Authority and the Fiscal Agent have no obligation to take any independent action in respect thereof, and any such cooperation will be contingent upon provision of indemnity or funds available in the Administrative Expense Fund necessary to cover any costs of the Authority and the Fiscal Agent in respect thereof. Property Values The value of land within the District is a critical factor in determining the investment quality of the Bonds. If Lennar or Winchester default in the payment of the Special Taxes, and the Initial Letter of Credit or any substitute therefor is no longer in effect, the District's only remedy is to commence foreclosure proceedings in an attempt to obtain funds to pay the delinquent Special Tax. An appraisal of the property in the District dated April 6, 1998 (the "Appraisal") was prepared by Interstate Appraisal Corporation, Newport Beach, California (the "Appraiser") to estimate the market value of the property in the District. The stated purpose of the Appraisal was to estimate (i) the market values of the fee simple interest in the residential, multifamily, and business park uses of the property in the District, assuming the Bonds are in place and assuming the property is in an improved condition, and (ii) the "as is" value of the fee simple interest in the property in the District. For a description of the assumptions and limiting conditions contained in the Appraisal, see "APPENDIX A - Summary Appraisal Report." The Appraiser estimated the "as is" value of the property in the District, using a discounted cash flow analysis. In conducting said analysis, the Appraiser reviewed development cost figures provided by Lennar, and estimated an absorption rate and a discount rate for the property in the District. The Appraiser then applied a discounted cash flow analysis to arrive at an estimated market value for the property in the District. According to the Appraisal, the estimated "as is" value of the property, discounted for the time and cost of absorption, is $15,200,000, or approximately_ times the principal amount of the Bonds. For further description of the value estimation assigned to the property in the District by the Appraiser, see Appendix A hereto. Market Absorption Empire Economics, Capistrano Beach, Califomia (the "Market Absorption Consultant") has performed a market analysis of the property in the District in its market absorption study, dated May, 1998 (the "Market Absorption Study"). Based upon its analysis of the expected demographic-economic trends, the market demand-supply conditions in the area and the designated financial market conditions, the Market Absorption Consultant has estimated that: DOCSLA 1:248027.3 40484-43-JK2 19 (i) the 1,672 residential units that are planned for construction in the District will have an average absorption rate of 279 units per year, and will be fully built out and occupied by end users in 2006, as follows: (a) the 167 apartment units, which are expected to enter the market beginning in 2001, will have an average absorption of approximately 84 units per year, and will be fully built out and occupied by end users in 2002; (b) the 297 detached homes priced at approximately $153,000, which are expected to enter the market starting in 2001, will have an average absorption of approximately 100 units per year, and will be fully built out and occupied by end users in 2003; (c) the 641 detached homes priced from $168-177,000, which are expected to enter the market starting in 2001, will have an average absorption of approximately 128 units per year, and will be fully built out and occupied by end users in 2005; (d) the 567 detached homes priced from $210-240,000, which are expected to enter the market starting in 2001, will have an average absorption of approximately 95 units per year, and will be fully built out and occupied by end users in 2006; and (ii) the approximately 120 acres of commercial/industrial property in the District, which is expected to enter the market starting in 2001, will have an average absorption rate of 13 acres per year, and will be fully built out and occupied by end users in 2009. For further description of the planned development of the property in the District, see "THE WINCHESTER DEVELOPMENT." See Appendix B hereto for a summary of the Market Absorption Study. Direct and Overlapping Debt Set forth in the table below is a summary of the existing indebtedness payable from taxes and assessments that may be levied on property in the District. No assurance can be given that the indebtedness set forth in the table below includes all of the indebtedness payable from taxes and assessments that may be levied on property within the District. Moreover, neither the City nor the District has any control over the amount of indebtedness that could be issued by other public agencies in the future, and the liens on the property within the District could greatly increase, without any corresponding increase in the value of such property, and thereby severely reduce the ratio that exists at the time the Bonds are issued between the value of the property within the District and the debt secured by all taxes and assessments thereon. In the event of a delinquency in the payment of a Special Tax levy, no assurance can be given that the proceeds of any foreclosure sale would be sufficient to pay the delinquent Special Taxes and any other delinquent assessments, special taxes or taxes. See "Property Values" above. DOCSLA1:248027.3 4048443-JK2 20 Table 1 Community Facilities District No. 98-1 (Winchester Hills) Direct and Overlapping Debt 1997-98 Assessed Valuation: $11,113,352 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Metropolitan Water District 0.001% Eastern Municipal Water District, I.D. No. U-8 0.374 Temecula Valley Unified School District 0.257 Rancho California Water District, Rancho Division 0.836 Winchester Hills Financing Authority Community Facilities District No. 98-1 100. TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT Debt6/1/98 $ 5,551 26,872 142,571 81,819 $256,813 (1) OVERLAPPING GENERAL FUND OBLIGATION DEBT: Riverside County General Fund Obligations Riverside County Board of Education Certificates of Participation Riverside County Flood Control and Water Conservation District General Fund Obligations Temecula Valley Unified School District Certificates of Participation Temecula Community Services District Certificates of Participation Rancho California Water District General Fund Obligations TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT Less: Riverside County Administrative Center Authority (100% self- supporting from tax increment revenues) Temecula Valley Unified School District Certificates of Participation (self-supporting from tax increment revenues) TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 0.018% 0.018 0.022 0.296 0.416 0.609 $ 104,729 3,503 295 40,508 18,970 1.328.490 $1,496,495 1,246 19.536 $1,475,713 GROSS COMBINED TOTAL DEBT NET COMBINED TOTAL DEBT $1,753,308 (2) $1,732,526 (1) Excludes MellooRoos Act bonds to be sold. (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 1997-98 Assessed Valuation: Direct Debt ....................................................................................................- % Total Direct and Overlapping Tax and Assessment Debt ............................. 2.31% Gross Combined Total Debt ..........................................................................15.78% Net Combined Total Debt .............................................................................15.59% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/97:$0 Source: Califomia Municipal Statistics, Inc. DOCSLA 1:248027.3 40484--43-JK2 2 1 THE COMMUNITY FACILITIES DISTRICT Location and Description of the District The District consists of approximately 558 gross acres of unimproved land located in the northern portion of the City. The District is bounded generally on the west by Interstate 15, on the north by the boundary line with the City of Mumeta, on the east by Margarita Road and by Winchester Hills Road on the south. The property within the District has a General Plan designation for residential and commercial uses. See "THE COMMUNITY FACILITIES DISTRICT - Zoning and Specific Plans" herein for further description of the permitted land uses within the District. Lennar and Winchester currently own all of the property in the District, and are planning it for development with a mixture of residential, school, park, open space and commercial/industrial uses. See "THE WINCHESTER DEVELOPMENT" herein. A map of the District appears on the following page. DOCSLA ! :248027.3 41M8443-JK2 22 [MAP OF DISTRICT] DOCSLA l:248027.3 4048443-JK2 23 Summary of District Proceedings The Board of the Authority formed the District under the Act by adopting Resolution No. WHFA __ on April 14, 1998. At a special election held on April 14, 1998 the qualified electors of the District authorized the District to incur a bonded indebtedness up to $16,000,000, and approved the Rate and Method to pay the principal of, premium, if any, and interest on the bonded indebtedness. Following public hearings conducted pursuant to the provisions of the Act, the Board adopted Resolution No. WHFA__ on June 23, 1998 which, among other matters, authorized the issuance of the Bonds. Rate and Method of Apportionment The Board approved the Rate and Method for the District pursuant to Resolution No. WHFA , adopted on April 14, 1998. The Rate and Method provides that for each fiscal year, all property located within the boundaries of the District that is not exempt from the Special Tax and to which Gross Acres (as defined in the Rate and Method) have been allocated pursuant to the Rate and Method ("Taxable Property"), will be classified as Non-Residential Property, Residential Property or Taxable Public Property and will be subject to the Special Tax as set forth therein. The Rate and Method defines "Non-Residential Property" to mean up to 120.60 Gross Acres of property designated as such on the applicable specific plan or, if no specific plan is approved, the land use plan of the City's general plan, all as of February 1 of the fiscal year preceding the fiscal year in which the Special Tax is being levied. Property designated for non- residential development in excess of the 120.60 Gross Acres will be classified as Residential Property. "Residential Property" is defined in the Rate and Method to mean property designated as such on the applicable specific plan or, if no specific plan has been approved, the land use plan map of the City's general plan, all as of February 1 of the fiscal year preceding the fiscal year in which the Special Tax is being levied. The Rate and Method defines "Taxable Public Property" to mean property within the boundaries of the District owned by, irrevocably offered or dedicated to, or for which an easement for purpose of public right-of-way has been granted to the federal government, the State, the City or any local government or other public agency, which is not exempt from the Special Tax under the Rate and Method. Taxable Property will then be taxed under the Rate and Method on the basis of whether it is located within a Final Non-Residential Subdivision or a Residential Subdivision. The Rate and Method defines a "Final Non-Residential Subdivision" to mean Non-Residential Property (i) for which a condominium plan has been approved by the City or a final map, parcel map or lot line adjustment has been recorded, and (ii) for which building permits have or may be issued by the City for which Condominiums (as defined in the Rate and Method) or lots located therein. The Rate and Method defines a "Final Residential Subdivision" to mean Residential Property (i) for which a condominium plan has been approved by the City or a final map, parcel map or lot line adjustment has been recorded, and (ii) for which building permits have or may be issued by the City for such Condominiums or lots located therein. DOCSLA ! :248027.3 4048443-JK2. 24 The Rate and Method provides that the maximum Special Tax (the "Maximum Special Tax") that may be levied on any Assessor's Parcel (as defined in the Rate and Method) of Non- Residential Property is $1,960 per Gross Acre, and the Maximum Special Tax that may be levied on any Assessor's Parcel of Residential Property is $3,212 per Gross Acre. The Rate and Method contains no provision for escalation of the Maximum Special Tax rates. Pursuant to the Rate and Method, commencing with fiscal year 1998-99 and for each following fiscal year, the Finance Director will levy the Special Tax as follows until the amount of the levy equals the Special Tax Requirement: 1. The Special Tax will be levied on each Assessor's Parcel of Taxable Property, exclusive of Taxable Public Property, located within a Final Non-Residential Subdivision or a Residential Subdivision, which was recorded with the County as of January 1 of the fiscal year preceding the fiscal year for which the Special Tax is being levied, up to 100% of the applicable Maximum Special Tax; 2. The Special Tax will be levied on each Assessor's Parcel of Taxable Property that is not located within a Final Non-Residential Subdivision or a Residential Subdivision, exclusive of Taxable Public Property, up to 100% of the applicable Maximum Special Tax; and 3. If additional monies are needed after the preceding two steps have been completed, then the Special Tax will be levied on all Taxable Public Property up to 100% of the Maximum Special Tax for Residential Property. The Special Taxes may be prepaid for certain Assessor's Parcels pursuant to the prepayment formula set forth in the Rate and Method. In general, the Maximum Special Tax may only be prepaid for an Assessor's Parcel which (i) is located in a Final Non-Residential or Residential Subdivision, or (ii) is Taxable Public Property. A prepayment may only be made if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. Prepayment must be made not less than 60 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Maximum Special Tax. The full text of the Rate and Method is set forth in Appendix C hereto. Zoning and Specific Plans The City reports that all of the property in the District is zoned "Specific Plan," and that approximately 80% of the property in the District is designated "Residential" under the City's General Plan, and the remainder of the property is designated "Service Commercial" under the General Plan. Under the Specific Plan zoning designation, the property in the District may not be developed until a specific plan has been approved by the City Council. The property in the District does not currently have a specific plan. Pursuant to the Agreement and Covenants, Lennar has agreed to apply for and diligently process applications for specific plan approval for the Winchester Property and the Lennar Property, and to submit an application for approval of a specific plan covering the Lennar Property and the Winchester Property and which is deemed complete by the City no later than 15 months after the date of recording of the Agreement and DOCSLA1:248027.3 40484-43-JK2 25 Covenants. Lennar has agreed to pay Winchester $1,000 per day if Lennar does not meet such obligations, until such time as the specific plan application has been filed with the City; provided, however, that such period may be extended for events outside the reasonable control of Lennar, as provided in the Agreement and Covenants. Development Agreement There currently is no development agreement with respect to the property in the District, and Lennar has not yet determined whether it will pursue a development agreement. Pursuant to the Agreement and Covenants, if Lennar negotiates a development agreement with the City, such agreement will cover both the Lennar Property and the Winchester Property. Lennar reports that if it determines to pursue a development agreement, it would proceed concurrently with the pursuit of other necessary entitlement approvals for the property in the District. Environmental Review The environmental review process has not yet commenced with respect to the property in the District. Pursuant to the Agreement and Covenants, Lennar is responsible for the application and processing of an environmental impact report (the "EIR") for both the Lennar Property and the Winchester Property, which EIR must be submitted in conjunction with the specific plan. See" - Zoning and Specific Plans" above for a description of Lennar's obligations with respect to the specific plan and the EIR. THE WINCHESTER HILLS DEVELOPMENT The information included below has been provided by Lennar and Winchester, and has been included because it may be considered relevant to an informed evaluation and analysis of the Bonds and the District. No assurance can be given that the proposed development will occur as described below, or that it will occur in a timely manner or in the configuration described below. The Authority has not independently verified the information set forth below, and makes no representation regarding the accuracy or completeness of such information. Land Ownership The property within the District is comprised of 558 gross acres, approximately 440 of which are owned by Lennar (the "Lennar Property") and approximately 120 of which are owned by Winchester (the "Winchester Property"). Lennar purchased the Lennar Property from Winchester on July 1, 1998, pursuant to a Purchase Agreement and Escrow Instructions dated June 3, 1998 (the "Purchase Agreement") between Lennar and Winchester. In connection with the Purchase and Sale Agreement, Lennar and Winchester also entered into the Agreement and Covenants and a Right of First Offer (the "Right of First Offer"). The Right of First Offer provides, among other things, that in the event that Winchester determines to offer all or a portion of the Winchester Property for sale to any party, Winchester must first offer such property for sale to Lennar and state the terms of such sale. Lennar will then have fifteen business days to either deliver an affirmative response to Winchester and purchase the offered property. If Lennar does not deliver an affirmative response, Winchester has the right to sell the DOCSLA 1:248027.3 40484-43-JK.2 26 offered property to any party upon terms no more favorable than the terms offered to Lennar. The Right of First Offer terminates on June 30, 2002. The Developers Lennar. Lennar is a Califomia corporation based in Mission Viejo, Califomia, that has been in the business of developing residential real estate projects in California since 1995. Lennar is a wholly owned subsidiary of Lennar Corporation, Inc. a Delaware corporation ("Lennar Corporation"), with headquarters in Miami, Florida. Lennar Corporation is one of the largest homebuilders in the United States, with operations in Florida, Texas, Arizona, Nevada and California. Lennar Corporation was founded in 1954, and has been publicly traded under the symbol "LEN" since 1971. According to Lennar Corporation's 1997 Annual Report, Lennar Corporation redefined itself in 1997 as a company purely committed to homebuilding and residential financial services, through a spin-off of its commercial real estate investment and management business, and a merger with Pacific Greystone Corporation, a leading homebuilder in California. Lennar has been involved in the acquisition and development of numerous residential real estate projects in Southern California since 1995. Representative projects include (i)the acquisition of Bramalea California, Inc'. in July, 1996, which acquisition included 3,000 home sites in various stages of development located in 10 communities throughout Southern California, (ii) Coto de Caza, a 2,000 home development acquired in March of 1996 and located in South Orange County, which has approximately 1,200 homes remaining to be sold, (iii) Stevenson Ranch, an approximately 5,700 home development acquired by joint venture with Dale Poe Development Corporation in September of 1996, which is in various stages of development ranging from raw, unentitled land to fully improved homesites, (iv) Bressi Ranch, an approximately 500 acre residential and retail/office development acquired in June of 1997 and located in Carlsbad, California, which is currently seeking entitlement approvals, and (v) Horizon Country Club, an approximately 205 home development acquired in February, 1998 and located in Rancho Santa Fe, California, which is in various stages of development approvals and construction. Winchester. Winchester is a California limited liability company based in San Marcos, California. Winchester originally acquired all of the property in the District in July, 1995 from Palomar Triad, Inc. an entity of Kemper Real Estate Management Company. Pursuant to the Purchase and Sale Agreement, Winchester has retained the approximately 120 acres of property within the District comprising the Winchester Property for development with commercial uses. The managing member of Winchester is Mr. Stephen A. Bieri. Mr. Bieri has been involved in the real estate industry full time since 1979, and has owned and operated The Stephen A. Bieri Company, Inc., since September of 1983, which has been involved in the business of investing in, processing, managing, and developing land, as well as owning apartments, office, and industrial buildings. One of Mr. Bieri's recent projects is the acquisition, with a parmer, of 959.9 acres of land known as "Rancho Coronado" in the center of the City of San Marcos. Mr. Bieri was previously in charge of the processing of all of the land use DOCSLA1:248027.3 4048443-JK2 27 entitlements for the project, and upon completion of that process Mr. Bieri assumed responsibility for the sale of the land within the project. Recent transfers include (i) the sale of 305 acres to the State of California, which property is now the site of California State University- San Marcos, and (ii)sales to Kaiser Hospitals, Palomar/Pomerado Health Systems, Bridge Housing (for a 164 unit affordable housing project), and Ashbrook Homes (433 single family lots). In addition, Mr. Bieri is currently processing a general plan amendment for a 60-acre project located in , which amendment will change the land use from single family detached to commercial/industrial. Once the necessary approvals are received later this year, Mr. Bieri will be responsible for marketing the land to users. Plan of Development General. Pursuant to the Agreement and Covenants, Lennar will undertake the initial development responsibilities with respect to Lennar Property and the Winchester Property. These responsibilities include the application for and processing of the necessary entitlements for the development of the Lennar Property and the Winchester Property, the grading and constructing of certain streets and utilities required for further development of the Lennar Property and the Winchester Property, and the sheet grading of the Winchester Property. See "SECURITY FOR THE BONDS - Agreement and Covenants Running With the Land." It is currently anticipated that the development work contemplated by the Agreement and Covenants will be commence in July, 1998 and will be completed by December, 2005. Upon completion of such work, it is anticipated Lennar and Winchester will continue to develop the Lennar Property and the Winchester Property, respectively, in accordance with the development plans described below. Lennar Property. Of the approximately 440 gross acres comprising the Lennar Property, approximately 347 acres is currently planned for development with residential uses (the "Residential Property"), approximately 10 acres is planned for a school site (the "School Property"), approximately 35 acres are planned for parks and open space (the "Park/Open Space Property"), and approximately 50 acres are planned for road and other miscellaneous uses (the "Infrastructure Property"). Lennar's plan of development for each of the planned uses for the Lennar Property is described below. Residential Property In accordance with the City's General Plan, Lennar would be allowed to construct up to 1,948 housing units on the Residential Property. The current plan of development for the Residential Property, however, contemplates 1,672 housing units comprised of 1,505 single family dwellings and 167 apartment units. Lennar anticipates that the development of the Residential Property will proceed in three phases over a period of approximately 7 years from the date of issuance of the Bonds, which will continue through 2005. Phase One is currently expected to include single family homes ranging in size from 1,800 square feet to approximately 3,300 square feet, and selling within five separate mini-communities, and approximately 167 apartment units. Phase Two is expected to include approximately 625 single family homes similar in size to the first phase and also selling within DOCSLA 1:248027.3 41M8443-JK2 28 five separate mini-communities. Phase Three is expected to include approximately 281 single family homes ranging in size from 1,800 square feet to 2,800 square feet, and selling within three separate mini-communities. Lennar currently expects to construct approximately 25% of the housing units internally, and to sell the remainder of the homesites to various merchant builders. The following table sets forth the product mix currently expected to be constructed on the Residential Property by price range: Table 2 Community Facilities District No. 98-1 (Winchester Hills) Residential Property Product Mix by Price Ranges $150,000 $200,000 Phases Apart. $150,000 $199,999 $250,000 Total Share I 167 166 205 227 765 46% II 0 91 209 225 626 38% III 0 40 227 114 281 16% TOTAL 167 297 641 566 1672 100% SHARE 10% 18% 39% 33% 100% The phasing plan contemplates the completion of adequate infrastructure and other required physical improvements to service the Residential Property concurrently with the construction of each phase. See "- Plan of Development - Infrastructure Property" below. For additional information with respect to the anticipated absorption of the Residential Property, see "SECURITY FOR THE BONDS - Market Absorption Study" and Appendix B hereto. School Property Lennar reports that the Temecula Valley Unified School District (the "School District") has expressed an interest in the School Property. It is currently anticipated that, pending an agreement with the School District, Lennar will provide a rough graded site to the School District with all utilities stubbed to the site. Park/Open Space Property Lermar reports that it will allocate and develop acreage for park purposes within the District consistent with City requirements, and that the open space areas will be left in their natural state or improved in accordance with the requirements of the applicable govemmental agency. DOCSLA 1:248027.3 4048443-JK2 29 Infrastructure Property Lennar reports that it will develop and construct all backbone infrastructure, including grading, storm drain, sewer, water, streets, utilities and landscaping within the major thoroughfares of Margarita Road, Date Street and Ynez Road in the District. In addition, when the interior circulation plan for the District is determined, Lennar will be responsible for developing and constructing the infrastructure necessary to develop the property in the District consistent with such plan. Development Budget Set forth below is Lennar's budget for the development of the property in the District (including the development of the Winchester Property pursuant to the Agreement and Covenants) as of June 10, 1998. Master Description Planning Phase I Phase II Phase III Total Grading 5,278,800 2,620,000 850,400 8,749,200 Erosion Control 260,000 120,000 35,000 415,000 Utilities 575,000 326,400 901,400 Street Lighting 150,000 68,500 218,500 Sewer System 495,275 21,725 517,000 Landscaping 3,489,530 1,956,450 869,100 6,315,080 Storm Drain 1,158,750 959,000 482,900 2,600,650 Street Improvement 2,917,456 2,649,190 201,600 5,768,246 Water System 483,600 306,500 790,100 Assessments & Fees 49,300 1,535,199 586,099 181,047 2,351,645 Consultants 845,000 1,479,000 877,000 338,000 3,539,000 TOTAL 894,300 11,822,610 10,490,864 2,958,047 32,165,821 The discussion and budget above merely reflect Lennar's present plan for the development of the Lennar Property (and the Winchester Property pursuant to the Agreement and Covenants). There can be no assurance that Lennar will have the resources, willingness or ability to successfully implement the development plan as described above. Winchester Property. Upon completion of the improvements to be constructed pursuant to the Agreement and Covenants, Winchester plans to complete the development and market the Winchester Property. Concurrent with Lennar's processing of the specific plan for all of the property in the District, Winchester plans on processing a site-specific tentative map which will entitle the Winchester Property and permit a flexible marketing approach. The tentative map will allow for lot sizes as small as two acres with the ability to consolidate lots and eliminate interior streets to create larger lots. The final development plan for the Winchester Property will be dependent on the real estate market at the time. Winchester currently anticipates that the DOCSLA1:248027.3 40484--43-JK2 30 marketing and sale options available with respect to the Winchester Property upon completion of the improvements by Lennar will include; (1) bulk sale of the Winchester Property at that time; (2) sale of two superpads to large users; (3) develop of the Winchester Property into smaller lots; or (4)a combination of options two and three. Winchester reports that if the property is subdivided into smaller lots, it will have the option to sell lots, enter into ground leases or pursue build-to-suit opportunities. It is estimated that the cost to develop the entire property into smaller lots with be approximately $2,000,000. Development Budget Listed below are the development components for the Winchester Property, and the total amount budgeted for each component as of June 10, 1998. Planning, Fees, Consultants On-Site Roads North South Entry Monuments 500,000 350,000 850,000 50,000 1,750,000 10%Contingency 175,000 $1,925,000 The discussion above merely sets forth Winchester's present plan for the development of the Winchester Property. There can be no assurance that Winchester will have the resources, willingness or ability to successfully complete the development plan for the Winchester Property as described above. Plan of Finance Lennar Property Lennar anticipates financing the approximately $32 million of estimated development costs for the Lennar Property and the improvements to the Winchester Property required pursuant to the Agreement and Covenants through an existing unsecured line of credit in excess of $500 million that is currently available to Lennar. Lennar reports that the line of credit was established in November, 1997 by a syndicate of 22 banks for which The First National Bank of Chicago is the agent, and is for a term of five years. Winchester Property If Winchester decides to sell or lease lots, Winchester anticipates financing the approximately $2,000,000 of estimated development costs for the Winchester Property through a standard construction loan from a financial institution. DOCSLA 1:248027.3 40484--43-JK2 3 1 SPECIAL TAX COVERAGE The table below sets forth the debt service coverage for the Bonds from revenues that would be generated if Special Taxes were levied at the Maximum Special Tax rate. The Maximum Special Tax may be subject to reduction by initiative. See "SPECIAL RISK FACTORS - Right to Vote on Taxes Act." Bond Year Ending Septemberl 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Table 2 Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Estimated Debt Service Coverage Estimated Maximum Special Tax Revenues Bond Debt Service Estimated Debt Service Coverage Ratio for the Bonds DOCSLA 1:248027.3 4048443-JK2 32 SPECIAL RISK FACTORS Concentration of Ownerships Currently, 78% of the total acreage in the District is owned by Lennar, and 22% of such acreage is owned by Winchester. Because of the concentration of property ownership in the District, until development occurs and property in the District is sold to third parties, the timely payment of the Bonds depends upon the payment of the Special Taxes levied on the property when due by Lennar and Winchester. The Initial Letter of Credit will be available through July, 2003 to pay the principal of and interest on the Bonds in the event of a delinquency in the payment of Special Taxes. If development does not proceed as currently anticipated, however, and a Letter of Credit is no longer available and Lennar and/or Winchester experiences financial difficulties and is unwilling or unable to pay the annual Special Taxes when due, it could result in the rapid, total depletion of the Reserve Fund prior to replenishment from the resales of property upon a foreclosure. In that event, there could be a default in payment of the principal of, and interest on, the Bonds. Failure to Develop Property The proposed development of the property in the District is subject to comprehensive federal, State of California and local regulations. Approval is required from various agencies in connection with the layout and design of developments, the nature and extent of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous other matters. It is possible that the approvals necessary to complete planned development of the property within the District will not be obtained on a timely basis. Failure to obtain any such agency approval or satisfy any such government requirement could adversely affect land development operations. In addition there is a risk that future governmental restrictions, including, but not limited to, governmental policies restricting or controlling development within the District, will be enacted. Moreover, there can be no assurance that the means and incentive to conduct land development operations within the District will not be adversely affected by a deterioration of the real estate market and economic conditions or future local, State and federal governmental policies relating to real estate development, the income tax treatment of real property ownership, or the national economy. A slowdown of the development process could adversely affect land values and lessen the ability or willingness of the owners of land within the District to pay the annual Special Taxes. The property in the District is currently undeveloped and, except for General Plan designations as Residential and Service Commercial, unentitled. See "THE COMMUNITY FACILITIES DISTRICT - Zoning and Specific Plan." The failure to complete development or the necessary infrastructure for development of the property in the District, or substantial delays in the completion of development or the required infrastructure for development due to litigation, the inability to obtain required funding or other causes may reduce the value of the property in the District and increase the length of time during which Special Taxes will be payable from undeveloped property. Undeveloped property is less valuable per acre than developed property, DOCSLA! :248027.3 4048443-JK2 33 especially if there are no plans to develop such property or if there are severe restrictions on the development of such property. Undeveloped property also provides less security to the Owners of the Bonds should it be necessary for the District to foreclose on undeveloped property due to the nonpayment of the Special Taxes. The timely payment of Special Taxes depends upon the ability and willingness of initially the Developer and, at~er sales of the property have commenced, the other owners of property in the District to pay such taxes when due. A slowdown in or cessation of the development of land within the District could reduce the ability and willingness of such owners to make Special Tax payments, and could greatly reduce the value of such property in the event it has to be foreclosed upon to collect delinquent Special Taxes. See "Bankruptcy" below for a discussion of certain limitations on the ability of the District to pursue judicial foreclosure proceedings with respect to taxpayers with delinquent Special Taxes. Appraised Values The Appraisal Report was prepared for the purpose of estimating the market value of the property in the District as of April 6, 1998 on the basis of certain assumptions. See the Summary Appraisal Report included as Appendix A hereto for a brief description of the analysis used and assumptions made by the Appraiser. No assurance can be given that if any of the property in the District should become delinquent in the payment of Special Taxes, and be foreclosed upon, that such property could be sold for the amount of estimated market value thereof. Moreover, no assurance can be given that any bid would be received for such property or, if a bid is received, that such bid would be sufficient to pay such delinquent Special Taxes. Insufficiency of Special Taxes To assure timely payment of debt service on the Bonds, it is necessary that the Special Tax levied against land within the District be paid in a timely manner. Lennar has provided the Initial Letter of Credit, which may be drawn upon in the event of delinquencies in the payment of Special Taxes through July, 2003. See "SECURITY FOR THE BONDS- Standby Letter of Credit." In addition, the Authority has established a Reserve Fund in an amount equal to the Reserve Requirement to pay debt service on the Bonds to the extent Special Taxes are not paid on time and other funds are not available therefor. See "SECURITY FOR THE BONDS - Reserve Fund." Under the Fiscal Agent Agreement, the Authority has covenanted to maintain in the Reserve Fund an amount equal to the Reserve Requirement; subject, however, to the limitation that the District may not levy the Special Tax in any fiscal year at a rate in excess of the maximum Special Tax rate permitted under the Rate and Method. See "SECURITY FOR THE BONDS - The Special Tax Revenues." Due to the limitation of the maximum Special Tax Rate, if a significant number of delinquencies occur, the Authority will be unable to replenish the Reserve Fund to the Reserve Requirement. If such delinquencies were to continue in successive years, the Reserve Fund would soon be depleted and a default on the Bonds could occur if proceeds of foreclosure sales did not yield a sufficient amount to pay the delinquent Special Taxes. DOCSLA1:248027.3 4048443-JK2 34 The Rate and Method exempts from the Special Tax (i) all public (i.e. owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State, the City or any local government or other public agency) and private streets, (ii) 25 acres of land to be dedicated to or acquired by the City for purposes of parks, (iii) 10 acres of land to be dedicated to or acquired by the Temecula Valley Unified School District for purposes of a school site, and (iv) 47.90 acres of land to be dedicated to the City for open space purposes; provided however, that if the total number of park, school site and open space exceeds 82.90 acres, then the acres exceeding such total will be taxed as provided under the Rate and Method. Section 53173.3 of the Act provides that, if any property within the District not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by girl or devise, the Special Tax will continue to be levied on and be enforceable against the public entity that acquired the property. Additionally, Section 53317.5 of the Act provides that, if any property subject to the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the Act have not been tested. If for any reason, property subject to the Special Tax becomes exempt from taxation by reason of ownership by a non-taxable entity, such as the federal government or another public agency, the Special Tax will be reallocated to the remaining taxable properties within the District, but in no case more than the maximum authorized Special Tax for such property. This would result in the owners of taxable properties paying a greater amount of the Special Tax and could have an adverse impact upon the timely payment of the Special Tax and therefore debt services on the Bonds. MOREOVER, IF A SUBSTANTIAL PORTION OF THE LAND WITHIN THE DISTRICT BECAME EXEMPT FROM THE SPECIAL TAX BECAUSE OF PUBLIC OWNERSHIP BY A NON-TAXABLE ENTITY OR OTHERWISE, THE MAXIMUM SPECIAL TAX THAT COULD BE LEVIED ON THE REMAINING ACREAGE MAY NOT BE SUFFICIENT TO PAY PRINCIPAL OF, AND INTEREST AND PREMIUM, IF ANY, ON THE BONDS WHEN DUE, AND A DEFAULT MAY OCCUR WITH RESPECT TO THE PAYMENT OF SUCH PRINCIPAL, INTEREST AND PREMIUM, IF ANY. Under the provisions of the Act, the Special Taxes will be billed to the properties within the District on the regular property tax bills sent to owners of such properties. The Act currently provides that such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do regular property tax installments. Special Tax installment payments cannot be made separately from property tax payments. Consequently, the unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments and Special Tax installment payments in the future. See "SECURITY FOR THE BONDS - Covenant for Superior Court Foreclosure" and "SECURITY FOR THE BONDS - Bond Reserve Fund" for a discussion of the provisions which apply and procedures which the District must allow under the Indenture in the event of a delinquency in the payment of Special Tax installments. DOCSLA1:248027.3 40484-43-JK2 35 Bankruptcy The payment of Special Taxes and the ability of the City to foreclose the lien of a delinquent Special Tax may be limited by bankruptcy, insolvency, or other laws generally affecting creditor's rights or by the laws of the State relating to judicial foreclosure. The various legal opinions to be delivered concurrently with the delivery of Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency, or other similar laws affecting the rights of creditors generally. Although bankruptcy proceedings would not cause the Special Taxes to become extinguished, the amount of any lien on property securing the payment of delinquent Special Taxes could be reduced if the value of the property were determined by the bankruptcy court to have become less than the amount of the lien, and the amount of the delinquent Special Taxes in excess of the reduced lien would then be treated as an unsecured claim by the court. Further, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings. Such a delay would increase the likelihood of a delay or default in payment of the principal of, and interest on, the Bonds and the possibility of delinquent tax installments not being paid in full. The prosecution of foreclosure proceedings could also be delayed for other reasons, including crowded court calendars and procedural delaying tactics. Disclosures to Future Buyers The Authority has recorded an amended Notice of Special Tax Lien in the Office of the County Recorder of the County. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a purchaser of commercial or industrial property or lender will consider such obligation for Special Taxes in the purchase of property or the lending of money thereon. Failure to disclose the existence of the Special Taxes or the full amount of the pro rata share of debt on the land in the District may affect the willingness and ability of future owners of land within the District to pay the Special Taxes when due. Earthquakes The District, like all California communities, may be subject to unpredictable seismic activity. The occurrence of seismic activity in the District could result in substantial damage to properties in the District which, in turn, could substantially reduce the value of such properties and could affect the ability or willingness of the property owners to pay their Special Taxes. Any major damage to structures as a result of seismic activity could result in a greater reliance on undeveloped property in the payment of Special Taxes. See "SPECIAL RISK FACTORS- Failure to Develop." DOCSLA 1:248027.3 4048443-JK2 36 Payments by FDIC The ability of the Authority to collect interest and penalties specified by state law and to foreclose the lien of delinquent Special Taxes may be limited in certain respects with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC") or other similar federal governmental agencies has or obtains an interest. On June 4, 1991, the FDIC issued a Statement of Policy Regarding the Payment of State and Local Property Taxes (the "1991 Policy Statement"). The 1991 Policy Statement was revised and superseded by new Policy Statement effective January 9, 1997 (the "Policy Statement"). The Policy Statement provides that real property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property's value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its property tax obligations when the come due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC's consent. The Policy Statement states that the FDIC generally will not pay non ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it purports to secure the payment of any such amounts. Special taxes imposed under the Mello-Roos Act and a special tax formula which determines the special tax due each year, are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal immunity. With respect to property in California owned by the FDIC on January 9, 1997 and that was owned by the RTC on December 31, 1995, or that became the property of the FDIC through foreclosure of a security interest held by the RTC on that date, the FDIC will continue the RTC's prior practice of paying special taxes imposed pursuant to the Mello-Roos Act if the taxes were imposed prior to the RTC's acquisition of an interest in the property. All other special taxes may be challenged by the FDIC. The Authority is unable to predict what effect the FDIC's application of the Policy Statement would have in the event of a delinquency on a parcel within District in which the FDIC has an interest, although prohibiting the lien of the FDIC to be foreclosed at a judicial foreclosure sale would reduce or eliminate the persons willing to purchase a parcel at a foreclosure sale. Owners of the Bonds should assume that the Authority will be unable to foreclose on any parcel owned by the FDIC. Such an outcome could cause a draw on the Reserve Fund and perhaps, ultimately, a default in payment on the Bonds. [Based upon the DOCSLA 1:248027.3 40484-4.3-JK2 37 secured tax roll as of January 1, 1997, the FDIC does not presently own any of the property in the District] [CITY TO VERIFY[. Endangered Species In recent years there has been an increase in activity at the State and federal level related to the possible listing of certain plant and animal species found in the Southern California area as endangered species. New species are proposed to be added to the State and federal protected list on a regular basis. On January 16, 1997, the Quino Checkerspot Butterfly (the "Butterfly ") was listed as an endangered species under the federal Endangered Species Act by the U.S. Fish and Wildlife Service (the "Service"). By declaring the Butterfly an endangered species, the Service has afforded it full protection under the Endangered Species Act, which prohibits harming or harassing the Butterfly without the approval of the Service. No critical habitat was proposed by the Service in connection with its listing of the Butterfly, but its known distribution is southwestern Riverside County (which includes the City and the District) and southern San Diego County. However, the City reports that it has received a map showing the concentration of the Butterfly from the Service, which indicates that only certain areas of the City [and no property within the District] contain known concentrations of the Butterfly. On November 4, 1997, the Service issued its Interim General Survey Protocols and Mitigation Guidelines for the Endangered Quino Checkerspot Butterfly (the "Guidelines"). The Guidelines set forth the conservation strategies and goals, survey protocols and mitigation strategies for jurisdictions within the known distribution of the Butterfly. Pursuant to the Guidelines, the City reports that in general property with grading permits, or for which grading, weed abatement or other potentially invasive activities were commenced prior to November 4, 1997, will not be required to follow the procedures set forth in the Guidelines in connection with any development. However, undeveloped, ungraded property that may have an impact on the Butterfly will be required to follow the survey requirements and mitigation strategies set forth in the Guidelines before any development may proceed. At this point, neither the listing of the Butterfly or any other species of plan or animal as endangered or threatened by the State or federal government (if any should occur) nor the impact on development and construction in the District of such listings can be predicted. It is possible that any such listing may delay or subject development of undeveloped property in the District to restrictions. This, in turn, could reduce the ability or willingness of the property owners to pay the Special Taxes when due and would likely reduce the value of the land estimated by the Appraiser and the potential revenues available at a foreclosure sale for delinquent Special Taxes. See "SPECIAL RISK FACTORS m Failure to Develop" and" Appraised and Assessed Values." Hazardous Substances The market value of the property in the District is subject to diminution upon the future release or discovery thereon of a hazardous substance. In general, the owners and operators of a DOCSLA 1:248027.3 40484-43-JK2 38 parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA" or "Superfund Act", is the most well known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The effect therefore, should any of the parcels be affected by a hazardous substance, would be to reduce the marketability and value by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller. The value of the property in the District, as set forth in the Appraisal Report does not reflect the presence of any hazardous substance or the possible liability of the owner (or operator) for the remedy of a hazardous substance condition of the property. The Authority has not independently verified, and is not aware, that any owner (or operator) of any of the in the District has such a current liability with respect to any such parcel. However, it is possible that such liabilities do currently exist and that the Authority is not aware of them. Further, it is possible that liabilities may arise in the future with respect to any of the land within the District resulting from the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly adversely affect the value of a parcel and the willingness or ability of the owner of any parcel to pay the Special Tax installments. Cumulative Burden of Parity Taxes and Special Assessments The Special Taxes constitute a lien against the parcels of land on which they have been levied. Such lien is on a parity with all special taxes levied by other agencies and is co-equal to and independent of the lien for general property taxes, regardless of when they are imposed upon the same property. The Authority does not have control over the ability of other entities to issue indebtedness secured by ad valorem taxes, special taxes or assessments payable from all or a portion of the property within the District. In addition, the owners of property within the District may, without the consent or knowledge of the Authority, petition other public agencies to issue public indebtedness secured by ad valorem taxes, special taxes or assessments. Any such special taxes may have a lien on such property on a parity with the lien of the Special Taxes. See "SECLrRITY FOR THE BONDS - Direct and Overlapping Debt." DOCSLA 1:248027.3 4048443-JK2 39 No Acceleration There is no provision in the Bonds or the Fiscal Agent Agreement for acceleration of the payment of principal of or interest on the Bonds in the event of default by the District or in the event interest on the Bonds becomes included in gross income for federal income tax purposes. Right to Vote on Taxes Act An initiative measure commonly referred to as the "Right to Vote on Taxes Act" (the "Initiative") was approved by the voters of the State of California at the November 5, 1996 general election. The Initiative added Article XIIIC ("Article XIIIC") and Article XIIID to the California Constitution. According to the "Title and Summary" of the Initiative prepared by the California Attorney General, the Initiative limits "the authority of local governments to impose taxes and property-related assessments, fees and charges." The provisions of the Initiative have not yet been interpreted by the courts, although a number of lawsuits have been filed requesting the courts to interpret various aspects of the Initiative. Among other things, Section 3 of Article XIII states that "... the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge." The Act provides for a procedure, which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the Bonds. It may be possible, however, for voters or the City to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the Bonds, but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative Expenses. Furthermore, no assurance can be given with respect to the future levy of the Special Taxes in amounts greater than the amount necessary for the timely retirement of the Bonds. The interpretation and application of the Initiative will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. Loss of Tax Exemption As discussed under the caption "CONCLUDING INFORMATION - Tax Exemption," herein, interest on the Bonds could become includable in gross income for purposes of Federal income taxation retroactive to the date the Bonds were issued, as a result of acts or omissions of DOCSLA 1:248027.3 4048443-JK2 40 the Authority in violation of the Code. Should such an event of taxability occur, the Bonds are not subject to redemption and will remain outstanding until maturity or until redeemed under the optional redemption or mandatory sinking fund redemption provisions of the Fiscal Agent Agreement. THE AUTHORITY The Winchester Hills Financing Authority was established pursuant to a Joint Exercise of Powers Agreement, dated February 10, 1998 (the "Joint Powers Agreement"), by and between the City and the Redevelopment Agency of the City of Temecula. The Joint Powers Agreement was entered into pursuant to the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the Government Code of the State of California. The Authority was formed for the primary purpose of assisting in the financing and refinancing of public capital improvements in the Winchester Hills area of the City. The Authority is administered by a five-member Board of Directors, which currently consists of the members of the City Council of the City. The Authority has no independent staff. The Executive Director of the Authority is the City Manager of the City, and the Treasurer of the Authority is the Finance Director. The Executive Director administers the day-to-day affairs of the Authority, and the Treasurer has custody of all money of the Authority from whatever source. LITIGATION At the time of delivery of and payment for the Bonds, the Authority will certify that there is no action, suit, litigation, inquiry or investigation before or by any court, governmental agency, public board or body served, or to the best knowledge of the Authority threatened, against the Authority or the District in any material respect affecting the existence of the District or the titles of the officers the Authority or the District to their respective offices or seeking to prohibit, restrain or enjoin the sale, execution or delivery of the Bonds or challenging directly or indirectly the proceedings to levy the Special Taxes or issue the Bonds. CONTINUING DISCLOSURE The Authority has covenanted for the benefit of the Owners of the Bonds to provide annually certain financial information and operating data relating to the Bonds, the District, ownership and development of the property in the District which is subject to the Special Tax, the occurrence of delinquencies in payment of the Special Tax, and the status of foreclosure proceedings, if any, respecting Special Tax delinquencies (the "Authority Annual Report"), and to provide notice of the occurrence of certain enumerated events, if material. In addition, both Lennar and Winchester have covenanted for the benefit of the Owners of the Bonds to provide annually certain financial information and information regarding the development of the property owned by each of such entities in the District (the "Lennar Annual Report" and "Winchester Annual Report," respectively), and to provide notice of the occurrence of certain enumerated events, if material. For a complete listing of items of information which will be provided in the Authority Annual Report, the Lennar Annual Report and the Winchester Annual Report, see "APPENDIX F - Forms of Continuing Disclosure Agreements." Such information is to be DOCSLA 1:248027.3 40484-43-JK2 41 provided by the Authority not later than eight months after the end of the Authority's fiscal year (which currently would be March 1), commencing with the report for the 1998-99 fiscal year, by Lennar not later than six months after the end of the Lennar's fiscal year (which currently would be June 30), commencing with the report for the 1998 fiscal year and by Winchester not later than six months after the end of Winchester's fiscal year (which currently would be ), commencing with the report for the 1998 fiscal year. Each Annual Report will be filed by the Fiscal Agent, as dissemination agent, with each Nationally Recognized Municipal Securities Information Repository and with each State Repository, if any. These covenants have been made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5). The Authority, Letmar and Winchester has never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide annual reports or notices of material events. CONCLUDING INFORMATION Legal Opinions The validity of the Bonds and certain other legal matters are subject to the approving opinion of Quint & Thimmig LLP, San Francisco California, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in Appendix D hereto and will accompany the Bonds. Payment of the fees and expenses of Bond Counsel is contingent upon the sale and delivery of the Bonds. Certain legal matters will be passed upon for the Underwriter by Ordck, Herrington & Sutcliffe LLP, Los Angeles, California, and for the Authority and the District by Authority Counsel. Payment of the fees and expenses of Underwriter's counsel is contingent upon sale and delivery of the Bonds. Tax Exemption In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however to certain qualifications described below, under existing law, interest payable on the Series A Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; provided, however, that, for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986 (the "Tax Code") that must be satisfied subsequent to the issuance of the Series A Bonds in order that such interest be, or continue to be, excluded fi'om gross income from federal tax purposes. The City has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the Series A Bonds. In the further opinion of Bond Counsel, interest on the Series A Bonds is exempt from California personal income taxes. DOCSLA1:248027.3 40484-43-JK2 42 Owners of the Series A Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Tax-Exempt Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Series A Bonds other than as expressly described above. Underwriting The Bonds are being purchased by Stone & Youngberg LLC (the "Underwriter"). Pursuant to a Purchase Contract between the Underwriter and the Authority (the "Purchase Contract"), the Underwriter has agreed to purchase all of the Bonds for an aggregate purchase price of $ , subject to certain conditions set forth in the Purchase Contract. The purchase price reflects an underwriter's discount of $ The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer banks, banks acting as agent and others at prices lower than said public offering prices. Ratings The Authority has not made, and does not contemplate making, an application to any rating agency for the assignment of a rating on the Bonds. Miscellaneous The quotations from, and the summaries and explanations of the Fiscal Agent Agreement and other statutes and documents contained herein do not purport to be complete, and reference is made to such documents and statutes for the full and complete statements of their respective provisions. This Official Statement is submitted only in connection with the sale of the Bonds by the City. All estimates, assumptions, statistical information and other statements contained herein, while taken from sources considered reliable, are not guaranteed by the City. This Official Statement does not constitute a contract with the purchasers of the Bonds. Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. DOCSLA 1:248027.3 4048443-JK2 43 The execution and delivery of this Official Statement has been duly authorized by Authority. WINCHESTER HILLS FINANCING AUTHORITY for and on behalf of the WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) By: IX)CSLA 1:248027.3 40484-43-JK2 44 APPENDIX A SUMMARY APPRAISAL REPORT DOCSLA 1:248027.3 40484-43-JK2 A- 1 APPENDIX B MARKET ABSORPTION STUDY DOCSLA ! :248027.3 4048443-JK2 B- 1 APPENDIX C RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX This Appendix contains the text of the Rate and Method of Apportionment of Special Tax as adopted by the Board of Directors of Authority on April 14, 1998. For a discussion of the Special Tax rates which could be levied in the District for fiscal year 1998-99, see "SECURITY FOR THE BONDS - The Special Taxes" and "THE COMMUNITY FACILITIES DISTRICT - Rate and Method of Apportionment of Special Tax" in the Official Statement to which this Appendix is attached. WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) RATE AND METHOD OF APPORTIONMENT A Special Tax shall be levied and collected in Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) ("CFD No. 98-1") each Fiscal Year, in an amount determined by the Finance Director of the City of Temecula or her designee through the application of the procedures described below. All of the real property in CFD No. 98-1, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms used herein shall have the following meanings: "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 98-1: the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the Finance Director or designee thereof or both); the costs of collecting the Special Taxes (whether by the Authority, City, or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent for any Bonds; the costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under any Fiscal Agent Agreement; the costs of the Authority, City or designee in complying with the disclosure requirements of applicable federal and state securities laws and of the Act, including public inquiries regarding the Special Taxes, the costs associated with the release of funds from any escrow account; the costs of the Authority, City or designee related to an appeal of the Special Tax and an allocable share of the salaries of the City staff directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City for any administrative purposes of CFD No. 98-1 including the costs of prepayment of annual Special Taxes; recordings related to the prepayment, discharge or satisfaction of Special DOCSLA1:248027.3 40484-43-JK2 C- 1 Taxes; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Authority" means the Winchester Hills Financing Authority. "City" means the City of Temecula, California. "Board of Directors" means the Board of Directors of the Authority, acting as the legislative body of CFD No. 98-1. "Condominium" means a unit meeting the statutory definition of a condominium contained in California Civil Code, Section 1351. "County" means the County of Riverside, Califomia. "Exempt Property" means all property located within the boundaries of CFD No. 98-1 which is exempt from the Special Tax pursuant to Section F below. "Final Non-Residential Subdivision" means Non-Residential Property (i) for which a condominium plan has been approved by the City or a final map, parcel map or lot line adjustment has been recorded and (ii) for which building permits have or may be issued by the City for such Condominiums or lots located therein. "Final Residential Subdivision" means Residential Property (i) for which a condominium plan has been approved by the City or a final map, parcel map or lot line adjustment has been recorded and (ii) for which building permits have or may be issued by the City for such Condominiums or lots located therein. "Fiscal Year" means the period starting on each July 1 and ending on the following June 30. "Gross Average" means the acreage allocable to each Assessor's Parcel as set forth in Section D below. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Sections C and D, that can be levied by the Authority in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" shall mean up to 120.60 Gross Acres of property designated as such on the applicable Specific Plan or if no Specific Plan is approved, the land use plan map of the City of Temecula's General Plan, all as of February 1 of the Fiscal Year preceding the DOCSLA 1:248027.3 40484-43-JK2 C-2 Fiscal Year in which the Special Tax is being levied. Property designated for non-residential development in excess of 120.60 Gross Acres shall be classified as Residential Property. "Parcel Acreage" means that acreage shown on the Assessor's Parcel Map for each Assessor's Parcel. In the event that the Assessor's Parcel Map shows no acreage, the Parcel Acreage for any Assessor's Parcel shall be that shown on the applicable condominium plan, final map or parcel map. For Condominiums located in a Final Non-Residential Subdivision, Parcel Acreage shall be determined by allocating the acreage of the underlying lot on which the Condominiums are or are to be constructed in proportion to the building square footage for each such Condominium unit. For Condominiums located in a Final Residential Subdivision, Parcel Acreage shall be determined by allocating the acreage of the underlying lot on which the Condominiums are or are to be constructed equally to each such Condominium unit. "Public Property" means property within the boundaries of CFD No. 98-1 owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State of California, the City of Temecula or any local government or other public agency. "Residential Property" shall mean all property designated as such on the applicable Specific Plan or if no Specific Plan has been approved, the land use plan map of the City of Temecula's General Plan, all as of February 1 of the Fiscal Year preceding the Fiscal Year in which the Special Tax is being levied. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Non-Residential, Residential and Public Property that is Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount determined by the Finance Director or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) debt service for the calendar year which commences in such Fiscal Year on any bonds or other indebtedness of CFD No. 98-1, (3) any amount required to replenish any reserve fund established in connection with bonds issued by or for CFD No. 98-1, and (4) the costs of remarketing, credit enhancement and liquidity facility fees (including such fees for instruments that serve as the basis of a reserve fund in lieu of cash related to any such indebtedness). "Taxable Property" means all property located within the boundaries of CFD No. 98-1 which is not exempt from the Special Tax pursuant Section F below and to which Gross Acres have been allocated pursuant to Section D below. "Taxable Public Property" means all Public Property located within the boundaries of CFD No. 98-1 which is not exempt from the Special Tax pursuant Section F below. B. ASSIGNMENT TO !,AND USE CATEGORIES For each Fiscal Year, all Taxable Property shall be classified as Non-Residential Property, Residential Property, or Taxable Public Property and shall be subject to the Special DOCSLA1:248027.3 4048443-JK2 C-3 Tax in accordance with the Rate and Method of Apportionment described in Sections C and D below. C. MAXIMUM SPECIAL TAX RATES The Maximum Special Tax for any Fiscal Year for each Assessor's Parcel of Non- Residential and Residential Property shall be $1,960 and $3,212 per Gross Acre, respectively. D. ALLOCATION OF GROSS ACREAGE 1. Prior to Recordation of a Final Non-Residential or Residential Subdivision Gross Acreage for each Assessor's Parcel of Taxable Property for which neither a Final Non-Residential or Residential Subdivision has been recorded shall be all of the acreage within the boundaries of the Assessor's Parcel. 2. Final Non-Residential Subdivision Gross Acreage for a Final Non-Residential Subdivision shall be equal to the total acreage of the subdivision less the acreage for any backbone streets, parks, school sites, and open space exempted pursuant to Section F and located within such subdivision. Within a Final Non-Residential Subdivision, Gross Acreage shall be allocated to each Assessor's Parcel of Taxable Property for which a building permit(s) has or may be issued in proportion to the ratio of the Parcel Acreage of such Assessor's Parcel to the sum of the Parcel Acreage of all Assessor's Parcels of Taxable Property. 3. Final Residential Subdivision Gross Acreage for a Final Residential Subdivision shall be equal to the total acreage of the subdivision less the acreage for any backbone streets, parks, school sites, and open space exempted pursuant to Section F and located within such subdivision. Within a Final Residential Subdivision, Gross Acreage shall be allocated equally to each Assessor's Parcel of Taxable Property for which a building permit(s) has or may be issued. In the event that a Final Residential Subdivision includes both single family detached units and Condominium units Gross Acreage shall first be allocated between the single family detached units and the Condominium units based on the percentage of total Parcel Acreage for such subdivision attributable to single family detached units and Condominium units. The resulting Gross Acreage in such subdivision for single family detached units shall then be allocated equally to each such unit. The resulting Gross DOCSLA 1:248027.3 4048443-JK2 C-4 Acreage for Condominium units shall also be allocated equally to each such unit. Streets Not Located Within a Final Non-Residential or Residential Subdivision If any public (i.e., owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State of California, the City of Temecula or any local government or other public agency) or private street, other than the backbone streets exempted pursuant to Section F, is adjacent to but not located within a Final Non-Residential or Residential Subdivision, then such street acreage shall be included in the calculation of Gross Acreage. The amount of street acreage allocable to a Final Non-Residential or Residential Subdivision in such instance shall be determined by measuring from the exterior boundary of the subdivision to the center line of the street. If, however, Exempt Property is located on the opposite side of a street running adjacent to a Final Non-Residential or Residential Subdivision, then the street acreage allocable to such subdivision shall include the full right-of-way for the street. E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 1998-1999 and for each following Fiscal Year, the Finance Director or designee shall determine the amount of Special Taxes to be collected in CFD No. 98-1. The Finance Director shall levy the Special Tax as follows until the amount of the levy equals the Special Tax Requirement. First: The Special Tax shall be levied on each Assessor's Parcel of Taxable Property, exclusive of Taxable Public Property, located within a Final Non-Residential or Residential Subdivision which was recorded with the County of Riverside Recorder's Office as of the January 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied, up to 100% of the applicable Maximum Special Tax; Second: The Special Tax shall be levied on each Assessor's Parcel of Taxable Property which is not located within a Final Non-Residential or Residential Subdivision, exclusive of Taxable Public Property, up to 100% of the applicable Maximum Special Tax, and Third: If additional monies are needed after the preceding two steps have been completed, then the Special Tax on all Taxable Public Property shall be levied up to 100% of the Maximum Special Tax for Residential Property. Notwithstanding the steps above, under no circumstances will the Special Taxes levied against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel or Parcels within CFD No. DOCSLA 1:248027.3 40484-43-JK2 C-5 98-1 by more than ten (10) percent, pursuant to Califomia Government Code Section 53321(d), as in effect on the date of formation of CFD No. 98-1. F. EXEMPTIONS The following shall be exempt from the Special Tax: All public (i.e., owned by, irrevocably offered or dedicated to, or for which an easement for purposes of public right-of-way has been granted to the federal government, the State of California, the City of Temecula or any local government or other public agency) and private streets. For purposes of Section D, up to 50.30 acres of backbone streets shall be excluded from the calculation of Gross Average. 25.00 acres of land to be dedicated to or acquired by the City for purposes of parks. 10.00 acres of land to be dedicated to or acquired by the Temecula Valley Unified School District for purposes of a school site. 47.90 acres of land to be dedicated to the City for open space. If the total number of park, school site, and open space acres exceeds 82.90, then the acres exceeding such total shall be taxed as set forth in Section E. The above park, school site, and open space acres shall be exempted on a first in time basis. G. TERM The Maximum Special Tax will not be levied after fiscal year 2027-2028. H. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 98-1 may collect Special Taxes at a different time or in a different manner as determined by the Finance Director of the City, if necessary to meet its financial obligations. DOCSLA1:248027.3 40484-.43-JK2 C-6 Attachment 1 Prepayment of the Maximum Special Tax The Maximum Special Tax may only be prepaid for an Assessor's Parcel which (i)is located in a Final Non-Residential or Residential Subdivision or (ii) is Taxable Public Property. The Maximum Special Tax applicable to such Assessor's Parcel may be prepaid and the obligation of the Assessor's Parcel to pay the Maximum Special Tax permanently satisfied as described herein, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Special Tax shall provide the City Finance Director with written notice of intent to prepay. Within 30 days of receipt of such written notice, the City Finance Director or designee shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 60 days prior to any redemption date for bonds to be redeemed with the proceeds of such prepaid Maximum Special Tax. The Prepayment Amount shall be calculated as summarized below. Redemption Amount plus plus plus le~ Total: equals Redemption Premium Defeasance Administrative Fees and Expenses Reserve Fund Credit Prepayment Amount The Prepayment Amount shall be calculated as follows: Compute the Maximum Special Tax applicable to the Assessor's Parcel intending to prepay. Divide the Maximum Special Tax computed pursuant to paragraph 1 by the aggregate Maximum Special Taxes for CFD No. 98-1, exclusive of Maximum Special Taxes for Assessor's Parcels which have prepaid the Maximum Special Tax. If less than 50.30 acres of backbone streets, 25.00 acres of parks, 10.00 acres school site, and 47.90 acres of open space has been categorized as Exempt Property and excluded from the calculation of Gross Acreage, then the calculation of aggregate Maximum Special Taxes for CFD No. 98-1 shall be exclusive of the acreage equal to the difference of such amounts and the actual acres categorized as Exempt Property and excluded from the calculation of Gross Acreage, any such adjustment shall be made to the amount of Residential Property used in the calculation of the aggregate Maximum Special taxes. o Multiply the quotient computed pursuant to paragraph 2 by any outstanding bonds issued for CFD No. 98-1 (the "Redemption Amount"). DOCSLA1:248027.3 40484-43-JK2 C-7 Multiply the Redemption Amount by the applicable redemption premium, if any for any bonds to be redeemed with such prepayment (the "Redemption Premium"). If the reserve requirement will be reduced following the prepayment of the Maximum Special Tax and the redemption of bonds and the reserve funds required by the bond indenture are at or above 95% of the reserve requirement, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the bonds to be redeemed pursuant to the prepayment. If reserve funds are between 95% and 100% of the reserve requirement, the reserve fund credit shall be reduced in proportion to the amount of the deficiency (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 95% of the reserve requirement. Compute the amount needed to pay interest on the Redemption Amount to be redeemed until the earliest redemption date. Compute the Special Tax paid with respect to the Assessor's Parcel during the current Fiscal Year and confirm that no Special Tax delinquencies apply to such Assessor's Parcel. The Assessor's Parcel shall receive a credit for any Special Taxes paid which have not yet been utilized to pay the Special Tax Requirement, but no credit shall be given for Special Taxes paid that have already been used to pay the Special Tax Requirement. o Compute the amount CFD No. 98-1 will actually receive from the reinvestment of the Redemption Amount plus the Redemption Premium less the Reserve Fund Credit until the redemption date for any bonds that CFD No. 98-1 expects to redeem with the prepayment. Take the amount computed pursuant to paragraph 6 and subtract the amounts computed pursuant to paragraphs 7 and 8 (the "Defeasance"). 10. The administrative fees and expenses of CFD No. 98-1 are as calculated by the City Finance Director and include, but are not limited to, the costs of computation of the prepayment, the costs of removing any Special Taxes from the roll, the costs of redeeming bonds, and the costs of recording any notices to evidence the prepayment and the redemption of bonds (the "Administrative Fees and Expenses"). 11. The Maximum Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 9 and 10, less the amount computed pursuant to paragraph 5 (the "Prepayment Amount"). The Prepayment Amount shall be applied pursuant to the Fiscal Agent Agreement. Notwithstanding the foregoing, no prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied in CFD No. 98-1 after the proposed prepayment is at least one DOCSLA 1:248027.3 40484-43-JK2 C-8 hundred ten percent (110%) of the adjusted annual debt service of bonds issued for CFD No. 98-1, taking into account the amount of bonds to remain outstanding after such prepayment, as determined by the City Finance Director or designee. With respect to any Assessor's Parcel that is prepaid, the City shall cause a suitable notice to be recorded in compliance with the Act following receipt of such prepayment of Maximum Special Tax, to indicate the prepayment of the Maximum Special Tax and the release of the special tax lien (for the Maximum Special Tax) on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Maximum Special Tax shall cease. The Maximum Special Tax may also be prepaid in part. The amount of any partial prepayment shall be computed by multiplying the Prepayment Amount computed above by the percent of the Maximum Special Tax to be prepaid. DOCSLA1:248027.3 40484-43-JK2 C-9 APPENDIX D PROPOSED FORM OF OPINION OF BOND COUNSEL Upon delivery of the Bonds, Quint & Thimmig LLP, San Francisco, California, Bond Counsel, proposes to render its final approving opinion with respect to the Bonds in substantially the following form: DOCSLA1:248027.3 40484-43-JK2 D- 1 APPENDIX E SUMMARY OF FISCAL AGENT AGREEMENT [TO BE PROVIDED BY BOND COUNSEL] DOCSLA 1:248027.3 40484-43-JK2 E- 1 APPENDIX F FORMS OF CONTINUING DISCLOSURE AGREEMENTS DOCSLA ! :248027.3 40484-43-JK2 F- 1 $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) SPECIAL TAX BONDS PURCHASE CONTRACT ,1998 Winchester Hills Financing Authority 43174 Business Park Drive Tcmecula, California 92590 Ladies and Gentlemen: The undersigned, Stone & Youngberg LLC, as underwriter (the "Underwriter"), offers to enter into this Purchase Contract (the "Purchase Contract") with the Winchester Hills Financing Authority (the "Authority"), For and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District") which, upon acceptance by the Authority, will be binding upon the Authority and the Underwriter. This offer is made subject to the Authority's acceptance on the date hereof, and if not so accepted will be subject to withdrawal by the Underxvriter upon written notice delivered to the Authority at any time prior to the acceptance hereof by the Authority. All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Fiscal Agent Agreement dated as of July 1, 1998 (the "Fiscal Agent Agreement") by and between the Authority, for and on behalf of the District, and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent"). 1. Purchase, Sale and Delivery of the Bonds. (a) Subject to the terms and conditions, and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter hereby agrees to purchase from the Authority, and the Authority hereby agrees to sell to the Underwriter, all (but not less than all) of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds (the "Bonds"), dated the date of delivery thereof (the "Closing Date"), in the aggregate principal amount of $ , bearing interest (payable commencing September 1, 1998, and semiannually thereafter on March 1 and September I in each year) at the rates of interest, and maturing on the dates and in the amounts, as set forth in Exhibit A attached hereto and incorporated herein by this reference. The purchase price for the I)OCSI.A 1:251740.3 40484-43-JK2-06' 12/98 Bonds shall be $ (representing the principal amount of the Bonds, less an underwriter's discount of $ ). The Bonds shall be as described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in, the Fiscal Agent Agreement. The Bonds, and interest thereon, will be payable from and secured by a first pledge of all of the special taxes (the "Special Taxes") levied and collected in accordance with the Mello-Roos Community Facilities Act of 1982 (constituting Sections 53311 et seq. of the California Government Code) (the "Act"), the Fiscal Agent Agreement and the Rate and Method of Apportionment of Special Tax (the "Rate and Method") for the District, together with proceeds collected from the redemption or sale of property sold as a result of the foreclosure of the lien of the Special Taxes, but excluding any interest or penalties collected in connection with delinquent Special Taxes (collectively, the "Special Tax Revenues"), and other amounts deposited in certain funds as provided under the Fiscal Agent Agreement. Proceeds of the sale of the Bonds will be used to (1) refinance certain assessments (the "Assessment Liens") levied upon the property in the District by Assessment District No. 156 and Assessment District No. 161 of the County of Riverside (the "County"), (2) fund a reserve fund for the Bonds, and (3) pay the costs of issuing the Boilds. (b) The Preliminary Official Statement, dated , 1998 relating to the Bonds, together with the cover page and all appendices thereto, is herein called the "Preliminary Official Statement." Tile Authority hereby ratifies the use by the Underwriter of the Preliminary Official Statement and authorizes the Underwriter to use and distribute the Preliminary Official Statement, the Official Statement (as defined below), the Fiscal Agent Agreement, the Authority Continuing Disclosure Agreement (as defined below) and this Purchase Contract, and all information contained therein, in connection with the offer and sale of the Boilds by the Underwriter. The term "Official Statement" shall mean the Preliminary Official Statement, as modified xvith the prior approval of the Underwriter and the Authority, for use by the Underxvriter in connection with the sale of the Bonds. (c) Subject to preparation of the Official Statement with the assistance of the Underwriter, the Authority shall deliver or cause to be delivered to the Underwriter promptly after acceptance hereof copies of the Official Statement. The Authority shall deliver as many copies of the Official Statement to the Underwriter as are reasonably requested by the Underwriter in order to comply with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 ("Rule 15c2-12"). The Authority shall deliver these copies to the Underwriter within seven (7) business days after the execution of this Purchase Contract. (d) At 8:00 o'clock A.M., California time, on , 1998, or at such other time or date as shall be agreed upon by the Underwriter and the Authority (such time and date being herein referred to as the "Closing Date"), the Authority shall deliver to the Underwriter, at a location or locations acceptable to the Authority and the Underwriter, the Boilds in book-entry form (all Bonds being printed or typed and having had the CUSIP numbers assigned to them thereon), duly executed as provided in the Fiscal Agent Agreement, and the other documents herein mentioned; and the Underwriter will accept such delivery and pay the I)O('SI.A 1:251740.3 40484-43-J K2-00' 12/98 2 purchase price of the Bonds as set forth in paragraph (a) of this section in immediately available funds (such delivery and payment being herein referred to as the "Closing"). The Bonds shall be made available to the Underwriter, or its designee, not later than two business days before the Closing Date for purposes of inspection. Upon initial issuance, the ownership of such Bonds shall be registered in the registration books kept by the Fiscal Agent in the name of Cede & Co., as the nominee of The Depository Trust Company. 2. Representations, Warranties and Agreements of the Authority. Authority hereby represents and warrants to and agrees with the Underwriter that: The (a) The Authority is a joint powers authority, duly organized and existing under the laws of the State of California (the "State"), including the Joint Exercise of Powers Act, constituting Section 6500 et seq. of the California Government Code; (b) The District is duly organized and validly existing as a community facilities district under the laws of the State, including the Act; (c) The Authority has, and at the Closing Date will have, full legal right, poxvet and authority (i) to execute, deliver and perform its obligations under this Purchase Contract, the Fiscal Agent Agreement, the Escrow Agreement, dated as of July 1, 1998 (the "Escrow Agreement") between the Authority and U.S. Bank Trust National Association, as escrow bank (the "Escrow Bank") and the Continuing Disclosure Agreement, dated as of July 1, 1998, (the "Authority Continuing Disclosure Agreement" and, together with this Purchase Contract, the Fiscal Agent Agreement and the Escrow Agreement, the "Authority Documents"), between tile Authority and tile Fiscal Agent, as dissemination agent (the "Dissemination Agent"), and to carry out all other transactions on its part contemplated by the Authority Documents, (ii) to issue, sell and deliver the Bonds to the Undenvriter pursuant to the Fiscal Agent Agreement as provided herein, (iii) to secure the Bonds in the manner contemplated in the Fiscal Agent Agreement, and (iv) to carry out, give effect to and consummate the transactions on its part contemplated by the Bonds and the Authority Documents, and the Authority and the Board of Directors of the Authority (the "Board"), as legislative body of the District, have complied with all provisions of applicable law, including the Act, in all matters relating to such transactions; (d) The Authority is, and at the Closing Date will be, in compliance in all respects with its obligations under the Authority Documents and the Act; (e) Resolution No. WHFA __ and Resolution No. WHFA adopted by the Board on February 24, 1998, Resolution No. WHFA , Resolution No. WHFA __ Resolution No. WHFA __ and Resolution No. WHFA , adopted by the Board on April 14, 1998, Ordinance No. WHFA __, adopted by the Board on April 28, 1998, and Resolution No. WHFA __, adopted by the Board on , 1998 (collectively, the "Resolutions") were each duly and validly adopted at a regularly held meeting of the Board, have not been amended, modified or rescinded since their respective dates of adoption and are in full force and effect; (f) The Board, acting as legislative body of the District, has duly authorized (i) the execution, delivery and due performance by the Authority of its obligations under the DOCSI.A 1:251740.3 40484-43-JK2-06/12/98 3 Bonds and the Authority Documents, (ii) the delivery and use of the Preliminary Official Statement and the execution, delivery and use of the Official Statement, and (iii) the taking of any and all action on the part of the Authority as may be necessary to carry out, give effect to and consummate the transactions on the part of the Authority contemplated by the Authority Documents and the Official Statement; (g) At the Closing Date, the Bonds and the Authority Documents (assuming due authorization, execution and delivery by the other parties thereto, where necessary) will constitute the valid, legal and binding obligations of the Authority, enforceable against the Authority in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, arrangement, moratorium and other similar laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought; (h) The adoption of the Resolutions and the execution and delivery by the Authority of the Bonds and the Authority Documents, and compliance by the Authority with the provisions hereof and thereof, will not conflict xvith or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract agreement or other instrument to which the Authority is a party or is othenvise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Authority to perform its obligations under the Bonds or the Authority Documents; (i) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the Authority of its obligations under the Bonds or the Authority Documents, have been obtained and are in full force and effect; provided that no representation is made as to any necessary "blue sky" filings; (.j) The Authority has deemed the Preliminary Official Statement to be near final as of the date of the Preliminary Official Statement, as required by Rule 15c2-12. As of the date hereof, the inforn~ation contained in the Preliminary Official Statement does not and, on the Closing Date, the information in the Official Statement will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (k) If between the date of this Purchase Contract and the date 90 days following the end of the "underwriting period" (as defined in Rule 15c2-12) an event occurs, of xvhich the Authority has knowledge, which might or would cause the information in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not DOCSI.AI:251740.3 40484-43-JK2-06/12/98 4 misleading, the Authority will notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority xvill cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred for such preparation will be paid for by the Authority; (1) Except as described in the Preliminary Official Statement, and except as shall be described in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or, to the knowledge of the Authority, is threatened, in any way affecting the existence of the Authority or the titles of the Authority's officers to their respective offices or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Tax or the proceeds thereof pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Resolutions, the Bonds or the Authority Documents, or any material action of the Authority contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Preliminary Official Staten-tent or the Official Statement or the powers of the Authority or its authority with respect to the Resolutions, the Bonds or the Authority Documents or any action of the Authority contemplated by any of said documents that would have a material adverse effect on the Authority's ability to perform its obligations under the Bonds or the Authority Documents, or which would adversely affect the exclusion of interest paid on the Bonds from gross income tax for federal income tax purposes or the exemption thereof from California personal income taxation, nor to the knowledge of the Authority is there any basis therefor; (m) The Authority will funfish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for tile Underwriter to qualify tile Bonds for offer and sale under the "blue sky" or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate; provided, however, the Authority shall not be required to register as a dealer or a broker of securities or consent to service of process or register as a foreign corporation in any such state or jurisdiction; (n) Any certificate signed by any person on behalf of the Authority authorized to do so and delivered by the Authority to the Underwriter shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein; (o) The Authority has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon; (p) The Authority will not knowingly take or omit to take any action, which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner other than as provided in the Fiscal Agent Agreement or which would cause the interest on the Bonds to be includable in gross income for federal income tax purposes; I)OCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 5 (q) The Authority will undertake, pursuant to the Fiscal Agent Agreement and the Authority Continuing Disclosure Agreement, to provide annual reports and notices of certain events, if material, a description of which undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement, which description may take the form oftlie full text of tile Authority Continuing Disclosure Agreement; (r) The Bonds are payable as provided in the Fiscal Agent Agreement. The Authority intends to cause the Special Taxes to be levied and collected at the same time and in the same manner as ordinary ad valorem property taxes and, under the terms of the Act, the Special Taxes are currently subject to the same penalties in case of delinquency as provided for ad valorem taxes; and (s) The Fiscal Agent Agreement creates a valid pledge of the Special Tax Revenues and the moneys in the Bond Fund, the Reserve Fund and the Special Tax Fund, subject in all cases to the provisions of the Fiscal Agent Agreement pern~itting application thereof for the purposes and on the terms and conditions set forth therein. 3. Conditions to the Obligation of the Underwriter. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the receipt by the Authority and the Underwriter of a certificate in form and substance as set forth in Exhibit E hereto of Lennar Homes of California, Inc., a California corporation ("Lennar"), dated as of the date hereof, and a certificate in forn~ and substance as set forth in Exhibit F hereto of Winchester Hills I LLC, a California limited liability company ("Winchester"), dated as of the date hereof, to the accuracy in all material respects of the representations and warranties on the part of the Authority contained lierein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of tile Authority and other persons and entities made in any ccrtificatcs or other documents furnished pursuant to the provisions hereof, to the performance by the Authority of its obligations to be pcrfornmd hereunder at or prior to the Closing Date and to the following additional conditions (any of which may be waived by the Underwriter): (a) At the Closing Date, the Authority Documents, the Resolutions and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Purchase Contract, all such actions as, in the opinion oftlie Underwriter and Quint & Thimmig LLP, Bond Counsel for the Authority, shall be necessary and appropriate; (b) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the Authority ternfinating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following: DOCSI.A 1:251740.3 40484-43-JK2-06/I 2;98 6 (1) legislation shall have been enacted by the United States or the State of California or shall have been reported out of committee or be pending in committee, or a decision shall have been rendered by a court of the United States or the Tax Court of the United States, or a ruling shall have been made or a regulation or a temporary regulation shall have been proposed or made or any other release or announcement shall have been made by the Treasury Department of the United States or the Internal Revenue Service, with respect to Federal or California taxation upon interest received on obligations of the general character of the Bonds, which in the reasonable opinion of the Underwriter materially adversely affects the market for the Bonds; (2) the occurrence of any outbreak of hostilities or other national or international calamity or crisis, or the escalation of an existing national or international calamity or crisis, the effect of such outbreak, calamity or crises on the financial markets of the United States being such as would make it impracticable, in the reasonable opinion of the Underxvriter, for the Unde~vriter to sell the Bonds; (3) a general suspension of trading on the New York Stock Exchange or other minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on the New York Stock Exchange or any other exchange, whether by virtue of a deternfination by the New York Stock Exchange or such other exchange or by orders of the Securities and Exchange Commission or any other governmental authority; (4) declaration of a general banking moratorium shall have been declared by either Federal, California or New York authorities having jurisdiction and be in force; (5) establishment of any new restrictions on securities materially affecting the free market for securities (including the imposition of any limitations on interest rates) or the charge to tile net capital requirements of the Underwriter established by the New York Stock Exchange, the Securities and Exchange Commission, any other Federal or state agency or tile Congress of the United States, or by Executive Order; (6) legislation enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Fiscal Agent Agreement is not exempt from qualification under the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statenlent, is or would be in violation of the Federal securities laws as amended and then in effect; I)OCSI.A 1:251740.3 40484-43-JK2-06/12/98 7 (7) any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Authority, its property, income or securities (or interest thereon), the validity or enforceability of the Special Tax or the ability of the Authority, to issue the Bonds and levy the Special Tax as contemplated by the Fiscal Agent Agreement, the Rate and Method and the Official Statement; (8) any event occurring, or inforn~ation becoming known which, in the judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or the Official Statement, or results in the Preliminary Official Statement or the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (9) the entry of an order by a court of competent jurisdiction which enjoins or restrains the City of Temecula from issuing permits, licenses or entitlements within the District or which order, in the reasonable opinion of the Underwriter, otherwise materially and adversely affects the proposed development within tile District; (c) On or prior to the Closing Date, the Underwriter shall have received counterpart originals, or certified copies, of tile following documents, in each case satisfactory in fom~ and substance to tile Underwriter: (1) Executed copies of each of tile Authority Documents, the Official Statement, tile Continuing Disclosure Agreement, dated as of July 1, 1998 (the "Lennar Continuing Disclosure Agreement") by and between Lelmar and the Dissemination Agent, the Continuing Disclosure Agreement, dated as of July 1, 1998 (the "Winchester Continuing Disclosure Agreement") by and between Winchester and the Dissemination Agent, and any and all documentation contemplated thereby; (2) Certified copies of the Resolutions; (3) A copy of the executed and recorded Agreement and Covenants Running With the Land, dated July 1, 1998 (the "Agreement and Covenants"), between Lennar and Winchester, together with the executed Guaranty of Lennar Corporation; (4) An approving opinion, dated the Closing Date and addressed to the Authority, of Quint & Thimmig LLP, Bond Counsel for the Authority, in form and substance as attached as Appendix D to the Official Statement, together with a letter from such counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion may be relied upon by the Underxvriter to the same extent as if such opinion were addressed to it; (5) A supplemental opinion, dated the Closing Date and addressed to the Underwriter, of Quint & Thimmig LLP, Bond Counsel for the Authority, in substantially the form attached hereto as Exhibit B; DOCSI.^ 1:251740.3 40484-43-JK2-06/12/98 8 (6) An opinion, dated the Closing Date and addressed to the Underwriter, of the Richards, Watson 8,: Gershon, as counsel to the Authority, in form and substance acceptable to the Underwriter to the effect that: (i) the Resolutions were duly adopted at a meeting of the Board which was called and held pursuant to law and at which a quorum was present and acting throughout; (ii) the preparation and distribution of the Preliminary Official Statement and the Official Statement and the execution and delivery of the Bonds, the Authority Documents and the Official Statement have been duly approved by the Authority; (iii) the Authority, on behalf of the District, has duly and validly executed and delivered the Bonds and the Authority Documents, and the Bonds and the Authority Documents, assuming the execution and delivery thereof by the other parties thereto, constitute the legal, valid and binding obligations of the Authority, enforceable against the Authority in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought; (iv) no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or, to such counsel's best knowledge, threatened, in any way affecting the existence of the Authority or the District or the titles of the elected officials and officers of the Authority or the District to their respective offices, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds or tile application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Special Taxes to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Authority Documents or any action of the Authority contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or the powers of the Authority or its authority with respect to the Bonds, the Authority Documcnts or any action on the part of the Authority contemplated by any of said documents, xvherein an unfavorable decision, ruling, or finding could materially adversely affect the validity or enforceability of the Bonds or the Authority Documents or the ability of the Authority to perform its obligations thereunder; (v) the execution and delivery of the Bonds and the Authority Documents, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under any applicable court or administrative decree or order, or under any loan agreement, note, ordinance, resolution, indenture, contract, agreement or other instrument to which the Authority is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Authority to perform its obligations under the Bonds or tile Authority Documents; (vi) all approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission DOCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 9 having jurisdiction, which would constitute a condition precedent to, or the absence of which would materially adversely affect, the ability of the Authority to perform its obligations under the Bonds or the Authority Documents, have been obtained or made, as the case may be, and are in full force and effect; and (vii) based upon information made available to such counsel in the course of its participation in the transaction, and without having undertaken to determine independently or assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Official Statement, nothing has come to attention of such counsel xvhich has led such counsel to believe that the Official Statement (excluding therefrom the financial and statistical data included in the Official Statement, as to which no opinion need be expressed) contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not ntisleading in any material respect. (7) An opinion of Orrick, Herrington 8,: Sutcliffe LLP, as Underwriter's Counsel, addressed to the Underwriter, to the effect that, (i) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Fiscal Agent Agreement is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended, and (ii) based on Underwriter's Counsel's participation in the certain conferences with members of the financing team (which did not extend beyond the date of the Official Statement), and in reliance thereon and on the records, documents, certificates and opinions mentioned in such opinion, during the course of Underwriter's Counsel's representation of the Underwriter on this matter, no information came to tile attention of the attorneys in Underwriter's Counsel's firm rendering legal services in connection with such representation which caused Underwriter's Counsel to believe that the Official Statenlent as of its date (except for any financial, statistical or economic data or forecasts, numbers, charts, tables, graphs, estimates, projections, assumptions or expressions of opinion, any information about valuation, Appendices or any information about book-entry or DTC included therein, as to which Underwriter's Counsel expresses no opinion or view) contained or contains any untrue statement of a material fact or omitted or omits to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (8) A certificate of the Authority, dated the Closing Date, certifying that (i) the representations and warranties of the Authority contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date, (ii) no event has occurred since the date of the Official Statement affecting the Authority or the District which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement not ntisleading, and (iii) the Authority, on behalf of itself and the District, has complied with all the agreements and has satisfied all the conditions on its part to be performed or satisfied under the Authority Documents at and prior to the Closing; DOCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 1 0 (9) An opinion of counsel to Lennar, dated the Closing Date, addressed to the Underwriter and the Authority, in substantially the form set forth in Exhibit C hereto; (10) An opinion of counsel to Winchester, dated the Closing Date, addressed to the Underwriter and the Authority, in substantially the form set forth in Exhibit D hereto; (11) A certificate in £orm and substance as set forth in Exhibit E hereto of Lennar, dated as of the date of this Purchase Contract; (12) A certificate in form and substance as set forth in Exhibit F hereto of Winchester, dated as of the date of this Purchase Contract; (13) A certificate in fetal and substance as set forth in Exhibit G hereto of Lcnnar, dated as ofthe Closing Date; (14) A certificate in form and substance as set forth in Exhibit H hereto of Winchester, dated as of the Closing Date; (15) the letter of credit in the initial amount of $ (the "Letter of Credit") issued by The First National Bank of Chicago (the "Bank") in favor of the Fiscal Agent; (16) A certificate of the Bank, dated the Closing Date, signed by an authorized officer thereof, with respect to the due authorization, execution and delivery of the Letter of Credit, and to the effect that the information regarding the Letter of Credit contained in the Official Statement is accurate; (17) An opinion of counsel to the Bank with respect to the validity and enforceability of the Letter of Credit; (18) The opinion of counsel to the Fiscal Agent, in its role as Fiscal Agent, Escrow Bank and Dissemination Agent, dated the Closing Date, addressed to the Underwriter and the Authority, in form and substance acceptable to counsel for the Underwriter, substantially to the following effect: (i) the Fiscal Agent is a national banking association organized and existing under and by virtue of the laws of the United States of America; delivery of the Fiscal Continuing Disclosure Winchester Continuing Agreements"); (ii) the Fiscal Agent has duly authorized the execution and Agent Agreement and the Escrow Agreement, and the Authority Agreement, the Lennar Continuing Disclosure Agreement and the Disclosure Agreement (collectively, the "Continuing Disclosure DO('SI~A 1:251740.3 40484-43-JK2-06,'12/'98 1 1 (iii) the Fiscal Agent Agreement, the Escrow Agreement and the Continuing Disclosure Agreements have been duly executed and delivered by the Fiscal Agent and assuming due, valid and binding authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of the Fiscal Agent, enforceable against the Fiscal Agent in accordance with their terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally, or by general principles of equity; (iv) acceptance by the Fiscal Agent of the duties and obligations under the Fiscal Agent Agreement, the Escrow Agreement and the Continuing Disclosure Agreements and compliance with provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation to which the Fiscal Agent is subject; (v) all approvals, consents and orders of any governmental authority or agency having jurisdiction in the matter which would constitute a condition prccedent to the performance by the Fiscal Agent of its duties and obligations under tile Fiscal Agent Agreement, the Escrow Agreement and tile Continuing Disclosure Agreements have been obtained and are in full force and effect; (19) A certificate of the Fiscal Agent, in its role as Fiscal Agent, Escrow Bank and Dissemination Agent, dated the Closing Date, in form and substance acceptable to counsel for tile Underwriter to tile following effect: (i) the Fiscal Agent is a national banking association, and is organized and existing under and by virtue of the laws of the United States of America, and has the full power and authority to accept and perform its duties under the Fiscal Agent Agreement, tile Escrow Agreement and the Continuing Disclosure Agreements; (ii) subject to the provisions of the Fiscal Agent Agreement, the Fiscal Agent will apply the proceeds from the Bonds to the purposes specified in the Fiscal Agent Agreement; (iii) the Bonds have been duly authenticated on behalf of Fiscal Agent; (iv) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body pending or, to the best of its knowledge, threatened in any way affecting the existence of the Fiscal Agent, or seeking to restrain or to enjoin the execution and delivery of the Fiscal Agent Agreement, the Escrow Agreement or the Continuing Disclosure Agreements, or the authentication of the Bonds, by the Fiscal Agent, or in any way contesting or affecting the validity or enforceability, as against the Fiscal Agent, of the Fiscal Agent Agreement, the Escrow Agreement or the Continuing Disclosure Agreements, or any action of the Fiscal Agent contemplated by any of said documents, or in which an adverse outcome would materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, the Escrow Agreelnent or the Continuing Disclosure Agreements; I)OCSI.A 1:251740.3 40484-43-JK2-06~ 12/98 12 (v) the Fiscal Agent is not in breach of or in default under, and the authentication of the Bonds, and the execution and delivery of the Fiscal Agent Agreement, the Escrow Agreement and the Continuing Disclosure Agreements by the Fiscal Agent, and compliance with the provisions of each, will not conflict with or constitute a breach of or default under, any applicable law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the Fiscal Agent is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the ability of the Fiscal Agent to perform its obligations under the Fiscal Agent Agreement, the Escrow Agreement or the Continuing Disclosure Agreements; (20) A certificate dated the Closing Date from David Taussig & Associates, Inc. (the "Special Tax Consultant") in the forn~ attached hereto as Exhibit I; (21) A certificate dated the Closing Date from Interstate Appraisal Corporation (the "Appraiser") in the form attached hereto as Exhibit J; (22) A certificate dated the Closing Date from Empire Economics (the "Market Absorption Consultant") in the forn~ attached hereto as Exhibit K; (23) a nonarbitrage certificate of the Authority in form and substance acceptable to Bond Counsel and the Underwriter; (24) a copy of the appraisal report prepared by the Appraiser; (25) a copy of market absorption study prepared by the Market Absorption Consultant; (26) Evidence of the County's acceptance of the settlement amount payable pursuant to the Agreement, dated as of January 23, 1998, between the County and Winchester, and agreement to release the Assessment Liens in accordance with the terms of the Agreement; and (27) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the statements and information contained in the Official Statement, of the Authority's representations and warranties contained herein and the due performance or satisfaction by the Authority at or prior to the Closing Date of all agreements then to be performed and all conditions then to be satisfied by the Authority in connection with the transactions contemplated on its part hereby and by the Fiscal Agent Agreement and the Official Statement. If any of the conditions to the obligations of the Underwriter contained in this section or elsewhere in this Purchase Contract shall not have been satisfied when and as required herein, all I)OCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 13 obligations of the Underwriter hereunder may be terminated by the Underwriter at, or at any time prior to, the Closing Date by written notice to the Authority. 4. Expenses. (a) The Underwriter shall be under no obligation to pay, and the Authority shall pay or cause to be paid out of the proceeds of the Bonds, all expenses incident to the performance of the Authority's obligations hereunder, including but not limited to: the cost of photocopying and delivering the Bonds to the Underwriter; the cost of preparing, printing (and/or word processing and reproducing), distributing and delivering the Authority Documents, and the cost of printing, distributing and delivering the Preliminary Official Statement and the Official Statement in such reasonable quantities as requested by the Underwriter; and the fees and disbursements of Bond Counsel, the Appraiser, the Market Absorption Consultant, the Special Tax Consultant and any accountants, financial advisors or other engineers or experts or consultants the Authority has retained in connection with the Bonds. (b) Whether or not the Bonds are delivered to the Underwriter as set forth herein, the Authority shall be under no obligation to pay, and the Underwriter shall pay, the cost of preparation of any "blue sky" or legal investment memoranda, expenses to qualify the Bonds for sale under any "blue sky" or other state securities laws and all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in paragraph (a) of this section), including fees payable to the California Debt and Investment Advisory Commission, fees payable to the CUSIP Bureau and any advertising expenses. 5. Notices. Any notices, requests, directions, instruments or other communications required or permitted to be given hereunder shall be in writing and shall be given when delivered, against a receipt, or mailed certified or registered, postage prepaid, to the Authority and the Underwriter at their respective addresses below. If to tile Authority: Winchester Hills Financing Authority 43174 Business Park Drive Temecula, CA 92590 Attention: Treasurer If to tile Underwriter: Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 840 La Jolla, CA 92122 Attention: Public Finance Department provided, however, that all such notices, requests or other communications may be made by telephone and promptly continned by writing. The Authority and the Underwriter may, by notice given as aforesaid, specify a different address for any such notices, requests or other communications. I)OCS[.A 1:251740.3 40484-43-JK2-06/I 2,'98 14 6. Parties in Interest. This Purchase Contract is made solely for the benefit of the Authority and the Underwriter (including successors or assigns of the Underxvriter) and no other person shall acquire or have any right hereunder or by virtue hereof. 7. Survival of Representations and Warranties. The representations and warranties of the Authority set forth in or made pursuant to this Purchase Contract shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase Contract and regardless of any investigations made by or on behalf of the Underxvriter (or statements as to the results of such investigations) concerning such representations and warranties of the Authority and regardless of delivery of and payment for the Bonds. 8. Effective Date. This Purchase Contract shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Authority and shall be valid and enforceable as of the time of such acceptance. 9. Applicable Law; Nonassignability. This Purchase Contract shall be governed by tile laws of the State of California. This Purchase Contract shall not be assigned. 10. Execution of Counterparts. This Purchase Contract may be executed in several counterparts, each of xvhich shall be regarded as an original and all of which shall constitute one and the same. 11. No Prior Agreements. This Purchase Contract supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of the Bonds by tile Authority and represents the entire agreement of the parties as to the subject matter herein. DOCSI.A 1:251740.3 40484-43-JK2-06/12,,98 ] 5 12. Partial Unenforceability. Any provision of this Purchase Contract which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Purchase Contract or affecting the validity or enforceability of such provision in any other jurisdiction. Very truly yours, STONE & YOUNGBERG LLC By: ACCEPTED: WINCHESTER HILLS FINANCING AUTHORITY, on behalf of WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) Principal By: Treasurer DOCS1..,X 1:251740.3 40484-43-J K2-06/12,'98 16 EXHIBIT A Maturity Schedule for the Bonds Maturity Principal Interest Price/ (September 1) Amount Rate Yield I)OCSI.A 1:251740.3 4r)484-43-J K2-06/I 2/98 A- 1 EXHIBIT B [Letterhead of Bond Counsel] Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 840 La Jolla, California 92122 Rc~ Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds Ladies and Gentlemen: This letter is addressed to you, as Under~vriter, pursuant to Section 3(c)(4) of the Purchase Contract, dated , 1998, (the "Purchase Contract") between you and the Winchester Hills Financing Authority (the "Authority") on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District"), providing for the purchase of $ aggregate principal amount of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds (the "Bonds"). Capitalized terms not otherxvise described herein shall have the meanings ascribed hereto in the Purchase Contract. This opinion supplements our bond opinion, dated the date hereof, relating to the Bonds. In addition to the documents specifically mentioned in the bond opinion, we have examined the portions of the Official Statement, dated , 1998, respecting the Bonds (the "Official Statement"), insofar as they relate to this opinion. Based on our examination, we are of the opinion, as of the date hereof and under existing laxv, as follows: 1. The Authority is duly organized and validly existing as a joint powers authority, with full legal right, power and authority to adopt the Resolutions, to issue the Bonds and to perform all of its obligations under the Bonds and the Authority Documents. 2. The District is a community facilities district duly organized and validly existing under the laws of the State and the Act. 3. The statements contained in the Official Statement under the captions "INTRODUCTION," "THE BONDS" (other than under the heading "- BOOK-ENTRY ONLY SYSTEM"), "SECURITY FOR THE BONDS," "SPECIAL RISK FACTORS," "CONCLUDING INFORMATION - Tax Exemption," "APPENDIX D - Form of Opinion of Bond Counsel," and "APPENDIX E - SUMMARY OF FISCAL AGENT AGREEMENT," are DOCSI.A 1:251740.3 40484-43 -J K2-0Wl 2,;98 B- 1 accurate insofar as such statements expressly summarize certain provisions of the Bonds, the Fiscal Agent Agreement or our opinion regarding exclusion of interest on the Bonds. 4. The Bonds are exempt from registration pursuant to the Securities Act of 1933, as amended, and the Fiscal Agent Agreement is exempt from qualification under the Trust Indenture Act of 1939, as amended. 5. The Purchase Contract, the Escrow Agreement and the Authority Continuing Disclosure Agreement have been duly authorized, executed and delivered by the Authority and (assuming due authorization, execution and delivery by the other respective parties thereto) constitute the valid and binding agreements of the Authority, enforceable according to their terms, subject to any applicable bankruptcy, reorganization, insolvency, moratorium or other law affecting the enforcement of creditors' rights generally. This opinion is being rendered to you solely for your benefit. QUINT 8.: THIMMIG LLP I)OCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 B-2 EXHIBIT C $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, FORM OF OPINION OF COUNSEL TO LENNAR An opinion of Counsel to Lennar to the effect that: 1. Lennar (i) is a corporation, duly organized and existing under the laws and Constitution of the State of California, and (it)has full corporate power and authority to consummate all transactions contemplated by the Agreement and Covenants Running With The Land, dated , 1998 (the "Agreement and Covenants"), the Continuing Disclosure Agreement, dated as of July 1, 1998 (the "Lennar Continuing Disclosure Agreement") and all other agreements relating thereto to which Lennar is a party. 2. Lennar has duly authorized the execution and delivery of the Agreement and Covenants and the Lennar Continuing Disclosure Agreement. 3. The Agreement and Covenants and the Lennar Continuing Disclosure Agreement have been duly executed and delivered by Lennar and, assuming the due, valid and binding authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of Lennar, enforceable against Lennar in accordance with their terms, except as enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting enforcement of creditors' rights generally, or by general principles of equity. 4. Except as described in the Official Statement, all actions necessary to be taken by Lennar have been taken, and no additional approval, authorization, consent or other order of the Lennar, or any other public board or body is legally required to allow Lennar to conduct the business of Lennar as presently being conducted and as described in the Official Statement, provided that no opinion is hereby expressed as to (i) the compliance of the offer and sale of the Bonds with any securities law or regulation; (it) approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; or (iii) filings, approvals, consents and orders as may be required in connection with the exclusion of interest on the Bonds from gross income for federal income tax purposes. 5. Lennar is not in violation of any provision of, or in default under, its organizational document, or any agreement or other instrument, violation of or default under which would materially and adversely affect the business, properties, assets, liabilities or conditions (financial or other) of Lennar. 1)OC%I..,\ 1:251740.3 40484-43-JK2-06/12,'98 C- ] 6. There are no legal or governmental actions, proceedings, inquiries or investigations pending or, to our knowledge, threatened by governmental authorities or to which Lennar is a party or of which any property of Lennar is subject, except as described in the Official Statement, which, if determined adversely to Lennar, would individually or in the aggregate (i) have a material adverse effect on the financial position or results of operations of Lennar, (ii)materially or adversely affect the ability of Lennar to comply with its obligations under the Agreement and Covenants or the Lennar Continuing Disclosure Agreement, or materially and adversely affect the transactions contemplated by the Official Statement to be engaged in by Lennar or, (iii) to complete the construction of the development to be constructed in the District as described in the Official Statement. 7. Based upon our experience as counsel for Lennar and on our review of and participation in the drafting of the Official Statement, we have no reason to believe that the information contained in the sections of the Official Statement titled "SECURITY FOR THE BONDS - Agreement and Covenants," and "THE WINCHESTER HILLS DEVELOPMENT," insofar as such information relates to the Agreement and Covenants and Lennar, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. DOCSI.A 1:251740.3 40484-43-J K2-06/12/98 C-2 EXHIBIT D $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, FORM OF OPINION OF COUNSEL TO WINCHESTER An opinion of Counsel to Winchester to the effect that: 1. Winchester (i) is a limited liability company, duly organized and existing under the laws and Constitution of the State of California, and (ii)has full power and authority to consummate all transactions contentplated by the Agreement and Covenants Running With The Land, dated , 1998 (the "Agreement and Covenants"), the Continuing Disclosure Agreement, dated as of July 1, 1998 (the "Winchester Continuing Disclosure Agreement") and all other agreements relating thereto to ~vhich Winchester is a party. 2. Winchester has duly authorized the execution and delivery of the Agreement and Covenants and tile Winchester Continuing Disclosure Agreement. 3. Tile Agreement and Covenants and the Winchester Continuing Disclosure Agreement have been duly executed and delivered by Winchester and, assuming the due, valid and binding authorization, execution and delivery by the other parties thereto, constitute the legal, valid and binding obligations of Winchester, enforceable against Winchester in accordance with their terms, except as enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laxvs affecting enforcement of creditors' rights generally, or by general principles of equity. 4. Except as described in the Official Statement, all actions necessary to be taken by Winchester have been taken, and no additional approval, authorization, consent or other order of the Winchester, or any other public board or body is .legally required to allow Winchester to conduct its as presently being conducted and as described in the Official Statement, provided that no opinion is hereby expressed as to (i) the compliance of the offer and sale of the Bonds with any securities law or regulation; (ii) approvals, consents and orders as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds; or (iii) filings, approvals, consents and orders as may be required in connection with the exclusion of interest on the Bonds from gross income for federal income tax purposes. 5. Winchester is not in violation of any provision of, or in default under, its organizational document, or any agreement or other instrument, violation of or default under which would materially and adversely affect the business, properties, assets, liabilities or conditions (financial or other) of Winchester. DOCSI.A 1:251740.3 40484-43-J K2-06'12/98 D- 1 6. There are no legal or governmental actions, proceedings, inquiries or investigations pending or, to our knowledge, threatened by governmental authorities or to which Winchester is a party or of which any property of Winchester is subject, except as described in the Official Statement, which, if determined adversely to Winchester, would individually or in the aggregate (i) have a material adverse effect on the financial position or results of operations of Winchester, (ii)materially or adversely affect the ability of Winchester to comply with its obligations under the Agreement and Covenants or the Winchester Continuing Disclosure Agrcemcnt, or materially and adversely affect the transactions contemplated by the Official Statement to be engaged in by Winchester or, (iii) to complete the construction of the development to be constructed in the District as described in the Official Statement. 7. Based upon our experience as counsel for Winchester and on our review of and participation in the drafting of the Official Statement, we have no reason to believe that the information contained in the section of the Official Statement entitled "THE WINCHESTER HILLS DEVELOPMENT," insofar as such information relates to Winchester, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. DOCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 D-2 EXHIBIT E $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, CERTIFICATE OF LENNAR (to be delivered upon execution of the Purchase Contract) The undersigned, Lennar Homes of California, Inc., a California corporation ("Lennar"), in connection with the issuance, sale and delivery of the above-captioned Bonds (the "Bonds") hereby represents, warrants, certifies and covenants as follows: (1) The representations, warranties, certifications and covenants of the Developer contained in this Certificate are being made in connection with Section 3 of that certain purchase contract by and between the Winchester Hills Financing Authority (the "Authority"), for and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District") and Stone & Youngberg LLC, dated , 1998 (the "Purchase Contract") and are true, correct and complete in all material respects as of the date hereof as if made on the date hereof. Capitalized terms not defined herein shall have the meanings ascribed to them in the Purchase Contract. (2) Lennar is a corporation, duly organized, validly existing and in good standing pursuant to the laws of the State of California. Lennar will be in compliance in all material respects with the laxvs of the State of California at the Closing Date and has full legal right, power and authority to execute and deliver this Certificate, the Agreement and Covenants and Lennar Continuing Disclosure Agreement (collectively, the "Lennar Documents") and to develop and construct, or to provide for the development and construction of the land, buildings, furnishings and equipment comprising the development to be constructed within the District on the property owned by Lennar (the "Lennar Property") as described in the Official Statement (the "Development"), and to take any and all action as may be required on its part to carry out, give effect to, and COl]SUinmate the transactions contemplated by the Agreement and Covenants. (3) Lennar has duly authorized the execution and delivery of the Lennar Documents and the taking of all such action as may be required on the part of Lennar to carry out, give effect to and consummate the transactions contemplated by each of the aforesaid documents. This Certificate and the Agreement and Covenants constitute, and the Lennar Continuing Disclosure Agreement, when executed and delivered, will constitute, the legal, valid and binding obligations of Lennar enforceable against Lennar DOCSI.A 1:251740.3 40484-43-JK2-06/12/98 E- 1 in accordance with their respective terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally. (4) Lennar has duly approved and authorized the distribution and use of the Preliminary Official Statement and the deliYery and distribution of the Official Statement. (5) The information contained in the Preliminary Official Statement relating to Lennar, its organization, activities, properties and financial condition, and to the Development (insofar as said actions relate to the Lennar Property) (collectively, the "Lennar Information"), is true and correct, and Lennar will take all action within its po~ver to assure that the information in the Official Statement as of the Closing Date will be true and correct in all material respects, and the Preliminary Official Statement does not and Lennar will take all action within in its power to assure that the Lennar Information in the Official Statement as of its date and as of the Closing Date, will not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they are made, not ntisleading. (6) If, at any time prior to the earlier of (i)receipt of notice from the Underwriter that the Official Statement is no longer required to be delivered under Rule 15c2-12 or (ii) 90 days after the Closing, any event occurs as a result of which the Lennar Information in the Preliminary Official Statement or the Official Statement as then amended or supplemented might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not ntisleading, Lcnnar shall promptly notify the Under~vriter thereof in writing. Upon the request of the Underwriter therefor, Lennar shall prepare and deliver to the Underwriter at Lennar's expense as many copies of an amendment or supplement to the Preliminary Official Statement or Official Statement which will correct any untrue statement or omission therein for which Lennar is responsible as the Underwriter may reasonably request. (7) The execution and delivery of this Certificate and the Lennar Documents, and the consummation of the transactions contemplated herein or in the Lennar Documents or the compliance with the provisions hereof or thereof, will not conflict with, or constitute on the part of Lennar a violation of, or a breach of or default under, (i) any indenture, mortgage, commitment, note or other agreement or instrument to which Lennar is a party or by which Lennar is bound, or (ii) any judgment, order or decree served upon Lennar by any court or governmental agency or body having jurisdiction over Lennar or any of its activities or properties. (8) Except as is specifically disclosed in the Official Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, pending for which Lennar has received service of process or, to the knowledge of Lennar, threatened against or concerning Lennar or its properties and rights or powers, its legal existence, or the actions taken or contemplated to be taken by it I)O('SI.A 1:251740.3 41)484-43-JK2-06/12/98 E-2 (provided, however, that it is acknowledged that certain proceedings will be filed before public bodies in connection with the processing of the development entitlements for the Lennar Property), nor, to the knowledge of Lennar, is there any basis therefor, (i) wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Bonds, the transactions contemplated by the Purchase Contract or the Lennar Documents, (ii)which, in any way, would materially adversely affect the validity or enforceability of the Purchase Contract and the Lennar Documents; or (iii) which, in any way, would materially adversely affect the development and construction of the Development as described in the Official Statement. (9) Any certificate signed by any official of Lennar and delivered to the Underwriter shall be deemed a representation and warranty by Lennar to the Underwriter as to the truth of the statements therein contained. (10) Lennar is not in default as to principal or interest with respect to any obligation issued by or guaranteed by Lennar or with respect to which Lennar is an obligor, and is not in default with respect to any undertaking under Rule 15c2-12(b)(5) of the Securities and Exchange Commission. (11) Prior to the earlier of (i)receipt of notice from the Underwriter that Official Statement is no longer required under the Rule or (ii) 90 days after the Closing, Lennar covenants with the Underwriter that Lennar shall provide the Underwriter with such information regarding Lennar, its current financial condition, ongoing operations and the portion of the Development on the Lennar Property as the Underwriter may reasonably request. (12) The obligations of Lennar under Sections 13 and 14 hereof shall survive any termination of the Purchase Contract by the Underwriter pursuant to the terms thereof. (13) To the fullest extent permitted by applicable law, Lennar (the "Indemnifying Party") agrees to indemnify, hold harmless and defend the Underwriter, the Authority and the District, and each of their respective officers, governing members, directors, officials, employees, attorneys and agents, (collectively, the "Indemnified Parties"), against any and all losses, damages, claims, actions, liabilities, costs and expenses of any conceivable nature, kind or character (including, without limitations reasonable attorneys fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject under federal or state securities laws or any other statutory law or at common law or otherwise, arising out of or based upon or in any way relating to: (i) any of the documents or agreements entered into or delivered in connection with the sale of Bonds to refinance the Assessment Liens; (ii) any act or omission of Lennar or any of its agents, contractors, servants, employees or licensees in connection with the Development, the I)OCSI~A 1:251740.3 40484-43-JK2-06/I 2/98 operation of the Development, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation or construction of, the Development or any part thereof; (iii) any violation of any environmental law, role or regulation with respect to, or the release of any toxic substance from the Development or any part thereof; or (iv) any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact (but only as to statements or facts regarding the Lennar Information) contained in the Preliminary Official Statement or the Official Statement or any omission or alleged omission from the Preliminary Official Statement or Official Statement of any material fact (but only as to statements or facts regarding the Lennar Information) necessary to be stated therein in order to make the statements made therein, in light of the circumstances under which they were made, not ntisleading; except (a) in the case of the foregoing indemnification of the Underwriter or any of its officers, members, directors, officials, employees, attorneys and agents, to the extent such damages are caused by the negligence or willful inisconduct or breach of the obligations of any Indemnified Party; or (b) in the case of the foregoing indemnification of the Authority and' the District, or any of their officers, members, directors, officials, employees, attorneys and agents, to the extent such damages are caused by the negligence or willful misconduct of such Indemnified Party. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought heretrader, Lennar, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment of counsel selected by the Indemnified Party, and shall assume the payment of all expenses related thereto with full power to litigate, compromise or settle the same in its sole discretion; provided that tile Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement. Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and defense thereof, and Lennar shall pay the reasonable fees and expenses of such separate counsel; provided, however, an Indemnified Party (other than the Authority, the District or their officers, governing members, officials, agents and employees) may employ separate counsel at the expense of Lennar only if a conflict of interest exists by reason of common representation or if all parties commonly represented do not reasonably agree as to the actions (or inaction) of counsel. The rights of any persoils to indemnification hereunder and rights to payment of fees and reimbursement of expenses shall survive the final payment or defeasance of the Bonds. (14) If the Bonds are not issued other than as a result of the default of the Authority or the Underwriter, Lennar agrees that it will not look to the Authority, the District, the City of Temecula or the Underwriter for the payment of any third-party costs. DOCSI..,\ 1:251740.3 40484-43-J K2-0O"I 2,:98 E-4 IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed on the date hereinbelow set forth. LENNAR HOMES OF CALIFORNIA, INC. By Its DOCSI..,\ I:251740.3 40484-43-J K 2-06/12:98 E-5 EXHIBIT F $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, CERTIFICATE OF WINCHESTER (to be delivered upon execution of the Purchase Contract) The undersigned, Winchester Hills I LLC, a California limited liability company ("Winchester"), in connection with the issuance, sale and delivery of the above-captioned Bonds (the "Bonds") hereby represents, warrants, certifies and covenants as follows: (1) The representations, warranties, certifications and covenants of Winchester contained in this Certificate are being made in connection with Section 3 of that certain purchase contract by and between the Winchester Hills Financing Authority (the "Authority"), for and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District") and Stone & Youngberg LLC, dated , 1998 (the "Purchase Contract") and are true, correct and complete in all material respects as of the date hereof as if made on the date hereof. Capitalized terms not defined herein shall have the meanings ascribed to them in the Purchase Contract. (2) Winchester is a limited liability conapany, duly organized, validly existing and in good standing pursuant to the laxvs of the State of California. Winchester will be in compliance in all material respects with the laws of the State of California at the Closing Date and had and has full legal right, power and authority to execute and deliver this Certificate, the Agreement and Covenants and Winchester Continuing Disclosure Agreement (collectively, the "Winchester Documents") and to develop and construct, or to provide for the development and construction of the land, buildings, furnishings and equipment comprising the business park portion of the development to be constructed within the District as described in the Official Statement (the "Development"), and to take any and all action as may be required on its part to carry out, give effect to, and consummate the transactions contemplated by the Agreement and Covenants. (3) Winchester has duly authorized the execution and delivery of the Winchester Documents and the taking of all such action as may be required on the part of Winchester to carry out, give effect to and consummate the transactions contemplated by each of the aforesaid documents. This Certificate and the Agreement and Covenants constitute, and the Winchester Continuing Disclosure Agreement, when executed and delivered, will constitute, the legal, valid and binding obligations of Winchester enforceable against Winchester in accordance with their respective terms, except as I)OCSI.A 1:251740.3 40484-43-JK2-06'12/98 F- 1 enforceability thereof may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally. (4) Winchester has duly approved and authorized the distribution and use of the Preliminary Official Statement and the delivery and distribution of the Official Statelnent. (5) The information contained in the Preliminary Official Statement relating to Winchester, its organization, activities, properties and financial condition, and to the business park portion of the Development, is true and correct, and Winchester will take all action within its power to assure that the information in the Official Statement as of the Closing Date will be true and correct in all material respects, and the Preliminary Official Statement does not and Winchester will take all action within in its power to assurc that tile Official Statement as of its date and as of the Closing Date, will not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they are made, not misleading. (6) If, at any time prior to the earlier of (i) receipt of notice from the Underwriter that the Official Statement is no longer required to be delivered under Rule 15c2-12 or (ii) 90 days after the Closing, any event occurs as a result of which the Preliminary Official Statement or the Official Statement as then amended or supplemented might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, Winchester shall promptly notify the Underwriter thereof in writing; provided, however, that Winchester shall have such obligations with respect to information in the Preliminary Official Statement and Official Statement concerning and supplied by the Appraiser, the Special Tax Consultant, the Market Absorption Consultant or the Underwriter only to the extent Winchester has actual knowledge or notice of any such event. Upon the request of the Underwriter therefor, Winchester shall prepare and deliver to the Underwriter at Winchester's expense as many copies of an amendment or supplement to the Preliminary Official Statement or Official Statenlent which will correct any untrue statement or omission therein for which Winchester is responsible as the Underwriter may reasonably request. (7) The execution and delivery of this Certificate and the Winchester Documents, and the consummation of the transactions contemplated herein or in the Winchester Documents or the compliance with the provisions hereof or thereof, will not conflict with, or constitute on the part of Winchester a violation of, or a breach of or default under, (i)any indenture, mortgage, commitment, note or other agreement or instrument to which Winchester is a party or by which Winchester is bound, or (ii) any judgment, order or decree served upon Winchester by any court or governmental agency or body having jurisdiction over Winchester or any of its activities or properties. I)OCSI.A 1:251740.3 40484-43-JK2-06/12/98 F-2 (8) Except as is specifically disclosed in the Official Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, pending or, to the knowledge of Winchester, threatened against or concerning Winchester or its properties and rights or powers, its legal existence, or the actions taken or contemplated to be taken by it, nor, to the knowledge of Winchester, is there any basis therefor, (i)wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Bonds, the transactions contemplated by the Purchase Contract or the Winchester Documents, (ii) which, in any way, would adversely affect the validity or enforceability of the Purchase Contract and the Winchester Documents; or (iii)which, in any way, would adversely affect the development and construction of the Development as described in the Official Statement. (9) Any certificate signed by any official of Winchester and delivered to the Underwriter shall be deemed a representation and warranty by Winchester to the Underwriter as to tile truth of the statements therein contained. (10) Winchester has not been at any time in default as to principal or interest with respect to any obligation issued by or guaranteed by Winchester or with respect to which Winchester is an obligor, and is not in default with respect to any undertaking under Rule 15c2-12(b)(5) of the Securities and Exchange Commission. (11) Prior to the earlier of (i) receipt of notice from the Underwriter that Official Statement is no longer required under the Rule or (ii) 90 days after the Closing, Winchester covenants with the Underwriter that Winchester shall provide the Underwriter with such information regarding Winchester, its current financial condition, ongoing operations and the business park portion of tile Development as the Underwriter may reasonably request. (12) The obligations of Winchester under Sections 13 and 14 hereof shall sur~4ve any ten'nination of the Purchase Contract by the Underwriter pursuant to the ten'ns thereof. (13) To tile fullest extent permitted by applicable law, Winchester (the "Indemnifying Party") agrees to indemnify, hold harmless and defend the Underwriter, the Authority and the District, and each of their respective officers, governing members, directors, officials, employees, attorneys and agents, (collectively, the "Indemnified Parties"), against any and all losses, damages, claims, actions, liabilities, costs and expenses of any conceivable nature, kind or character (including, without limitations teasortable attorneys fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject under federal or state securities laws or any other statutory law or at COlnmon law or otherwise, arising out of or based upon or in any way relating to: (i) any of the documents or agreements entered into or delivered in connection with the sale of Bonds to refinance the Assessment Liens; DOCS[.A 1:251740.3 40484-43-JK2-00/I 2/98 F-3 (ii) any act or omission of Winchester or any of its agents, contractors, servants, employees or licensees in connection with the business park portion of the Development, the construction of the business park portion of the Development, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation or construction of, the business park portion of the Development; (iii) any violation of any environmental law, role or regulation with respect to, or the release of any toxic substance from the business park portion of the Development; or (iv) any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact (but as to any indemnity of the Underwriter, only statements or facts regarding Winchester or the business park portion of tile Development) contained in tile Preliminary Official Statement or the Official Statement or any omission or alleged omission from the Preliminary Official Statement or Official Statenlent of any material fact (but as to any indemnity of the Underwriter, only statements or facts regarding Winchester or the business park portion of the Development) necessary to be stated therein in order to make the statements made therein, in light of the circumstances under xvhich they were made, not misleading; cxccpt (a) in the case of tile foregoing indemnification of the Underwriter or any of its officcrs, members, directors, officials, cmployees, attorneys and agents, to the extent such damagcs arc causcd by the negligence or willful misconduct or breach of the obligations of any Indemnified Party; or (b) in the case of the foregoing indemnification of the Authority and the District, or any of their officers, members, directors, officials, employees, attorneys and agents, to the extent such damages are caused by the willful ntisconduct of such Indenmified Party. In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, Winchester, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment of counsel selected by the Indemnified Party, and shall assume the payment of all expenses related thereto with full power to litigate, compromise or settle the same in its sole discretion; provided that the Indenmified Party shall have the right to review and approve or disapprove any such compromise or settlement. Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and defense thereof, and Winchester shall pay the reasonable fees and expenses of such separate counsel; provided, however, an Indemnified Party (other than the Authority, the District or their officers, governing members, officials, agents and employees) may employ separate counsel at the expense of Winchester only if a conflict of interest exists by reason of common representation or if all parties commonly represented do not agree as to the actions (or inaction) of counsel. The rights of any persons to indemnification I)OCSI.A 1:251740.3 40484-43oJK2-06/I 2/98 F-4 hereunder and rights to payment of fees and reimbursement of expenses shall survive the final payment or defeasance of the Bonds. (14) If the Bonds are not issued other than as a result of the default of the Authority or the Underwriter, Winchester agrees that it will not look to the Authority, the District, the City of Temecula or the Underwriter for the payment of any third-party costs, that it will protect such parties against any third-party claims for fees, costs or expenses, and that it will be responsible for the settlement and discharge thereof. IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed on the date hereinbelow set forth. WINCHESTER HILLS I LLC By Its DOCSI,.,\ 1:251740.3 40484-43-JK2-06/I 2/98 F-5 EXHIBIT G $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, CERTIFICATE OF LENNAR (to be delivered on the Closing Date) The undersigned, Lennar Honaes of California, Inc., a California corporation ("Lennar"), in connection with the issuance, sale and delivery of the above-captioned Bonds (the "Bonds") hereby certifies as follows: (1) Tile representations, warranties, certifications and covenants of Lennar contained in the certificate delivered by Lennar in connection with that certain purchase contract by and between the Winchester Hills Financing Authority (the "Authority"), for and on behalf of the Winchester Hills Financing Community Facilities District No. 98-1 (Winchester Hills) (the "District") and Stone & Youngberg LLC, dated , 1998 (the "Purchase Contract") are true, correct and complete in all material respects as of the date hereof as if made on the date hereof. Capitalized ternas not defined herein shall have the meanings ascribed to them in the Purchase Contract. (2) Lcnnar has duly authorized, by all necessary action, the execution, delivery and due performance of the Agreelnent and Covenants and the Lennar Continuing Disclosure Agreement. (3) The Agreement and Covenants and the Lennar Continuing Disclosure Agreement have been duly executed and delivered by Lennar. (4) The information contained in the Official Statement relating to Lennar, its organization, activities, properties and financial condition and to the development to be constructed on the property owned by Lennar (the "Lennar Property") in the District (the "Developlnent"), and Lennar's obligations under the Agreement and Covenants (collectively, the "Lennar Information") is true and correct in all material respects and does not contain any untrue or incorrect statement of a material fact and does not omit to state a material fact necessary in order to make the statements made therein, in light of tim circumstances under which they were made, not misleading. (5) Lennar has full corporate power and authority to own its property, including, without limitation, the portion of the property in the District owned by Lennar, and to carry on its business as presently conducted and as contemplated to be conducted by tile Official Statenaent. DOCSI.A 1:251740.3 40484-43-J K2-06/12/98 G- 1 (6) To Lennar's knowledge, Lennar is in default under any order or decree of any court or any order, regulation or demand of any federal, state, municipal or governmental agency or any document, instrument or commitment to which Lennar is subject, and Lennar is not in material default which has not been cured in the payment of the principal of, or premium or interest on, or otherwise in material default with respect to, any bond, note or other obligation which Lennar has assumed or guaranteed as to payment of principal, premium or interest. (7) There are not pending (for which Lennar has received service of process) or, to the knowledge of Lennar, threatened legal or administrative proceedings to which Lennar is a party or to which property of Lennar is subject, which are material as to Lennar which are not disclosed in the Official Statement or which if decided adversely to Lennar are likely to specifically, materially and adversely affect the transactions contemplated by the Purchase Contract, the Agreement and Covenants or by the Official Statement or which are likely to materially and adversely affect the validity or enforceability of the Bonds, the Agreement and Covenants, the Lennar Continuing Disclosure Agreement or the Purchase Contract or which are likely to materially and adversely affect the properties, operations or financial condition of Lennar. (8) Lennar is familiar with the analysis prepared by David Taussig & Associates of the Rate and Method of Apportionment of the Special Taxes and believes that tile assumptions used therein with respect to the Lennar Property are reasonable. (9) No event has occurred since tile date of the Preliminary Official Statentent which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of Lennar. (10) Lennar is solvent and no proceedings are pending for which Lennar has received sen, ice of process or, to the best knowledge of Lennar, threatened in which Lennar may be adjudicated as bankrupt, or become the debtor in a bankruptcy proceeding, or discharged from any or all of its debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts. (11) Lennar is not in default on the payment of special taxes or assessments in connection xvith other community facilities districts or assessment districts in which Lennar is a property owner. (12) Except as disclosed in the Official Statement, Lennar has not submitted an application for, nor received actual notice of, (i)the formation or authorization of any assessment district or community facilities district which would include any portion of the Lennar Property, or (ii) the authorization or issuance of any debt secured by a special tax to be levied on any portion of the Lennar Property. I)OCS[..,\ 1:251740.3 40484-43-JK2-0(~/12/98 G-2 IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed on the date hereinbelow set forth. LENNAR HOMES OF CALIFORNIA, INC. By Its I)O('SI~A 1:251740.3 40484-43-JK2-06/I 2/98 O-3 EXHIBIT H $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, CERTIFICATE OF WINCHESTER (to be delivered on the Closing Date) The undersigned, Willchester Hills I LLC, a California limited liability company ("Winchester"), in connection with the issuance, sale and delivery of the above-captioned Bonds (the "Bonds") hereby ccrtities as follows: (1) Tile representations, warranties, certifications and covenants of Winchester contained in the certificate delivered by Winchester in connection with that certain purchase contract by and between the Winchester Hills Financing Authority (the "Authority"), for and on bellaIf of tile Winchester Hills Financing Community Facilities District No. 98-1 (Winchester Hills) (the "District") and Stone & Youngberg LLC, dated , 1998 (the "Purchase Contract") are true, correct and complete in all material respects as of the date hereof as if made on the date hereof. Capitalized terms not defined herein shall have the meanings ascribed to them in the Purchase Contract. (2) Winchester has duly authorized, by all necessary action, the execution, delivery and due performance of the Agreement and Covenants and the Winchester Continuing Disclosure Agreement. (3) The Agreement and Covenants and the Winchester Continuing Disclosure Agreement have been duly executed and delivered by Winchester. (4) The information contained in the Official Statement relating to Winchester, its organization, activities, properties and financial condition and to the business park portion of the development to be constructed within the District (the "Development") is true and correct in all material respects and does not contain any untrue or incorrect statement of a material fact and does not omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. (5) Winchester has full power and authority to own its property, including, without limitation, the portion of the property in the District owned by Winchester, and to carry on its business as presently conducted and as contemplated to be conducted by the Official Statement. I)O('S[.A 1:251740.3 40484-43-J K2-06/I 2/98 H- 1 (6) Except as otherwise disclosed in the Official Statement, Winchester is not now and never has been in default under any order or decree of any court or any order, regulation or demand of any federal, state, municipal or governmental agency or any document, instrument or commitment to which Winchester is subject, and Winchester is not now or ever has been in material default which has not been cured in the payment of the principal of, or premium or interest on, or otherwise in material default with respect to, any bond, note or other obligation which Winchester has assumed or guaranteed as to payment of principal, premium or interest. (7) There are not pending or, to the knowledge of Winchester, threatened legal or administrative proceedings to which Winchester is a party or to which property of Winchester is subject, which are material as to Winchester which are not disclosed in the Official Statement or which if decided adversely to Winchester could specifically, materially and adversely affect tile transactions contemplated by the Purchase Contract, the Agreement and Covenants or by the Official Statement or which could materially and adversely affect tile validity or enforceability of the Bonds, the Agreement and Covenants, the Winchester Continuing Disclosure Agreement or the Purchase Contract or which could materially and adversely affect the properties, operations or financial condition of Winchester. (8) No event has occurred since the date of the Preliminary Official Statement which has adversely affected or will materially and adversely affect the business, properties, operations, prospects or financial condition of Winchester. (9) Winchester is solvent and no proceedings are pending or, to the best knowledge of Winchester, threatened in which Winchester may be adjudicated as bankrupt, or become the debtor in a bankruptcy proceeding, or discharged from any or all of its debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts. (10) Except as disclosed in the Official Statement, Winchester has not previously defaulted on the payment of special taxes or assessments in connection with other community facilities districts or assessment districts in which Winchester has been or is a property owner. (11) Except as disclosed in the Official Statement, Winchester has not submitted an application for, nor received actual notice of, (i)the formation or authorization of any assessment district or community facilities district which would include any portion of the land within the District, or (ii) the authorization or issuance of any debt secured by a special tax to be levied on any portion of the land within the District. I)O('~%I.A 1:251740.3 40484-43-J K2-06/1298 H-2 IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed on the date hereinbelow set forth. WINCHESTER HILLS I LLC By Its DOC51.:\ 1:251740.3 40484-43-JK2-06/I 2"o8 H-3 EXHIBIT I $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS, CERTIFICATE OF SPECIAL TAX CONSULTANT Winchester Hills Financing Authority Temccula, Califomia Stone & Youngberg LLC La Jolla, California David Taussig & Associates, Inc., Newport Beach California (the "Special Tax Consultant") hereby certifies that (i) the Special Tax, when levied and collected in accordance with tile terms of the Rate and Method, assuming delinquency rates not in excess of 5% annually, will provide a yearly cash flow at least sufficient to yield 110% debt service coverage on the Bonds (assuming that the net taxable acreage information provided to the Special Tax Consultant is accurate), (ii) any and all written information submitted by the Special Tax Consultant in connection xvith the preparation of the Preliminary Official Statement dated , 1998 and the Official Statement dated , 1998 for the Bonds (jointly, the "Official Statement") was as of its date and is as of the date hereof true and correct, and (iii) the statements concerning the Rate and Method under the captions "SECURITY FOR THE BONDS - The Special Taxes," "TIDE COMMUNITY FACILITIES DISTRICT - Rate and Method of Apportionment" and "APPENDIX C - RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX" are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of tile circumstances under which they were made, not misleading. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Contract, dated , 1998, between the Winchester Hills Financing Authority and Stone & Youngberg LLC. Dated: ,1998 DAVID TAUSSIG & ASSOCIATES, INC. By: Its: I)OCSI.A 1:251740.3 40484-43-JK2-06/I 2/98 I- 1 EXHIBIT J $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILl. S) 1998 SPECIAL TAX BONDS CERTIFICATE OF APPRAISER Winchester Hills Financing Authority Tcmecula, Califomia Stone & Youngberg LLC La Jolla, California Interstate Appraisal Corporation, , California (the "Appraiser") hereby ccrtifics that (i) the assumptions made in tire appraisal report dated , 1998 (the "Appraisal Report") are reasonable, (ii) the Appraiser consents to the inclusion of the Summary Appraisal Report as an Appendix to the Official Statement and to the references to the Appraiser and the Appraisal Report in the Official Statenrent, (iii) no event or act has occurred since the date of the Appraisal Report which would materially and adversely affect the conclusions as to appraised value reached in the Appraisal Report, and (iv) the statements concerning the Appraisal Report and tire value of the property contained under the captions "SECURITY FOR THE BONDS - Property Values," "SPECIAL RISK FACTORS - Appraised and Assessed Values," and "APPENDIX A - Summary Appraisal Rcport," in the Official Statement are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of tire circumstances under which they were made, not misleading. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Contract, dated , 1998, between the Winchester Hills Financing Authority and Stone & Youngberg LLC. Dated: ,1998 INTERSTATE APPRAISAL CORPORATION. By: Its: DOCSI.A 1:2.51740.3 40484-43-JK2-06/12/98 J- 1 EXHIBIT K $ WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) 1998 SPECIAL TAX BONDS CERTIFICATE OF MARKET ABSORPTION CONSULTANT Winchester Hills Financing Authority Tcmecula, California Stone & Youngberg LLC La Jolla, California Empire Economics, Capistrano Beach, California (the "Market Absorption Consultant") hereby ccrtifies that (i) the conclusions set forth in the market absorption study dated April, 1998, included as Appendix B to the Preliminary Official Statement (the "Market Absorption Study") are hereby continned, and the undersigned hereby consents to the reproduction of the Market Absorption Study appended to the Official Statement and the references to the Absorption Consultant made in the Official Statement, and (ii) as of the date of the Official Statement and as of the Closing Date, the Market Absorption Study appended to the Official Statement and the statements in the Official Statement under the captions "SECURiTY FOR THE SERIES 1998 BONDS - Market Absorption Study," insofar as such statements purport to summarize the Market Absorption Study, are accurate in all material respects and do not contain any untrue statement of material fact and do not omit to state a material fact necessary in order to make the statements contained thcrcin, in light of the circumstances under which they were made, not misleading, and no events or occurrences have been ascertained by the Absorption Consultant or have come to its attention that would substantially change the opinions set forth in the Market Absorption Study. Capitalized temps not otherwise defined herein shall have the meanings set forth in the Purchase Contract, dated , 1998, between the Winchester Hills Financing Authority and Stone & Youngberg LLC. Dated: ,1998 EMPIRE ECONOMICS By: Its: I)O('SIA 1:251740.3 40484-43-JK2-06/I 2/98 K- 1 Quint & TbJmrrug LLP 4/10/98 5/17/98 6/11/98 6/12/98 FISCAL AGENT AGREEMENT by and between the WINCHESTER HILLS FINANCING AUTHORITY and U~. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent Dated as of July 1,1998 Relating to: Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A and Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series B (Taxable) 23004.01:J3659 Section 1.01. Section 1.02. Section 1.03. Section 2.01. Section 2.02. Section 2.03. Section 2.04. Section 2.05. Section 2.06. Section 2.07. Section 2.08. Section 2.09. Section 2.10. Section 2.11. Section 2.12. Section 3.01. Section 3.02. Section 3.03. Section 4.01. Section 4.02. Section 4.03. Section 4.04. Section 4.05. Section 4.06. Section 4.07. Section 5.01. Section 5.02. Section 5.03. Section 5.04. Section 5.05. Section 5.06. Section 5.07. Section 5.08. Section 5.09. Section 5.10. Section 5.11. TABLE OF CONTENTS ARTICLE I P a_o_g_~ STATUTORY AUTHORITY AND DEFINITIONS Authority for this Agreement ....................................................................................2 Agreement for Benefit of Owners of the Bonds ........................................................... 2 Definitions ...............................................................................................................2 ARTICLE II THE BONDS Principal Amount; Designation ................................................................................11 Terms of the Bonds ..................................................................................................11 Redemption ............................................................................................................13 Form of Bonds .........................................................................................................15 Execution of Bonds ...................................................................................................15 Transfer of Bonds .....................................................................................................16 Exchange of Bonds ...................................................................................................16 Bond Register ..........................................................................................................16 Temporary Bonds ....................................................................................................16 Bonds Mutilated, Lost, Destroyed or Stolen ...............................................................17 Limited Obligation ..................................................................................................17 No Acceleration .......................................................................................................!7 ARTICLE ISSUANCE OF BONDS Issuance and Delivery of Bonds ................................................................................18 Pledge of Special Tax Revenues ...............................................................................18 Validity of Bonds .....................................................................................................18 ARTICLE IV FUNDS AND ACCOUNTS Deposits of Bond Proceeds ........................................................................................19 Refunding Fund ......................................................................................................19 Costs of Issuance Fund .............................................................................................20 Reserve Fund ..........................................................................................................20 Bond Fund ..............................................................................................................23 Special Tax Fund .....................................................................................................24 Administrative Expense Fund ..................................................................................25 ARTICLE V OTHER COVENANTS OF THE CITY Punctual Payment ...................................................................................................26 Limited Obligation ..................................................................................................26 Extension of Time for Payment .................................................................................26 Against Encumbrances ............................................................................................26 Books and Records ...................................................................................................26 Protection of Security and Rights of Owners .............................................................. 26 Compliance with Law ..............................................................................................27 Collection of Special Tax Revenues ...........................................................................27 Covenant to Foreclose ..............................................................................................28 Further Assurances ..................................................................................................28 Private Activity Bond Limitations .............................................................................28 -i- Section Section Section Section Section Section Section Section Section 5.12. 5.13. 5.14. 5.15. 5.16. 5.17. 5.18. 5.19. 5.20. Federal Guarantee Prohibition .................................................................................28 Rebate Requirement ................................................................................................28 No Arbitrage ...........................................................................................................29 Yield of the Bonds ...................................................................................................29 Maintenance of Tax-Exemption .................................................................................29 Continuing Disclosure to Owners .............................................................................29 Reduction of Maximum Taxes ..................................................................................29 Reduction of Special Taxes .......................................................................................29 Covenants Running With the Land; Guarantee ........................................................ 30 ARTICLE VI Section 6.01. Section 6.02. Section 6.03. Section '6.04. Section 7.01. Section 7.02. Section 7.03. Section 7.04. Sectioh 7.05. Section 8.01. Section 8.02. Section 8.03. Section 8.04. Section 8.05. Section 8.06. Section 8.07. Section 9.01. Section 9.02. Section 9.03. Section 9.04. Section 9.05. Section 9.06. Section 9.07. Section 9.08. Section 9.09. Section 9.10. Section 9.11. Section 9.12. Section 9.13. Section 9.14. INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE AUTHORITY Deposit and Investment of Moneys in Funds ............................................................ 31 Limited Obligation ..................................................................................................32 Liability of Authority ...............................................................................................32 Employment of Agents by Authority ....................................................................... 33 ARTICLE VII THE FISCAL AGENT Appointment of Fiscal Agent ...................................................................................34 Liability of Fiscal Agent ...........................................................................................35 Information .............................................................................................................35 Notice to Fiscal Agent ..............................................................................................35 Compensation, Indemnification ................................................................................36 ARTICLE VIII MODIFICATION OR AMENDMENT OF THIS AGREEMENT Amendments Permitted ...........................................................................................37 Owners' Meetings ....................................................................................................37 Procedure for Amendment with Written Consent of Owners ..................................... 37 Disqualified Bonds ..................................................................................................38 Effect of Supplemental Agreement ...........................................................................38 Endorsement or Replacement of Bonds Issued After Amendments ............................. 38 Amendatory Endorsement of Bonds ......................................................................... 39 ARTICLE IX MISCELLANEOUS Benefits of Agreement Limited to Parties .................................................................. 40 Successor is Deemed Included in All References to Predecessor ................................. 40 Discharge of Agreement ..........................................................................................40 Execution of Documents and Proof of Ownership by Owners ..................................... 41 Waiver of Personal Liability .....................................................................................41 Notices to and Demands on Authority and Fiscal Agent ............................................ 41 State Reporting Requirements ..................................................................................42 Partial Invalidity .....................................................................................................42 Unclaimed Moneys ..................................................................................................42 Apphcable Law .................................................................................................... ....43 Conflict with Act ......................................................................................................43 Conclusive Evidence of Regularity ...........................................................................43 Payment on Business Day ........................................................................................43 Counterparts ...........................................................................................................43 EXHIBIT A - FORM OF BOND -ii- FISCAL AGENT AGREEMENT THIS FISCAL AGENT AGREEMENT (the "Agreement") is made and entered into as of July 1, 1998, by and between the Winchester Hills Financing Authority, a joint exercise of powers authority organized and existing under and by virtue of the Constitution and laws of the State of California (the "Authority") for and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District"), and U.S. Bank Trust National Association, a national banking association duly organized and existing under the laws of the United States of America as fiscal agent (the "Fiscal Agent"). WI TNE S S E TH: WHEREAS, the Board of Directors of the Authority has formed the District under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311, et seq. of the California Government Code) (the "Act") and Resolution No. WHFA ~ of the Board of Directors adopted on April 14, 1998 (the "Resolution of Formation"); WHEREAS, the Board of Directors, as the legislative body with respect to the District, is authorized under the Act to levy special taxes within the District and to authorize the issuance of bonds secured by said special taxes under the Act; WHEREAS, under the provisions of the Act, on June 23, 1998 the Board of Directors of the Authority adopted its Resolution No. WHFA __ (the "Resolution"), which resolution authorized the issuance and sale of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds (the "Bonds"), in the aggregate principal amount of not to exceed $16,000,000, provided that such issuance would be in accordance with the Act and this Agreement, and authorized the execution hereof; WHEREAS, it is in the public interest and for the benefit of the Authority, the District and the owners of the Bonds that the Authority enter into this Agreement to provide for the issuance of the Bonds, the disbursement of proceeds of the Bonds, the disposition of the special taxes securing the Bonds and the administration and payment of the Bonds; and WHEREAS, all things necessary to cause the Bonds, when executed by the Authority for the District and issued as in the Act, the Resolutions and this Agreement provided, to be legal, valid and binding and special obligations of the Authority for the District in accordance with their terms, and all things necessary to cause the creation, authorization, execution and delivery of this Agreement and the creation, authorization, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized. NOW, THEREFORE, in consideration of the covenants and provisions herein set forth and for other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows: ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section 1.01. Authority for this Agreement. This Agreement is entered into pursuant to the provisions of the Act and the Resolution. Section 1.02. Agreement for Benefit of Owners of the Bonds. The provisions, covenants and agreements herein set forth to be performed by or on behalf of the Authority shall be for the equal benefit, protection and security of the Owners of the Bonds. All of the Bonds, without regard tO the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided in or permitted by this Agreement. The Fiscal Agent may become the owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Fiscal Agent. Section 1.03. Definitions. Unless the context otherwise requires, the terms defined in this Section 1.03 shall, for all purposes of this Agreement, of any Supplemental Agreement, and of any c.ertificate, opinion or other document herein mentioned, have the meanings herein specified. All references herein to "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words "herein," "hereof," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Sections 53311 et seq. of the California Government Code. "Administrative Expenses" means costs directly related to the administration of the District consisting of the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the Finance Director or designee thereof or both) and the costs of collecting the Special Taxes (whether by the County, the City or otherwise); the costs of remitting the Special Taxes to the Fiscal Agent; fees and costs of the Fiscal Agent (including its legal counsel) in the discharge of the duties required of it under this Agreement; the costs of the Authority, the City or designee of complying with the disclosure provisions of the Act, the Continuing Disclosure Agreement and this Agreement, including those related to public inquiries regarding the Special Tax and disclosures to Bondowners and the Original Purchaser; the costs of the Authority, the City or designee related to an appeal of the Special Tax; any amounts required to be rebated to the federal government in order for the Authority to comply with Section 5.13; an allocable share of the salaries of the Authority and/or City staff directly related to the foregoing and a proportionate amount of Authority and/or City general administrative overhead related thereto. Administrative Expenses shall also include amounts advanced by the Authority for any administrative purpose of the District, including costs related to prepayments of Special Taxes, recordings related to such prepayments and satisfaction of Special Taxes, amounts advanced to ensure compliance with Section 5.13, the costs of commencing and prosecuting foreclosure of delinquent Special Taxes, and any costs incurred by the Authority, the Fiscal Agent or any Bondowners in connection with the enforcement of the agreements described in Section 5.20. "Administrative Expense Fund" means the fund by that name established by Section 4.07(A) hereof. "Agreement" means this Fiscal Agent Agreement, as it may be amended or supplemented from time to time by any Supplemental Agreement adopted pursuant to the provisions hereof. "Annual Debt Service" means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as scheduled (including by reason of the provisions of Section 2.03(A)(ii) providing for mandatory sinking payments), and (ii) the principal amount of the Outstanding Bonds due in such Bond Year (including any mandatory sinking payment due in such Bond Year pursuant to Section 2.03(A)(ii)). "Assessment Liens" means the assessment liens to be refinanced with the proceeds of the Bonds, as identified in the Resolution of Intention. "Auditor" means the auditor/controller of the County of Riverside. "Authority" means the Winchester Hills Financing Authority, and any successor thereto. "Authorized Officer" means the Chairperson, the Executive Director, the Treasurer, the Secretary or any other officer or employee authorized by the Board of Directors of the Authority or by an Authorized Officer to undertake the action referenced in this Agreement as required to be undertaken by an Authorized Officer. "Bond Counsel" means Quint & Thimmig LLP or any attorney or other firm of attorneys selected by to the Authority and nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. "Bond Fund" means the fund by that name established by Section 4.05(A) hereof. "Bond Register" means the books for the registration and transfer of Bonds maintained by the Fiscal Agent under Section 2.08 hereof. "Bond Year" means the one-year period beginning on September 2nd in each year and ending on September 1st in the following year, except that the first Bond Year shall begin on the Closing Date and end on September 1, 1998. "Bonds" means, collectively, the Series A Bonds and the Series B Bonds. "Business Day" means any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in the state in which the Fiscal Agent has its principal corporate trust office are authorized or obligated by law or executive order to be closed. "CDIAC" means the California Debt and Investment Advisory Commission of the office of the State Treasurer of the State of California or any successor agency or bureau thereto. "City" means the City of Temecula, California. "City Attorney" means any attorney or firm of attorneys employed by the City in the capacity of city attorney. "Closing Date" means July 29, 1998, being the date upon which there is a physical delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Original Purchaser. 3 "Code" means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Code. "Continuing Disclosure Agreement" shall mean that certain Continuing Disclosure Agreement executed by the Authority and the Fiscal Agent, dated the Closing Date, as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Costs of Issuance" means items of expense payable or reimbursable directly or indirectly by the Authority and/or the City and related to the authorization, sale and issuance of the Bonds, which items of expense shall include, but not be limited to, printing costs, costs of reproducing and binding documents, closing costs, filing and recording fees, initial fees and charges of the Fiscal Agent including its first annual administration fee, expenses incurred by the Authority and/or the City in connection with the issuance of the Bonds and the establishment of the District, special tax consultant fees and expenses, preliminary engineering fees and expenses, Bond (underwriter's) discount, legal fees and charges, including bond counsel, and disclosure counsel, financial consultants' fees, charges for execution, transportation and safekeeping of the Bonds and other costs, charges and fees in connection with the foregoing. "Costs of Issuance Fund" means the fund by that name established by Section 4.03(A) hereof. "County" means the County of Riverside, California. "Debt Service" means the scheduled amount of interest and amortization of principal payable by reason of Sections 2.02(D) and 2.03(A)(ii) on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to prindpal which has been retired before the beginning of such period. "District" means the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills), formed by the Authority under the Act and the Resolution of Formation. "Fair Market Value" means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security--State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is the Local Agency Investment Fund of the State of California but only if at all times during which the investment is held its yield is reasonably expected to be equal to or greater than the yield on a reasonably comparable direct obligation of the United States. 4 "Federal Securities" means any of the following which are non-callable and which at the time of investment are legal investments under the laws of the State of California for funds held by the Fiscal Agent: (i) direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the United States Department of the Treasury) and obligations, the payment of principal of and interest on which are directly or indirectly guaranteed by the United States of America, including, without limitation, such of the foregoing which are commonly referred to as "stripped" obligations and coupons; or (ii) any of the following obligations of the following agencies of the United States of America: (a) direct obligations of the Export-Import Bank, (b) certificates of beneficial ownership issued by the Farmers Home Administration, (c) participation certificates issued by the General Services Administration, (d) mortgage-backed bonds or pass-through obligations issued and guaranteed by the Government National Mortgage Association, (e) project notes issued by the United States Department of Housing and Urban Development, and (f) public housing notes and bonds guaranteed by the United States of America. "Finance Director" means the Finance Director of the City or such other officer or employee of the City performing the functions of the chief financial officer of the City, acting in the capacity as Treasurer of the Authority. "Fiscal Agent" means the Fiscal Agent appointed by the Authority and acting as an independent fiscal agent with the duties and powers herein provided, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 7.01. "Fiscal Year" means the twelve-month period extending from July ! in a calendar year to June 30 of the succeeding year, both dates inclusive. "Independent Financial Consultant" means any consultant or firm of such consultants appointed by the Authority or the Finance Director, and who, or each of whom: (i) is judged by the Finance Director to have experience in matters relating to the issuance and/or administration of bonds under the Act; (ii) is in fact independent and not under the domination of the Authority; (iii) does not have any substantial interest, direct or indirect, with or in the Authority, or any owner of real property in the District, or any real property in the District; and (iv) is not connected with the Authority as an officer or employee of the Authority, but who may be regularly retained to make reports to the Authority. "Information Services" means Financial Information, Inc.'s "Daily Called Bond Service", 30 Montgomery Street, 10th Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny Information Services' "Called Bond Service", 65 Broadway, 16th Floor, New York, New York 10006; Moody's Investors Service "Municipal and Government", 99 Church Street, New York, New York 10007, Attention: Municipal News Reports; Standard & Poor's Corporation "Called Bond Record", 25 Broadway, 3rd Floor, New York, New York 10004; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such services providing information with respect to called bonds as the Authority may designate in an Officer's Certificate delivered to the Fiscal Agent. "Interest Payment Dates" means March I and September 1 of each year, commencing September 1, 1998. "Letter of Credit" means a standby letter of credit, which is: (i) irrevocable during its term; (ii) in a form acceptable to the Fiscal Agent and the Finance Director; (iii) for the benefit of the Fiscal Agent; (iv) issued by (a) a national banking association organized under the National Banking Act, or any successor law, or (b) a banking corporation organized under the laws of any state of the United States of America, or (c) a savings and loan association or corporation or savings bank organized under the laws of the United States of America or any state thereof, and any such letter of credit provider referred to in (a), (b) or (c) shall have its long term unsecured debt obligations rated "A+" or better by Standard & Poor's Rating Services or "AI" or better by Moody's Investors Service; (v) at the time of delivery thereof to the Fiscal Agent for purposes of this Agreement, accompanied by one or more opinions addressed to the Fiscal Agent to the effect, singly or together, that the Letter of Credit is a legal, valid and binding obligation of the provider thereof, enforceable against the provider thereof in accordance with its terms, except as limited by applicable reorganization, insolvency, liquidation, readjustment of debt, moratorium or other similar laws affecting the enforcement of rights of creditors generally as such laws may be applied in the event of a reorganization, insolvency, liquidation, readjustment of debt or other similar proceeding of or moratorium applicable to the provider thereof and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); (vi) for a term of at least one year, effective from no later than the date it is delivered to the Fiscal Agent, and any Letter of Credit provided in substitution for any then outstanding Letter of Credit shall be for a term of at least one year commencing not later than the expiration date of the term of the prior Letter of Credit; (vii) for the account of any entity other than Authority, the City or any other governmental entity; and (viii) not secured, as to the reimbursement of any draws thereon, by any property located in the District, or if so secured, any such security shall be expressly subordinate to the lien of the Special Taxes. Any Letter of Credit shall be accompanied by a written certificate which identifies the parcels in the District to which such Letter of Credit pertains. "Maximum Annual Debt Service" means the largest Annual Debt Service for any Bond Year after the calculation is made through the final maturity date of any Outstanding Bonds. "Moody's" means Moody's Investors Service, and any successor thereto. "Officer's Certificate" means a written certificate of the Authority signed by an Authorized Officer of the Authority. "Ordinance" means any ordinance of the Authority levying the Special Taxes. "Original Purchaser" means Stone & Youngberg LLC, the first purchaser of the Bonds from the Authority. "Outstanding," when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 8.04) all Bonds except: (i) Bonds theretofore canceled by the Fiscal Agent or surrendered to the Fiscal Agent for cancellation; (ii) Bonds paid or deemed to have been paid within the meaning of Section 9.03; and (iii) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the Authority pursuant to this Agreement or any Supplemental Agreement. "Owner" or "Bondowner" means any person who shall be the registered owner of any Outstanding Bond. "Participating Underwriter" shall have the meaning ascribed thereto in the Continuing Disclosure Certificate. "Permitted Investments" means the following, but only to the extent that the same are acquired at Fair Market Value and are otherwise eligible investments of the Authority: (a) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest, and which have a maximum term to maturity not to exceed three years. (b) Time certificates of deposit or negotiable certificates of deposit issued by a state or nationally chartered bank or trust company, or a state or federal savings and loan association; provided, that the certificates of deposit shall be one or more of the following: continuously and fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, and/or continuously and fully secured by securities described in subdivision (a) or (b) of this definition of Permitted Investments which shall have a market value, as determined on a marked-to-market basis calculated at least weekly, and exclusive of accrued interest, of not less than 102 percent of the principal amount of the certificates on deposit. (c) Commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided by either Moody's Investors Service or Standard and Poor's Ratings Group, which commercial paper is limited to issuing corporations that are organized and operating within the United States of America and that have total assets in excess of five hundred million dollars ($500,000,000) and that have an "A" or higher rating for the issuer's debentures, other than commercial paper, by either Moody's Investors Service or Standard and Poor's Ratings Group, provided that purchases of eligible commercial paper may not exceed 180 days' maturity nor represent more than 10 percent of the outstanding commercial paper of an issuing corporation. Purchases of commercial paper may not exceed 20 percent of the total amount invested pursuant to this definition of Permitted Investments. (d) A repurchase agreement with a state or nationally charted bank or trust company or a national banking association or government bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of New York, provided that all of the following conditions are satisfied: (1) the agreement is secured by any one or more of the securities described in subdivision (a) of this definition of Permitted Investments, (2) the underlying securities are required by the repurchase agreement to be held by a bank, trust company, or primary dealer having a combined capital and surplus of at least one hundred million dollars ($100,000,000) 7 and which is independent of the issuer of the repurchase agreement, and (3) the underlying securities are maintained at a market value, as determined on a marked-to- market basis calculated at least weekly, of not less than 103 percent of the amount so invested. (e) An investment agreement or guaranteed investment contract with, or guaranteed by, a financial institution the long-term unsecured obligations of which are rated "AA" or better by Moody's Investors Service and Standard and Poor's Ratings Group at the time of initial investment. The investment agreement shall be subject to a downgrade provision with at least the following requirements: (1) the agreement shall provide that within five business days after the financial institution's long-term unsecured credit rating has been withdrawn, suspended, other than because of general withdrawal or suspension by Moody's Investors Service or Standard and Poor's Ratings Group from the practice of rating that debt, or reduced below "AA-" by Standard and Poor's Ratings Group or below "Aa3" by Moody's Investors Service (these events are called "rating downgrades") the financial institution shall give notice to the Authority and, within the five-day period, and for as long as the rating downgrade is in effect, shall deliver in the name of the Authority or the Fiscal Agent to the Authority or the Fiscal Agent federal securities allowed as investments under subdivision (a) of this definition of Permitted Investments with aggregate current market value equal to at least 105 percent of the principal amount of the investment agreement invested with the financial institution at that time, and shall deliver additional allowed federal securities as needed to maintain an aggregate current market value equal to at least 105 percent of the principal amount of the investment agreement within three days after each evaluation date, which shall be at least weekly, and (2) the agreement shall provide that, if the financial institution's long-term unsecured credit rating is reduced below "A3" by Moody's Investors Service or below "A-" by Standard and Poor's Ratings Group, the Fiscal Agent or the Authority may, upon not more than five business days' written notice to the financial institution, withdraw the investment agreement, with accrued but unpaid interest thereon to the date, and terminate the agreement. (f) The Local Agency Investment Fund of the State Treasurer of the State of California as permitted by the State Treasurer pursuant to Section 16429.1 of the California Government Code. "Principal Office" means the principal corporate trust office of the Fiscal Agent set forth in Section 9.06 (except for payment, surrender and exchanges of the Bonds which shall be the office of U.S. Bank Trust National Association in St. Paul, Minnesota), or such other or additional offices as may be designated by the Fiscal Agent. "Record Date" means the fifteenth day of the month next preceding the month of the applicable Interest Payment Date, whether or not such day is a Business Day. "Refunding Fund" means the fund by that name created by and held by the Fiscal Agent pursuant to Section 4.02(A) hereof. hereof. "Reserve Fund" means the fund by that name established pursuant to SeCtion 4.04(A) "Reserve Requirement" means, as of any date of calculation an amount equal to the lesser of (i) the then Maximum Annual Debt Service, (ii) one hundred twenty-five percent (125%) of the then average Annual Debt Service, or (iii) ten percent (10%) of the initial principal amount of the Bonds issued hereunder. "Resolution" means Resolution No. WHFA of the Authority on June 23, 1998. , adopted by the Board of Directors "Resolution of Formation" means Resolution No. WHFA of Directors on April 14, 1998. , adopted by the Board "Resolution of Intention" means Resolution No. WHFA Directors on February 24, 1998. , adopted by the Board of "S&P" means Standard & Poor's Ratings Service, a division of McGraw-Hill, and any successor thereto. "Securities Depositories" means The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530, Fax-(516)227-4039 or -4190; Midwest Securities Trust Company, Capital Structures-Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605, Fax-(312)663-2343; Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103, Attention: Bond Department, Tel- (215)496-5058; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such other securities depositories as the Authority may designate in an Officer's Certificate delivered to the Fiscal Agent. "Series A Bonds" means the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills ) Special Tax Bonds, 1998 Series A at any time Outstanding under this Agreement or any Supplemental Agreement. "Series B Bonds" means the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills ) Special Tax Bonds, 1998 Series B (Taxable) at any time Outstanding under this Agreement or any Supplemental Agreement. "Special Tax Fund" means the fund by that name established by Section 4.06(A) hereof. "Special Tax Prepayments" means the proceeds of any Special Tax prepayments received by the Authority, as calculated pursuant to the Rate and Method of Apportionment of the Special Taxes for the District, less any administrative fees or penalties collected as part of any such prepayment. "Special Tax Prepayments Account" means the account by that name established by Section 4.05(A) hereof. "Special Tax Revenues" means the proceeds of the Special Taxes received by the Authority, including any scheduled payments and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon. "Special Tax Revenues" does not include any penalties collected in connection with delinquent Special Taxes. "Special Taxes" means the special taxes levied within the District pursuant to the Act, the Ordinance and this Agreement. "Supplemental Agreement" means an agreement the execution of which is authorized by a resolution which has been duly adopted by the Authority under the Act and which agreement is amendatory of or supplemental to this Agreement, but only if and to the extent that such agreement is specifically authorized hereunder. "Tax Consultant" means any independent financial or tax consultant retained by the Authority for the purpose of computing the Special Taxes. 10 ARTICLE II THE BONDS Section 2.01. Principal Amount: Designation. Series A Bonds in the aggregate principal amount of Million Thousand Dollars ($ ) are hereby authorized to be issued by the Authority for the District under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Series A Bonds shall be designated as the "Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series A." Series B Bonds in the aggregate principal amount of Million Thousand Dollars ($ ) are hereby authorized to be issued by the Authority for the District under and subject to the terms of the Resolution and this Agreement, the Act and other applicable laws of the State of California. The Series B Bonds shall be designated as the "Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series B (Taxable)." Section 2.02. Terms of the Bonds. (A) Form; Denominations. The Bonds shall be issued as fully registered Bonds without coupons in the denomination of $100,000 or any integral multiple of $5,000 in excess thereof. Notwithstanding the foregoing, upon receipt by the Fiscal Agent of an Officer's Certificate executed by the Executive Director to the effect that the value of the land and improvements in the District subject to the levy of the Special Taxes is at least equal to four times (i) the principal amount of the Bonds then Outstanding; plus (ii) the principal amount of any other bonds or indebtedness secured by and attributable to assessment liens or special taxes levied or to be levied on the land and/or improvements in the District, the Bonds may be transferred or exchanged in denominations of $5,000 or any integral multiple thereof. The Finance Director may conclusively rely upon an appraisal prepared by an MAI appraiser, and a certificate of a Tax Consultant, in connection with the factual matters necessary to deliver the officer's certificate described in the preceding sentence and, in any event, neither the Finance Director or the Authority shall have any liability in connection therewith. (B) Date of Bonds. The Bonds shall be dated the Closing Date. (C) CUSIP Identification Numbers. "CUSIP" identification numbers shall be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Bonds. In addition, failure on the part of the Authority or the Fiscal Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the Authority's contract with such Owners and shall not impair the effectiveness of any such notice. (D) Maturities, Interest Rates. The Series A Bonds shall mature and become payable on September 1 in each of the years, and shall bear interest at the rates per annum as follows: 11 Maturity Date (September 1) Principal Amount Interest Rate The Series B Bonds shall mature and become payable on September 1 in each of the years, and shall bear interest at the rates per annum as follows: Maturity Date (September 1) Principal Amount Interest Rate (E) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond shall bear interest from the Interest Payment Date next preceding the date of authentication thereof unless (i) it is authenticated on an Interest Payment Date, in which event it shall bear interest from such date of authentication, or (ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Closing Date; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. (F) Method of Payment. Interest on the Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Fiscal Agent mailed on the Interest Payment Dates by first class mail to the registered Owner thereof at such registered Owner's address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer to an account within the United States made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds, which 12 instructions shall continue in effect until revoked in writing, or until such Bonds are transferred to a new Owner. The principal of the Bonds and any premium on the Bonds are payable by check in lawful money of the United States of America upon surrender of the Bonds at the Principal Office of the Fiscal Agent. All Bonds paid by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof to the Authority upon the Authority's request. Section 2.03. Redemption. (A) Redemption Dates. (i) Optional Redemption. The Bonds are subject to optional redemption prior to their stated maturity on any Interest Payment Date, as a whole or in part, pro rata among maturities and by lot within a maturity, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Dates Any Interest Payment Date on or before March 1, __ September 1, ~ and March 1, __ September 1, __ and March 1, ~ September 1, ~ and any Interest Payment Date thereafter Redemption Prices 103% 102 101 100 Notwithstanding the foregoing, any redemption of the Bonds pursuant to this Section 2.03(A)(i) prior to September 1, __ shall be made solely from amounts in the Bond Fund as a result of transfers from the Special Tax Prepayments Account pursuant to Section 4.05(B)(iii) and the Reserve Fund pursuant to Section 4.04(F). (ii) Mandatory Sinking Payment Redemption. The Series A Bonds maturing on September 1, , are subject to mandatory sinking payment redemption in part on September 1, , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as followd: Redemption Date (september 1) Sinking Payments The Series B Bonds maturing on September 1, sinking payment redemption in part on September 1, · , are subject to mandatory , and on each September 1 13 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date (September 1) Sinking Payments The amounts in the foregoing tables shall be reduced, as a result of any prior partial redemption of the corresponding Series A Bonds or Series B Bonds pursuant to Section 2.03(A)(i) above, as specified in writing by the Finance Director to the Fiscal Agent, in inverse order of sinking fund payment date. (B) Notice to Fiscal Agent. The Authority shall give the Fiscal Agent written notice of its intention to redeem Bonds pursuant to subsection (A)(i) not less than sixty (60) days prior to the applicable redemption date. (C) Purchase of Bonds in Lieu of Redemption. In lieu of redemption under Section 2.03(A), moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding Bonds, upon the filing with the Fiscal Agent of an Officer's Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer's Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase and any premium which would otherwise be due if such Bonds were to be redeemed in accordance with this Agreement. (D) Redemption Procedure by Fiscal Agent. The Fiscal Agent shall cause notice of any redemption to be mailed by first class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the Original Purchaser, to the Securities Depositories, to one or more Information Services, and to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books in the Principal Office of the Fiscal Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice, or any defect therein, shall not affect the validity of the proceedings for the redemption of such Bonds. Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers and Bond numbers of the Bonds to be redeemed by giving the individual CUSIP number and Bond number of each Bond to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Principal Office of the Fiscal Agent for redemption at the said redemption price, and 14 shall state that further interest on such Bonds will not accrue from and after the redemption date. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, of the Bonds being redeemed with the proceeds of such check or other transfer. Whenever provision is made in this Agreement for the redemption of less than all of the Bonds or any given portion thereof, the Fiscal Agent shall select the Bonds to be redeemed, from all Bonds or such given portion thereof not previously called for redemption, among maturities as directed in writing by the Finance Director (who shall specify Bonds to be redeemed so as to maintain, as much as practicable, the same debt service profile for the Bonds as in effect prior to such redemption), and by lot within a maturity, such selection within a maturity to be done in any manner which the Fiscal Agent deems appropriate. Upon surrender of Bonds redeemed in part only, the Authority shall execute and the Fiscal Agent shall authenticate and deliver to the registered Owner, at the expense of the Authority, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. (E) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Bond Fund, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. All Bonds redeemed and purchased by the Fiscal Agent pursuant to this Section shall be canceled by the Fiscal Agent. The Fiscal Agent shall destroy the canceled Bonds and issue a certificate of destruction thereof to the Authority. Section 2.04. Form of Bonds. The Bonds, the form of Fiscal Agent's certificate of authentication and the form of assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit A attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Agreement, the Resolution and the Act. Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the Authority by the facsimile signatures of its Chairperson and Secretary who are in office on the date of adoption of this Agreement or at any time thereafter, and the seal of the Authority shall be impressed, imprinted or reproduced by facsimile signature thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the owner, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the owner. Any Bond may be signed and attested on behalf of the Authority by such persons as at the actual date of the execution of such Bond shall be the proper officers of the Authority although at the nominal date of such Bond any such person shall not have been such officer of the Authority. Only such Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit A, executed and dated by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of authentication of the Fiscal Agent shall be conclusive evidence that the Bonds registered 15 hereunder have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement. Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer shall be paid by the Authority. The Fiscal Agent shall collect from the Owner requesting such transfer any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount of authorized denomination(s). No transfers of Bonds shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same series and maturity. The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such exchange shall be paid by the Authority. The Fiscal Agent shall collect from the Owner requesting such exchange any tax or other governmental charge required to be paid with respect to such exchange. No exchanges of Bonds shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Section 2.08. Bond Register. The Fiscal Agent will keep or cause to be kept, at its Principal Office sufficient books for the registration and transfer of the Bonds, which books shall show the series number, date, amount, rate of interest and last known owner of each Bond and shall at all times be open to inspection by the Authority during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the Bonds as hereinbefore provided. The Authority and the Fiscal Agent will treat the Owner of any Bond whose name appears on the Bond register as the absolute Owner of such Bond for any and all purposes, and the Authority and the Fiscal Agent shall not be affected by any notice to the contrary. The Authority and the Fiscal Agent may rely on the address of the Bondowner as it appears in the Bond register for any and all purposes. Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such authorized denominations as may be determined by the Authority, and may contain such reference to any of the provisions of this Agreement as may be appropriate. Every temporary Bond shall be executed by the Authority upon the same conditions and in substantially the same manner as the definitive Bonds. If the Authority issues temporary Bonds it will execute and furnish definitive Bonds without delay 16 and thereupon the temporary Bonds shall be surrendered, for cancellation, in exchange for the definitive Bonds at the Principal Office of the Fiscal Agent or at such other location as the Fiscal Agent shall designate, and the Fiscal Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary bonds shall be entitled to the same benefits under to this Agreement as definitive Bonds authenticated and delivered hereunder. Section 2.10. Bonds Mutilated, Lost. Destroyed or Stolen. If any Bond shall become mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent shall be canceled by it and destroyed by the Fiscal Agent who shall deliver a certificate of destruction thereof to the Authority. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Fiscal Agent and, if such evidence be satisfactory to it and indemnity for the Authority and the Fiscal Agent satisfactory to the Fiscal Agent shall be given, the Authority, at the expense of the Owner, shall execute, and the Fiscal Agent shall authenticate and deliver, a new Bond of like tenor and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Authority may require payment of a sum not exceeding the actual cost of preparing each new Bond delivered under this Section and of the expenses which may be incurred by the Authority and the Fiscal Agent for the preparation, execution, authentication and delivery. Any Bond delivered under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the Authority whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement. Section 2.11. Limited Obligation. All obligations of the Authority under this Agreement and the Bonds shall be special obligations of the Authority, payable solely from the Special Tax Revenues (except for amounts identified in clause (ii) of the first sentence of section 4.06(A)) and the funds pledged therefore hereunder. Neither the faith and credit nor the taxing power of the Authority (except to the limited extent set forth herein) or the State of California or any political subdivision thereof is pledged to the payment of the Bonds. Section 2.12. No Acceleration. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section shall in any way prohibit the redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Agreement under Section 9.03 hereof. 17 ARTICLE III ISSUANCE OF BONDS Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement, the Authority may issue the Bonds for the District in the aggregate principal amount set forth in Section 2.01 and deliver the Bonds to the Original Purchaser. The Authorized Officers of the Authority are hereby authorized and directed to deliver any and all documents and instruments necessary to cause the issuance of the Bonds in accordance with the provisions of the Act, the Resolution and this Agreement, to authorize the payment of Costs of Issuance from the proceeds of the Bonds and to do and cause to be done any and all acts and things necessary or convenient for delivery of the Bonds to the Original Purchaser. Section 3.02. Pledge of Special Tax Revenues. The Bonds shall be secured by a first pledge (which pledge shall be effected in the manner and to the extent herein provided) of all of the Special Tax Revenues (except for amounts identified in clause (ii) of the first sentence of Section 4.06(A)) and all moneys deposited in the Bond Fund and the Reserve Fund and, until disbursed as provided herein, in the Special Tax Fund (except for amounts identified in clause (ii) of the first sentence of Section 4.06(A)). The Special Tax Revenues and all moneys deposited into said funds (except as otherwise provided herein) are hereby dedicated to the payment of the principal of, and interest and any premium on, the Bonds as provided herein and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in accordance with Section 9.03. Amounts in the Administrative Expense Fund, the Costs of Issuance Fund and the Refunding Fund are not pledged to the repayment of the Bonds. Any moneys held by the Fiscal Agent or otherwise to be used to satisfy and retire the Assessment Liens are not pledged to the repayment of the Bonds. Section 3.03. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the completion of the refinancing of the Assessment Liens with the proceeds of the Bonds or upon the performance by any person of such persons obligation(s) with respect to the refinancing of the Assessment Liens. 18 ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. Deposits of Bond Proceeds. The proceeds of the purchase of the Series A Bonds by the Original Purchaser thereof shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and deposit such proceeds on the Closing Date as follows: (A) to the Bond Fund (B) to the Reserve Fund $ as of the Closing Date); (being an amount equal to the Reserve Requirement (C) to the Costs of Issuance Fund $ (D) to the Refunding Fund $ ; and (E) $ to a temporary account in the records of the Fiscal Agent hereby created for such purpose, for immediate transfer to the Finance Director, for deposit by the Finance Director in the Administrative Expense Fund. The proceeds of the purchase of the Series B Bonds by the Original Purchaser thereof shall be paid to the Fiscal Agent, who shall forthwith set aside, pay over and deposit such proceeds on the Closing Date as follows: (X) to the Bond Fund $ ; (Y) to the Costs of Issuance Fund $ ; and (Z) to the Refunding Fund $ Any Letter of Credit provided to the Fiscal Agent on the Closing Date shall be held by the Fiscal Agent for the benefit of the Reserve Fund. Section 4.02. Refunding Fund. (A) Establishment of Refunding Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Refunding Fund, to the credit of which a deposit shall be made as required by Section 4.01(D) and 4.01(Z). Moneys in the Refunding Fund shall be held in trust by the Fiscal Agent for the benefit of the Authority, and shall be disbursed, as provided in subsection (B) of this Section. (B) Procedure for Disbursement. On the Closing Date, all amounts on deposit in the Refunding Fund shall be transferred by the Fiscal Agent to U.S. Bank Trust National Association, as escrow bank under the Escrow Agreement, dated as of July 1, 1998, by and between the Authority and the escrow bank, to be used to pay in full and discharge the Assessment Liens as provided in said escrow agreement. After disbursement of all amounts on deposit in the Refunding Fund, the Refunding Fund shall be dosed. 19 Section 4.03. Costs of Issuance Fund. (A) Establishment of Costs of Issuance Fund. There is hereby established as a separate fund to be held by the Fiscal Agent, the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Costs of Issuance Fund, to the credit of which a deposit shall be made as required by Section 4.01(C) and 4.01(Y). Moneys in the Costs of Issuance Fund shall be held in trust by the Fiscal Agent and shall be disbursed as provided in subsection (B) of this Section for the payment or reimbursement of Costs of Issuance. (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance, as set forth in a requisition containing respective amounts to be paid to the designated payees, signed by the Finance Director and delivered to the Fiscal Agent concurrently with the delivery of the Bonds; provided that amounts deposited pursuant to Section 4.01(C) shall be used for such purpose prior to the use of amounts deposited therein pursuant to Section 4.01(Y). The Fiscal Agent shall pay all Costs of Issuance after receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee pursuant to an Officer's Certificate requesting payment of Costs of Issuance. The Fiscal Agent shall maintain the Costs of Issuance Fund for a period of 90 days from the date of delivery of the Bonds and then shall transfer any moneys remaining therein, including any investment earnings thereon, to the Finance Director for deposit by the Finance Director in the Administrative Expense Fund. (C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Fiscal Agent in the Costs of Issuance Fund to be used for the purposes of such fund. Section 4.04. Reserve Fund. (A) Establishment of Fund. There is hereby established as a separate fund to be held by the Fiscal Agent the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Reserve Fund, to the credit of which a deposit shall be made as required by Section 4.01(B) equal to the Reserve Requirement as of the Closing Date for the Bonds, and deposits shall be made as provided in Section 4.06(B). Moneys in the Reserve Fund shall be held in trust by the Fiscal Agent for the benefit of the Owners of the Bonds as a reserve for the payment of principal of, and interest and any premium on, the Bonds and shall be subject to a lien in favor of the Owners of the Bonds. (B) Use of Reserve Fund~ Except as otherwise provided in this Section, all amounts deposited in the Reserve Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the Bond Fund of the amount then required for payment of the principal of, and interest and any premium on, the Bonds or, in accordance with the provisions of this Section, for the purpose of redeeming Bonds from the Bond Fund. In making transfers to the Bond Fund from the Reserve Fund, the Fiscal Agent shall use moneys transferred to the Reserve Fund pursuant to Section 4.04(H)(ii)(c) prior to the use of any other moneys deposited to the Reserve Fund. (C) Transfer Due to Deficiency in Bond Fund. Whenever transfer is made from the Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund, the Fiscal Agent shall provide written notice thereof to the Finance Director, specifying the amount withdrawn. (D) Transfer of Excess of Reserve Requirement. Whenever, on the Business Day prior to any Interest Payment Date,' or on any other date at the request of the Finance Director, the 20 amount in the Reserve Fund exceeds the Reserve Requirement (without regard to any amount deposited to the Reserve Fund pursuant to Section 4.04(H)(ii)(c)), the Fiscal Agent shall provide written notice to the Finance Director of the amount of the excess and shall transfer an amount equal to the excess from the Reserve Fund to the Bond Fund to be used for the payment of interest on the Bonds on the next Interest Payment Date in accordance with Section 4.05. (E) Transfer When Balance Exceeds Outstanding Bonds. Whenever the balance in the Reserve Fund equals or exceeds the amount required to redeem or pay the Outstanding Bonds, including interest accrued to the date of payment or redemption and premium, if any, due upon redemption, the Fiscal Agent shall upon the written direction of the Finance Director transfer the amount in the Reserve Fund to the Bond Fund to be applied, on the next succeeding Interest Payment Date to the payment and redemption, in accordance with Section 2.03 or 4.05, as applicable, of all of the Outstanding Bonds. In the event that the amount so transferred from the Reserve Fund to the Bond Fund exceeds the amount required to pay and redeem the Outstanding Bonds, the balance in the Reserve Fund shall be transferred to the Authority to be used for any lawful purpose of the Authority. Notwithstanding the foregoing, no amounts shall be transferred from the Reserve Fund pursuant to this Section 4.04(E) until after (i) the calculation of any amounts due to the federal government pursuant to Section 5.13 following payment of the Bonds and withdrawal of any such amount from the Reserve Fund for purposes of making such payment to the federal government, and (ii) payment of any fees and expenses due to the Fiscal Agent. (F) Transfer Upon Special Tax Prepayment. Whenever Special Taxes are prepaid and Bonds are to be redeemed with the proceeds of such prepayment pursuant to Section 2.03(A)(i) and Section 4.05(B)(ii), a proportionate amount in the Reserve Fund (determined on the basis of the principal of Bonds to be redeemed, and the original principal of the Bonds) shall be transferred on the Business Day prior to the redemption date by the Fiscal Agent to the Bond Fund to be applied to the redemption of the Bonds pursuant to Section 2.03(A)(i). (G) Investment and Transfer to Pay Rebate. Moneys in the Reserve Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained in the Reserve Fund to be used for the purposes thereof as provided in this Section 4.04. Amounts in the Reserve Fund may at any time be used, at the written direction of an Authorized Officer, for purposes of paying any rebate liability under Section 5.13. (H) The Letter of Credit. (i) Holding of Letters of Credit. The Fiscal Agent shall hold any Letter of Credit delivered to it for the benefit of the Reserve Fund. (ii) Draws on Letters of Credit. (a) The Fiscal Agent shall draw upon a Letter of Credit promptly following receipt by the Fiscal Agent of a written direction of the Finance Director instructing the Fiscal Agent to draw on a Letter of Credit, identifying the Letter of Credit and the amount to be so drawn, and to the effect that Special Taxes levied in the District on parcels to which such Letter of Credit pertains are then delinquent in the amount so to be drawn on the Letter of Credit. Notwithstanding the foregoing, no draw shall be made on any Letter of Credit in respect of a parcel described in clauses (b)(2) or (3) of Section 4.04(H)(iii). The amount received pursuant to any draw on a Letter of Credit under this Section 4.04(H)(ii)(a) shall in no way reduce or act as a credit in respect of the amount of any Special Taxes that have been levied in the District on any parcel. (b) In addition to the foregoing, on or prior to July 29, 2003, the Fiscal Agent shall draw upon the full amount available under a Letter of Credit ten days prior to the 21 expiration of the Letter of Credit, unless the Fiscal Agent receives a replacement thereof, in such amount, prior to such date, which satisfies the requirements set forth in the definition "Letter of Credit" in Section 1.03 hereof. (c) The proceeds of any draw on a Letter of Credit pursuant to this Section 4.04(H)(ii)(a) shall be held by the Fiscal Agent in a separate subaccount within the Reserve Fund created by the Fiscal Agent for such purpose, to be disposed of as follows: (1) if the Finance Director certifies in writing to the Fiscal Agent, within 30 days of the draw by the Fiscal Agent on the Letter of Credit, that the Special Tax delinquency with respect to which the draw was made has been fully cured by payment of the Special Taxes due (together with any applicable penalties and interest), the Fiscal Agent shall remit the proceeds of the draw to the provider of the Letter of Credit upon which the draw was made, and (2) if no such certification has been received by the Fiscal Agent, the Fiscal Agent shall on the 31st day following the date of the draw remit the proceeds of the draw to the Bond Fund, to be used for purposes of the Bond Fund. The Finance Director shall take into account, in determining future Special Tax levies, any amount so transferred to the Bond Fund, and shall apply the amount so transferred as a credit against future Special Tax levies against the parcel or parcels with respect to which the draw was made (no credit, however shall be given with respect to Special Taxes theretofore levied on any such parcel). The proceeds of any draw on a Letter of Credit pursuant to this Section 4.04(H)(ii)(a) shall be held by the Fiscal Agent in a separate subaccount within the Reserve Fund created by the Fiscal Agent for such purpose, to be disposed of as follows: (1) if within 30 days of the draw by the Fiscal Agent on the Letter of Credit, the Fiscal Agent receives a Letter of Credit which satisfies the requirements set forth in the definition "Letter of Credit" in Section 1.03 hereof with a face amount equal to the amount so drawn, the Fiscal Agent shall remit the proceeds of the draw to the provider of the Letter of Credit upon which the draw was made, and (2) if no such replacement Letter of Credit has been received by the Fiscal Agent, the Fiscal Agent shall on the 31st day following the date of the draw remit the proceeds of the draw to the Reserve Fund, to be used for purposes of the Reserve Fund. (iii) Reduction of Letters of Credit. The Fiscal Agent shall cooperate with the Finance Director and the provider of the Letter of Credit in reducing the amount available to be drawn on the Letter of Credit as follows: (a) upon receipt by the Finance Director of any Special Taxes levied in the District which are paid on or prior to their due date, the Finance Director shall direct the Fiscal Agent to reduce the amount available to be drawn under the Letter of Credit furnished in respect of the applicable parcel, by the amount of Special Taxes so received by the Authority; and (b) upon the written request by the provider of the Letter of Credit or the account party thereon to the Finance Director accompanied by a certification to the effect that, with respect to the Riverside County Assessor's Parcel Numbers identified therein, all Special Taxes and ad valorem property taxes levied on such parcels have been paid in full, (1) a tentative tract map has been approved by the City for such parcels and the assessed or appraised value (any such appraisal to accompany such request) of the parcels is at least three times the Special Tax prepayment amount (based upon the Rate and Method of Apportionment of the Special Taxes for the District) for such parcels, and evidence acceptable to the Finance Director is provided that an amount equal to two times the Special Tax prepayment amount has been expended towards the costs of improvements of benefit to each such parcel; or (2) if the parcels are zoned for 22 commercial development, a certificate of occupancy has been issued for a structure or structures located on each of such parcels; or (3) if such parcel is zoned for residential development, an escrow has closed with respect to the sale of the respective parcel, improved with a residential structure, to a prospective homeowner; then the Finance Director shall direct the Fiscal Agent to reduce the amount available to be drawn under the Letter of Credit by an amount equal to the amount of Special Taxes reasonably estimated by the Finance Director that would be levied on such parcels from the date of receipt of such written request to July 29, 2003; and (c) upon receipt by the Fiscal Agent of a Letter of Credit which satisfies the requirements set forth in the definition of "Letter of Credit" in Section 1.03 hereof in substitution or replacement for all or a portion of the amount available to be drawn under any Letter of Credit then held by the Fiscal Agent, accompanied by a written statement of the provider of or account party under such new Letter of Credit as to the parcels and the outstanding Letter of Credit to which the new Letter of Credit pertains, the amount under the then applicable outstanding Letter of Credit may be reduced by the amount available to be drawn under the new Letter of Credit; provided, however, there shall be no more than five (5) Letters of Credit held by the Fiscal Agent hereunder at any time and the Fiscal Agent shall not accept any proposed letter of credit in excess of the maximum number set forth in this proviso. Reductions of Letters of Credit pursuant to this Section 4.04(H)(iii) shall only occur on a semiannual basis, on each January 15 and July 15, based upon Special Taxes paid and written requests and proposed substitute letters of credit received, on or prior to the immediately preceding January 5 and July 5, respectively. (iv) Release of Letters of Credit. On July 30, 2003, the Fiscal Agent shall return all Letters of Credit then held by the Fiscal Agent to the respective providers thereof. (v) Reliance on Advisors. In making determinations under this Section 4.04(H), the Finance Director may conclusively rely upon certificates of any Independent Financial Consultant, Tax Consultant and/or appraiser, and shall have no liability in respect thereof. Section 4.05. Bond Fund. (A) Establishment of Bond Fund and Special Tax Prepayments Account. There is hereby established as a separate fund to be held by the Fiscal Agent the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Bond Fund, to the credit of which deposits shall be made as required by Sections 4.01(A), 4.04(B), 4.04(D), 4.04(F), 4.04(G), 4.04(H) and 4.06(B), and any other amounts required to be deposited therein by this Agreement or the Act. There is also hereby created in the Bond Fund, a separate account held by the Fiscal Agent, the Special Tax Prepayments Account, to the credit of which deposits shall be made as provided in Section 4.06(B). Moneys in the Bond Fund and the account therein shall be held in trust by the Fiscal A, gent for the benefit of the Owners of the Bonds, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below, and, pending such disbursement, shall be subject to a lien in favor of the Owners of the Bonds. (B) Disbursements. (i) Bond Fund Disbursements. On each Interest Payment Date, the Fiscal Agent shall withdraw from the Bond Fund and pay to the Owners of the Bonds the principal, and interest and any premium, then due and payable on the Bonds, including any amounts due on the Bonds by reason of the sinking payments set 23 forth in Section 2.03(A)(ii), or a redemption of the Bonds required by Section 2.03(A)(i), such payments to be made in the priority listed in the second succeeding paragraph. In the event that amounts in the Bond Fund are insufficient for the purposes set forth in the preceding paragraph, the Fiscal Agent shall withdraw from the Reserve Fund to the extent of any funds therein amounts to cover the amount of such Bond Fund insufficiency. Amounts so withdrawn from the Reserve Fund shall be deposited in the Bond Fund. If, after the foregoing transfers, there are insufficient funds in the Bond Fund to make the payments provided for in the first sentence of the first paragraph of this Section 4.02(B)(i), the Fiscal Agent shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds other than by reason of sinking payments, and then to payment of principal due on the Bonds by reason of sinking payments. Any sinking payment not made as scheduled shall be added to the sinking payment to be made on the next sinking payment date. (ii) Special Tax Prepayments Account Disbursements. Moneys in the Special Tax Prepayments Account shall be transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds can timely be given under Section 2.03(A)(i), and notice to the Fiscal Agent can timely be given under Section 2.03(B), and shall be used (together with any amounts transferred pursuant to Section 4.04(F)) to redeem Bonds on the redemption date selected in accordance with Section 2.03. (C) Investment. Moneys in the Bond Fund and the Special Tax Prepayments Account shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from the investment and deposit of amounts in the Bond Fund and the Special Tax Prepayments Account shall be retained in the Bond Fund and the Special Tax Prepayments Account, respectively, to be used for purposes of such fund and accounts. Section 4.06. Special Tax Fund. (A) Establishment of Special Tax Fund. There is hereby established as a separate fund to be held by the Finance Director, the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Special Tax Fund, to the credit of which the Authority shall deposit, as soon as practicable following receipt, all Special Tax Revenues received by the Authority and any amounts required by Section 4.07(B) to be deposited therein; provided that (i) any proceeds of Special Tax Prepayments shall be transferred by the Finance Director to the Fiscal Agent for deposit by the Fiscal Agent in the Special Tax Prepayments Account established pursuant to Section 4.05(A), and (ii) any proceeds of delinquent Special Tax levies with respect to which a draw has been made on a Letter of Credit pursuant to Section 4.04(H)(ii)(a) shall be remitted by the Finance Director to the provider of the Letter of Credit, but only in an amount up to the amount of proceeds of any such draw received by the Fiscal Agent. Except as provided in the preceding clause (ii), moneys in the Special Tax Fund shall be held in trust by the Authority for the benefit of the Authority and the Owners of the Bonds, shall be disbursed as provided below and, pending disbursement, shall be subject to a lien in favor of the Owners of the Bonds and the Authority. (B) Disbursements. From time to time as needed to pay the obligations of the District, but no later than five (5) Business Days before each Interest Payment Date, the Finance Director shall withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority (i) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any expected transfers from the Reserve Fund and the Special Tax Prepayments Account to the Bond Fund pursuant to Sections 4.04(D), (F) and (G), such 24 that the amount in the Bond Fund equals the principal (including any sinking payment), premium, if any, and interest due on the Bonds on the next Interest Payment Date, (ii) to the Reserve Fund an amount, taking into account amounts then on deposit in the Reserve Fund, such that the amount in the Reserve Fund is equal to the Reserve Requirement. In addition to the foregoing amounts, in the Special Tax Fund shall be transferred by the Finance Director to the Administrative Expense Fund from time to time as necessary for purposes of the Administrative Expense Fund, provided that any such transfers shall not exceed the portion of the Special Taxes collected by the District that was levied in respect of Administrative Expenses. (C) Investment. Moneys in the Special Tax Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Special Tax Fund to be used for the purposes thereof. Section 4.07. Administrative Expense Fund. (A) Establishment of Administrative Expense Fund. There is hereby established as a separate fund to be held by the Finance Director, the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, Administrative Expense Fund to the credit of which deposits shall be made as required by Sections 4.01(E), 4.03(B) and 4.06(B). Moneys in the Administrative Expense Fund shall be held in trust by the Finance Director for the benefit of the Authority, and shall be disbursed as provided below. (B) Disbursement. Amounts in the Administrative Expense Fund shall be withdrawn by the Finance Director and paid to the Authority or its order upon receipt by the Finance Director of an Officer's Certificate stating the amount to be withdrawn, that such amount is to be used to pay an Administrative Expense or a Costs of Issuance, and the nature of such Administrative Expense or Costs of Issuance. Amounts initially deposited to the Administrative Expense Fund pursuant to Section 4.01(E) and amounts transferred from the Costs of Issuance Fund to the Administrative Expense Fund pursuant to Section 4.03(B) shall be separately identified at all times, and shall be expended for purposes of the Administrative Expense Fund prior to the use of amounts transferred to the Administrative Expense Fund from the Special Tax Fund pursuant to Section 4.06(B). Annually, on the last day of each Fiscal Year commencing with the last day of Fiscal Year 1998-1999, the Finance Director shall withdraw any amounts then remaining in the Administrative Expense Fund that have not been allocated to pay Administrative Expenses incurred but not yet paid, and which are not otherwise encumbered, and transfer such amounts to the Special Tax Fund. (C) Investment. Moneys in the Administrative Expense Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained by the Finance Director in the Administrative Expense Fund to be used for the purposes thereof. 25 ARTICLE V OTHER COVENANTS OF THE CITY Section 5.01. Punctual Payment. The Authority will punctually pay or cause to be paid the principal of, and interest and any premium on, the Bonds when and as due in strict conformity with the terms of this Agreement and any Supplemental Agreement, and it will faithfully observe and perform all of the conditions covenants and requirements of this Agreement and all Supplemental Agreements and of the Bonds. Section 5.02. Limited Obligation. The Bonds are limited obligations of the Authority on behalf of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Bond Fund, the Reserve Fund and the Special Tax Fund created hereunder (except for amounts identified in clause (ii) of the first sentence of Section 4.06(A)). Section 5.03. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the Authority shall not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and shall not, directly or indirectly, be a party to the approval of any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the Authority, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have so extended or funded. Section 5.04. Against Encumbrances. The Authority will not encumber, pledge or place any charge or lien upon any of the Special Tax Revenues or other amounts pledged to the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the Bonds, except as permitted by this Agreement. Section 5.05. Books and Records. The Authority will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Authority, in which complete and correct entries shall be made of all transactions .relating to the expenditure of amounts disbursed from the Administrative Expense Fund and the Special Tax Fund and to the Special Tax Revenues. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Fiscal Agent and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing. The Fiscal Agent will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Fiscal Agent, in which complete and correct entries shall be made of all transactions relating to the expenditure of amounts disbursed from the Bond Fund, the Refunding Fund, the Reserve Fund and the Costs of Issuance Fund. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Authority and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives duly authorized in writing. Section 5.06. Protection of Security and Rights of Owners. The Authority will preserve and protect the security of the Bonds and the rights of the Owners, and will warrant and 26 defend their rights against all claims and demands of all persons. From and after the delivery of any of the Bonds by the Authority, the Bonds shall be incontestable by the Authority. Section 5.07. Compliance with Law. The Authority will comply with all applicable provisions of the Act and law in administering the District. Section 5.08. Collection of Special Tax Revenues. The Authority shall comply with all requirements of the Act so as to assure the timely collection of Special Tax Revenues, including without limitation, the enforcement of delinquent Special Taxes. On or within five (5) Business Days of each June 1, the Fiscal Agent shall provide the Finance Director with a notice stating the amount then on deposit in the Bond Fund, the Capitalized Interest Account and the Reserve Fund, and informing the Authority that the Special Taxes may need to be levied pursuant to the Ordinance as necessary to provide for Annual Debt Service and Administrative Expenses and replenishment (if necessary) of the Reserve Fund so that the balances therein equal the Reserve Requirement. The receipt of or failure to receive such notice by the Finance Director shall in no way affect the obligations of the Finance Director under the following two paragraphs, and the Fiscal Agent shall not be responsible for any inability or failure to provide such notice. Upon receipt of such notice, the Finance Director shall communicate with the Auditor to ascertain the relevant parcels on which the Special Taxes are to be levied, taking into account any parcel splits during the preceding and then current year. The Finance Director shall effect the levy of the Special Taxes each Fiscal Year in accordance with the Ordinance by each August 1 that the Bonds are outstanding, or otherwise such that the computation of the levy is complete before the final date on which Auditor will accept the transmission of the Special Tax amounts for the parcels within the District for inclusion on the next real property tax roll. Upon the completion of the computation of the amounts of the levy, the Finance Director shall prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the levy of the Special Taxes on the next real property tax roll. The Finance Director shall fix and levy the amount of Special Taxes within the District required for the payment of principal of and interest on any outstanding Bonds of the District becoming due and payable during the ensuing year, including any necessary replenishment or expenditure of the Reserve Fund for the Bonds and an amount estimated to be sufficient to pay the Administrative Expenses (including amounts necessary to discharge any obligation under Section 5.13) during such year, taking into account the balances in such funds and in the Special Tax Fund. The Special Taxes so levied shall not exceed the authorized amounts as provided in the proceedings pursuant to the Resolution of Formation. The Special Taxes shall be payable and be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the same priority, become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the ad valorem taxes on real property. Notwithstanding the foregoing, the Finance Director may in his discretion cause the collection of any Special Taxes by direct, first class mail billing to the then owner of each parcel so owned in lieu of billing for such Special Taxes in the same manner as general taxes as aforesaid. Such direct mail billing shall be made not later than November 1 of the Fiscal Year and shall direct the owner of the property affected to pay the Special Taxes directly to the Finance Director in two equal installments, the first of which shall be due and delinquent if not paid on December 10 and the second of which may be paid with the first and which, in any 27 event, shall be due and delinquent if not paid on April 10 of the Fiscal Year. Any such Special Taxes so billed shall have the same priority and bear the same proportionate penalties and interest after delinquency as do the ad valorem taxes on real property. On or prior to April 10, 2003, in the event of any delinquency in the payment of Special Taxes, the Finance Director shall direct the Fiscal Agent to draw upon the Letter of Credit in the amount of such delinquency, pursuant to Section 4.04 (H). Section 5.09. Covenant to Foreclose. Pursuant to Section 53356.1 of the Act, the Authority hereby covenants with and for the benefit of the owners of the Bonds that it will order, and cause to be commenced as hereinafter provided, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due as provided in the following two paragraphs. The Finance Director shall notify the City Attorney of any such delinquency of which it is aware, and the City Attorney shall commence, or cause to be commenced, such proceedings. On or before July 1st of each Fiscal Year, the Finance Director shall compare the amount of Special Taxes theretofore levied in the District to the amount of Special Tax Revenues theretofore received by the Authority, and if the amount so collected is less than 95% of the amount of the Special Taxes levied in such Fiscal Year, the Authority will undertake and diligently prosecute foreclosure proceedings not later than the succeeding November 1 in the manner prescribed in the Act to collect the amount of any delinquent Special Tax due from such property. Initiation of such foreclosure proceedings may be deferred in the amount on deposit in the Reserve Fund is maintained at a level at least equal to the Reserve Requirement. Notwithstanding the foregoing, if the aggregate Special Taxes levied on any parcels owned by a single owner is in excess of $20,000 for any Fiscal Year, then the Authority will review the records of the County in connection with the collection of the Special Taxes no later than February 15 and June 1 of each year to determine if there is any delinquency with respect to the payment of the Special Taxes on such parcel or parcels, and, if any amount is delinquent, the Authority will commence within 150 days of the delinquency and diligently prosecute and pursue foreclosure proceedings against such parcel or parcels to judgment sale. Section 5.10. Further Assurances. The Authority will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry' out the intention or to facilitate the performance of this Agreement, and for the better assuring and confirming unto the Owners of the rights and benefits provided in this Agreement. Section 5.11. Private Activity Bond Limitations. The Authority shall assure that the proceeds of the Series A Bonds are not so used as to cause the Series A Bonds to satisfy the private business tests of section 141(b) of the Code or the private loan financing test of section 141(c) of the Code. Section 5.12. Federal Guarantee Prohibition. The Authority shall not take any action or p~rmit or suffer any action to be taken if the result of the same would be to cause the Series A Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. Section 5.13. Rebate Requirement. The Authority shall take any and all actions necessary to assure compliance with section 148(f) of the Code, relating to the rebate of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Series A Bonds. 28 If necessary, the Authority may use amounts in the Reserve Fund, amounts on deposit in the Administrative Expense Fund, and any other funds available to the District, including amounts advanced by the Authority, in its sole discretion, to be repaid by the District as soon as practicable from amounts described in the preceding clauses, to satisfy its obligations under this Section 5.13. The Finance Director shall take note of any investment of Moines hereunder in excess of the yield on the Bonds, and shall take such actions as are necessary to ensure compliance with this Section 5.13, such as increasing the portion of the Special Tax levy for Administration Expenses as appropriate to have funds available in the Administrative Expense Fund to satisfy any rebate liability under this Section 5.13. Section 5.14. No Arbitrage. The Authority shall not take, or permit or suffer to be taken by the Fiscal Agent or otherwise, any action with respect to the proceeds of the Series A Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Series A Bonds would have caused the Series A Bonds to be "arbitrage bonds" within the meaning of section 148 of the Code. Section 5.15. Yield of the Bonds. In determining the yield of the Series A Bonds to comply with Section 5.13 and 5.14 hereof, the Authority will take into account redemption (including premium, if any) in advance of maturity based on the reasonable expectations of the Authority, as of the Closing Date, regarding prepayments of Special Taxes and use of prepayments for redemption of the Series A Bonds, without regard to whether or not prepayments are received or Series A Bonds redeemed. Section 5.16. Maintenance of Tax-Exemption. The Authority shall take all actions necessary to assure the exclusion of interest on the Series A Bonds from the gross income of the Owners of the Series A Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Series A Bonds. Section 5.17. Continuing Disclosure to Owners. In addition to its obligations under Section 9.07, the Authority hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement. Notwithstanding any other provision of this Agreement, failure of the Authority to comply with the Continuing Disclosure Agreement shall not be considered a default hereunder; however, any Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance by the Authority of its obligations thereunder, including seeking mandate or specific performance by court order. The owners of the real property in the District as of the Closing Date has also executed a continuing disclosure agreement for the benefit of the holders and beneficial owners of the Bonds. Any Participating Underwriter or holder or beneficial owner may take such actions as may be necessary and appropriate directly against such landowners to compel performance by such landowner of its obligations thereunder, including seeking mandate or specific performance by court order; however the Authority shall have no obligation whatsoever to enforce any obligations under any such agreement. Section 5.18. Reduction of Maximum Taxes. Following the Closing Date, the Authority shall take such actions as are necessary under the Act to reduce the maximum Special Taxes that may be levied in the District to an amount estimated to be 110% of Maximum Annual Debt Service. In effecting such reduction, the Authority may conclusively rely upon a certificate of a Tax Consultant as to the estimated maximum Special Taxes that may be so levied, and the Authority shall have no liability in relying thereon. Section 5.19. Reduction of Special Taxes. The Authority covenants and agrees to not consent or conduct proceedings with respect to a reduction in the maximum Special Taxes that 29 may be levied in the District below an amount, for any Fiscal Year, equal to 110% of Maximum Annual Debt Service. It is hereby acknowledged that Bondowners are purchasing the Bonds in reliance on the foregoing covenant, and that said covenant is necessary to assure the full and timely payment of the Bonds. Section 5.20. Covenants Running With the Land: Guarantee. It is hereby acknowledged that the Bondowners are third party beneficiaries of the Agreement and Covenants Running With the Land, made and entered into as of ,1998, by and between Winchester Hills I LLC and Lennar Homes of California, Inc. ("Lennar"), and that the obligations of Lennar thereunder have been guaranteed by Lennar Corporation pursuant to the guarantee, dated · 1998 of Lennar Corporation with respect thereto. The Authority and the Fiscal Agent shall cooperate with the Bondowners in enforcing rights granted under such documents, but shall have no obligation to take any independent action in respect thereof, and any such cooperation shall be contingent upon provision of indemnity or funds available in the Administrative Expense Fund necessary to cover any costs of the Authority and the Fiscal Agent in respect thereof. 30 ARTICLE VI INVESTMENTS, DISPOSITION OF INVESTMENT PROCEEDS, LIABILITY OF THE AUI~ORITY Section 6.01. Deposit and Investment of Moneys in Funds. Moneys in any fund or account created or established by this Agreement and held by the Fiscal Agent shall be invested by the Fiscal Agent in Permitted Investments, as directed pursuant to an Officer's Certificate filed with the Fiscal Agent at least two (2) Business Days in advance of the making of such investments. In the absence of any such Officer's Certificate, the Fiscal Agent shall invest, to the extent reasonably practicable, any such moneys in United States Treasury obligations, which by their terms mature prior to the date on which such moneys are required to be paid out hereunder, and otherwise hold such amounts uninvested. The Finance Director shall make note of any investment of funds hereunder in excess of the yield on the Bonds, so that appropriate actions can be taken to assure compliance with Section 5.13. Moneys in any fund or account created or established by this Agreement and held by the Finance Director shall be invested by the Finance Director in any Permitted Investment, which in any event by their terms mature prior to the date on which such moneys are required to be paid out hereunder; provided that amounts on deposit in the Administrative Expense Fund may be invested in any lawful investment the Authority may make. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of this Agreement for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts. Whenever in this Agreement any moneys are required to be transferred by the Authority to the Fiscal Agent, such transfer may be accomplished by transferring a like amount of Permitted Investments. The Fiscal Agent and its affiliates or the Finance Director may act as sponsor, advisor, depository, principal or agent in the acquisition or disposition of any investment. Neither the Fiscal Agent nor the Finance Director shall incur any liability for losses arising from any investments made pursuant to this Section. The Fiscal Agent shall not be required to determine the legality of any investments. Except as otherwise provided in the next sentence, all investments of amounts deposited in any fund or account created by or pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the meaning of section 148 of the Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Agreement or the Code) at Fair Market Value. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under the applicable provisions of the Code and (unless valuation is undertaken at least annually) investments in the subaccounts within the Reserve Fund shall be valued at their present value (within the meaning of section 148 of the Code). The Fiscal Agent shall not be liable for verification of the application of such sections of the Code. Investments in any and all funds and accounts may be cornmingled in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Fiscal Agent or the Finance Director hereunder, provided that the Fiscal Agent or the Finance Director, as applicable, shall at all times account for such investments strictly in accordance with the funds and accounts to which they are credited and otherwise as provided in this Agreement. 31 The Fiscal Agent or the Finance Director, as applicable, shall sell at Fair Market Value, or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and neither the Fiscal Agent nor the Finance Director shall be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith. The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive brokerage confirmations of security transactions as they occur, the Authority specifically waives receipt of such confirmations to the extent permitted by law. The Fiscal Agent will furnish the Authority periodic cash transaction statements which include detail for all investment transactions made by the Fiscal Agent hereunder. Section 6.02. Limited Obligation. The Authority's obligations hereunder are limited obligations of the Authority on behalf of the District and are payable solely from and secured solely by the Special Tax Revenues and the amounts in the Special Tax Fund, the Bond Fund (including the Special Tax Prepayments Account therein) and the Reserve Fund created hereunder. Section 6.03. Liability of Authority. The Authority shall not incur any responsibility in respect of the Bonds or this Agreement other than in connection with the duties or obligations explicitly herein or in the Bonds assigned to or imposed upon it. The Authority shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Authority shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions covenants or agreements of the Fiscal Agent herein or of any of the documents executed by the Fiscal Agent in connection with the Bonds, or as to the existence of a default or event of default thereunder. In the absence of bad faith, the Authority, including the Finance Director, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Authority and conforming to the requirements of this Agreement. The Authority, including the Finance Director, shall not be liable for any error of judgment made in good faith unless it shall be proved that it was negligent in' ascertaining the pertinent facts. No provision of this Agreement shall require the Authority to expend or risk its own general funds or otherwise incur any financial liability (other than with respect to the Special Tax Revenues) in the performance of any of its obligations hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. The Authority and the Finance Director may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Authority may consult with counsel, who may be the Authority Attorney, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith. The Authority shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactory established, if disputed. 32 Whenever in the administration of its duties under this Agreement the Authority or the Finance Director shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Authority, be deemed to be conclusively proved and established by a certificate of the Fiscal Agent, an Independent Financial Consultant or a Tax Consultant, and such certificate shall be full warrant to the Authority and the Finance Director for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Authority or the Finance Director may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. Section 6.04. Employment of Agents by Authority. In order to perform its duties and obligations hereunder, the Authority and/or the Finance Director may employ such persons or entities as it deems necessary or advisable. The Authority shall not be liable for any of the acts or omissions of such persons or entities employed by it in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities. 33 ARTICLE VII THE FISCAL AGENT Section 7.01. Appointment of Fiscal Agent. U.S. Bank Trust National Association is hereby appointed Fiscal Agent and paying agent for the Bonds. The Fiscal Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent. Any company into which the Fiscal Agent may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Fiscal Agent may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under the following paragraph of this Section, shall be the successor to such Fiscal Agent without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding. Upon thirty (30) days prior written notice, the Authority may remove the Fiscal Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company having a combined capital (exclusive of borrowed capital) and surplus of at least Fifty Million Dollars ($50,000,000), and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 7.01, combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Fiscal Agent may at any time resign by giving written notice to the Authority and by giving to the Owners notice by mail of such resignation. Upon receiving notice of such resignation, the Authority shall promptly appoint a successor Fiscal Agent by an instrument in writing. Any resignation or removal of the Fiscal Agent shall become effective upon acceptance of appointment by the successor Fiscal Agent. If no appointment of a successor Fiscal Agent shall be made pursuant to the foregoing provisions of this Section within forty-five (45) days after the Fiscal Agent shall have given to the Authority written notice or after a vacancy in the office of the Fiscal Agent shall have occurred by reason of its inability to act, the Fiscal Agent or any Owner may apply to any court of competent jurisdiction to appoint a successor Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem proper, appoint a successor Fiscal Agent. If, by reason of the judgment of any court, or reasonable agency, the Fiscal Agent is rendered unable to perform its duties hereunder, all such duties and all of the rights and powers of the Fiscal Agent hereunder shall be assumed by and vest in the Finance Director of the Authority in trust for the benefit of the Owners. The Authority covenants for the direct benefit of the Owners that its Finance Director in such case shall be vested with all of the rights and powers of the Fiscal Agent hereunder, and shall assume all of the responsibilities and perform all of the duties of the Fiscal Agent hereunder, in trust for the benefit of the Owners of the Bonds. In such event, the Finance Director may designate a successor Fiscal Agent qualified to act as Fiscal Agent hereunder. Section 7.02. Liability of Fiscal Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the Authority, and the Fiscal Agent assumes no responsibility for the correctness of the same, or makes any representations as to the validity or suffidency of this Agreement or of the Bonds, or shall incur any responsibility in respect thereof, other than in connection with the duties or obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent shall not be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. The Fiscal Agent assumes no responsibility or liability for any information, statement or recital in any offering memorandum or other disclosure material prepared or distributed with respect to the issuance of the Bonds. In the absence of bad faith, the Fiscal Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Fiscal Agent and conforming to the requirements of this Agreement; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Fiscal Agent, the Fiscal Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement. Except as provided above in this paragraph, Fiscal Agent shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, in good faith, reasonably and in accordance with the terms of this Agreement, upon any resolution, order, notice, request, consent or waiver, certificate, statement, affidavit, or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper person or to have been prepared and furnished pursuant to any provision of this Agreement, and the Fiscal Agent shall not be under any duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument. The Fiscal Agent shall not be liable for any error of judgment made in good faith unless it shall be proved that the Fiscal Agent was negligent in ascertaining the pertinent facts. No provision of this Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers. The Fiscal Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement at the request or direction of any of the Owners pursuant to this Agreement unless such Owners shall have offered to the Fiscal Agent reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. The Fiscal Agent may become the owner of the Bonds with the same rights it would have if it were not the Fiscal Agent. Section 7.03. Information. The Fiscal Agent shall provide to the Authority such information relating to the Bonds and the funds and accounts maintained by the Fiscal Agent hereunder as the Authority shall reasonably request, including but not limited to quarterly statements reporting funds held and transactions by the Fiscal Agent. Section 7.04. Notice to Fiscal Agent. The Fiscal Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed in good faith by it to be genuine and to have been signed or presented by the proper party or proper parties. The Fiscal Agent may consult with counsel, who may be counsel to the Authority, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and 35 protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith. The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed. Whenever in the administration of its duties under this Agreement the Fiscal Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (tinless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Fiscal Agent, be deemed to be conclusively proved and established by an Officer's Certificate, and such certificate shall be full warrant to the Fiscal Agent for any action taken or suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. Section 7.05. Compensation, Indemnification. The Authority shall pay to the Fiscal Agent from time to time reasonable compensation for all services rendered as Fiscal Agent under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement, but the Fiscal Agent shall not have a lien therefor on any funds at any time held by it under this Agreement. The Authority further agrees, to the extent permitted by applicable law, to indemnify and save the Fiscal Agent, its officers, employees, directors and agents harmless against any costs, expenses, claims or liabilities whatsoever, including without limitation fees and expenses of its attorneys, which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or willful misconduct. The obligation of the Authority under this Section shall survive resignation or removal of the Fiscal Agent under this Agreement and payment of the Bonds and discharge of this Agreement, but any monetary obligation of the Authority arising under this Section shall be limited solely to amounts on deposit in the Administrative Expense Fund. 36 ARTICLE VIII MODIFICATION OR AMENDMENT OF THIS AGREEMENT Section 8.01. Amendments Permitted. This Agreement and the rights and obligations of the Authority and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the Authority to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the Authority of any pledge or lien upon the Special Taxes superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or (iii) reduce the percentage of Bonds required for the amendment hereof. Any such amendment may not modify any of the rights or obligations of the Fiscal Agent without its written consent. This Agreement and the rights and obligations of the Authority and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes: (A) to add to the covenants and agreements of the Authority in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Authority; (B) to make modifications not adversely affecting any outstanding series of Bonds of the Authority in any material respect; (C) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the Authority or the Fiscal Agent may deem necessary or desirable and not inconsistent with this Agreement, and which shall not adversely affect the rights of the Owners of the Bonds; and (D) to make such additions, deletions or modifications as may be necessary or desirable to assure exemption from gross federal income taxation of interest on the Series A Bonds. Section 8.02. Owners' Meetings. The Authority may at any time call a meeting of the Owners. In such event the Authority is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof, and to fix and adopt rules and regulations for the conduct of said meeting. Section 8.03. Procedure for Amendment with Written Consent of Owners. The Authority and the Fiscal Agent may at any time adopt a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds 37 Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided. Such Supplemental Agreement shall not become effective unless there shall be filed with the Fiscal Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this Section provided for has been mailed. After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the Authority shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Fiscal Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article) upon the Authority and the Owners of all Bonds at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty-day period. Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the Authority, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VIII. Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective fights, duties and obligations under this Agreement of the Authority and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such 'modifications and amendments, and all the terms and conditions of any such Supplemental Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes. Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The Authority may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the Authority, as to such action. In that case, upon demand of the Owner of any Bond Outstanding. at such effective date and presentation of his Bond for that purpose at the Principal Office of the Fiscal Agent or at such other office as the Authority may select and designate for that purpose, a suitable notation shall be made on such Bond. The Authority may determine that new Bonds, so modified as in the opinion of the Authority is necessary to 38 conform to such Owners' action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Fiscal Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds. Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him, provided that due notation thereof is made on such Bonds. 39 ARTICLE IX MISCELLANEOUS Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement, expressed or implied, is intended to give to any person other than the Authority, the Fiscal Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the Authority shall be for the sole and exclusive benefit of the Owners and the Fiscal Agent. Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever in this Agreement or any Supplemental Agreement either the Authority or the Fiscal Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the Authority or the Fiscal Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 9.03. Discharge of Agreement. The Authority shall have the option to pay and discharge the entire indebtedness on all or any portion of the Bonds Outstanding in any one or more of the following ways: (A) by well and truly paying or causing to be paid the principal of, and interest and any premium on, such Bonds Outstanding, as and when the same become due and payable; (B) by depositing with the Fiscal Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the funds and accounts provided for in Sections 4.04 and 4.05 is fully sufficient to pay such Bonds Outstanding, including all principal, interest and redemption premiums; or (C) by irrevocably depositing with the Fiscal Agent, in trust, cash and Federal Securities in such amount as the Authority shall determine as confirmed by Bond Counsel or an independent certified public accountant will, together with the interest to accrue thereon and moneys then on deposit in the fund and accounts provided for in Sections 4.04 and 4.05, be fully sufficient to pay and discharge the indebtedness on such Bonds (including all principal, interest and redemption premiums) at or before their respective maturity dates. If the Authority shall have taken any of the actions specified in (A), (B) or (C) above, and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Fiscal Agent shall have been made for the giving of such notice, then, at the election of the Authority, and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the Special Taxes and other funds provided for in this Agreement and all other obligations of the Authority under this Agreement with respect to such Bonds Outstanding shall cease and terminate. Notice of such election shall be filed with the Fiscal Agent. Notwithstanding the foregoing, the obligation of the Authority to pay or cause to be paid to the Owners of the Bonds not so surrendered and paid all sums due thereon, all amounts owing to the Fiscal Agent pursuant to Section 7.05, and otherwise to assure that no action is taken or failed to be taken if such action or failure adversely affects the exclusion of interest on the Bonds from gross income for federal income tax purposes, shall continue in any event. 40 Upon compliance by the Authority with the foregoing with respect to all Bonds Outstanding, any funds held by the Fiscal Agent after payment of all fees and expenses of the Fiscal Agent, which are not required for the purposes of the preceding paragraph,' shall be paid over to the Authority and any Special Taxes thereafter received by the Authority shall not be remitted to the Fiscal Agent but shall be retained by the Authority to be used for any purpose permitted under the Act. Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing. Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books. Any request, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the Authority or the Fiscal Agent in good faith and in accordance therewith. Section 9.05. Waiver of Personal Liability. No member, officer, official, agent or employee of the Authority or the District shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, official, agent or employee from the performance of any official duty provided by law. Section 9.06. Notices to and Demands on Authority and Fiscal Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Fiscal Agent to or on the Authority may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Authority with the Fiscal Agent) as follows: Winchester Hills Financing Authority c/o City of Temecula 43200 Business Park Drive Temecula, CA 92590 Attention: Finance Director Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Authority to or on the Fiscal Agent may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Fiscal Agent with the Authority) as follows (provided that any such notice shall not be effective until actually received by the Fiscal Agent): 41 U.S. Bank Trust National Association 550 South Hope Street, Suite 500 Los Angeles, CA 90071 Attention: Corporate Trust Section 9.07. State Reporting Requirements. The following requirements shall apply to the Bonds, in addition to those requirements under Section 5.17: (A) Annual Reporting. Not later than October 30 of each calendar year, beginning with the October 30 first succeeding the date of the Bonds, and in each calendar year thereafter until the October 30 following the final maturity of the Bonds, the Finance Director shall cause the following information to be supplied to CDIAC: (i) the principal amount of the Bonds Outstanding; (ii) the balance in the Reserve Fund; (iii) the amount of any capitalized interest that was funded for the Bonds and any amount thereof not yet used for such purposes; (iv) the number of parcels in the District which are delinquent in the payment of Special Taxes, the amount of each delinquency, the length of time delinquent and when foreclosure was commenced for each delinquent parcel; and (v) the assessed value of all parcels in the District subject to the levy of the Special Taxes as shown in most recent equalized roll. The annual reporting shall be made using such form or forms as may be prescribed by CDIAC. (B) Other Reporting. If at any time the Fiscal Agent fails to pay principal and interest due on any scheduled payment date for the Bonds, or if funds are withdrawn from the Reserve Fund to pay principal and interest on the Bonds, the Fiscal Agent shall notify the Finance Director of such failure or withdrawal in writing. The Finance Director shall notify CDIAC and the Original Purchasers of such failure or withdrawal within 10 days of such failure or withdrawal. (C) Amendment. The reporting requirements of this Section 9.07 shall be amended from time to time, without action by the Authority or the Fiscal Agent, to reflect any amendments to Section 53359.5(b) or Section 53359.5(c) of the Act. Notwithstanding the foregoing, any such amendment shall not, in itself, affect the Authority's obligations under the Continuing Disclosure Agreement. (D) No Liability. None of the Authority and its officers, agents and employees, the Finance Director or the Fiscal Agent shall be liable for any inadvertent error in reporting the information required by this Section 9.07. Section 9.08. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The Authority hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable. Section 9.09. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Fiscal Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such moneys was held by the Fiscal Agent at such date, shall be repaid by the Fiscal Agent to the Authority as its absolute property free from any trust, and the Fiscal Agent shall thereupon be released and discharged with respect thereto and the Owners shall 42 look only to the Authority for the payment of the principal of, and interest and any premium on, such Bonds. Section 9.10. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California. Section 9.11. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement. Section 9.12. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Special Taxes. Section 9.13. Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period from and after such date. Section 9.14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. 43 IN WITNESS WHEREOF, the Authority caused this Fiscal Agent Agreement to be executed all as of July 1, 1998. WINCHESTER HILLS FINANCING AUTHORITY, for and on behalf of Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) By: Executive Director U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent ATTEST: By: Authorized Officer By: Authorized Officer 23004.01:J3659 EXHIBIT A FORM OF BOND No. INTEREST RATE REGISTERED OWNER: PRINCIPAL AMOUNT: UNITED STATES OF AMERICA STATE OF CALIFORNIA WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) SPECIAL TAX BOND, 1998 SERIES MATURITY DATE September 1, __ BOND DATE July ,1998 CUSIP DOLLARS The Winchester Hills Financing Authority (the "Authority") for and on behalf of Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District"), for value received, hereby promises to pay solely from the Special Tax (as hereinafter defined) to be collected in the District or amounts in the funds and accounts held under the Agreement (as hereinafter defined), to the registered owner named above, or registered assigns, on the maturity date set forth above, unless redeemed prior thereto as hereinafter provided, the principal amount set forth above, and to pay interest on such principal amount from the Bond Date set forth above, or from the most recent interest payment date to which interest has been paid or duly provided for, semiannually on March 1 and September 1, commencing September 1, 1998, at the interest rate set forth above, until the principal amount hereof is paid or made available for payment. The principal of this Bond is payable to the registered owner hereof in lawful money of the United States of America upon presentation and surrender of this Bond at the Principal Offic.e, (as defined in the Agreement referred to below) of U.S. Bank Trust National Association (the Fiscal Agent"). Interest on this Bond shall be paid by check of the Fiscal Agent mailed on each interest payment date to the registered owner hereof as of the close of business on the 15th day of the month preceding the month in which the interest payment date occurs (the "Record Date") at such registered owner's address as it appears on the registration books maintained by the Fiscal Agent, or upon written request filed with the Fiscal Agent prior to any Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of Bonds, by wire transfer in immediately available funds to the depository for the Bonds or to an account in the United States designated by such registered owner in such written request, respectively. The issuance of this Bond was approved by the qualified electors of the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311, et seq., of the California Government Code (the "Mello-Roos Act") for the purpose of refinancing assessment liens on property in the District, and is one of the series of Bonds designated "Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Special Tax Bonds, 1998 Series ~ (the "Bonds") in the aggregate principal amount of A-1 $ The creation of the Bonds and the terms and conditions thereof are provided for by resolution adopted by the Board of Directors of the Authority on June 23, 1998 (the "Resolution"), and the Fiscal Agent Agreement, dated as of July 1, 1998, between the Authority and the Fiscal Agent (the "Agreement") and this reference incorporates the Resolution and the Agreement herein, and by acceptance hereof the owner of this Bond assents to said terms and conditions. The Resolution is adopted and the Agreement is entered into under and this Bond is issued under, and all are to be construed in accordance with, the laws of the State of California. Series _ Bonds in the principal amount of $ have also been issued under and as defined in the Agreement, which Series __ Bonds are secured on a parity with the Bonds under the Agreement. Pursuant to the Metlo-Roos Act, the Agreement and the Resolution, the principal of and interest on this Bond are payable solely from the annual special tax authorized under the Mello- Roos Act to be collected within the District (the "Special Tax") and certain funds held under the Agreement. Interest on this Bond shall be payable from the interest payment date next preceding the date of authentication hereof, unless (i) it is authorized on an interest payment date, in which event it shall bear interest for such interest payment date, or (ii) such date of authentication is after a Record Date but on or prior to an interest payment date, in which event interest will be payable from such interest payment date, or (iii) such date of authentication is prior to the first Record Date, in which event interest will be payable from the Bond Date set forth above; provided however, that if at the time of authentication of this Bond, interest is in default hereon, this Bond shall bear interest from the interest payment date to which interest has previously been paid or made available for payment hereon. Any tax for the payment hereof shall be limited to the Special Tax, except to the extent that provision for payment has been made by the Authority, as may be permitted by law. The Bonds do not constitute obligations of the Authority for which said Authority is obligated to levy or pledge, or has levied or pledged, general or special taxation other than described hereinabove. The Bonds are subject to redemption prior to their stated maturity on any interest payment date, as a whole or in part, at a redemption price (expressed as a percentage of the principal amount of the Bonds to be redeemed), as set forth below, together with accrued interest thereon to the date fixed for redemption: Redemption Dates Any Interest Payment Date on or before March 1, ~ September 1, ~ and March 1, ~ September 1, ~ and March 1, __ September 1, ~ and any Interest P~yment Date thereafter Redemption Prices 103% 102 101 100 provided, however that any such redemption of the Bonds prior to September 1, ~ shall be made solely from the proceeds of Special Tax Prepayments and corresponding transfers from the Reserve Fund. The Bonds maturing on September 1, , are subject to mandatory sinking payment redemption in part on September 1, and on each September ! thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: A-2 Redemption Date (September 1) Sinking Payments The Bonds maturing on September 1, , are subject to mandatory sinking payment redemption in part on September 1, , and on each September 1 thereafter to maturity, by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, from sinking payments as follows: Redemption Date (September 1) Sinking Payments In the event of a redemption of less than all of the Bonds, the Bonds shall be redeemed by lot within a maturity, and among maturities in the manner specified in the Agreement. Notice of redemption with respect to the Bonds to be redeemed shall be given to the registered owners thereof, in the manner, to the extent and subject to the provisions of the Agreement. This Bond shall be registered in the name of the owner hereof, as to both principal and interest. Each registration and transfer of registration of this Bond shall be entered by the Fiscal Agent in books kept by it for this purpose and authenticated by its manual signature upon the certificate of authentication endorsed hereon. No transfer or exchange hereof shall be valid for any purpose unless made by the registered owner, by execution of the form of assignment endorsed hereon, and authenticated as herein provided, and the principal hereof, interest hereon and any redemption premium shall be payable only to the registered owner or to such owner's order. The Fiscal Agent shall require the registered owner requesting transfer or exchange to pay any tax or other governmental charge required to be paid with respect to such transfer or exchange. No transfer or exchange hereof shall be required to be made (i) fifteen days prior to the date established by the Fiscal Agent for A-3 selection of Bonds for redemption, (ii) with respect to a Bond after such Bond has been selected for redemption, or (iii) between a Record Date and the succeeding Interest Payment Date. Exchanges may only be made for Bonds in authorized denominations, as provided in the Agreement. Bonds may only be transferred and exchanged in denominations authorized under the Agreement. The Agreement and the rights and obligations of the Authority thereunder may be modified or amended as set forth therein. The Bonds are not general obligations of the Authority, but are limited obligations payable solely from the revenues and funds pledged therefor under the Agreement. Neither the faith and credit of the Authority or the State of California or any political subdivision thereof is pledged to the payment of the Bonds. This Bond shall not become valid or obligatory for any purpose until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the Fiscal Agent. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of this Bond have existed, happened and been performed in due time, form and manner as required by law, and that the amount of this Bond does not exceed any debt limit prescribed by the laws or Constitution of the State of California. IN WITNESS WHEREOF, the Authority has caused this Bond to be dated the Bond Date set forth above, to be signed by the facsimile signature of its Chairperson and countersigned by the facsimile signature of its Secretary. [S E A L] WINCHESTER HILLS FINANCING AlfrHORITY ATTEST Chairperson Secretary A-4 FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the Resolution and in the Agreement which has been authenticated on U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent By: Authorized Officer ASSIGNMENT For value received the undersigned hereby sells, assigns and transfers unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within-registered Bond and hereby irrevocably constitute(s) and appoints(s) attorney, to transfer the same on the registration books of the Fiscal Agent with full power of substitution in the premises. Dated: Signature Guaranteed: Note: Signature(s) must be guaranteed by an eligible Note: guarantor. The signature(s) on this Assignment must correspond with the name(s) as written on the face of the within Bond in every particular without alteration or enlargement or any change whatsoever. A-5 Quint & Thimm~g LIP 5/17/98 ESCROW AGREEMENT by and between the WINCHESTER HILLS HNANCING AUTHORITY and U.S. BANK TRUST NATIONAL ASSOCIATION Dated as of July 1,1998 Relating to: Agreement, entered into January 23,1998, by and between Winchester Hills I LLC and the County of Riverside, and the assessment liens referenced therein. 23004.01:J3771 ESCROW AGREEMENT This ESCROW AGREEMENT (this "Agreement"), is made and entered into as of May 1, 1998, by and between the WINCHESTER HILLS FINANCING AUTHORITY, a joint exercise of powers authority duly organized and existing under the laws of the State of California (the "Authority"), and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, acting as escrow bank hereunder (the "Escrow Bank"). WITNESSETH: WHEREAS, the Board of Supervisors of the County of Riverside (the "County") has conducted proceedings to form Assessment District 161 of the County of Riverside ("AD 161") and Assessment District No. 156 of the County of Riverside ("AD 156", and, together with AD 161, the "Districts") and by its Resolution No. adopted on July 26, 1998 and Resolution' No..__ adopted on July 26, 1998, respectively, has confirmed assessments for the Districts; and WHEREAS, certain assessments in AD 161 have been respread by proceeding of the County; and WHEREAS, three series of bonds have been sold and issued on behalf of AD 161 (the "161 Bonds"), and one series of bonds has been sold and issued on behalf of AD 156, which bonds were refunded through the issuance of refunding bonds in 1991 (said refunding bonds being herein called the "156 Bonds" and, together with the 161 Bonds, the "Prior Bonds"); and WHEREAS, Winchester Hills I LLC, a California limited liability company ("Winchester"), is an owner of property in the Districts (the "Property") on which assessments have been levied, and Winchester is delinquent in the payment of such assessments; and WHEREAS, Winchester and the County, acting through the Districts, have entered into an Agreement as of January 23, 1998 (the "Settlement Agreement") whereby, among other matters, the County has agreed to waive the Penalties (as defined in the Settlement Agreement) if the Settlement Amount (as defined in the Settlement Agreement) is paid on or before September 2, 1998; and WHEREAS, the Settlement Amount includes payments in respect of assessment liens of the Districts (the "Lien Payments") which, when paid will be used to make payments on the Prior Bonds; and WHEREAS, the Property is located within the boundaries of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "CFD"), which was established by the Authority to provide a means by which the Lien Payments could be refinanced; and WHEREAS, the Authority has determined that refinancing of the Lien Payments will enhance the prospects for development of the Property, and that such development will be of benefit to the City of Temecula, one of the parties to the Agreement creating the Authority; and WHEREAS, the Authority has determined to issue, for and on behalf of the CFD, special tax bonds in the aggregate principal amount of $ (the "1998 Bonds") at this time for the purpose of providing funds to refinance the Lien Payments; and WHEREAS, the Authority and the Escrow Bank wish to enter into this Agreement for the purpose of providing the terms and conditions relating to the deposit and application of moneys and Federal Securities to provide for the payment of the Lien Payments, which will be used make payments on the Prior Bonds. NOW, THEREFORE, in consideration of the above premises and of the mutual promises and covenants herein contained and for other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: Section 1. Establishment of Refunding Fund. There is hereby created an escrow fund (the "Refunding Fund") to be held in trust by the Escrow Bank as an irrevocable escrow securing the payment of the Lien Payments, as hereinafter set forth. The Escrow Bank shall administer the Refunding Fund as provided in this Agreement. All cash and securities in the Refunding Fund are hereby irrevocably pledged as a special fund for the payment of the Lien Payments in accordance with the provisions of this Agreement. Section 2. Deposit into Refunding Fund: Investment of Amounts. Concurrently with delivery of the 1998 Bonds, the Authority shall cause to be transferred to the Escrow Bank for deposit into the Refunding Fund the amount of $ in immediately available funds, which shall be derived from the proceeds of sale of the 1998 Bonds. Of the moneys deposited into the Refunding Fund pursuant to the preceding paragraph, $ shall be used by the Escrow Bank to purchase the Federal Securities identified in Exhibit A hereto $ and the remaining amount $ shall be held in cash, uninvested. The Federal Securities shall be deposited with and held by the Escrow Bank in the Refunding Fund solely for the uses and purposes set forth herein and therein. The Escrow Bank shall have no lien upon or right of set off against the Federal Securities and cash at any time on deposit in the Refunding Fund. Section 3. Instructions as to Application of Deposit. The total amount of Federal Securities deposited in the Refunding Fund hereunder shall be applied by the Escrow Bank for the sole purpose of paying the Lien Payments in accordance with the schedule set forth in Exhibit B attached hereto and by this reference incorporated herein. Following payment in full of the Lien Payments any remaining amounts on deposit in the Refunding Fund shall be transferred by the Escrow Bank on September 3, 1998 to the Authority to be used to pay debt service on the 1998 Bonds. Section 4. Compensation to Escrow Bank. The Authority shall pay the Escrow Bank full compensation for its duties under this Agreement, including out-of-pocket costs such as legal fees (including fees of outside counsel and the allocated costs of internal attorneys) and other costs and expenses relating hereto and, in addition, all fees, costs and expenses relating to the purchase of any Federal Securities. Under no circumstances shall amounts deposited in or credited to the Refunding Fund be deemed to be available for said purposes. The obligation of the Authority under this Section 4 to pay compensation already earned by the Escrow Bank and to pay costs and expenses already incurred shall survive termination of this Agreement and shall survive the resignation or removal of the Escrow Bank. Section 5. Liabilities and Obligations of Escrow Bank. The Escrow Bank shall have no obligation to make any payment or disbursement of any type or incur any financial liability in the performance of its duties under this Agreement unless the Authority shall have deposited sufficient funds therefor with the Escrow Bank. The Escrow Bank may rely and shall be fully protected in acting upon the written instructions of the Authority or its agents relating to any matter or action as Escrow Bank under this Agreement. The Authority covenants to indemnify, defend and hold harmless the Escrow Bank and its officers, employees, directors, and agents, against any loss, liability or expense, including legal fees (including the fees of outside counsel and internal attorneys), incurred in connection with the performance of any of the duties of Escrow Bank hereunder, except the Escrow Bank shall not be indemnified against any loss, liability or expense resulting from its negligence or willful misconduct. The indemnity provided in this Section 5 shall survive the termination of this Agreement and shall survive the resignation or removal of the Escrow Bank. The Escrow Bank shall have such duties as are expressly set forth herein and no implied duties shall be read into this Agreement against the Escrow Bank. The Escrow Bank shall not be liable for any act or omission of the Authority under this Agreement. The Escrow Bank shall not be liable for the accuracy of any calculations provided as to the sufficiency of moneys or the Federal Securities deposited with it to pay the Lien Payments. The Escrow Bank shall incur no liability for losses arising from any investment or other disposition made pursuant to and in accordance with this Agreement. Any bank, federal savings association or trust company into which the Escrow Bank may be merged or with which it may be consolidated shall become the Escrow Bank without any action of the Authority. The Escrow Bank may conclusively rely, as to the trust of the statements and correctness of the opinions expressed therein, on any certificate or opinion furnished to it in accordance with this Agreement. The Escrow Bank may consult with counsel, whose opinion shall be full and complete authorization and protection to the Escrow Bank if it acts in accordance with such opinion. The Escrow Bank shall not be liable for any error of judgment made in good faith by an authorized officer. Nothing herein should be interpreted to require the Escrow Bank to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or the exercise of any of its rights hereunder, unless it believes that repayment of such funds or adequate indemnity against such risk or liability is assured. The Escrow Bank shall provide the Authority with seven days' notice prior to making any advance of its own funds hereunder, and, if the Authority does not provide moneys in the amount needed, the Escrow Bank shall be entitled to interest on the amounts advanced at a rate equal to the then 3-month certificates of deposit rate (by reference to the Wall Street Journal); provided that no such prior notice shall need,to be given and such interest on amounts advanced shall accrue from the date of any such advance following the occurrence of a default by the Authority hereunder. Any corporation succeeding to all or substantially all of the corporate trust business of the Escrow Bank shall be the successor of the Escrow Bank hereunder, without the execution or filing of any paper or any further act on the part of the any of the parties hereto. Section 6. Resignation of Escrow Bank. The Escrow Bank may at any time resign by giving written notice to the Authority, which notice shall indicate the date on which the 3 resignation is proposed to be effective (the "resignation date"). The Authority shall promptly appoint a successor Escrow Bank by the resignation date. Resignation of the Escrow Bank will be effective only upon acceptance of appointment by a successor Escrow Bank. If the Authority does not appoint a successor Escrow Bank by the resignation date, the Escrow Bank may, at the expense of the Authority, petition any court of competent jurisdiction for the appointment of a successor Escrow Bank, which court may thereupon, after such notice, if any, as it may deem proper and prescribe and as may be required by law, appoint a successor Escrow Bank. Section 7. Amendment. This Agreement may be amended or modified by the parties hereto, but only if there shall have been filed with the Authority and the Escrow Bank the written consent of the County to such amendment. Section 8. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 9. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Section 10. Third Party Beneficiary. The Authority and the Escrow Bank acknowledge and agree that the County is a third party beneficiary of this Agreement, and that this Agreement shall not be amended without the prior written consent of the County. The Authority has issued the 1998 Bonds and has entered into this Agreement on the explicit understanding that all amounts remitted from the Refunding Fund as described in Exhibit B hereto will be applied to the payment of debt service on the Prior Bonds, and, pending use for such purpose, said amounts will not be invested at a yield in excess of the yield on the 1998 Bonds. IN WITNESS WHEREOF, the Authority and the Escrow Bank have each caused this Agreement to be executed by their duly authorized officers all as of the date first above written. WINCHESTER HILLS FINANCING AUTHORITY By Executive Director U.S. BANK TRUST NATIONAL ASSOCIATION, as Escrow Bank 23004.01:J3771 By Authorized Officer EXHIBrr A SCHEDULE OF FEDERAL SECURrrlES Type of Security Principal Amount Maturity Date Price A-1 EXHIBIT B SCHEDULE OF LIEN PAYMENTS The Escrow Bank is hereby irrevocably directed to pay, from amounts in the Refunding Fund, the following amounts by wire transfer in the immediately available Funds on September 2, 1998: (a) to , in its capacity as Trustee for the 161 Bonds, $ (said amount representing the amounts due under Section B.l.(a) of the Settlement Agreement), to be used by said Trustee for the payment of debt service on the 161 Bonds; and (b) to , in its capacity as Trustee for the 156 Bonds, $ (said amount representing the amounts due under Section B.l.(b) of the Settlement Agreement), to be used by said Trustee for the payment of debt service on the 156 Bonds. B-1 CONTINUING DISCLOSURE AGREEMENT by and among WINCHESTER HILLS FINANCING AUTHORITY, U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent and U.S. BANK TRUST NATIONAL ASSOCIATION, as Dissemination Agent Dated as of June 1, 1998 WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) SPECIAL TAX BONDS I)()(.'SI ,,\ 1:251778. l 40484-43-.1K2-06/12/98 CONTINUING DISCLOSURE AGREEMENT THIS CONTINUING DISCLOSURE AGREEMENT (the "Disclosure Agreement") is made and entered into as of June 1, 1998, by and among U.S. BANK TRUST NATIONAL ASSOCIATION, a corporation organized and existing under the laws of the State of California (the "Bank"), in its capacity as Dissemination Agent (the "Dissemination Agent") and in its capacity as Fiscal Agent (the "Fiscal Agent"), and the WINCHESTER HILLS FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under and by virtue of the Constitution and laws of the State of California (the "Authority"), for and on behalf of the Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) (the "District"); WITNESSETH: WHEREAS, pursuant to the Fiscal Agent Agreement, dated as of June 1, 1998 (the "Fiscal Agent Agreement"), by and between the Authority, for and on behalf of the District, and the Fiscal Agent, the Authority has issued its Special Tax Bonds (the "Bonds") in the aggregate principal amount of $ ; and WHEREAS, this Disclosure Agreement is being executed and delivered by the Authority and the Bank for the benefit of the holders and beneficial owners of the Bonds and in order to assist the underxvriters of the Bonds in complying with Securities and Exchange Commission Rule 15c2-12(b)(5); NOW, THEREFORE, for and in consideration of the mutual premises and covenants herein contained, the parties hereto agree as follows: Section 1. Definitions. Capitalized undefined terms used herein shall have the meanings ascribed thereto in the Fiscal Agent Agreement. In addition, the following capitalized terms shall have the following meanings: "Annual Report" means any Annual Report provided by the Authority pursuant to, and as described in, Sections 2 and 3 of this Disclosure Agreement. "Annual Report Date" means the date in each year that is eight months after the end of the Authority's fiscal year, which date, as of the date of this Disclosure Agreement, is March 1. "Disclosure Representative" means the Finance Director of the City of Temecula, as Treasurer of the Authority, or his or her designee, or such other officer or employee as the Authority shall designate in writing to the Fiscal Agent from time to time. "Dissemination Agent" means the Bank, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Authority and which has filed with the Fiscal Agent a written acceptance of such designation. 1)()('SI.A1:251778.1 41)484-43-.1K2-u6/I 2/98 "Listed Events" means any of the events listed in Section 4(a) of this Disclosure Agreement. "National Repository" means any Nationally Rec6gnized Municipal Securities Information Repository for purposes of the Rule. "Official Statement" means the Official Statement, dated relating to the Bonds. , 1998, "Participating Underwriter" means any of the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" means each National Repository and each State Repository. "Rule" means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository" means any public or private repository or entity designated by the State of California as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Agreement, there is no State Repository. Section 2. Provision of Annual Reports. (a) The Authority shall, or, upon fitrnishing tile Annual Report to the Dissemination Agent, shall cause tile Dissemination Agent to, provide to each Repository and the Participating Undenvriter an Annual Report which is consistent with the requirements of Section 3 of this Disclosure Agreement, not later than the Annual Report Date, commencing with the report for the 1998/99 fiscal year. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 3 of this Disclosure Agreement; provided, however, that the audited financial statements of the Authority, if any, may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the Authority's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 4(f). (b) Not later than fifteen (15) business days prior to the date specified in subsection (a) for providing the Annual Report to Repositories, the Authority shall provide the Annual Report (in a form suitable for reporting to the Repositories) to the Dissemination Agent, the Fiscal Agent (if the Fiscal Agent is not the Dissemination Agent) and the Participating Underwriter. If by such date, the Fiscal Agent has not received a copy of the Annual Report, the Fiscal Agent shall contact the Disclosure Representative and the Dissemination Agent to inquire if tile Authority is in compliance with the first sentence of this subsection (b). (c) If the Fiscal Agent is unable to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Fiscal Agent shall send a DOCSI.A 1:251778. I 40484-43-JK2-06/12/98 2 notice to the Municipal Securities Rulemaking Board and the appropriate State Repository, if any, in substantially the form attached as Exhibit A. (d) The Dissemination Agenf shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and each State Repository, if any; and (ii) file a report with the Authority and (if the Dissemination Agent is not the Fiscal Agent) the Fiscal Agent certifying that the Annual Report has been provided pursuant to this Disclosure Agreement, stating the date it was provided and listing all the Repositories to which it was provided. Section 3. Content of Annual Reports. The Authority's Annual Report shall contain or incorporate by reference the following: (a) The Authority's audited financial statements, if any, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Authority's audited financial statements, if any, are not available by the time the Annual Report is required to be filed pursuant to Section 2(a), the Annual Report shall contain unaudited financial statements in a format similar to that used for the Authority's audited financial statements, and the audited financial statements, if any, shall be filed in the same manner as the Annual Report xvhen they become available. (b) The following information: (i) The principal amount of Bonds Outstanding as of the September 30 next preceding the Annual Report Date. (ii) The balance in the Reserve Fund, and a statement of the Reserve Requirement as of the September 30 next preceding the Annual Report Date. (iii) The total assessed value of all parcels within the District on which the Special Taxes are levied, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, and a statement of assessed value-to-lien ratios therefor by individual parcel. (iv) The Special Tax delinquency rate for all parcels within the District on which the Special Taxes are levied, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, the number of parcels within the District on which the Special Taxes are levied and which are delinquent in payment of Special Taxes, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, the amount of each delinquency, the length of time I)O('SI.A 1:251778.1 40484-43-J K 2-06/12/98 3 delinquent and the date on which foreclosure was commenced, or similar information pertaining to delinquencies deemed appropriate by the District; provided, however, that parcels with aggregate delinquencies of $2,000 or less (excluding penalties and interest) may be grouped together and such information may be provided by category. (v) The status of foreclosure proceedings for any parcels within the District on which the Special Taxes are levied and a summary of the results of any foreclosure sales as of the September 30 next preceding the Annual Report Date. (vi) The identity of any property owner representing more than five percent (5%) of the annual Special Tax levy who is delinquent in payment of such Special Taxes, as shown on the assessment roll of the Riverside County Assessor last cqualized prior to the September 30 next preceding the Annual Report Date. (vii) A land ownership summary listing property owners responsible for more than five percent (5%) of the annual Special Tax levy, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September next preceding the Annual Report Date. (viii) A summary of (a) sales of property subject to the Special Tax in the District, as shown on the assessment roll of the Riverside County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, (b) zoning changes approved by the City of Temecula (the "City") for property subject to the Special Tax in the District, and (c) building permits issued by the City for property subject to the Special Tax in the District. (c) In addition to any of the information expressly required to be provided under paragraphs (a) and (b) of this Section, the Authority shall provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances trader xvhich they are made, not misleading. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Authority or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available fi'om the Municipal Securities Rulemaking Board. The Authority shall clearly identify each such other document so included by reference. Section 4. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 4, the Authority shall give, or cause to be given, notice of the occurrence of any of the folloxving events with respect to the Bonds, if material: (i) Principal and interest payment delinquencies. (ii) Non-payment related defaults. DOCSI.A 1:251778.1 41)484-43-,I K2 -06/12/98 4 (iii) Unscheduled draws on debt service reserves reflecting financial difficulties. (iv) Unscheduled draws on credit enhancements reflecting financial difficulties. (v) Substitution of credit or liquidity providers, or their failure to pcFl'Ornl. (vi) the security. Adverse tax opinions or events affecting the tax-exempt status of (vii) Modifications to rights of security holders. (viii) Contingent or unscheduled bond calls. (ix) Defeasances. (x) Release, substitution, or sale of property securing repayment of the securities. (xi) Rating changes. (b) The Fiscal Agent shall, within five (5) business days of obtaining actual knowledge of the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such pcrson of the event, and request that the Authority promptly notify the Dissemination Agent in writing whether or not to report the event pursuant to subsection (f); provided, however, that the Dissemination Agent shall have no liability to Bond owners for any failure to provide such notice. For purposes of this Disclosure Agreement, "actual knowledge" of the occurrence of the Listed Events described under clauses (ii), (iii), (vi), (x) and (xi) above shall mean actual knowledge by an officer at the corporate trust office of the Fiscal Agent. The Fiscal Agent shall have no responsibility for determining the materiality of any of the Listed Events. (c) Whenever the Authority obtains knowledge of the occurrence of a Listed Event, whether because of a notice from the Fiscal Agent pursuant to subsection (b) or otherwise, the Authority shall as soon as possible determine if such event would be material under applicable Federal securities law. (d) If the Authority determines that knowledge of the occurrence of a Listed Event xvould be material under applicable Federal securities law, the Authority shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to rcport the occurrence pursuant to subsection (f'). The Authority shall provide the Dissemination Agent with a form of notice of such event in a format suitable for reporting to the Municipal Securities Rulemaking Board and each State Repository, if any. I)OCS[.A 1:251778.1 40484-43-JK2-06/12,98 5 (e) If in response to a request under subsection (b), the Authority determines that the Listed Event would not be material under applicable Federal securities law, the Authority shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence pursuant to subsection (f). (f) If the Dissemination Agent has been instructed by the Authority to report the occurrence of a Listed Event, the Dissemination Agent shall file a notice of such occurrence with the Municipal Securities Rulemaking Board and each State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Section 5. Termination of Reporting Obligation. The Authority's obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Authority shall give notice of such termination in the same manner as for a Listed Event under Section 4(f). Section 6. Dissemination Agent. The Authority may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign by providing thirty days' written notice to the Authority and the Fiscal Agent. The Dissemination Agent shall have no duty to prepare the Annual Report nor shall the Dissemination Agent be responsible for filing any Aimual Report not provided to it by the Authority in a timely manner and in a form suitable for filing. If at any time there is not any other designated Dissemination Agent, the Fiscal Agent shall be the Dissemination Agent. Section 7. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the Authority, the Fiscal Agent and the Dissemination Agent may amend this Disclosure Agreement (and the Fiscal Agent and the Dissemination Agent shall agree to any alnendment so requested by the Authority, so long as such amendment does not adversely affect the rights or obligations of the Fiscal Agent or the Dissemination Agent), and any provision of this Disclosure Agreement may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to Sections 2(a), 3 or 4(a) it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and DO('SI~A 1:251778.1 40484-43-JK2-06/12/98 6 (c) the proposed amendment or waiver (i) is approved by holders of sixty percent of the Bonds in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of holders. If the annual financial infom~ation or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial statements or information, in order to provide information to investors to enable them to evaluate the ability of the Authority to meet its obligations, including its obligation to pay debt service on the Bonds. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the Repositories in the same manner as for a Listed Event under Section 4(f). Section 8. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the Authority from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Evcnt, in addition to that xvhich is required by this Disclosure Agreement. If the Authority chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the Authority shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 9. Default. In the event of a failure of the Authority or the Fiscal Agent to comply with any provision of this Disclosure Agreement, the Fiscal Agent may (and, at the written direction of any Participating Underwriter or the holders of at least 25% aggregate principal amount of Outstanding Bonds, shall, upon receipt of indemnification reasonably satisfactory to the Fiscal Agent), or any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Authority or the Fiscal Agent, as the case may be, to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the Authority or the Fiscal Agent to COlnply with this Disclosure Agreement shall be an action to compel perfon-nance. DO('SI.A 1:251778. I 40484 -43 -J K2 -06/12/98 7 Section10. Duties, Immunities and Liabilities of Fiscal Agent and Dissemination Agent. Article VII of the Fiscal Agent Agreement is hereby made applicable to this Disclosure Agreement as if this Disclosure Agreement were (solely for this purpose) contained in the Fiscal Agent Agreement, and the Fiscal Agent and the Dissemination Agent shall be entitled to the protections, limitations from liability and indemnities afforded to the Fiscal Agent thereunder. The Dissemination Agent and the Fiscal Agent shall have only such duties hereunder as are specifically set forth in this Disclosure Agreement. This Disclosure Agreement does not apply to any other securities issued or to be issued by the Authority. The Dissemination Agent shall have no obligation to make any disclosure concerning the Bonds, the Authority or any other matter except as expressly set out herein, provided that no provision of this Disclosure Agreement shall limit the duties or obligations of the Fiscal Agent under the Fiscal Agent Agreement. The Dissemination Agent shall have no responsibility for the preparation, review, form or content of any Annual Report or any notice of a Listed Event. The fact that the Fiscal Agent has or may have any banking, fiduciary or other relationship with the Authority or any other party, apart from the relationship created by the Fiscal Agent Agreement and this Disclosure Agreement, shall not be construed to mean that the Fiscal Agent has knowledge or notice of any event or condition relating to the Bonds or the Authority except in its respective capacities under such agreements. No provision of this Disclosure Agreement shall require or be construed to require the Dissemination Agent to interpret or provide an opinion concerning any information disclosed hereunder. Information disclosed hereunder by the Dissemination Agent may contain such disclaimer language concerning the Dissemination Agent's responsibilities hereunder xvith respect thereto as the Dissemination Agent may deem appropriate. The Dissemination Agent may conclusively rely on the determination of the Authority as to the materiality of any event for purposes of Section 4. Neither the Fiscal Agent nor the Dissemination Agent make any representation as to the sufficiency of this Disclosure Agreement for purposes of the Rule. The Dissemination Agent shall be paid compensation by the Authority for its services provided hereunder in accordance with its schedule of fees, as amended froin time to time, and all expenses, legal fees and advances made or incurred by the Dissemination in the performance of its duties hereunder. The Authority's obligations under this Section 10 shall survive the ternfination of this Disclosure Agreement. Section 11. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Authority, the Fiscal Agent, the Dissemination Agent, the Participating Underxvriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 12. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 13. Merger. Any person succeeding to all or substantially all of the Dissemination Agent's corporate trust business shall be the successor Dissemination Agent without the filing of any paper or any further act. DOCSI.A 1:251778. I 40484-43-.IK2-06/12/98 8 Section 14. Notices. All notices or communications herein required or permitted to be given to the Authority, the Fiscal Agent or the Dissemination Agent shall be in writing and shall be deemed to have been sufficiently given or served for all purposes by being delivered or sent by telecopy or by being deposited, postage prepaid, in a post office letter box, to the addresses set forth below, or to such other address as may be provided to the other parties hereinafter listed in writing from time to time, namely: If to the Authority: Winchester Hills Financing Authority 43174 Business Park Drive Temecula, CA 92590 Attention: Finance Director If to the Fiscal Agent or the Dissemination Agent: U.S. Bank Trust National Association 550 South Hope Street, Suite 500 Los Angeles, California 90017 Attn: IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agrccmcnt as of the date first above xvritten. WINCHESTER HILLS FINANCING AUTHORITY, for and on behalf of WINCHESTER HILLS FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 98-1 (WINCHESTER HILLS) By: Treasurer U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent By: Authorized Officer I)OCSI.A 1:251778. I 40484-4~ -.IK_-1}6/I )8 9 U.S. BANK TRUST NATIONAL ASSOCIATION, as Dissemination Agent By: Authorized Officer I)()('SI.A 1:251778.1 40484-43-J K2-06/12,"98 1 0 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Winchester Hills Financing Authority, for and on behalf of Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) Name of Bond Issue: Winchester Hills Financing Authority Community Facilities District No. 98-1 (Winchester Hills) 1998 Special Tax Bonds Date of Issuance: , 1998 NOTICE IS HEREBY GIVEN that the Winchester Hills Financing Authority (the "Authority") has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Agreement, dated as of June 1, 1998, by and between U.S. Bank Trust National Association., in its capacity as Fiscal Agent and in its capacity as Dissemination Agent, and the Authority. [The Authority anticipates that the Annual Report will be filed by , 19__.] Dated: U.S. BANK TRUST NATIONAL ASSOCIATION, as Fiscal Agent, on behalf of the Winchester Hills Financing Authority cc: Winchester Hills Financing Authority I)()('SI.A1:251778.1 40484-43-.I K2-t)O: 12;98 A- 1 PUBLIC HEARINGS ITEM 13 TO: FROM: DATE: SUBJECT: CITY ATTORNEY ~' '"~'~,,~ DIRECTOR OF FINANCE~~ CITY MANAGER ~f' CITY OF TEMECULA AGENDA REPORT City Manager/City Council Gary Thornhill, Community Development Director June 23, 1998 Planning Application No. PA95-0130 (Development Agreement Amendment) RECOMMENDATION: The Planning Commission recommends that the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING A NEGATIVE DECLARATION AND THE MITIGATION MONITORING PROGRAM FOR PLANNING APPLICATION NO. PA95-0130; 2. Read by title only and introduce an ordinance entitled: ORDINANCE NO. 98- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN DEVELOPMENT AGREEMENT ENTITLED "SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1," WITH WESTSIDE BUSINESS CENTRE, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY 3. Adopt a resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "PARKLAND IMPROVEMENT AGREEMENT," FOR THE MURRIETA CREEK PILOT PARK R:\STAFFRPT\130PA95.CC 6/17/98 cd 1 BACKGROUND: On October 18, 1990, Development Agreement No. 90-1 was entered into by the City Council and Rancho Core Associates No. 1, and the document was recorded on October 19, 1990 as Document No. 385553 in the Official Records of the County of Riverside. On April 19, 1995, the successor to Rancho Core Associates No. 1, BA Properties, Inc., and the City amended the Development Agreement by entering into Partial Termination of Development Agreement No. 90-1. This document was recorded on April 20, 1995 as Document No. 12341 in the Official Records of the County of Riverside. The Partial Termination was necessary to enable a reversion to acreage and to remap a portion of the property covered by the Agreement. ANALYSIS: Amendment Description The Second Amendment to Development Agreement No. 90-1 is a proposal to relieve the current owner, Westside Business Centre LLC, from the obligation to maintain the two acre linear park developed on Lots 12 and 95. In place of the linear passive park, the applicant proposes to develop and construct the Murrieta Creek Pilot Park Project in conjunction with the Citizens Coalition for the Murrieta Creek Pilot Project. The Coalition is a group of citizens interested in modeling a recreational and environmental conservation plan for Murrieta Creek. The project is proposed on five acres of property west of the Murrieta Creek Channel, generally located east of Diaz Road and north of Winchester Road. Upon completion of the Pilot Park to Temecula Community Services District standards, the five improved acres will be dedicated to the City. The specifics of this transaction is detailed in the Parkland Improvement Agreement to be executed by the City and Westside Business Centre. The Parkland Improvement Agreement will require completion of the Pilot Park within two years. Should the owner default on the Parkland Improvement Agreement, he will be required to landscape the five acres to commercial/industrial standards, as was originally required in Section 4.2.1 (g) of Development Agreement No. 90-1. The Second Amendment includes a bond requirement to ensure that landscaping will be completed within three years of the effective date of the amended Agreement. The Two-Acre Property By deleting Section 4.2.1(g) of Development Agreement No. 90-1, Mr. Dendy would be free to sell the two acres or otherwise use the property subsequent to the approval of any required land use application. Because of the identified AIquist-Priolo Fault Hazard area that traverses the two acres, development would be restricted to uninhabitable structures within 50 feet of the fault line. However, such uses asa parking lot or outdoor storage would be permitted or conditionally permitted. The Murrieta Creek Pilot Park Project It is staff's opinion that the existing linear park is little used. The Pilot Park has the potential to provide a greater opportunity for use by pedestrians and bicyclists. More amenities are proposed for the Pilot Park that encourage picnicking, including a parking lot, restrooms, play equipment and barbecues. R:\STAFFRPT\130PA95.CC 6/16/98 cd 2 Applicant's Requests: The applicant, Bill Dendy, for Westside Business Centre, LLC, has made three requests, as enumerated in correspondence dated May 29, 1998 (see Attachment 5a). Staff's response to these requests are as follows: 1. The applicant requests that City fees to process and construct the Pilot Park be waived. Staff recommends that the applicant prepare a list of fees for consideration by the City Council. The applicant requests that the requirement to bond for the landscaping in the event that the Pilot Park is not completed be eliminated from the Amendment and Agreement. He offers the title to the property in lieu of the bond. Staff recommends that the bond be kept in the Amendment because the City does not wish to own the property unless it is developed to City standards, and because default on the agreements will have an adverse impact on the City. However, staff recommends that in the event the Pilot Park project is not developed, the owner shall be required to landscape the five acres as a linear park. Furthermore, staff recommends that the language referencing the bond for the linear park eliminate the specific amount of the bond and specific time constraints. Staff suggests that the following paragraph replace Section 5. (g) (iv) of the Amendment: post with the City and thereafter maintain a bond, or other security acceptable to the City in terms of liquidity and security, guaranteeing the installation of the landscaping and irrigation on the Park Property : .:.:.:.:.:.:.: ::.: ::::.:.:: :,:,: ::::::::::::::::::::: .:.:.:.:.: .:::.:::.:: :.:.:.:.:: :,:;:.:+:.:.:.;:::. ::::::::::::::::::::::::::::::::::::, ~ ............ .........:,.;.:~:.:.:.:. ~i~11~i"~:.~:i~iYi. The bond or other acceptable security shall be in a form approved by the City Attorney. The bond or other acceptable security shall be maintained by the Owner until such time as the ~..~ii!i'~i'fi?~iPark is accepted by the City or the landscaping on the Park Property is approved .~:;i~iiii:~ii~.~111~??~il;Cii~¥, installed and accepted for maintenance by the property owner's association. Section 5. (g) (iii) would require the following correction: If the Park is not developed and dedicated to the City within said two year period, Owner shall, at its sole cost and expense, landscape and irrigate the Park Property pursuant to a landscaping plan approved by the Director of Community Development ii~i~:~:~i:~i~:!i::i~:.eiaii~:~ii~'i~'i~i~.~. The landscaping, if needed, shall be completed within three (3) years of the effective date of the Second Amendment to the Development Agreement. Owner shall maintain the landscaping and provide water for irrigation, at its sole cost and expense, provided however, that Owner may, with the consent of R:\STAFFRPT\130PA95.CC 6/16/98 cd 3 the City, transfer the maintenance responsibility to a property owners' association in this area. The applicant requests that the Parkland Improvement Agreement omit Section 16 regarding Indemnity/Hold Harmless. City Attorney Peter Thorson recommends that this standard language remain in the Agreement. Correspondence Received Staff has received a telephone inquiry from the City of Murrieta Planning Department staff, and a request for more detailed information. Murrieta was interested in the impacts that the Pilot Park would have on their General Plan and adjacent streets under their jurisdiction. According to Murrieta Planning Department staff, their city's concerns have been addressed. Staff received correspondence from Jeannie Gillen, Coordinator for the Murrieta Creek Pilot Project, dated May 26, 1998, which is attached (see Attachment 5b). Ms. Gillen has requested that the City waive "planning and inspection fees (which could be in excess of $9,000)." Neither the City Planning Department nor the Temecula Community Services District has received fees to date for the review and approval of the Murrieta Creek Pilot Park Project. Typically, a project of this size would require a Construction Landscape Review fee of $2,385 to the Planning Department and $2,250 to Temecula Community Services District. The Department of Public Works estimates fees for the project at $9,000. The request for a waiver of Public Works fees is a separate item on the Council's agenda for June 23, 1998. ENVIRONMENTAL DETERMINATION: An Initial Study has been prepared for this project. The Initial Study determined that although the proposed project could have a significant effect on the environment, these effects are not considered to be significant due to mitigation measures contained in the project design. Any potentially significant impacts will be mitigated. FISCAL IMPACT: The existing two-acre linear park is currently being maintained by the business park property owners association. The proposed Pilot Park, upon dedication to the City, shall be maintained by Temecula Community Services District, at an estimated annual cost of $34,848. No other negative fiscal impact is anticipated. The elimination of the existing two- acre linear park would encourage industrial uses of the site. FINDINGS: 1. The development to be carried out pursuant to the Second Amendment to Development Agreement No. 90-1 is consistent with the General Plan. The Second Amendment to Development Agreement No. 90-1 and the development to be carried out hereunder complies with all other applicable requirements of State law and City ordinances. R:\STAFFRPT\130PA95.CC 6/16/98 cd 4 ATTACHMENTS: 1. City Council Resolution No. 98- , Negative Declaration and Mitigation Monitoring Program - Page 6 a. Initial Study - Page 10 b. Mitigation Monitoring Program - Page 25 City Council Ordinance No. 98- , Planning Application No. PA95-0130, Amendment to Development Agreement - Page 31 a. Exhibit A - Second Amendment to Development Agreement No. 90-1 - Page 34 City Council Resolution No. 98- , Parkland Agreement for the Murrieta Creek Pilot Park Project - Page 45 a. Exhibit A - Parkland Agreement - Page 48 June 17, 1998 Planning Commission Staff Report - Page 60 Correspondence - Page 67 a. Correspondence received from Bill Dendy, for Westside Business Centre, LLC, dated May 29, 1998 b. Correspondence received from Jeannie Gillen, Coordinator of the Murrieta Creek Pilot Project, dated May 26, 1998 R:\STAFFRPT\I30PA95.CC 6/16/98 cd 5 ATTACHMENT NO. 1 CITY COUNCIL RESOLUTION NO. 98- NEGATIVE DECLARATION AND MITIGATION MONITORING PROGRAM R:\STAFFRPT\I30PA95.CC 6/16/98 cd 6 ATTACHMENT NO. 1 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING A NEGATIVE DECLARATION AND MITIGATION MONITORING PROGRAM FOR PLANNING APPLICATION NO. PA95-0130, AMENDMENT TO DEVELOPMENT AGREEMENT, ON PROPERTY LOCATED ON THE NORTH SIDE OF WINCHESTER ROAD, EAST OF THE RANCHO SANTA ROSA MOUNTAINS, SOUTH OF CHERRY STREET, AND INCLUDING MURRIETA CREEK TO THE EAST WItEREAS, Westside Business Centre, LLC filed Planning Application No. PA95-0130 in accordance with the City of Temecula and State CEQA Guidelines; WHEREAS, Planning Application No. PA95-0130 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA95-0130 on June 17, 1998, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to, and did testify either in support or opposition to this matter; WHEREAS, at the conclusion of the Commission hearing, and after due consideration of the testimony, the Commission recommended approval of Planning Application No. PA95-0130, and adoption of a Negative Declaration and Mitigation Monitoring Program; WHEREAS, the City Council conducted a public hearing pertaining to Planning Application No. PA95-0130 on June 23, 1998, at which time the City staff and interested persons had opportunity to, and did, testify either in support or opposition to Planning Application No. PA95-0130; WHEREAS, the City Council received a copy of the Commission proceedings and Staff Report regarding Planning Application No. PA95-0130; NOW, THEREFORE, THE CITY OF TEMECULA CITY COUNCIL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. by reference. That the above recitations are true and correct and are hereby incorporated R:\STAFFRPT\I30PA95.CC 6/16/98 cd 7 Section 2. following findings: Findings. That the City of Temecula City Council hereby makes the 1. The development to be carried out pursuant to the Second Amendment to Development Agreement No. 90-1 is consistent with the General Plan. 2. The Second Amendment to Development Agreement No. 90-1 and the development to be carded out hereunder complies with all other applicable requirements of State law and City ordinances. 3. The Initial Study of Environmental Impacts indicates that while there may be some potential impacts on the environment, revisions have been made to the project such that the potential impacts have been reduced to a level of insignificance. Section 3. Adoption. That the City Council for the City of Temecula hereby adopts the Negative Declaration and the Mitigation Monitoring Program for Planning Application No. PA95-0130, Second Amendment to Development Agreement No. 90-1. R:\STAFFRPT\130PA95.CC 6/16/98 cd 8 PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula this 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF TEMECULA ) $S I, Susan W. Jones, Acting City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 98-__ was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 23rd day of June, 1998, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk R:\STAFFRPT\I30PA95.CC 6/16/98 cd 9 EXHIBIT A INITIAL STUDY R:\STAFFRPT\130PA95.CC 6/16/98 cd 10 CITY OF TEMECULA Environmental Checklist 1. Project Title: Planning Application No. PA95-0130 (Amendment to Development Agreement) Lead Agency Name and Address: City of Temecula, 43200 Business Park Drive, Temecula, CA 92590 Contact Person and Phone Number: Carole K. Donahoe, AICP, Project Planner (909) 694-6400 4. Project Location: For properties on the north side of Winchester Road, east of the Rancho Santa Rosas, south of Cherry Street, and including Murrieta Creek to the east. Project Sponsor's Name and Address: Westside Business Centre: Bill Dendy, 41975 Winchester Road, Temecula, CA 92590 General Plan Designation: BP Business Park and OS Open Space 7. Zoning: LI Light Industrial and OS-C Conservation Description of Project: To amend Development Agreement No. 90-1 (Second Amendment) deleting the requirement to provide a 15 O-foot wide linear park on parcels 12 and 95 of Parcel Map No. 21383, and clarifying the requirement to landscape approximately five acres of Murrieta Creek with a Pilot Park. Surrounding Land Uses and Setting: The area is a partially developed business park, with existing buildings, facilities, buildings under construction, rough graded pads and vacant properties. Mumeta Creek runs along the eastern boundary of the business park. R:\STAFFRPT\130PA95.CC 6/16/98 cd 11 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. [ ] Land Use and Planning [ ] Hazards [ ] Population and Housing [ ] Noise [X] Geologic Problems [ ] Public Services [X] Water [ ] Utilities and Service Systems [ ] Air Quality [X] Aesthetics [X] Transportation/Circulation [ ] Cultural Resources [ ] Biological Resources [ ] Recreation [ ] Energy and Mineral Resources [ ] Mandatory Findings of Significance DETERMINATION On the basis of this initial evaluation: I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared. Signature Printed Name: Carole K. Donahoe Date: May 26, 1998 For: City of Temecula R:\STAFFRPT\I30PA95.CC 6/16/98 cd 12 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Impact Potentially Significant Unless Less Than Mitigation Significant No Incorporated Impact Impact LAND USE AND PLANNING. Would the proposal: a. Conflict with general plan designation or zoning? (Source 1, Figure 2-1, Page 2-17) [ ] b. Conflict with applicable environmental plans or policies adopted by agencies with jurisdiction over the project? [ ] c. Be incompatible with existing land use in the vicinity? (Source 1, Figure 2-1, Page 2-17) [ ] d. Affect agricultural resources or operations (e.g. impacts to soils or farmlands, or impacts from incompatible land uses)? (Source 1, Figure 5-4, Page 5-17) [ ] e. Disrupt or divide the physical arrangement of an established community (including low-income or minority community)? [ ] [] [] IX] [] [] [x] [] [] IX] [] [] IX] [] [] IX] Discussion of the Environmental Impacts The project will not conflict with general plan designation or zoning, applicable environmental plans or polices adopted by agencies with jurisdiction over the project, nor is it incompatible with existing land uses in the vicinity. The project is consistent with the City's General Plan Land Use Designation of BP (Business Park) and OS (Open Space), as well as the Zoning of LI (Light Industrial) and OS-C Conservation. Impacts from all General Plan Land Use Designations were analyzed in the Environmental Impact Report for (EIR) the General Plan. Agencies with jurisdiction within the City commented on the scope of the analysis contained in the EIR and how the land uses would impact theh' particular agency. Mitigation measures approved with the EIR will be applied to this project. Further, all agencies ~vith jurisdiction over the project have been given the opportunity to comment on the project and it is anticipated that they will make the appropriate comments as to ho~v the project relates to their specific environmental plans or polices. The site has been previously graded and services are in proximity of the project site. According the General Plan, the Pilot Park site is identified as a resource conservation area within the Open Space Conservation Plan. The development of the site as a park meets the objectives of this Plan. No significant effects are anticipated as a result of this project. ld. The project will not affect agricultural resources or operations. Although the site is within an area designated as farmlands of local importance, the site is not under Williamson Act contract, does not contain agricultural facilities, nor is being actively farmed. The Westside Business Park is already partially developed, and the balance of the Business Park has ah-eady been prepared for development, with infrastructure installed and in place. No significant effects are anticipated as a result of this project. le. The project will not disrupt or divide the physical arrangement of an established community (including low-income or minority community). The project is in an area surrounded by land that is currently planned to be developed with similar industrial uses. There is no established residential community (including low-income or minority community) at this site. No significant effects are anticipated as a result of this project. 2. POPULATION AND HOUSING. Would be proposal: a. Cumulatively exceed official regional or local population projects? b. Induce substantial growth in an area either directly or indirectly (e.g. through project in an undeveloped area or extension of major infrastructure)? [l [] [] [~ [] [] [] [~ R:\STAFFRPT\130PA95.CC 6/16/98 cd 13 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact c. Displace existing housing, especially affordable housing? (Source 1, Figure 2-1, Page 2-17) [] [] [] [~ Discussion of the Environmental Impacts 2a. The project will not cumulatively exceed official regional or local population projections. The two parcels that are currently developed as a linear park contain an identified Alquist-Priolo Special Studies Zone. It is unlikely that, due to the restrictions on habitable structures within a Special Studies Zone, the parcels will be developed into uses that foster population growth. Since the project is consistent with the City's General Plan, it will not be a significant conthbutor to population gro~xh which will cumulatively exceed official regional or local population projections. No significant effects are anticipated as a result of this project. 2b. The project will not induce substantial growth in the area either directly or indirectly. The project is consistent with the General Plan Land Use Designation of Business Park and Open Space. It is unlikely that the project will cause people in any significant numbers to relocate to or within Temecula. No significant effects are anticipated as a result of this project. 2c. The project will not displace housing, especially afibrdable housing. No housing exists within the business park. No significant effects are anticipated as a result of this project. GEOLOGIC PROBLEMS. Would the proposal result in or expose people to potential impacts involving? a. Fault rupture? (Source 1, Figure 7-1, Page 7-6; Sources 4, 5,6) [ ] b. Seismic ground shaking? (See a.) [ ] c. Seismic ground failure, including liquefaction? (Source 1, Figure 7-2, Page 7-8) [ ] d. Seiche, tsunami, or volcanic hazard? [ ] e. Landslides or mudflows? [ ] f. Erosion, changes in topography or unstable soil conditions form excavation, grading or fill? [ ] g. Subsidence of the land? (Source 1, Figure 7-2, Page 7-8) [ ] h. Expansive soils? [ ] I. Unique geologic or physical tEatures? [ ] IX] [ ] [] IX] [ ] [ ] ix] [ ] [ ] [] [] IX] [] [] ix] IX] [] [] [~ [] [] Ix] [] [] [] [] [~ Discussion of the Environmental Impacts ga. The linear park site is traversed by a distinct, thoroughgoing fault with evidence of Holocene-age activity. The geologic repoil prepared for the underlying parcel map defined a fault zone with two branches and recommended a restricted use zone 150 feet wide. The August 29, 1997 EnGEN report further defined the restricted use zone, varying its width from 120 feet at the south boundary to 170 l~et at the northern boundary of the fault line. Mitigation measures shall require that no structures for human occupancy be permitted within the restricted use zone. All other mitigation recommendations from the Geologic Reports and the County Geologist shall be conditions of approval for any development project on the property. The Pilot Park site does not lie within an identified Ikult hazard zone. 3b,c,g,h. The Pilot Park site lies within a liquefaction hazard area, an area of potential subsidence, and Ground Shaking Zone 1I (all of Temecula is in Zone I1). Liquefaction may induce surface subsidence on the site in the range of 0.1 to 1.4 inches. Geologic reports from adjacent parcel maps recommend that the effects of liquefaction, including R:\STAFFRFr\130PA95.CC 6/16/98 cd 14 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact loss of bearing capacity, surface subsidence and lateral spreading should be re-evaluated for each individual structure when grading and building plans become available. Soils reports addressing these issues shall be made a condition of approval for any future development. The soils reports will contain recommendations for the compaction of the soil which will serve to mitigate any potentially significant impacts from seismic ground shaking, seismic ground failure, liquefaction, subsidence and expansive soils. Any potentially significant impacts will be mitigated through building construction which is consistent with Uniform Building Code standards. 3d. The project will not expose people to a seiche, tsunami or volcanic hazard. The project is not located in an area where any of these hazards could occur. No significant effects are anticipated as a result of this project. 3e. The project will not expose people to landslides or mudflows. The Final Environmental Impact for the City of Temecula General Plan has not identified any 'known landslides or mudslides located on the site or proximate to the site. No significant impacts are anticipated as a result of this project. 3f. Increased wind and ~vater erosion of soils both on and off-site may occur during the construction phase of the project and remain high until disturbed areas are replanted. The project may result in changes in siltation, deposition or erosion. Erosion control techniques will be included as a condition of approval for development of the property. In the long-run, hardseape and landscaping will serve as permanent erosion control lbr development and the Pilot Park project. Potentially unstable soil conditions from excavation, grading or fill will be mitigated through the use of landscaping, the retention of natural vegetation whenever tEasible, the use of watering trucks and hydroseeding of disturbed areas after grading, and proper compaction of the soils. After mitigation measures are performed, no impacts are anticipated as a result of this project. 3i. The project will not impact umque geologic or physical I~atures. No unique geologic features or physical features exist on the site. No significant impacts are anticipated as a result of this project. 4. WATER. Would the proposal result in: a. Changes in absorption rates, drainage patterns, or the rate and amount of surface runoff? (Source 7) [ ] b. Exposure of people or property to water related hazards such as flooding? (Source 1, Figure 7-3, Page 7-10 and Figure 7-4, Page 7-12; Source 7) [ ] c. Discharge into surface waters or other alteration of surface water quality (e.g. temperature, dissolved oxygen or turbidity)? (See a. and b.) [ ] d. Changes in the amount of sin'face water in any water body? [] e. Changes in currents, or the course or direction of water movements? [ ] f. Change in the quantity of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations or through substantial loss of groundwater recharge capability? [ ] g. Altered direction or rate of flow of groundwater? [ ] h. Impacts to groundwater quality? [ ] I. Substantial reduction in the amount of groundwater otherwise available for public water supplies? [ ] ix] [] [] IX] [] [] IX] [ ] [ ] [ ] [x] [ ] [] IX] [] [ ] ix] [ ] [] ix] [] [] ix] [] [] [] IX] R:\STAFFRPT\I30PA95.CC 6/16/98 cd 15 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact Discussion of the Environmental Impacts 4a. The project will result in changes to absorption rates, drainage patterns and the rate and amount of surface runoff. Previously permeable gl'ound will be rendered impervious if buildings or additional hardscape be constructed. While absorption rates and surface runoff will change, potential impacts shall be mitigated through site design. Drainage conveyances will be required for the project to safely and adequately handle runoff which is created. After mitigation measures are performed, no significant impacts are anticipated as a result of this project. 4b. The Pilot Park site is located within the inundation area for Murrieta Creek and within the 100-year Flood Boundary of Murrieta Creek as identified in the City of Temecula General Plan Final Environmental Impact Report. Development would require consistency with Federal Emergency Management Agency requirements and a Dam Inundation Evacuation Plan if necessary. The project will be protected from flooding by the construction of storm drain improvements and by elevating any future building sites above the Murrieta Creek Floodplain elevation of 1026. Impacts can be mitigated by utilizing existing emergency response systems and by assuring that these systems continue to maintain adequate service provision as the City develops. After mitigation measures are in place, no significant impacts are anticipated as a result of this project. 4C. The project may have a potentially significant effect on discharges into surface waters and alteration of surface water quality. Prior to issuance of a grading permit for the project, the developer will be required to comply with the requirements of the National Pollutant Discharge Elimination System (NPDES) permit from the State Water Resources Control Board. No grading shall be permitted until an NPDES Notice of Intent has been filed or the project is shown to be exempt. By complying with the NPDES requirements, any potential impacts can be mitigated to a level less than significant. No significant impacts are anticipated as a result of this project. The project will have a less than significant impact in a change in the amount of surface water in any waterbody or a change in cm-rents, or to the course or direction of water movements. Additional surface runoff will occur because previously permeable ground will be rendered impervious by construction of buildings, accompanying hardscape and driveways. Due to the limited scale of the project, the additional amount of drainage will not considered significant. Less than significant impacts are anticipated as a result of this project. 4f, g, h. The project will have a less than significant change in the quantity and quality of ground waters, either tlu'ough dh-ect additions or withch'awals, or through interception of an aquifer by cuts or excavations or through substantial loss of groundwater recharge capability. Limited changes will occur in the quantity and quality of ground waters; however, due to the minor scale of the project, they will not be considered significant. Further, construction on the site will not be at depths sufficient to have a significant impact on ground waters. Less than significant impacts are anticipated as a result of this project. 4i. The project will not result in a substantial reduction in the amount of groundwater otherwise available for public water supplies. According to information contained in the Final Environmental Impact Report for the City of Temecula General Plan, "Rancho California Water District indicates that they can accommodate additional water demands." Water service currently exists in the immediate proximity to the project. Water service will need to be provided by Rancho California Water District (RCWD). This is typically provided upon completion of financial arrangements between RCWD and the property owner. No significant impacts are anticipated as a result of this project. 5. AIR QUALITY. Would the proposal: Violate any air quality standard or contribute to an existing or projected air quali .ty violation? (Source 1, Page 2-29) [] [] [1 [~ R:\STAFFRPT\I30PA95.CC 6/16/98 cd 16 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact b. Expose sensitive receptors to pollutants? [ ] [ ] [ ] [X] c. Alter air movement, moisture or temperature, or cause any change in climate? [ ] [ ] [ ] [X] d. Create objectionable odors? [ ] [ ] [X] [ ] Discussion of the Environmental Impacts 5a. The project will not violate any air quality standard or contribute to an existing o1' projected air quality violation. Future development on the parcels will be subject to the floor area ratio range specified within the General Plan. No significant impacts are anticipated as a result of this project. 5b. The project will not expose sensitive receptors to pollutants. There are no significant pollutants in proximity to the project. No significant impacts are anticipated as a result of this project. 5C. The project will not alter ah- movement, moisture oi' temperatin'e, or cause any change in climate. The limited scale of the project precludes it fi'om creating any significant impacts on the environment in this area. No significant impacts are anticipated as a result of this project. 5d. The project may create objectionable odors during any construction, however these impacts will be of short duration and are not considered significant. 6. TRANSPORTATION/CIRCULATION. Would the proposal result in: a. Increase vehicle trips or traffic congestion? (Source 8) b. Hazards to safety from design features (e.g. sharp curves or dangerous intersection or incompatible uses)? c. Inadequate emergency access or access to nearby uses? d. Insufficient parking capacity on-site or off-site? e. Hazards or ban-iers for pedestrians or bicyclists? f. Conflicts with adopted policies supporting alternative transportation (e.g. bus turnouts, bicycle racks)? g. Rail, waterborne or air traffic impacts? [ ] ix] [ ] [ ] [] [] [1 [~ [] [] [] [~ [] [] [] [~ [] [] [] [~ [] [] [] [~ [] [] [] IX] Discussion of the Environmental Impacts Ga. A traffic study' was prepared for several parcel maps within the Westside Business Park, and the study's recommendations have been incorporated in conditions of approval for these maps. The study indicated that projected future traffic would generate a peak hour Level of Service D or better at all intersections within the scope of the study. The original study's recommendations shall apply to development of the property, which include the extension of Diaz Road, the provision of traffic signals at certain intersections, the restriping of Winchester Road, and the contribution to the construction of the Overland crossing. 6b. The project will not result in hazards to safety from design features. If development is proposed on the parcels identified as containing an Alquist Priolo Special Studies Zone, its design would require compliance with A-P Zone restrictions. The Pilot Park design has been reviewed for compliance with safety and development standards of the City. No significant impacts are anticipated as a result of this project. 6C. The project will not result in inadequate emergency access or access to nearby uses. The Pilot Park is designed to current City standards and has adequate emergency access. No significant impacts are anticipated as a result of this project. R:\STAFFRPT\I30PA95.CC 6/16/98 cd 17 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact 6d. Development in the project area will be conditioned to provide sufficient parking capacity on-site. Off-site parking will not be impacted. No significant impacts are anticipated as a result of this project. 6e. The project will not create hazards or barriers for pedestrians or bicyclists. Diaz Road along the Pilot Park site is designated as a Class I Bicycle Trail per the General Plan. The Pilot Park design includes a pedestrian and bicycle trail and amenities for pedestrians and cyclists. No significant negative impacts are anticipated as a result of this project. 6f. The project will not result in conflicts with adopted policies supporting alternative transportation. Development in the project area will be conditioned to provide bicycle, motorcycle and pedestrian access and facilities. The Pilot Park supports alternative transportation in its design and provision of amenities. No significant impacts are anticipated as a result of this project. 6g. The project will not result in impacts to rail, waterborne or air traffic since none exists currently in the immediate proximity of the project. No significant impacts are anticipated as a result of this project. BIOLOGICAL RESOURCES. Would the proposal result in impacts to: a. Endangered, tha'eatened or rare species or their habitats (including but not limited to plants, fish, insects, animals and birds)? (Source 9, 10 and 14) b. Locally designated species (e.g. heritage trees)? (See a.) c. Locally designated natural communities (e.g. oak forest, coastal habitat, etc.)? (See a.) d. Wetland habitat (e.g. marsh, riparian and vernal pool)? e. Wildlife dispersal or migration corridors? [] [] [] [~ [] [] [] [~ [] [] [1 [~ [1 [] [] [~ [] [] [] [~ Discussion of the Environmental Impacts 7a. The project will not result in an impact to endangered, threatened or rare species or their habitats, including, but not limited to plants, fish, insects, animals and bh'ds. Both the linear park site and Pilot Park site have been graded. Biological surveys have been conducted on properties within the business park, which indicate that the area cannot be regarded as a significant biological resource and is relatively devoid of biological resources. The Murrieta Creek Channel and Santa Gertrudis Creek are designated as sensitive riparian habitats, however the creek channels are excluded fi'om the development of the Pilot Park. The General Plan acknowledges that wildlife con-idors can exist in conjunction with recreation trails and other open space uses. Further mitigations may be required by State and Federal resource agencies relative to channel improvements. The project site is located within the Stephen's Kangaroo Rat Habitat Fee Area. Habitat Conservation fees will be required to mitigate the effect of cumulative impacts to the species. No significant impacts are anticipated as a result of this project. 7b. The project will not result in an impact to locally designated species. Locally designated species are protected in the Old Town Temecula Specific Plan; however, they are not protected elsewhere in the City. Since this project is not located in Old Town, and since there are no locally designated species on site, no significant impacts are anticipated as a result of this project. 7C. The project will not result in an impact to locally designated natural communities. Biological surveys and assessments have been conducted in several areas of the business park, which determined that the area could not be regarded as significant. No significant impacts are anticipated as a result of this project. R:\STAFFRPT\130PA95.CC 6/16/98 cd 18 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Units Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact 7d. The project will not result in an impact to wetland habitat. The Murrieta Creek Channel is excluded fi-om the Pilot Park project. Further mitigations may be required by State and Federal resource agencies relative to channel improvements. No significant impacts are anticipated as a result of this project. 7e. The project will not result in an impact to wildlife dispersal or migration corridors. The project site does not serve as part of a migration corridor. No significant impacts are anticipated as a result of this project. 8. ENERGY AND MINERAL RESOURCES. Would the proposal: a. Conflict with adopted energy conservation plans? [] [] [] [~ b. Use non-renewal resources in a wasteful and inefficient manner? c. Result in the loss of availabili .ty of a known mineral resource that would be of future value to the region and the residents of the State7 [ ] [ ] ix] [ ] [] [] [] [~ Discussion of the Environmental Impacts ga. The project will not impact and/or conflict with adopted energy conservation plans. The project will be reviewed for compliance with all applicable laws pertaining to energy conservation during the plan check stage. No permits will be issued unless the project is found to be consistent with these applicable laws. No significant impacts are anticipated as a result of this project. 8b. The project will result in a less than significant impact for the use of non-renewable resources in a wasteful and inefficient manner. While there will be an increase in the rate of use of any natural resource and in the depletion of nonrenewable resource(s) (construction materials, fuels Ibr the daily operation, asphalt, lumber) and the subsequent depletion of these non-renewable natural resources, due to the scale of the proposed development, these impacts are not seen as significant. 8C. The project will not result in the loss of availability of a known mineral resource that would be of future value to the region and the residents of the State. No known mineral resource that would be of future value to the region and the residents of the State are located at this project site. No significant impacts are anticipated as a result of this project. 9. HAZARDS. Would the proposal involve: a. A risk of accidental explosion or release of hazardous substances (including, but not limited to: oil, pesticides, chemical or radiation)? b. Possible interference with an emergency response plan or emergency evacuation plan? c. The creation of any health hazard or potential health hazard? d. Exposure of people to existing sources of potential health hazards? e. Increase fire hazard in areas with flammable brush, grass, or trees? [1 [] [] [~ [] [] [] [~ [] [] [] [~ [] [1 [] IX] [] [] [] [~ R:\STAFFRPT\I30PA95.CC 6/16/98 cd 19 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact Discussion of the Environmental Impacts 9a. The project will not result in a risk of explosion, or the release of any hazardous substances in the event of an accident or upset conditions since none are proposed in the request. The same is true for the use, storage, transport or disposal of any hazardous or toxic materials. The Department of Environmental Health has reviewed the project and the applicant must receive their clearance prior to any plan check submittal. This applies to storage and use of hazardous materials. No significant impacts are anticipated as a result of this project. 9b. The project will not interfere with an emergency response plan or an emergency evaluation plan. The subject site is not located in an area which could impact an emergency response plan. The project will take access from a maintained street and will therefore not impede any emergency response or emergency evacuation plans. No significant impacts are anticipated as a result of this project. 9C. The project will not result in the creation of any health hazard or potential health hazard. Development at the project site will be reviewed for compliance with all applicable health laws during the plan check stage. No permits will be issued unless the project is found to be consistent with these applicable laws. No significant impacts are anticipated as a result of this project. 9d. The project will not expose people to existing sources of potential health hazards. No health hazards are known to be within proximity of the project. No significant impacts are anticipated as a result of this project. 9e. The project will not result in an increase to fire hazard in an area with flammable brush, grass, or trees. The project is in an area of industrial/office/warehouse development. The project is not located within or proximate to a fire hazard area. No significant impacts are anticipated as a result of this project. 10. NOISE. Would the proposal result in: a. Increase in existing noise levels? (Source 1, Page 8-9) b. Exposure of people to severe noise levels? [ ] [] ix] [] [ ] [] IX] [] Discussion of the Environmental Impacts 10a. The proposal will result in a less than significant increase to existing noise levels. The site is currently vacant and development of the land logically will result in increases to noise levels during construction phases as well as increases to noise in the area over the long run. Long-term noise generated by this project would be similar to existing and proposed uses in the area. Less than significant noise impacts are anticipated as a result of this project in either the short or long-term 10b. The project may expose people to severe noise levels during the development/construction phase (short run). Construction machinery is capable of producing noise in the range of 100+ DBA at 1 O0 feet which is considered very annoying and can cause hearing damage from steady 8-hour exposure. This source of noise will be of short duration and therefore will not be considered significant. There will be no long-term exposure of people to noise. Less than significant impacts are anticipated as a result of this project. 11, PUBLIC SERVICES. Would the proposal have an effect upon, or result in a need for new or altered government services in any of the following areas: a. Fire protection? b. Police protection? c. Schools? d. Maintenance of public facilities, including roads? [] [] [] [] [] [] [] [] ix] ix] ix] ix] [] [] [] [1 R:\STAFFRPT\130PA95.CC 6/16/98 cd 20 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless l~ss Than Significant Mitigation Significant No Impact Incorporated Impact Impact e. Other governmental services? [ ] [ ] [ ] [X] Discussion of the Environmental Impacts 1 la,b. The project will have a less than significant impact upon, or result in a need for new or altered fire or police protection. The project will incrementally increase the need for fire and police protection; however, any development will contribute its fair share to the maintenance of service provision from these entities. Less than significant impacts are anticipated as a result of this project. 11c. The project will have a less than significant impact upon, or result in a need for new or altered school facilities. The project will not cause significant numbers of people to relocate within or to the City of Temecula and therefore will not result in a need for new or altered school facilities. Less than significant impacts are anticipated as a result of this project. 11d. The project will have a less than significant impact for the maintenance of public facilities, including roads. Funding for maintenance of roads is derived from the Gasoline Tax which is distributed to the City of Temecula from the State of California. Impacts to current and future needs for maintenance of roads as a result of development of the site will be incremental, however, they will not be considered significant. The Gasoline Tax is sufficient to cover any of the proposed expenses. Less than significant impacts are anticipated as a result of this project. 11 e. The project will not have an effect upon, or result in a need Ibr new or altered governmental services. No significant impacts are anticipated as a result of this project. 12. UTILITIES AND SERVICE SYSTEMS. Would the proposal result in a need for new systems or supplies, or substantial alterations to the following utilities: a. Power or natural gas? [ ] [ ] [ ] [X] b. Communications systems? [ ] [ ] [ ] [X] c. Local or regional water treatment or distribution facilities? [] [] [] [X] d. Sewer or septic tanks? [ ] [ ] [ ] IX] e. Storm water drainage? [ ] [ ] IX] [ ] f. Solid waste disposal? [ ] [ ] [ ] [X] g. Local or regional water supplies? [ ] [ ] [ ] IX] Discussion of the Environmental Impacts 12a. The project will not result in a need Ibr new systems or supplies, or substantial alterations to power or natural gas. These systems are currently being delivered in proximity to the site. No significant impacts are anticipated as a result of this project. 12b. The project will not result in a need for new systems or supplies, or substantial alterations to communication systems (reference response No. 12.a.). No significant impacts are anticipated as a result of this project. 12c. The project will not result in the need for new systems or supplies, or substantial alterations to local or regional water treatment or distribution facilities. No significant impacts are anticipated as a result of this project. 12d. The project will not result in a need for new systems or supplies, or substantial alterations to sanitary sewer systems or septic tanks. While the project will have an incremental impact upon existing systems, the Final Environmental Impact Report (FEIR) for the City's General Plan states: "both EMWD and RCWD have indicated an ability to supply R:\STAFFRPT\130PA95.CC 6/16/98 cd 2 ! ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless Less Than Significant Mitigation Significant No Impact Incorporated Impact Impact as much water as is required in their services areas (p. 39)." The FEIR further states: "implementation of the proposed General Plan would not significantly impact wastewater services (p. 40)." Since the project is consistent with the City's General Plan, no significant impacts are anticipated as a result of this project. There are no septic tanks on site or proximate to the site. No significant impacts are anticipated as a result of this project. 12e. The proposal will result in a less than significant need for new systems or supplies, or substantial alterations to storm water drainage. Any development of the site may require some additional on-site drainage systems. The drainage system will be required as a condition of approval for development and will tie into the existing system. Less than significant impacts are anticipated as a result of this project. 12f. The proposal will not result in a need for new systems or substantial alterations to solid waste disposal systems. Any potential impacts from solid waste created by this development can be mitigated thi-ough participation in the Source Reduction and Recycling Programs implemented by the City. No significant impacts are anticipated as a result of this project. 12g. The project ~vill not result in a need for new systems or supplies, or substantial alterations to local or regional water supplies. Reference response 12.d. No significant impacts are anticipated as a result of this project. 13. AESTHETICS. Would the proposal: a. Affect a scenic vista or scenic highway? [ ] [ ] [ ] IX] b. Have a demonstrable negative aesthetic effect? [ ] [ ] [ ] [X] c. Create light or glare? [ ] [X] [ ] [ ] Discussion of the Environmental Impacts 13.a. The project will not affect a scenic vista or scenic highway. Development in the project site shall be conditioned to be compatible and consistent with existing industrial buildings in the Westside Business Center and to conform to its Design Manual and the City's adopted Design Guidelines. No significant impacts are anticipated as a result of this project. 13b. The project will not have a negative effect. Development at the project site will be required to be consistent development and the City's Design Guidelines. No significant impacts are anticipated as a result of this project. 13c. The project may have a potentially significant impact fi-om light and glare. The project may produce and result in light/glare, as all development of this nature results in new light sources. All light and glare has the potential to impact the Mount Palomar Observatory. Development will be conditioned to be consistent with Ordinance No. 655 (Ordinance Regulating Light Pollution)~ With mitigation measures in place, no significant impacts are anticipated as a result of this project. 14. CULTURAL RESOURCES. Would the proposal: a. Disturb paleontological resources? (Source 2, Figure 55, Page 280; Source 11) [ ] b. Disturb archaeological resources? (Source 1, Figure 56, Page283; Source 12) [ ] c. Affect historical resources? (Source 2, Page 281 ) [ ] d. Have the potential to cause a physical change which would affect unique ethnic cultural values? [ ] e. Restrict existing religious or sacred uses within the potential impact area? [ ] ix] [ ] [ ] ix] [ ] [] [] [] ix] ix] [ ] [ ] ix] [ ] [ ] R:\STAFFRPT\I30PA95.CC 6/16/98 cd 22 ISSUES AND SUPPORTING INFORMATION SOURCES Potentially Significant Potentially Unless l~.ss Than Significant Mitigation Significant No Impact Incorporated Impact Impact Discussion of the Environmental Impacts 14a. The existing linear park construction would have required grading of the site. Any impacts to paleontological resources would have been reviewed and mitigated at the time of grading. The Pilot Park site is not within a paleontologically sensitive area according to the General Plan. No significant impacts are anticipated as a result of the project. 14b,d,e. The existing linear park construction would have required grading of the site. Any impacts to archaeological resources would have been reviewed and mitigated at the time of grading. The Pilot Park site is not within an archaeologically sensitive area according to the General Plan. No significant impacts are anticipated as a result of the project. 14.c. The site is not listed as an identified historical site in the inventory contained in the City's General Plan Final Environmental Impact Report. No significant impacts are anticipated as a result of this project. 15. RECREATION. Would the proposal: a. Increase the demand for neighborhood or regional parks or other recreational facilities? [ ] b. Affect existing recreational opportunities? [ ] Discussion of the Environmental Impacts [ ] ix] [] [ ] [x] [] 15a,b. The project will not have an adverse impact nor increase in demand for neighborhood or regional parks or other recreational facilities. The project will eliminate two acres of linear park which has been little used in the past. However, the proposed Pilot Park offers five acres of hiking, cycling, picnicking, and other recreational activities. The Pilot Park will enhance the quality and quantity of existing recreational resources or opportunities in the City. No significant impacts are anticipated as a result of this project. 16. MANDATORY FINDINGS OF SIGNIFICANCE. Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number of restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Does the project have the potential to achieve short-term, to the disadvantage of long-term, environmental goals? Does the project have impacts that area individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past prqjects, the efl~cts of other current projects, and the effects of probable future projects). [] [] [1 IX] [l [] [] ix] [ ] [ ] [ ] ix] R:\STAFFRPT\130PA95.CC 6/16/98 cd 23 Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 17. EARLIER ANALYSES. Various. [] [] [] [~ SOURCES 1. City of Temecula General Plan. 2. City of Temecula General Plan Final Environmental Impact Report. 3. South Coast Air Quality Management District CEQA Air Quality Handbook. 4. Geotechnical Investigation Report by Schaefer Dixon Associates, dated June 7, 1989 5. Response to County Geologic Review Sheet by Schaefer Dixon Associates, dated August 15, 1989, and County Geologic Report No. 627, dated August 3, 1989 by Steven Kupferman 6. Fault Location Investigation by EnGEN Corporation, dated August 29, 1997 7. Drainage Study by HLC Civil Engineering received September 23, 1997 8. Traffic Review by RKJK dated 1990 and RKJK update letter dated 10/3/97 9. Biological Survey and Assessment by Paul Principe& Associates dated January 1983 10. Biological Assessment by Howard Lee dated January 4, 1988 11. Paleontological Survey & Assessment by Paul Langenwalter II, dated January 1989 12. Archaeological Assessment by Clmstopher E. Drover, Ph.D., dated January 28, 1989 13. Architectural Guideline and Design Manual for Westside Business Centre 14. Phase I Quino Checkerspot Butterfly Study by Principe and Associates dated March 5, 1998 R:\STAFFRPT\130PA95.CC 6/16/98 cd 24 EXHIBIT B MITIGATION MONITORING PROGRAM R:\STAFFRPT\130PA95.CC 6/16/98 cd 25 Mitigation Monitoring Program Planning Application No. PA95-0130 Amendment to Development Agreement Geologic Problems General Impact: Erosion, changes in topography or unstable soil conditions from excavation, grading or fill. Mitigation Measures: Planting of slopes consistent with Ordinance No. 457. Specific Processes: Submit erosion control plans for approval by the Department of Public Works. Mitigation Milestone: Prior to the issuance of a grading permit. Responsible Monitoring Party: Department of Public Works. General Impact: Erosion, changes in topography or unstable soil conditions from excavation, grading or fill. Mitigation Measures: Planting of on-site landscaping that is consistent with the Development Code. Specific Processes: Submit landscape plans that include planting of slope to the Planning Department for approval. Mitigation Milestone: Prior to the issuance of a building permit. Responsible Monitoring Party: Planning Department. General Impact: Exposure of people or property to seismic ground shaking, seismic ground failure, landslides or mudflows, expansive soils or earthquake hazards. Mitigation Measure: Ensure that soil compaction is to City standards. Specific Process: A soils report prepared by a registered Civil Engineer shall be submitted to the Department of Public Works with the initial grading plan check. Building pads shall be certified by a registered Civil Engineer. Mitigation Milestone: Prior to the issuance of grading permits and building permits. Responsible Monitoring Party: Department of Public Works and Building & Safety Department. R:\STAFFRPT\130PA95.CC 6/16/98 cd 26 General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Exposure of people or property to seismic ground shaking, seismic ground failure, landslides or mudflows, expansive soils or earthquake hazards. Utilize construction techniques that are consistent with the Uniform Building Code. Submit construction plans to the Building & Safety Department for approval. Prior to the issuance of building permits. Building & Safety Department Water General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: The project will result in changes to absorption rates, drainage patterns and the rate and amount of surface runoff. Methods of controlling runoff, from site so that it will not negatively impact adjacent properties, including drainage conveyances, have been incorporated into site design and will be included on the grading plans. Submit grading and drainage plan to the Department of Public Works for approval. Prior to the issuance of grading permit. Department of Public Works. General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Discharge into surface waters or other alteration of surface water quality (e.g. temperature, dissolved oxygen or turbidity). An erosion control plan shall be prepared in accordance with City requirements and a Storm Water Pollution Prevention Plan (SWPPP) shall be prepared in accordance with the National Pollution Discharge Elimination System (NPDES) requirements. The applicant shall submit a SWPPP to the San Diego Regional Water Quality Control Board (SDRWQCB) for their review and approval. Prior to the issuance of a grading permit. Department of Public Works and SDRWQCB (for SWPPP). R:\STAFFRPT\130PA95.CC 6/16/98 cd 27 Transportation/Circulation General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Increase in vehicle trips or traffic congestion. Payment of Public Facility Fee for road improvements and traffic impacts. Payment of the Public Facilities Development Impact Fee in accordance with Chapter 15.06 of the Temecula Municipal Code. Prior to the issuance of occupancy permits. Department of Public Works. General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Insufficient parking capacity on-site or off-site. Provide on-site parking spaces to accommodate the use. Install on-site parking spaces. Prior to the issuance of occupancy permits. Department of Public Works, Planning Department and Building & Safety Department. Biological Resources General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: Endangered, threatened or rare species or their habitats (including but not limited to plants, fish, insects, animals and birds). Pay Mitigation Fee for impacts to Stephens Kangaroo Rat. Pay $500.00 per acre of disturbed area of Stephens Kangaroo Rat habitat. Prior to the issuance of a grading permit. Department of Public Works and Planning Department R:\STAFFRPT\130PA95.CC 6/16/98 cd 28 Public Services General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: A substantial effect upon and a need for new/altered governmental services regarding fire protection. The project will incrementally increase the need for fire protection; however, it will contribute its fair share to the maintenance of service provision. Payment of Fire Mitigation Fees. Payment of the Public Facilities Development Impact Fee in accordance with Chapter 15.06 of the Temecula Municipal Code. Prior to the issuance of building permit. Building & Safety Department General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: A substantial effect upon and a need for new/altered schools. No significant impacts are anticipated. Payment of School Fees. Pay current mitigation fees with the Temecula Valley Unified School District. Prior to the issuance of building permits. Building & Safety Department and Temecula Valley Unified School District. General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: A substantial effect upon and a need for maintenance of public facilities, including roads. Payment of Public Facility Fee for road improvements, traffic impacts, and public facilities. Payment of the Public Facilities Development Impact Fee in accordance with Chapter 15.06 of the Temecula Municipal Code. Prior to the issuance of building permits. Department of Public Works. R:\STAFFRPT\130PA95.CC 6/16/98 cd 29 AESTHETICS General Impact: Mitigation Measure: Specific Process: Mitigation Milestone: Responsible Monitoring Party: The creation of new light sources will result in increased light and glare that could affect the Palomar Observatory. Use lighting techniques that are consistent with Ordinance No. 655. Submit lighting plan to the Building and Safety Department for approval. Prior to the issuance of a building permit. Building & Safety Department. R:\STAFFRPT\130PA95.CC 6/16/98 cd 30 ATTACHMENT NO. 2 CITY COUNCIL ORDINANCE NO. 98- PLANNING APPLICATION NO. PA95-0130, AMENDMENT TO DEVELOPMENT AGREEMENT R:\STAFFRPT\130PA95.CC 6/16/98 cd 31 ATTACHMENT NO. 2 ORDINANCE NO. 98- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, APPROVING THAT CERTAIN DEVELOPMENT AGREEMENT ENTITLED "SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1," WITH WESTSIDE BUSINESS CENTRE, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY THE CITY COUNCIL OF THE CITY OF TEMECULA, STATE OF CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. Westside Business Centre, LLC filed Planning Application No. PA95-0130 in accordance with the City of Temecula General Plan and Development Code. Public hearings have been held before the Planning Commission and City Council of the City of Temecula, State of California, pursuant to the Planning and Zoning law of the State of California, and the City Code of the City of Temecula. Section 2. Environmental Compliance. An Initial Study has been prepared for this project. The Initial Study determined that although the proposed project could have a significant effect on the environment, these effects are not considered to be significant due to mitigation measures contained in the project design. Any potentially significant impacts will be mitigated. The Council adopted Resolution No. 98- approving the Negative Declaration. Section 3. Findings. The City Council in approving the proposed Development Agreement Amendment makes the following findings, to wit: 1. The development to be carried out pursuant to the Second Amendment to Development Agreement No. 90-1 is consistent with the General Plan. 2. The Second Amendment to Development Agreement No. 90-1 and the development to be carried out hereunder complies with all other applicable requirements of State law and City ordinances. Section 4. The "Second Amendment to Development Agreement No. 90-1" by and between Westside Business Centre, LLC, a California Limited Liability Company, and the City of Temecula is hereby approved and the Mayor is hereby authorized and directed to execute the Second Amendment on behalf of the City of Temecula in substantially the form attached hereto as Exhibit A and incorporated herein by the reference. R:\STAFFRPT\130PA95.CC 6/16/98 cd 32 Section 5. This Ordinance shall be in full force and effect thirty (30) days after its passage. The City Clerk shall certify to the adoption of this Ordinance. The City Clerk shall publish a summary of this Ordinance and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five days prior to the adoption of this Ordinance. Within 15 days from adoption of this Ordinance, the City Clerk shall publish a summary of this Ordinance, together with the names of the Councilmembers voting for and against the Ordinance, and post the same in the office of the City Clerk. Section 6. PASSED, APPROVED, AND ADOPTED this 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA COUNTY OF RIVERSIDE) SS CITY OF TEMECULA I, Susan W. Jones, CMC, Acting City Clerk of the City of Temecula, California, do hereby certify that the foregoing Ordinance No. 98-__ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 23rd day of June, 1998, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council of the City of Temecula on the 23rd day of June, 1998 by the following roll call vote: AYES: NOES: ABSENT: COUNCILMEMBERS COUNCILMEMBERS COUNCILMEMBERS Susan W. Jones, CMC Acting City Clerk R:\STAFFRPT\130PA95.CC 6/16/98 cd 3 3 EXHIBIT A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1 TEXT R:\STAFFRPT\130PA95.CC 6/16/98 cd 34 EXHIBIT A RECORDED AT REQUEST OF AND WHEN RECORDED RETURN TO: Susan Jones, City Clerk City of Temecula 43200 Business Park Dr. Temecula, Ca. 92590 EXEMPT FROM RECORDER'S FEES pursuant to Government Code Sections 6103 and 27383 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1 THIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO.90--1 is made and entered into as of June 23, 1998 by and between the City of Temecula, a municipal corporation ("City"), and Westside Business Centre LLC, a California limited liability company ("Owner"). In consideration of the mutual covenants and agreements contained herein, the City and Owner hereby agree as follows: 1. This Second Amendment is made with respect to the following facts which each of the parties agrees and acknowledges are true and correct: a. On October 18, 1990, the Owner's predecessor-in-interest, Rancho Core Associates No. 1, a California limited partnership, entered into that certain Development Agreement No. 1 with the City of Temecula (the "Development Agreement") which became effective on October 19, 1990. The Development Agreement was recorded as Document No. 385553 in the Official Records of the County of Riverside on October 19, 1990. b. On April 19, 1995, the successor to Rancho Core Associates No. 1., and the predecessor-in-interest to Owner, BA Properties, Inc., a Delaware corporation, and the City first amended the Development Agreement by entering into that certain Partial Termination of Development Agreement No. 90-1, which became effective on April 20, 1995. The Partial Termination of Development Agreement No. 90-1 was recorded as Document No. 12341 in the Official Records of the County of Riverside on April 20, 1995. c. The property which is subject to this Second Amendment ("Property") is described on Attachment 1 to this Second Amendment, which is attached hereto and incorporated herein as though set forth in full. R:\STAFFRPT\130PA95.CC 6/16/98 cd 35 d. Owner and City now desire to modify the Development Agreement on the terms and conditions set forth below. eo Second Amendment. An environmental review has been conducted and approved for this f. On June 17, 1998 the Planning Commission held a duly noticed public hearing on this Second Amendment (Planning Application No. PA95-0130) and recommended to the City Council that it be approved. On June 23, 1998, the City Council held a duly noticed public hearing on this Second Amendment (Planning Application No. PA95-0130). The Council considered all of the information presented to it, including comments of the public, prior to adopting Ordinance No. 98- approving this Second Amendment. g. This Second Amendment is consistent with the present public health, safety, and welfare needs of the residents of the City of Temecula and the surrounding region. In approving this Second Amendment, the City has specifically considered and approved the impact and benefits of this Project upon the welfare of the region. h. This Second Amendment is consistent with the City's General Plan. 2. Unless otherwise defined, the capitalized terms used in this Second Amendment shall have the same meanings as set forth in the Development Agreement. 3. The Development Agreement is hereby amended to provide that the Owner of the Property is now "Westside Business Centre LLC, a California limited liability company." 4. Section 2.7 Co) of the Development Agreement is amended by changing the names and addresses of the parties to whom notice shall be sent to read as follows: "If to City: City of Temecula 43200 Business Park Dr. Post Office Box 9033 Temecula, California 92589-9033 Attention: City Manager With a copy to: Peter M. Thorson, Esq. Richards, Watson & Gershon 333 South Hope Street, 38th Floor Los Angeles, California 90071-1469 R:\STAFFRPT\130PA95.CC 6/16/98 cd 36 If to Owner: Westside Business Centre LLC c/o Dendy Real Estate & Investment Co. Attention: Bill J. Dendy, President With a copy to: 5. The obligation of the Owner to develop a linear park on three acres of property on Lots 12, 95 and 119 of the Property is hereby deleted and Section 4.2.1 (g) of the Development Agreement is hereby amended to read as follows: "(g) Owner shall develop and construct a park on not less than five (5) acres of property owned by Owner west of the Murrieta Creek Channel, generally located east of Diaz Road and north of Winchester Road, which area is more specifically described on Exhibit F. to this Development Agreement, Legal Description of Park, which is attached hereto and incorporated herein by this reference as though set forth in full ("Park Property"). "(I) Concurrently with entering into the Second Amendment to this Development Agreement, the City and Owner entered in that certain agreement entitled "Parkland Improvement Agreement" dated as of June 23, 1998. Said Parkland Improvement Agreement sets forth the minimum design and construction requirements for the Park to be developed and constructed pursuant to this Section. City and Owner may amend in writing the Parkland Improvement Agreement without amending or modifying this Development Agreement. "(ii) Owner shall construct the Park described in this Section and dedicate it to the City of Temecula within two (2) years of the effective date of the Second Amendment to Development Agreement. "(iii) If the Park is not developed and dedicated to the City within said two year period, Owner shall, at its sole cost and expense, landscape and irrigate the Park Property pursuant to a landscaping plan approved by the Director of Community Development in accordance with the City's commercial landscaping standards. The landscaping, if needed, shall be completed within three (3) years of the effective date of the Second R:\STAFFRFr\130PA95.CC 6/16/98 cd 37 Amendment to the Development Agreement. Owner shall maintain the landscaping and provide water for irrigation, at its sole cost and expense, provided however, that Owner may, with the consent of the City, transfer the maintenance responsibility to a property owners' association in this area. (iv) Within five (5) business days of the adoption by the City Council of the Ordinance approving the Second Amendment to the Development Agreement, Owner shall post with the City and thereafter maintain a bond, or other security acceptable to the City in terms of liquidity and security, in the amount of seven hundred sixty thousand dollars ($760,000.00), or such other amount as the City Manager determines to be adequate, guaranteeing the installation of the landscaping and irrigation on the Park Property pursuant to this section. The bond or other acceptable security shall be in a form approved by the City Attorney. The bond or other acceptable security shall be maintained by the Owner until such time as the Park is accepted by the City or the landscaping on the Park Property is approved, installed and accepted for maintenance by the property owner's association. (v.) Within five (5) business days of the adoption by the City Council of the Ordinance approving the Second Amendment to the Development Agreement, Owner shall execute and submit to the City for recordation an irrevocable offer of dedication to the Riverside County Flood Control District, in a form acceptable to the District's Engineer, of that portion of the Property required for expansion and renovation of Murrieta Creek. 6. The Development Agreement is hereby amended to incorporate a new Exhibit F., Legal Description of Park, which exhibit is attached to this Second Amendment, and incorporated herein, as Attachment 2. 7. Owner warrants and represents to the City that the persons described on Attachment 3. to this Second Amendment are the holders of liens or encumbrances in the Property or otherwise hold a security interest in the Property and that no other persons hold liens or encumbrances in the Property or otherwise hold a security interest in the Property. All of the persons described on Attachment 3. shall consent to this Second Amendment and subordinate their rights in the Property to this Second Amendment. 8. Except as specifically modified by the terms of this Second Amendment, all other terms and conditions of Development Agreement No. 90-1 shall remain in full force and effect. 9. The effective date of this Second AmendmenttoDevelopmentAgreementNo. 90-1 shall be the date on which it is recorded in the Official Records of Riverside County. ///// ///// R:\STAFFRPT\130PA95.CC 6/16/98 cd 38 IN WITNESS WItEREOF the parties hereto have executed this Agreement as of the date first written above. CITY OF TEMECULA BY: Attest: Ronald Roberts Mayor Susan Jones City Clerk Approved As to Form: Peter M. Thorson City Attorney WESTSIDE BUSINESS Centre LLC, a California limited liability company By: Dendy Real Estate & Investments Co., Inc., a California corporation, Manager By: Bill J. Dendy President R:\STAFFRPT\I30PA95.CC 6/16/98 cd 39 CONSENT AND SUBORDINATION OF INTERESTS OF HOLDERS OF LIENS, ENCUMBRANCES OR OTHER SECURITY INTEREST IN THE PROPERTY The undersigned entity ("Secured Party") holds a security interest in the property described on Exhibit A. to this Second Amendment in the form of a deed of trust recorded on as Document No. in the Official Records of the County of Riverside ("Deed of Trust"). The Secured Party acknowledges the existence and validity of the Second Amendment to the Development Agreement, consents to its recordation, and hereby subordinates the covenants, terms and conditions of the Second Amendment to its Deed of Trust. Executed on , 1998. Name of Entity: By: Name of Signer: Title of Signer: By: Name of Signer: Title of Signer: [All signatures must be notarized.] R:\STAFFRPT\130PA95.CC 6/16/98 cd 40 ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On , 1998, before me, , personally appeared [1 [1 personally known to me -OR- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. SIGNATURE OF NOTARY [1 [] INDIVIDUAL(S) OFFICER(S) (TITLE[S]): CAPACITY CLAIMED BY SIGNER [] [] [] [] [] PARTNER(S) ATTORNEY-IN-FACT TRUSTEE(S) CHAIRPERSON/MAYOR OTHER: SIGNER IS REPRESENTING: R:\STAFFRFF\130PA95.CC 6/16/98 ed 41 ATTACHMENT 1. TO SECOND AMENDMENT LEGAL DESCRIPTION OF PROPERTY OF CALIFORNIA, AB SHOWN BY Ml~ 0N FILE LN BOOK 6 PAGE 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING T~F~REFROM T~AT PORTTON OF pA~_~T. · LYING NORTHEAST~Y OF DIAZ ROAD OF PARCEL M~P NO. 4646, AS SHOWN BY MAP ON FILE IN BOOK 6 PAGE 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALZFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT TH~ I~I~ERSECTION OF THE CENTERLINE OF DIAZ ROAD AND THE CENTERLINE OF Tm~ 66 FOOT WIDTH ROAD ALONG THE SOUTHEASTERLY PORTION OF PARCEL 3 AND THE NORTH3~TERLY PORTION OF PARCEL 4, AS SHOWN ON SAID PARCEL MiP~ THENCE NORTH 27 DEGREES 30t 00' F.B.ST ALONG ~ NORTH~.ASTERLY' PROLONGATION OF SAID CENTERLINE OF THaT CERTAIN 66 FOOT WIDTH ROAD 50 FEET TO THE NORTHEASTERLY RIGHT OF WAY LINE OF DIAZ ROAD, AND THE TRUE POINT OF BEGINNING; THENCE NORTH 27 DEGREES 30~ 00w E~ST ALONG SAID NORTHEASTERLY PROLONGATION OF THaT CERTAIN 66 FOOT WIDTH ROAD 80.00 FEET TO THE SOUTHWESTERLY BOUNDARY LLNE OF MURRIETA CREEK; THENCE .SOUTH 62 DEGREE8 30t 00'~ EAST ALONG SOUTHWESTERLY BOUNDARY LINE OF MURRIETA CREEK 48.23 FEET TO A POINT; THENCE SOUTH 27 DEGREES 30e 00w WEST ALONG THE A LINE PARALLEL TO AND 26.78 FEET DISTANT FROM SAID NORTHEASTERLY PROLONGATION OF THE CnqTEaLLNE OF THaT C]:RTAIN 66 FOOT b'~:3:)TH ROAD 80.00~ FEET TO THE NORT~-_~STKRLY RIGHT OF WAY LINK OF DIAZ ROAD; THENCE NORTH 27 DEGREES 30e 00w WEST LONG THE NORTHEASTERLY RIGHT OF WAY LINE OF DIAZ ROAD 48.23 FEET TO THE INTERSECTION OF THE NORTHEASTERLY RP00LONGATION OF THE CENTERL~ OF THAT CERTAIN 66 FOOT WIDTH ROAD AND THE NORTHEASTERLY RIGHT OF WAY LINE OF DIAZ ROAD, BEING THE TRUE POINT OF BEGINNING. R:\STAFFRPT\I30PA95.CC 6/16/98 cd 4-2 ATTACHMENT 2. TO SECOND AMENDMENT NEW EXHIBIT F TO DEVELOPMENT AGREEMENT LEGAL. DESCRIPTION OF PARK PARCEL 1: THAT PORTION OF PARCEL 2 OF PARCEL MAP NO. 4646, AS SHOWN BY MAP ON FILE IN BOOK 6, PAGE 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, LYING NORTHEASTERLY OF THE NORTHEASTERLY LINE OF DIAZ ROAD AS SHO%5"4 ON SAID PARCEL MAP NO. 4646. PARCEL 2: THAT PORTION OF PARCEL 3 OF PARCEL MAP NO. 4646, AS SHOWN BY PARCEL MAP ON F~LE IN BOOK 6, PAGE 75 OF PARCEL MAPS, R. ECORDS OF RIVERSIDE COUNTY, CALIFORNIA, LYING NORTHEASTERLY OF THE NORTHEASTERLY LINE OF DIAZ ROAD AS SHOWN ON SAID PARCEL MAP NO. 4646. EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE EASTERN MU%'ICIPAL WATER DISTRICT BY DEED RECORDED JUNE 30, 1989 AS INSTRUMENT NO. 218392 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 3: THAT PORTION OF PARCEL 4 OF PARCEL MAP NO. 4646, AS SHOWN BY PARCEL MAP ON FILE IN BOOK 6. PAGE 75 OF PARCEL MAPS. RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, LYING NORTHEASTERLY OF THE NORTHEASTERLY LINE OF DiAZ ROAD AS SHOWN ON SAID PARCEL MAP NO. 4646. EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE EASTERN MUNICIPAL WATER DISTRICT BY DEED RECORDED JUNE 30, 1989 AS iNSTRUMENT NO. 218_392 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY. R:\STAFFRPT\I30PA95.CC 6/16/98 cd 43 ATTACHMENT 3. TO SECOND AMENDMENT LIST OF HOLDERS OF SECURITY INTERESTS IN PROPERTY R:\STAFFRPT\130PA95.CC 6/16/98 cd 44 ATTACHMENT NO. 3 CITY COUNCIL RESOLUTION NO. 98- PARKLAND AGREEMENT FOR THE MURRIETA CREEK PILOT PARK PROJECT R:\STAFFRPT\I30PA95.CC 6/16/98 cd 45 ATTACHMENT NO. 3 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, APPROVING THAT CERTAIN AGREEMENT ENTITLED "PARKLAND IMPROVEMENT AGREEMENT," FOR THE MURRIETA CREEK PILOT PARK PROJECT WItEREAS, concurrent with the execution of this Agreement, the City Council conducted a public heating pertaining to Planning Application No. PA95-0130 (Amendment to Development Agreement) on June 23, 1998, at which time interested persons had opportunity to testify either in support or opposition of Planning Application No. PA95-0130; WHEREAS, the City Council received a copy of the Commission proceedings and Staff Report regarding Planning Application No. PA95-0130; WHEREAS, concurrently with the approval of this Agreement, the City and Owner entered into the Second Amendment to Development Agreement No. 90-1 on June 23, 1998; WHEREAS, the Second Amendment amended Section 4.2.1 (g) of the Development Agreement which requires that the five (5) acres of property located west of the Murrieta Creek Channel, east of Diaz Road and north of Winchester Road, shall be developed as a park in accordance with the design and construction requirements set forth in this Parkland Improvement Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Findings. The City Council in approving the proposed Development Agreement Amendment makes the following findings, to wit: 1. The development to be carried out pursuant to the Second Amendment to Development Agreement No. 90-1 is consistent with the General Plan for Temecula and with all applicable requirements of State law and City ordinances. 2. The overall development of the land is designed for the protection of the public health, safety and general welfare. Section 2. Environmental Compliance. An Initial Study has been prepared for this project. The Initial Study determined that although the proposed project could have a significant effect on the environment, these effects are not considered to be significant due to mitigation measures contained in the project design. Any potentially significant impacts will be mitigated. R:\STAFFRPT\130PA95.CC 6/16/98 cd 46 Section 3. The "Parkland Improvement Agreement" by and between Westside Business Centre, LLC and the City of Temecula is hereby approved and the Mayor is hereby authorized and directed to execute the Agreement on behalf of the City of Temecula in substantially the form attached hereto as Exhibit A and incorporated herein by this reference. Section 4. The City Clerk shall certify the adoption of this Resolution. Section 5. PASSED, APPROVED, AND ADOPTED this 23rd day of June, 1998. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA COUNTY OF RIVERSIDE) SS CITY OF TEMECULA I, Susan W. Jones, CMC, Acting City Clerk of the City of Temecula, California, do hereby certify that the foregoing Ordinance No. 98- was duly introduced and placed upon its first reading at a regular meeting of the City Council on the 23rd day of June, 1998, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council of the City of Temecula on the 23rd day of June, 1998 by the following roll call vote: AYES: NOES: ABSENT: COUNCILMEMBERS COUNCILMEMBERS COUNCILMEMBERS Susan W. Jones, CMC Acting City Clerk R:\STAFFRPT\130PA95.CC 6/16/98 cd 47 EXHIBIT A PARKLAND AGREEMENT R:\STAFFRPT\130PA95.CC 6/16/98 cd 48 CITY OF TEMECULA PARKLAND IMPROVEMENT AGREEMENT This Parkland Improvement Agreement is made and entered into and shall be dated as of June 23, 1998 by and between the City of Temecula, California, a Municipal Corporation ("City"), and Westside Business Centre LLC, a California limited liability company ("Owner"). In consideration of the mutual covenants and agreements contained herein, the City and Owner hereby agree as follows: 1. Recitals. This Agreement is made with respect to the following facts which each of the parties agrees and acknowledges are true and correct: A. On October 18, 1990, the Owner's predecessor-in-interest, Rancho Core Associates No. 1, a California limited partnership, entered into that certain Development Agreement No. 1 with the City of Temecula (the "Development Agreement") which became effective on October 19, 1990. The Development Agreement at Section 4.2.1 (g) originally required the Owner to landscape approximately five (5) acres located west of the Riverside County Flood Control District Murrieta Creek Channel, east of Diaz Road and north of Winchester Road and to cause the Owner's Association of the development to maintain three acres in the vicinity of Lots 12, 95 and 119 of Tract No. 21383 as a park. B. Concurrently with the approval of this Agreement, the City and Owner entered into the Second Amendment to Development Agreement No. 90-1 on June 23, 1998. This Second Amendment amended Section 4.2.1 (g) of the Development Agreement which requires that the five (5) acres of property located west of the Mumeta Creek Channel, east of Diaz Road and north of Winchester Road, shall be developed as a park in accordance with the design and construction requirements set forth in this Parkland Improvement Agreement. The legal description of the property on which the park will be developed is attached hereto as Exhibit A and is incorporated herein by this reference as though set forth in full ("Park Property"). The Park Property is owned in fee by the Owner. 2. Design of Park Improvements A. Owner has submitted to the City construction plans for the Park ("Park Plans"), which plans are on file in the Office of the Director of Community Services. The Park Plans are hereby approved by the City. B. The Owner shall construct the Parkland Improvements in accordance with the Park Plans and the City Standards. The Director of Community Services of the City shall approve any changes to the Park Plans. City reserves the right to modify the standards applicable to the Park Property, the Parkland Improvement Plans, and this Agreement, when necessary to R:\STAFFRPT\I30PA95.CC 6/16/98 cd 49 protect the public health, safety or welfare or comply with applicable State or Federal law or City zoning ordinances. If Owner requests and is granted an extension of time for completion of the improvements, City may apply the standards in effect at the time of the extension. C. With in fifteen (15) business days of the approval of this Parkland Improvement Agreement, Owner shall submit an estimated cost of the Parkland Improvements, which cost estimate shall be approved by the Director of Community Services. 3. Owner's Obligations to Construct Parkland Improvements. Owner Shall: A. Complete all the work required to construct and install all of the Parkland Improvements in conformance with the Parkland Improvement Plans and the City Standards, at Owner's sole cost and expense, within two (2) years after the effective date of the Second Amendment to the Development Agreement; B. Furnish the necessary materials for completion of the Parkland Improvements in conformity with the approved Parkland Improvement Plans and City standards; C. Acquire and convey to the City, at Owner's sole cost and expense, of the Park Property and all real property, rights-of-way, easements and other interests in real property necessary for construction or installation of the Parkland Improvements, free and clear of all liens and encumbrances. 4. Acquisition and Dedication of Easements or Rights-of-Way. If any of the Parkland Improvements and land development work contemplated by this Agreement are to be constructed or installed on land not owned by Owner, no construction or installation shall be commenced before: A. The offer of dedication to City or appropriate rights-of-way, easements or other interest in real property, and appropriate authorization from the property owner to allow construction or installation of the Improvements or work, or B. The dedication to, and acceptance by, the City of appropriate rights-of-way, easements or other interests in real property, and approved by the Department of Public Works, as determined by the Director of Community Services. Nothing in this Section shall be construed as authorizing or granting an extension of time to Owner. R:\STAFFRPT\130PA95.CC 6/16/98 cd 50 5. Acceptance of Park by City. For the benefit of City, the acceptance of the Park and conveyance of the Park Property shall be contingent upon and subject to the occurrence of all of the following (or City's written waiver thereof, it being agreed that City can waive any or all such contingencies): A. The Park has been constructed in accordance with all approved plans. B. First American Title Company has issued a commitment to issue in favor of City of a CLTA Standard Coverage Owner's Policy of Title Insurance with liability equal to the value of the land and the value of the Park Improvements showing the fee interest in the Property vested in the City subject only to such title exceptions as are approved by the City Manager. C. City's approval of any environmental site assessment, soils or geological reports, or other physical inspections of the Park Property or the underlying real property. 6. Inspection and Maintenance Period. A. Owner shall obtain City inspection of the Parkland Improvements in accordance with the City standards in effect at the time of approval of the Parkland Improvement Plans. Owner shall at all times maintain proper facilities and safe access for inspection of the Parkland Improvements by City inspectors and to the shops wherein any work is in preparation. Upon completion of the work, the Owner may request a final inspection by the Director of Community Services, or the Director of Community Service's authorized representative. If the Director of Community Services, or the designated representative, determines that the work has been completed in accordance with this Agreement, then the Director of Community Services shall certify the completion of the Parkland Improvements to the City Council. B. Owner shall continue to maintain the Parkland Improvements for ninety (90) days after the Director of Community Services determines they have been completed. No improvements shall be finally accepted unless the maintenance period has expired, and all aspects of the work have been inspected and determined to have been completed in accordance with the Parkland Improvement Plans and City standards. Owner shall bear all costs of inspection and certification. 7. Injury to Public Improvements, Public Property or Public Utilities Facilities. Owner shall replace or have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities facilities and surveying or subdivision monuments which are destroyed or damaged or destroyed by reason of any work done under this Agreement. Owner shall bear the entire cost of replacement or repairs of any and all public property on public utility property damaged or destroyed by reason of any work done. Under this agreement whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City or any public or private utility R:\STAFFRPT\130PA95.CC 6/16/98 cd 51 corporation or by any combination or such owners. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer. 8. Permits. Owner shall, at Owner's expense, obtain all necessary permits and licenses for the construction and installation of the improvements, give all necessary notices and pay all fees and taxes required by law, unless such fees as are imposed by the City are waived or reimbursed by the City. 9. Default of Owner. A. Default of Owner shall include, but not be limited to: Owner's failure to timely commence construction pursuant to this Agreement; Owner's failure to timely complete construction of the Parkland Improvements; Owner's failure to timely cure any defect in the Parkland Improvements; Owner's failure to perform substantial construction work for a period of 20 calendar days after commencement of the work; Owner's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy either voluntary or involuntary which Owner fails to discharge within thirty (30) days; the commencement of a foreclosure action against the Subdivision or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or Owner's failure to perform any other obligation under this Agreement. City shall provide written notice of any default to Owner. Owner shall cure any such default within fifteen (15) calendar days of the effective date of the Notice. In the event such default relates to matters which cannot be cured within the cure period with reasonable diligence or by the payment of monies due within the cure period, the cure period shall be extended to a maximum period of ninety (90) days, provided Owner commences to cure the default within the 15 day cure period and diligently pursues the cure to completion. B. The City reserves to itself all remedies available to it at law or in equity for breach of Owner's obligations under this Agreement. C. In the event that Owner fails to perform any obligation hereunder, Owner agrees to pay all costs and expenses incurred by City in securing performance of such obligations, including costs of suit and reasonable attorneys' fees. D. The failure of City to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequent default or breach of Owner. Owner agrees that the choice of remedy or remedies for Owner's breach shall be in the discretion of City. E. A default under this Agreement shall also constitute a default under Development Agreement 90-1 between the City and Owner. R:\STAFFRPT\130PA95.CC 6/16/98 cd 52 10. Warranty. Owner shall guarantee or warranty the work done pursuant to this Agreement for a period of one year after expiration of the maintenance period and final acceptance by the City Council of the work and improvements against any defective work or labor done or defective materials furnished. Where Parkland Improvements are to be constructed in phases or sections, the one year warranty period shall commence after City acceptance of the last completed improvement. If within the warranty period any work or improvement or part of any work or improvement done, furnished, installed, constructed or caused to be done, furnished, installed or constructed by Owner fails to fulfill any of the requirements of this Agreement or the Parkland Improvement Plans and specifications referred to herein, Owner shall without delay and without any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should Owner fail to act promptly or in accordance with this requirement, Owner hereby authorizes City, at City option, to perform the work twenty (20) days after mailing written notice of default to Owner and to Owner's Surety and agrees to pay the cost of such work by City. Should City determine that an urgency requires repairs or replacements to be made before Owner can be notified, City may, in its sole discretion, make the necessary repairs or replacements or perform the necessary work and Owner shall pay to City the cost of such repairs. 11. Owner Not Agent of City. Neither Owner nor any of Owner's agents or contractors are or shall be considered to be agents of City in connection with the performance of Owner's obligations under this Agreement. 12. Injury to Work. Until such time as the Parkland Improvements are accepted by City, Owner shall be responsible for and bear the risk of loss to any of the improvements constructed or installed. City shall not, nor shall any officer or employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause, happening or occurring to the work or improvements specified in this Agreement prior to the completion and acceptance of the work or improvements. All such risks shall be the responsibility of and are hereby assumed by Owner. 13. Other Agreements. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreement with other subdividers for the apportionment of costs of water and sewer mains, or other improvements, pursuant to the provisions of the City ordinances providing therefor, nor shall anything in this Agreement commit City to any such apportionment. R:\STAFFRPT\130PA95.CC 6/16/98 cd 53 14. Owner's Obligation to Warn Public During Construction. Until final acceptance of the Parkland Improvements, Owner shall give good and adequate warning to the public of each and every dangerous condition existent in said improvements, and will take all reasonable actions to protect the public from such dangerous condition. 15. Final Acceptance of Work. Acceptance of the work on behalf of City shall be made by the City Council upon recommendation of the Director of Community Services after final completion and inspection of all Parkland Improvements. The Council shall act upon the Director of Community Services recommendations within thirty (30) days from the date the Director of Community Services certifies that the work has finally completed. Such acceptance shall not constitute a waiver of defects by City. 16. Indemnity/Hold Harmless. Owner has prepared or caused to be prepared plans and specifications for the Parkland Improvements and has agreed to construct and install the Parkland Improvements. City or any officer or employee thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of Owner, its agents or employees in the performance of this Agreement. Owner further agrees to indemnify, protect and hold harmless City, its officials and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions or Owner, its agents or employees in the performance of this Agreement, including all claims, demands, causes of action, liability, or loss because of, or arising out of, in whole or in part, the design or construction of the Parkland Improvements and to pay all attorneys' fees and litigation costs and expenses of the City in defending itself against any such claim. This indemnification and Agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of the Parkland Improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design or construction of public drainage systems, streets and other public improvements. Acceptance of any of the Parkland Improvements shall not constitute any assumption by the City of any responsibility for any damage or taking covered by this paragraph. City shall not be responsible for the design or construction of the Parkland Improvements pursuant to the approved Parkland Improvement Plans, regardless of any negligent action or inaction taken by the City in approving the plans, unless the particular improvement design was specifically required by City over written objection by Owner submitted to the Director of Community Services before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design. After acceptance of the Parkland Improvements, the Owner shall remain obligated to eliminate any defect in design or dangerous condition caused by the design or construction defect, however, Owner shall not be responsible for routine maintenance. Provisions of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by the City of Parkland Improvements. Owner represents to the City that the architects and engineers who designed the Parkland Improvements are fully qualified and competent to perform the work of designing and R:\STAFFRPT\I30PA95.CC 6/16/98 cd 54 preparing construction drawings for the Parkland Improvements. It is the intent of this section, therefore, that Owner shall be responsible for all liability for design and construction of the Parkland Improvements installed or work done pursuant to this Agreement and that City shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving, reviewing, checking, or correcting any plans or specifications or in approving, reviewing or inspecting any work or construction. The improvement security shall not be required to cover the provision of this paragraph. 17. Time of the Essence. Time is of the essence of this Agreement. 18. Time for Completion of Work Extensions. Owner shall complete construction of the Parkland Improvements and convey all real property or interest therein to the City as may be required by this Agreement no later than two (2) years from the effective date of the Second Amendment to the Development Agreement. 19. No Vesting of Rights. Performance by Owner of this Agreement shall not be construed to vest Owner's rights with respect to any change in any change in any zoning or building law or ordinance. 20. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by registered mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date it is delivered in person, or, if mailed, three (3) business days following the date of deposit in the United States Mail. Notices shall be addressed as follows unless a written change of address is filed with the City: Notice to City: City Manager City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, California 92589-9033 R:\STAFFRPT\130PA95.CC 6/16/98 cd 55 Notice to Owner: Westside Business Centre LLC c/o Dendy Real Estate & Investment Co. Attention: Bill J. Dendy, President 21. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties. 22. Litigation or Arbitration. In the event that suit or arbitration is brought to enforce the terms of this contract, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. 23. Entire Agreement. This Agreement constitutes the entire Agreement of the parties with respect to the subject matter, except for matters which may be included in Development Agreement No. 90-1 between the City and Owner, as amended. In the event of a conflict between the terms of the Development Agreement and this Agreement, the terms of the Development Agreement shall prevail. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representative of the parties. In the case of the City, the appropriate party shall be the City Manager. ///// IIIII R:\STAFFRFr\130PA95.CC 6/16/98 cd 56 IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first written above. CITY OF TEMECULA BY: Attest: Ronald Roberts Mayor Susan Jones, CMC City Clerk Approved As to Form: Peter M. Thorson City Attorney WESTSIDE BUSINESS CENTRE LLC, a California limited liability company By: Dendy Real Estate & Investments Co., Inc., a California corporation, Manager By: Bill J. Dendy President R:\STAFFRPT\130PA95.CC 6/16/98 cd 57 ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside , 1998, before me, , personally appeared [] [] personally known to me -OR- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they ex~uted the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. SIGNATURE OF NOTARY [] [] INDIVIDUAL(S) OFFICER(S) (TITLE[S]): CAPACITY CLAIMED BY SIGNER [] [] [] [] [] PARTNER(S) ATTORNEY-IN-FACT TRUSTEE(S) CHAIRPERSON/MAYOR OTHER: SIGNER IS REPRESENTING: R:\STAFFRPT\130PA95.CC 6/16/98 cd 58 EXHIBIT A LEGAL DESCRIPTION OF PARK PROPERTY PARCEL 1: THAT PORTION OF PARCEL 2 OF PARCEL MAP NO. 4646, AS SHOWN BY MAP ON FILE IN BOOK 6, PAGE 75 OF PARCEL 1VLAPS, i:LECORDS OF RIVERSIDE COUNTY, CALIFORNIA, LYING NORTHEASTERLY OF THE NORTHEASTEt:kLY LINE OF DIAZ ROAD AS SHOW~ ON SAID PARCEL MAP NO. 4646. PARCEL 2: THAT PORTION OF PARCEL 3 OF PARCEL MAP NO. 4646, AS SHOWN BY PARCEL MAP ON FILE IN BOOK 6, PAGE 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, LYING NORTHEASTERLY OF THE NORTHEASTERLY LiNE OF DIAZ ROAD AS SHOWN ON SAiD PARCEL MAP NO. 4646. EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE EASTERN MU~'NICIPAL WATER DISTRICT BY DEED RECORDED JUNE 30, 1989 AS iNSTRUMENT NO. 218392 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFOR2,/IA. PARCEL 3: THAT PORTION OF PARCEL 4 OF PARCEL MAP NO. 4646, AS SHOWN BY PARCEL MAP ON FILE iN BOOK 6, PAGE 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY. CALIFORNIA, LYING NORTHEASTEt:LLY OF THE NORTIAEASTERLY LINE OF DiAZ ROAD AS SHOWN ON SAID PARCEL MAP NO. 4646. EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE EASTERI'~' MUNICIPAL WATER DISTRICT BY DEED RECORDED JUNE 30, 1989 AS iNSTRUMENT NO. 218392 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY. R:\$TAFFRPT\130PA95.CC 6/16/98 cd 59 ATTACHMENT NO. 4 JUNE 17, 1998 PLANNING COMMISSION STAFF REPORT R:\STAFFRPT\130PA95.CC 6/16/98 cd 60 STAFF REPORT - PLANNING CITY OF TEMECULA PLANNING COMMISSION June 17, 1998 Planning Application No. PA95-0130 (Development Agreement Amendment) Prepared By: Carole K. Donahoe, AICP RECOMMENDATION: The Community Development Department - Planning Division Staff recommends the Planning Commission: ADOPT the Negative Declaration for Planning Application No. PA95-0130; ADOPT the Mitigation Monitoring Program for Planning Application No. PA95-0130; and ADOPT Resolution No.98- recommending approval of Planning Application No. PA95-0130 based upon the Analysis and Findings contained in the Staff Report and subject to the attached Conditions of Approval APPLICATION INFORMATION APPLICANT: Westside Business Centre REPRESENTATIVE: Bill Dendy PROPOSAL: To amend Development Agreement No. 90-1 (Second Amendment) deleting the requirement to provide a 150-foot wide linear park on parcels 12 and 95 of Parcel Map No. 21383, and clarifying the requirement to landscape approximately five acres of Murrieta Creek with a Pilot Park or general commercial/industrial landscaping. LOCATION: For properties on the north side of Winchester Road, east of the Rancho Santa Rosa Mountains, south of Cherry Street, and including Murrieta Creek to the east. EXISTING ZONING: LI Light Industrial and OS-C Conservation SURROUNDING ZONING: North: South: East: West: LI Light Industrial LI Light Industrial BP Business Park Riverside County PROPOSED ZONING: N/A R:\STAFFRPT\I30PA95.CC 6/16/98 cd 61 GENERAL PLAN DESIGNATION: BP Business Park and OS Open Space/Recreation EXISTING LAND USE: Vacant SURROUNDING LAND USES: Existing business park with industrial uses, vacant properties and buildings under construction. BACKGROUND On October 18, 1990, Development Agreement No. 90-1 was entered in by the City Council and Rancho Core Associates No. 1, and the document was recorded on October 19, 1990 as Document No. 385553 in the Official Records of the County of Riverside. On April 19, 1995, the successor to Rancho Core Associates No. 1, BA Properties, Inc., and the City amended the Development Agreement by entering into Partial Termination of Development Agreement No. 90-1. This document was recorded on April 20, 1995 as Document No. 12341 in the Official Records of the County of Riverside. The Partial Termination was necessary to enable a reversion to acreage and to remap a portion of the property covered by the Agreement. AMENDMENT DESCRIPTION The Second Amendment to Development Agreement No. 90-1 is a proposal to relieve the current owner, Westside Business Centre LLC, from the obligation to maintain the two acre linear park developed on Lots 12 and 95. In place of the linear passive park, the applicant proposes to develop and construct the Murrieta Creek Pilot Park Project on five acres of property west of the Murrieta Creek Channel, generally located east of Diaz Road and north of Winchester Road. Upon completion of the Pilot Park to Temecula Community Services District standards, the five improved acres will be dedicated to the City. The specifics of this transaction is detailed in the Parkland Improvement Agreement to be executed by the City and Westside Business Centre. The Parkland Improvement Agreement will require completion of the Pilot Park within two years. Should the owner default on the Parkland Improvement Agreement, he will be required to landscape the five acres to commercial/industrial standards, as was originally required in Section 4.2.1 (g) of Development Agreement No. 90-1. The Second Amendment includes a bond requirement to ensure that landscaping will be completed within three years of the effective date of the amended Agreement. ANALYSIS The Two-Acre Property By deleting Section 4.2.1(g) of Development Agreement No. 90-1, Mr. Dendy would be free to sell the two acres or otherwise use the property subsequent to the approval of any required land use application. Because of the identified Alquist-Priolo Fault Hazard area that traverses the two acres, development would be restricted to uninhabitable structures within 50 feet of the fault line. However, such uses asa parking lot or outdoor storage would be permitted. R:\STAFFRPT\130PA95.CC 6/16/98 cd 62 The Murrieta Creek Pilot Park Project It is staff's opinion that the existing linear park is little used. The Pilot Park has the potential to provide a greater opportunity for use by pedestrians and bicyclists. More amenities are proposed for the Pilot Park that encourage picnicking, including a parking lot, restrooms, play equipment and barbecues. Applicant's Requests: The applicant requests that City fees to process and construct the Pilot Park be waived. Staff recommends that the applicant prepare a list of fees for consideration by the City Council. The applicant requests that the requirement to bond for the landscaping in the event that the Pilot Park is not completed be eliminated from the Amendment and Agreement. He offers the title to the property in lieu of the bond. Staff recommends that the bond be kept in the Amendment because the City does not wish to own the property unless it is developed to City standards, and because default on the agreements will have an adverse impact on the City. The applicant requests that the Parkland Improvement Agreement omit Section 16 regarding Indemnity/Hold Harmless. City Attorney Peter Thorson recommends that this standard language remain in the Agreement. Correspondence Received Staff has received a telephone inquiry from the City of Murrieta Planning Department staff, and a request for more detailed information. Murrieta was interested in the impacts that the Pilot Park would have on their General Plan and adjacent streets under their jurisdiction. ENVIRONMENTAL DETERMINATION An Initial Study has been prepared for this project. The Initial Study determined that although the proposed project could have a significant effect on the environment, these effects are not considered to be significant due to mitigation measures contained in the project design and in the Conditions of Approval for the project. Any potentially significant impacts will be mitigated. Attachments: PC Resolution 98- - Blue Page 4 Exhibit A - Second Amendment to Development Agreement No. 90-1 - Blue Page 7 Exhibit B - Parkland Improvement Agreement - Blue Page 8 Initial Study - Blue Page 9 Mitigation Monitoring Program - Blue Page 10 R:\STAFFRPT\130?A95.CC 6/16/98 ed 63 ATTACHMENT NO. 1 RESOLUTION NO. 98- R:\STAFFRPT\130PA95.CC 6/16/98 cd 64 ATTACHMENT NO. 1 RESOLUTION NO. 98- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL APPROVE PLANNING APPLICATION NO. PA95-0130 - SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. 90-1 WHEREAS, Westside Business Centre LLC filed Planning Application No. PA95-0130, in accordance with the City of Temecula General Plan and Development Code; WHEREAS, Planning Application No. PA95-0130 was processed including, but not limited to public notice, in the time and manner prescribed by State and local law; WHEREAS, the Planning Commission considered Planning Application No. PA95-0130 on June 17, 1998, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to, and did testify either in support or opposition to this matter; WHEREAS, at the conclusion of the Commission hearing and after due consideration of the testimony, the Commission recommended approval of Planning Application No. PA95-0130; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the above recitations are true and correct and are hereby incorporated by reference. Section 2. Findings. The Planning Commission in recommending approval of Planning Application No. PA95-0130, makes the following findings: 1. The development to be carried out pursuant to the Development Agreement is consistent with the General Plan. 2. The Development Agreement and the development to be carried out hereunder complies with all other applicable requirements of State law and City ordinances. Section 3. Environmental Compliance. An Initial Study prepared for this project indicates that although the proposed project could have a significant impact on the environment, there will not be a significant effect in this case because the mitigation measures described in the Conditions of Approval have been added to the project, and a Negative Declaration, therefore, is hereby granted. R:\STAFFRPT\130PA95.CC 6/16/98 cd 6 5 PASSED, APPROVED AND ADOPTED this 17th day of June, 1998. Marcia Slaven, Chairperson I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Planning Commission of the City of Temecula at a regular meeting thereof, held on the 17th day of June, 1998 by the following vote of the Commission: AYES: PLANNING COMMISSIONERS: NOES: PLANNING COMMISSIONERS: ABSENT: PLANNING COMMISSIONERS: Debbie Ubnoske, Secretary R:\STAFFRPT\130PA95.CC 6/16/98 cd {~ ~ ATTACHMENT NO. 5 CORRESPONDENCE R:\STAFFRPT\130PA95.CC 6/16/98 cd 6 7 Thursday June 4, 1998 3:489m -- From '90r -1429, -- Page 1! Fax: 9096931429 Jun 4 '98 16:06 P. 01 WESTSIDE BUSINESS CENTRES, LLC 41975 Winchester Road Temecula, CA 92590 May29.1998 City of Temecula 43200 Businc~ Park Dr, Temecula. CA 92590 Re: Second Amendment to Development Agreement Park!and Improvement Agrccmcnt Dear Carol: We are in agreemere in the above referenced agreements other than the following: ParkSand. Iraprovera ent. Ao ree_me.n t Permits It was understood that those fees were to be waived 16. Indemnity/Hold Harmless This wa~ to be a~sumcd by the city upon completion of the. park Second Amendment .To D~v_elopment ARreement No.90-1 Section (iv) No bonds required, Title to the property in lieu of, Give me a call should you have further quesxions regarding this n~ter. Sin~rely, Citizens Coalition for the Murrieta Creek Pilot Project John Afrolief Gary. E. Allm AI & Carlime Anders~m Hector Corre~ Tim Crough Bill Dmdy Kirk Dye Steven Ford Willie Gale Jeannie Gi!len Coordinator (9O9) 50(,-5833 Kathlee~ Hamilt~m Max Hartism Raymond Johnson Kar¢l Linderoans Austin Linsley Allm Nunez Lan-y Markham Jack Martin Brian Padberg Bill Rawlings Ro~ Roberts Dan Silver. M.D. Gary Smith Herb Smith Marty Smith Dan Stephenso~ Jeff Sto~e Jack van Haasxer Kevin Walsh Chuck Washington Bob Wheele~ Thomas Willian~. M.D. May 26, 1998 Temecula City Council 43200 Business Park Drive Temecula, Ca. 92590 RE: Mumeta Creek Pilot Project Gentlemen: As you may recall, the Mumeta Creek Pilot Project spawned from a diverse group of citizens interested in demonstrating or modeling the type of "soft channel" improvements that would protect the cities of Temecula and Mumeta from flooding, while providing recreational opportunities and environmental conservation. Since the Army Corps of Engineers is currently studying a plan to do exactly that for the entire 11 miles of Mumeta Creek, it would be premature and redundant to do any channel constmotion at this time. Subsequently, the Citizens Coalition for the Mumeta Creek Pilot Project designed a linear park on the creek at Winchester and Diaz Roads, to model the recreational and environmental concepts of the overall project. Since this property is located within the city limits of Temecula, those plans and specifications have been prepared to meet the City of Temecula's standards for park construction, with the cooperation of the Community Services District, under the direction of Shawn Nelson. It has always been our intent and desire to dedicate and grant this park to the city, to demonstrate or model the Mumeta Creek concept and to insure continuity in the level of maintenance, as well as continued public access. In support of our endeavor, the city of Temecula passed a Resolution to "find, determine and declare as follows" see attached Resolution No. 96-109, concluding with "NOW THEREFORE be it resolved, the City Council of the City of Temecula wholeheartedly supports the efforts of the coalition and respectfully requests support from local, State and Federal Legislators for approval of the project and corresponding Federal and State Funding to construct the facilities in this area and ultimately along the entire length of Mumeta Creek". I would like to take this opportunity to thank the city council and the city staff for their support, assistance and cooperation in this planning process. The purpose of this correspondence is to respectfully request that the c~ty, in their gesture of support for this project, and inconsideration of the fact that we have worked so closely w~th your staff, waive the planning and inspection fees (which could be in excess of $9,000) for the following reasons: 1. A coalition of concerned citizens, environmentalists, members of the development community and local government have supported, assisted and cooperated in this project, thereby demonstrating an extraordinary degree of consensus. 2. This project will model the Mumeta Creek linear park concept complete with recreation amenities and environmental conservation, that this community has requested, as an alternative to concrete channelization with chain link fencing. 3. This project valued Coy the city) at $150,000 per acre for 7 acres, will be built for the most part, through donations from developers, contractors, local businesses and concerned citizens. Thereby creating a million dollar (gift) park, for the city of Temecula. 4. This project further provides the employees in the 500 acre Westside Business Center an opportunity to walk, exercise or just relax before, during (lunch) or after work, without having to drive anywhere. 5. This project, provides the c'~ns a local creekside park experience, as well as an altemative transportation route, connecting to the regional trail system. Trails, as alternative transportation, take people off the roads and qualify projects for transportation funding. ISTEA for example. 6. This project receives trail users coming from the Santa Gertrudis trail, providing them the oppommity to rest and continue, or rest and return on the city's trail system. I am so proud and pleased that we are finally going "to do something beneficial" on the Mumeta Creek, I could go on and on. I hope these reasons I have itemized are as valuable to you as they are to the citizens that have worked for many years on creek projects. I hope the reasons I have itemized will justify my request for your support and waiver of fees. I believe that the city has waived fees on other park projects, for citizen and/or non-profit organizations, and it is on that precedent that I request your consideration. Last but not least, I thank you for your ttme, your leadership and your committment to the creek. My contractors are ready to build this park, so I hope you will agendize this request as soon as possible. It is my understanding from staff that this request may simply go on your consent calendar, which is fine; but I want you to know, I would be happy to make a public presentation should you so desire. I will look forward to hearing from you soon. Yours truly, ~~~~5:?~ Murrieta Creek Pilot Project APPROVAL CITY ATTORNEY r~,, FINANCE DIRECTOR _~ CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: Mayor/City Council Ronald E. Bradley, City Manager~)~-~ DATE: August 27, 1996 SUBJECT: Resolution in Support of Murrieta Creek Pilot Project PREPARED BY: Joseph Kicak, Director of Public Works/City Engineer RECOMMENDATION: That the City Council Adopt a Resolution entitled: RESOLUTION NO. 96- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE MURRIETA CREEK PILOT PROJECT BACKGROUND: A broad coalition of concerned citizens, environmentalists, members of the development community and local government officials has joined together to promote a plan for improvement to Murrieta Creek. The improvements, as proposed by the plan, will become a "model" for the ultimate development of Murrieta Creek that includes an aesthetically pleasing and environmentally sensitive flood control channel that also will provide many recreational opportunities for area residents. Recreational facilities will include walkways, bike paths, horse trails, picnic areas and restroom facilities. The pilot project or "Demonstration Project" is being funded through donations of services, land and money. The attached resolution is presented for City Council consideration in 'support of this important community project. FISCAL IMPACT: None. ATTACHMENTS: Resolution No. 96- Membership Listing for Citizens Coalition for the Murrieta Creek Pilot Project RESOLUTION NO. 96-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING THE MURRIETA CREEK PILOT PROJECT THE CITY COUNCIL OF THE CITY OF TEMECULA DOES I-IERF. I~y RESOLVE AS FOLLOWS: Section 1. declare as follows: The City Council of the City of Temecula does hereby f'md, determine and WHEREAS, the flooding of Murrieta Creek has been a constant threat to the health, safety and welfare of the Citizens of Temecula and Murrieta and; WHEREAS, the Murrieta Creek most recently overflowed its banks in 1993, causing million of dollars of damage to both private and public proprieties and; WHEREAS, all of the efforts since the most recent flooding have not produced any noticeable relief from potential future flooding and; WltEREAS, a coalition made up of concerned citizens, environmentalists, members of the development community and local government officials for the Murrieta Creek Pilot Project is in support of immediate improvements to the full length of Murrieta Creek and; WltEREAS, said coalition is in support of a Murrieta Creek Pilot Project providing for safe passage of flood waters and recreational facilities within the area of said project and; WHEREAS, a great amount of time and resources has been provided by citizens in support of this project. NOW THEREFORE be it resolved, the City Council of the City of Temecula wholeheartedly supports the efforts of the coalition and respectfully requests support from local, State and Federal legislators for approval of the project and corresponding Federal and State funding to construct the facilities in this area and ultimately along the entire length of Murrieta Creek. Section 2. The City Clerk shall certify the adoption of this Resolution. Rcaol\96-109 I PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Temecula at a regular meeting held on the 27th day of August, 1996. Karel F. Lindemans, Mayor ATTEST: June S. Greek, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS CITY OF TEMECULA) I, June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 96-109 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the 27th day of August, 1996, by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Ford, Roberts, Stone Lindemans NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None June S. Greek, CMC, City Clerk R¢sos\96-109 2 ITEM 14 APPROVAL CITY ATTORNEY DIRECTOR OF FINAN/~/J~ CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Council Genie Roberts, Director of Finance June 23, 1998 Annual Adjustment of Development Impact Fees PREPARED BY: Allie Kuhns, Senior Management Analyst,S, RECOMMENDATION: That the City Council adopt the following resolution: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CONFIRMING THE ADJUSTMENT OF DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 1998-99, TO BE EFFECTIVE JULY 1, 1998, PURSUANT TO CHAPTER 15.06 OF THE TEMECULA MUNICIPAL CODE AND RESOLUTIONS 97-94 AND 98-30. BACKGROUND: On May 26, 1998, the City Council discussed the recommended increases in both residential and non-residential development impact fees ("DIF"). The proposed Building Cost Index adjustments, which would be applied to both residential and non- residential development, were based on Section 5 of Resolution No. 97-94, which was amended by Resolution No. 98-30. Under these resolutions, fees for both residential and non- residential development shall be adjusted by the average Engineering News Record Building Cost Index ("BCI") calculated for the twelve month period prior to May 1 st of the year in which the change will be effective. Annual BCI adjustments can be either increases or decreases, depending on development activity. The BCI to apply to the fees for this year's adjustment is an increase by 1.1%. The calculated fees applying only this escalation factor are provided as Attachment B. In addition to the BCI adjustments, Council discussed the 10% increase in non-residential DIF. This additional 10% per year escalation was based on the Council's having adopted a schedule for non-residential fees which started at 36% of the fees recommended in the David M. Griffith (DMG) DIF Study for fiscal year 1997-98, and increased by 10% each year through the year 2003-04. After some discussion, Council referred this agenda item back to Staff so that development trends in Temecula could be compared to findings made by Dr. John E. Husing in the preliminary draft* of his most recent Study, resulting in a more balanced and complete analysis of future development projections in this region. *Study completed by John Husing has not been released for the public at this point. Although Dr. Husing's Study states that Temecula must address the issue of DIF, specifically, by weighing the importance of the fees to infrastructure against DIF's negative impact on an already high cost environment, he also notes that Temecula's industrial manufacturing and distribution space represents 4.9% of the that in the Inland Empire. Of the 8.4 million square feet of industrial space, he finds that the market is tight with an average availability rate of only 7%. In addition to Dr. Husing's findings and as presented during the June 11, 1998 Capital Improvement Program Council Workshop, development activity in Temecula has been recorded as follows: Commercial Development Fiscal Year Square Footage 94-95 133,067 95-96 78,499 96-97 263,606 97-98 368,850 IndustriaiDevelopment FiscalYear Square Footage 94-95 33,056 95-96 514,828 96-97 519,683 97-98 556,746 Using this information, Staff concludes that development trends continue to escalate in Temecula, even with the adoption of DIF in 1997. Also during the CIP Workshop presentation, Staff noted that DIF revenue projections used for projecting the funding of future projects are based on applying the BCI adjustment to both residential and non-residential development, as well as applying the additional 10% increase to non-residential DIF. If the Council elects not to adopt the fees with the proposed 10% escalation to non-residential DIF, then DIF revenue would need to be decreased by approximately $223,000 in fiscal year 1998-99, and the funding status of one or more of the following projects would need to be adjusted: Intersection Traffic Monitoring System Jefferson Median from Santa Gertrudis to Rancho California Road Overland Extension from Ynez to Margarita (Mall Improvements) Margarita Road Improvements - Pauba to 79S (Design) Rancho California Sports Park Sidewalk Project I-15/79S Additional Interchange at Santiago (Design) Based on the information contained herein, Staff recommends that the BCI of 1.1% be applied to both residential and non-residential DIF, and that the 10% increase pursuant to Resolution 97-94 continue for non-residential DIF. FISCAL IMPACT: If the Council sets the fees with only the BCI applied, then, based on current building projections, the City will have a projected gross DIF revenue of $4,075,200 for FY 1998-99. If the fees are set applying the BCI to residential development and both the BCI and 10% escalation factor to non-residential development, then the City will have a projected gross DIF revenue of $4,298,050 (see Attachment D). Attachments: A. Resolution No. 98- B, Fees Calculated with BCI Applied C. Comparison of Projected DIF Revenue D. DIF Gross Revenue Projections for FY 1998-99 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CONFIRMING THE ADJUSTMENT OF DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 1998-99, TO BE EFFECTIVE JULY 1, 1998, PURSUANT TO CHAPTER 15.06 OF THE TEMECULA MUNICIPAL CODE AND RESOLUTIONS 97-94 AND 98-30. NOW BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. declare as follows: The City Council of the City of Temecula does hereby find, determine and A. On May 27, 1997, the City Council adopted Ordinance No. 97-09 establishing Chapter 15.06 of the Temecula Municipal Code, Public Facilities Development Impact Fee ("DIF"), which was modified by Ordinance No. 97-14 on August 26, 1997, and was further modified by Ordinance No. 98-05 on April 14, 1998. B. On May 27, 1997, the City Council adopted Resolution No. 97-45 which established the Development Impact Fees. This Resolution was restated and modified by Resolution 97-94 on August 12, 1997, and was further modified by Resolution No. 98-30 on April 14, 1998. C. The City Council adopted residential DIF as recommended in a Development Impact Fee Study conducted by David M. Griffith and Associates ("DMG"), and adopted non- residential DIF at 36% of the amount recommended by DMG. D. Resolution 98-30 provides for an automatic annual adjustment of both residential and non-residential DIF based on the percentage increase or decrease, if any, of the Engineering News Record Building Cost Index ("BCI") for the Los Angeles Metropolitan Area BCI for the twelve month period prior to May 1 of the year in which the change will be effective. E. Exhibit B to Resolution 98-30 contains projected fees for seven (7) years with no escalation applied to residential DIF and an escalation of 10% per year applied to non-residential DIF. F. Non-residential development in Temecula has not declined since DIF were adopted in May of 1997. Section 2. Exhibit A to Resolution 97-94 is hereby amended by Exhibit A to this Resolution. This amended Exhibit A sets forth the levels of development impact fees for the City of Temecula to collect for residential and non-residential development effective July 1, 1998, pursuant to the schedule of adjustments established in Resolutions 97-94 and 98-30. PASSED, APPROVED and ADOPTED by the City Council of the City of Temecula this 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, California, do hereby certify that Resolution No. was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on the __ day of , 1997, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk EXHIBIT A PUBLIC FACILITIES DEVELOPMENT IMPACT FEES Amount of Fee Per Unit Component Type of Land Use/1 Or Sqare Foot/2 Street System Improvements Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $517 $737 $O.8O $2.48 $1.24 $0.59 Traffic Signals and Traffic Control Systems Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $78 $110 $0.12 $0.37 $0.19 $0.09 Corporate Facilities Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $119 $224 $O.05 $0.12 $0.07 $0.04 Fire Protection Facilities Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $42 $56 $0.12 $O.02 $0.O2 $0.01 Park and Recreation Improvements Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $1,222 $1,629 $0.00 $0.00 $0.00 $0.00 1/Land use is determined based on the categories in the Land Use Element of the Temecula General Plan. 2/Fees for residential development are calculated per dwelling unit. Fees for non-residential development are calculated per square foot of gross building area. Component Libraries Type of Land Use/1 Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial Amount of Fee Per Unit Or Sqare Foot/2 $158 $210 $0.00 $0.00 $o.oo $o.oo TOTAL DEVELOPMENT IMPACT FEE PER UNIT Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $2,136 $2,966 $1.09 $2.99 $1.51 $0.73 1/Land use is determined based on the categories in the Land Use Element of the Temecula General Plan. 2/Fees for residential development are calculated per dwelling unit. Fees for non-residential development are calculated per square foot of gross building area. PUBLIC FACILITIES DEVELOPMENT IMPACT FEES FEES CALCULATED WITH BCl APPLIED Amount of Fee Per Unit Component Type of Land Use/1 or Square Foot/2 Street System Improvements Residential Attached $517 Residential Detached $737 Office $0.69 Retail Commercial $2.12 Service Commercial $1.06 Business Park/Industrial $0.50 Traffic Signals and Traffic Control Systems Residential Attached $78 Residential Detached $110 Office $0.10 Retail Commercial $0.32 Service Commercial $0.16 Business Park/Industrial $0.08 Corporate Facilities Residential Attached $119 Residential Detached $224 Office $0.04 Retail Commercial $0.09 Service Commercial $0.05 Business Park/Industrial $0.03 Fire Protection Facilities Residential Attached $42 Residential Detached $56 Office $0.01 Retail Commercial $0.02 Service Commercial $0.01 Business Park/Industrial $0.01 Park and Recreation Improvements Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial $1,222 $1,629 $0.00 $0.00 $0.00 $0.00 1/Land use is determined based on the categories in the Land Use Element of the Temecula General Plan. 2/Fees for residential development are calculated per dwelling unit. Fees for non-residential development are calculated per square foot of gross building area. ATTACHMENT B Component Libraries TOTAL DEVELOPMENT IMPACT FEE PER UNIT Type of Land Use/1 Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial Residential Attached Residential Detached Office Retail Commercial Service Commercial Business Park/Industrial Amount of Fee Per Unit or Square Foot/2 $158 $210 $o. oo $o.oo $o.oo $o.oo $2,136 $2,966 $0.84 $2.55 $1.28 $0.62 1/Land use is determined based on the categories in the Land Use Element of the Temecula General Plan. 2/Fees for residential development are calculated per dwelling unit. Fees for non-residential development are calculated per square foot of gross building area. ATTACHMENT B COMPARISON OF DIF ESCALATION SCENARIOS COMPONENT TYPE OF LAND USE CURRENT ESCALATION FEES BCl ONLY Street System Improvements ESCALATION BCI + 10% FOR NON-RESIDENTIAL Traffic Signals and Traffic Control Systems Residential Attached $511 $517 $517 Residential Detached $729 $737 $737 Office $0.68 $0.69 $0.80 Retail Commercial $2.10 $2.12 $2.48 Service Commercial $1.05 $1.06 $1.24 Business Park/Industrial $0.50 $0.50 $0.59 Corporate Facilities Residential Attached $77 $78 $78 Residential Detached $109 $110 $110 Office $0.10 $0.10 $0.12 Retail Commercial $0.32 $0.32 $0.37 Service Commercial $0.16 $0.16 $0.19 Business Park/Industrial $0.08 $0.08 $0.09 Fire Protection Facilities Residential Attached $118 $119 $119 Residential Detached $222 $224 $224 Office $0.04 $0.04 $0.05 Retail Commercial $0.09 $0.09 $0.12 Service Commercial $0.05 $0.05 $0.07 Business Park/Industrial $0.03 $0.03 $0.04 Park and Recreation Improvements Residential Attached $42 $42 $42 Residential Detached $55 $56 $56 Office $0.01 $0.01 $0.12 Retail Commercial $0.02 $0.02 $0.02 Service Commercial $0.01 $0.01 $0.02 Business Park/Industrial $0.01 $0.01 $0.01 Libraries Residential Attached $1,209 $1,222 $1,222 Residential Detached $1,611 $1,629 $1,629 Office $0.00 $0.00 $0.00 Retail Commercial $0.00 $0.00 $0.00 Service Commercial $0.00 $0.00 $0.00 Business Park/industrial $0.00 $0.00 $0.00 TOTALDEVELOPMENT IMPACTFEE PER UNIT Residential Attached $156 $158 $158 Residential Detached $208 $210 $210 Office $0.000 $0.00 $0.00 Retail Commercial $0.000 $0.00 $0.00 Service Commercial $0.000 $0.00 $0.00 Business Park/Industrial $0.000 $0.00 $0.00 Residential Attached $2,113 $2,136 $2,136 Residential Detached $2,934 $2,966 $2,966 Office $0.830 $0.84 $1.09 Retail Commercial $2.520 $2.55 $2.99 Service Commercial $1.270 $1.28 $1.51 Business Park/Industrial $0.614 $0.62 $0.73 1/Land use is determined based on the categories in the Land Use Element of the Temecula General Plan. ?_/Fees for residential development are calculated per dwelling unit. Fees for non-residential development are calculated per square foot of gross building area. ATTACHMENT C ITEM 15 CITY ATTORNEY DIRECTOR OF FINANCE,,,.//J' CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 SUBJECT: Murrieta Creek Pilot Project, Diaz Road at Winchester Road - Plan Check and Map Fees PREPARED BY: (K Ronald J. Parks, Deputy Director of Public Works RECOMMENDATION: That the City Council approve waiver of Plan Check and Inspection Fees for development of the Murrieta Creek Pilot Park Project. BACKGROUND: Staff has been working with Jeannie Gillen, Coordinator for the Citizens Coalition for the Murrieta Creek Pilot Project, to develop Park Improvement Plans for the construction of a five (5) acre linear park adjacent to Murrieta Creek at Diaz Road and Winchester Road. The land and a portion of the improvement costs will be made available through an Amended Development Agreement No. 90-1 with Rancho Core Associates No. 1 which is scheduled to be heard by the Planning Commission on June 17, 1998. Much of the design work has been done through donations from the Civil Engineer, the Landscape Architect and funding of private citizens. Since this project is proposed to be dedicated to the City, staff has been reviewing the plans through the Community Services, Public Works, and Building and Safety Departments. The plans are ready for permits and normal plan check and inspection fees for Public Works would be approximately $9,247.50 for approximately $131,500.00 worth of improvements. Ms. Gillen has requested a waiver of these fees since this is a community effort and the project will be a "gift" to the City. Attached is a letter from Ms. Gillen supporting her request. FISCAL IMPACT: Loss of plan check and inspection fees of approximately $9,247.50. ATTACHMENT: Citizens Coalition for the Murrieta Creek Pilot Project (5/26/98 letter) R:IAGDRPTi98106231PILOTPAR. FEE/ajp Citizens Coalition for the Murrieta Creek Pilot Project John Affolter Gary E. Allen A1 & Carliene Anderson Hector Correa Tim Crough Bill D~dy Kirk Dye Steven Ford Willie Gale Jeannie Green Coordinator (9O9) 50(,-5833 Kathleen Hamilton Max Harrison Raymond Johnson Karel Lindentans Austin Linsley Allen Nunez Larry Markham Jack Martin Brian Padberg Bill Rawlings Ron Roberts Dan Silver, M.D. Gary Smith Herb Smith Marty Snfith Dan Stephenson Jeff Stone Jack van Haaster Kevin Wal~ Chuck Washin gton Bob Wheeler Thomas Williank~, M.D. May 26, 1998 Temecula City Council 43200 Business Park Drive Temecula, Ca. 92590 CITY O, , ENGINEERIN~ ~' RE: Mumeta Creek Pilot Project Gentlemen: As you may recall, the Mumeta Creek Pilot Project spawned from a diverse group of citizens interested in demonstrating or modeling the type of"soft channel" improvements that would protect the cities of Temecula and Mumeta from flooding, while providing recreational opportunities and environmental conservation. Since the Army Corps of Engineers is currently studying a plan to do exactly that for the entire 11 miles of Murrieta Creek, it would be premature and redundant to do any channel construction at this time. Subsequently, the Citizens Coalition for the Mumeta Creek Pilot Project designed a linear park on the creek at Winchester and Diaz Roads, to model the recreational and environmental concepts of the overall project. Since this property is located within the city limits of Temecula, those plans and specifications have been prepared to meet the City of Temecula's standards for park construction, with the cooperation of the Conununity Services District, under the direction of Shawn Nelson. It has always been our intent and desire to dedicate and grant this park to the city, to demonstrate or model the Mumeta Creek concept and to insure continuity in the level of maintenance, as well as continued public access. In support of our endeavor, the city of Temecula passed a Resolution to "find, determine and declare as follows" see attached Resolution No. 96-109, concluding with "NOW THEREFORE be it resolved, the City Council of the City of Temecula wholeheartedly supports the efforts of the coalition and respectfully requests support from local, State and Federal Legislators for approval of the project and corresponding Federal and State Funding to construct the facilities in this area and ultimately along the entire length of Murrieta Creek". I would like to take this opportunity to thank the city council and the city staff for their support, assistance and cooperation in this planning process. The purpose of this correspondence is to respectfully request that the city, in their gesture of support for this project, and inconsideration of the fact that we have worked so closely with your staff, waive the planning and inspection fees (which could be in excess of $9,000) for the following reasons: 1. A coalition of concerned citizens, enmronmentalists, members of the development community and local govemment have supported, assisted and cooperated in this project, thereby demonstrating an extraordinary degree of consensus. 2. This project will model the Mumeta Creek linear park concept complete with recreation amenities and enmronmental conservation, that this community has requested, as an altemative to concrete channelization with chain link fencing. 3. This project valued (by the city) at $150,000 per acre for 7 acres, will be built for the most part, through donations from developers, contractors, local businesses and concemed citizens. Thereby creating a million dollar (gift) park, for the city of Temecula. 4. This project further promdes the employees in the 500 acre Westside Business Center an opportunity to walk, exercise or just relax before, during (lunch) or alter work, without having to drive anywhere. 5. This project, promdes the citizens a local creekside park experience, as well as an altemative transportation route, connecting to the regional trail system. Trails, as akemative transportation, take people off the roads and qualify projects for transportation funding. ISTEA for example. 6. This project receives trail users coming from the Santa Gertrudis trail, providing them the opportunity to rest and continue, or rest and rerum on the city's trail system. I am so proud and pleased that we are finally going "to do something beneficial" on the Mumeta Creek, I could go on and on. I hope these reasons I have itemized are as valuable to you as they are to the citizens that have worked for many years on creek projects. I hope the reasons I have itemized will justify my request for your support and waiver of fees. I believe that the city has waived fees on other park projects, for citizen and/or non-profit organizations, and it is on that precedent that I request your consideration. Last but not least, I thank you for your time, your leadership and your committment to the creek. My contractors are ready to build this park, so I hope you will agendize this request as soon as possible. It is my understanding from staff that this request may simply go on your consent calendar, which is fine; but I want you to know, I would be happy to make a public presentation should you so desire. I will look forward to hearing from you soon. Yours truly, ,/~~ Mumeta Creek Pilot Project ITEM 16 APPROVAL CITY ATTORNEY FINANCE OFFICER CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Council Ronald E. Bradley, City Manager (~-'~-----~ June 23, 1998 Review and Adoption of the FY 1998-99 Annual Operating Budget PREPARED BY: Genie Roberts, Director of Finance Tim McDermott, Assistant Finance Director RECOMMENDATION: That the City Council: 1. Adopt Resolution 98- entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS DEPARTMENT BUDGETS 2. Adopt Resolution 98- entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA REVISING THE SCHEDULE OF AUTHORIZED POSITIONS DISCUSSION: Attached is the proposed FY 1998-99 Annual Operating Budget. The budget includes revenue projections and expenditure requests for the General Fund, Gas Tax Fund, and Internal Service Funds. The City of Temecula remains in healthy financial condition. Current projections show that most 1997-98 revenue estimates will be met or exceeded, and expenditures should come in under the budgeted appropriation amounts. The proposed 1998-99 fiscal year budget is a balanced budget, with estimated revenues exceeding estimated expenditures (before operating transfers out) by $37,705. The City's reserve for economic uncertainties will be increased by $900,917 to $6,237,839 (which represents 30% of the budgeted General Fund expenditures for 1998-99). This budget will provide increased service levels for the residents of Temecula, while at the same time maintaining the City's record of fiscal responsibility. Budget Highlights The attached "Transmittal and Summary" provides a detailed discussion by operating department of the proposed operating budget. Following is a recap of the significant highlights of the proposed operating budget. Estimated General Fund revenues for the 1998-99 fiscal year total $20,830,500, which represents a $878,150 increase (4.4%) over the current fiscal year estimates. Proposed General Fund expenditures total $20,792,795 which represents an increase of $2,394,914 (13.0%) from the current fiscal year. A net increase of one (1) full time equivalent position (not including Police and Fire) is requested to be added to the Schedule of Authorized Positions. The transfer of the Economic Development/Marketing program from the Redevelopment Agency to the City's General Fund is proposed (at a cost of $730,075). An increase of $212,960 in the Revenue Excess Sharing for Temecula ("REST") program contribution by the General Fund to the Community Services District is proposed, bringing the 1998-99 contribution to $850,020 (an increase of $212,960 from the 1997-98 amount). This contribution will allow for a reduction in the "Measure C" special tax rate from the 1997-98 rate of $71.44 to $68.44 per household. Proposed public safety increases include $336,210 to fund the addition of two sergeants and one narcotics task force officer (that were approved in February 1998). A $434,000 increase in fire services contract costs is reflected, due to the City funding 50% of the operating costs for the French Valley Fire Station, and the addition of one Fire Systems Inspector position. A $4,250,000 operating transfer of General Fund reserves is proposed to fund capital projects. The attached budget adoption resolution reflects an increase in the City Manager's expenditure authorization to $25,000. Since incorporation, the City Manager has had the authority to approve expenditures up to $10,000. Any proposed expenditure greater than $10,000 has required the prior approval of the City Council. Since that time, the City's General Fund budget has grown from approximately $11 million to almost $21 million, with capital project activity growing at an even greater rate. Purchasing activity has grown accordingly. The proposed increase in the City Manager's expenditure authorization will assist staff in being able to respond to operational needs in a more timely manner (reducing the approval process by two weeks on contracts and purchases of $10,000 to $25,000), while still providing the necessary oversight and control on the award of purchases and contracts based on the City's solid purchasing procedures. 2 FISCAL IMPACT: The proposed 1998-99 fiscal year operating budget is a balanced budget that provides for an excess of General Fund revenues over expenditures of $37,705 (before operating transfers). Operating transfers out are proposed to set aside reserves for use in funding capital projects ($4,250,000). The total General Fund fund balance is projected to be $8,836,875 at June 30, 1999, of which $6,237,839 (30% of annual General Fund expenditures) is recommended to be designated for economic uncertainties). Attachments: -1998-99 Proposed Operating Budget Transmittal and Summary -Resolution No. 98- -Resolution No. 98- -Schedule of Authorized Positions -Proposed 1998-99 Annual Operating Budget CITY OF TEMECULA 1998-99 PROPOS!=D OPt:RATING BUDG!=T TRANSMITTAL AND SUMMARY Attached for your review is the 1998-99 operating budget packet, which includes the following information for the General Fund, Community Services District, Internal Service Funds, and Redevelopment Agency. Summary Schedules of Revenues, Expenditures, and Fund Balance Revenue Detail Expenditure Line Item Detail by Department CURRENT CONDITIONS The City of Temecula remains in healthy financial condition. Current projections show that most 1997-98 revenue estimates will be met or exceeded, and expenditures should come in under the budgeted appropriation amounts. Based upon the Finance Department's revised estimate of revenues and expenditures for the current year, the General Fund balance is estimated to be $13 million at June 30, 1998, of which $4.25 million will be unreserved, available fund balance. The proposed 1998-99 budget includes the transfer of this $4.25 million to the City's capital project reserves. GENERAL FUND REVENUES The total projected General Fund revenues for 1998-99 reflect a $878,150 increase (4.4%) from 1997-98. The primary anticipated revenue increases are in sales tax (9.3%) and transient occupancy tax (11.9%), with most other revenue sources realizing slight increases as well. A substantial decrease is projected in investment income in 1998-99 due to the use of General Fund reserves on capital improvement projects. Motor vehicle in lieu revenue has been projected based on current funding levels plus per capita growth. The underlying assumption is that any reduction by the State in motor vehicle taxes for 1998-99 will be backfilled by other State revenue sources. Should this backfill not completely occur, adjustments will need to be made to this proposed budget. GENERAL FUND EXPENDITURES The proposed budget reflects an increase in General Fund expenditures of $2,394,914 or 13.0% from the 1997-98 expenditure levels. The primary increases affecting the General Fund include 1) the transfer of the Economic Development/Marketing program from the Redevelopment Agency to the City's General Fund, 2) Public Works personnel costs due to staffing increases approved in 1997-98, 3) Police contract costs due to staffing increases approved in 1997-98, 4) Fire contract costs due to the sharing of costs for the French Valley fire station, and 5) the proposed $3.00 per levy unit reduction in the Parks and Recreation special tax (to $68.44 per EDU). Personnel cost increases are included to reflect a 3% across the board increase per the terms of the City's labor agreement. Also included is a proposal to increase the auto allowance for City Council and executive management from $200 to $300 per month. A net increase of one position is proposed to the Schedule of Authorized Positions. A summary of the personnel changes is as follows: De_pt Position City RDA Total Economic Dev. Asst. City Manager 1.0 1.0 RDA RDA Director (1.0) (1.0) Economic Dev, Mktg. Coordinator 1.0 (1.0) 0.0 RDA Sr. Mgmt. Analyst 1.0 1.0 RDA Assoc. Planner (0.5) (0.5) Planning Assoc. Planner (0.5) (0.5) Planning Senior Planner 1,0 1,0 City Clerk Admin. Secretary 1.0 1.0 City Clerk Office Specialist (1,0) (1.0) TOTAL: 2.5 (1.5) 1.0 Following is a summary of the significant items in the 1998-99 proposed departmental budgets: City Council: Increase in the monthly auto allowance from $200 to $300 (also proposed for executive staff). Community Support: Increase in the Community Services Funding program to $156,000 (0.75% of the General Fund budget). Unexpended appropriation from 1997-98 for library funding will be set aside in a reserve fund. City Manager: $17,000 is included for annexation related consulting studies. $28,000 is included for legislative lobbying services. Economic Development/Marketing: This department was established to record costs for the City's economic development and marketing programs. These costs were previously recorded in the Redevelopment Agency. Personnel costs included in this department are for the Assistant City Manager and Marketing Coordinator. 2 City Clerk: The upgrade of an Office Assistant to an Administrative Secretary is proposed. $40,000 is included for annexation related election costs. City Attorney: No significant changes. Finance: A net increase of $18,000 for consulting services is proposed due to the completion of the user fee study. Human Resources: Planning: No significant changes. The upgrade of an Associate Planner to a Senior Planner is proposed. A $71,000 increase in project help is proposed due to anticipated strong development activity. Building & Safety: · A $58,000 increase in project inspection help is proposed due to anticipated strong development activity. · Two (2) new mid-sized trucks are requested for inspection staff to replace existing seven year old trucks. Engineering: Public Works: CIP Admin: Police: Two (2) new full-sized trucks for inspectors are requested to replace existing seven year old trucks. Increase in personnel costs due primarily to the addition of two engineers (approved in 1997-98). A new full sized truck for an inspector is requested to replace existing six year old truck. $336,210 increase is included for the cost of two sergeants and one narcotics task force officer (approved in 1997-98). 3 Fire: $434,000 increase in fire services contract costs is proposed due to a) the addition of the French Valley Fire Station No. 83 (paid 50% by the City), b) a projected 5% pay increase for State employees, and c) the addition of one Fire Systems Inspector position. A new light truck or vehicle for fire prevention staff is requested. Animal Control: A $5,000 decrease in cost is reflected. Non-Departmental: An increase of $66,000 is included for the CFD 88-12 sales tax reimbursement. An increase of $212,960 is included for the "REST" program for a total cost to the General Fund of $850,020. Included in this increase is $112,600 to reduce the special tax rate from $71.44 to $68.44 per levy unit. Operating Transfers Out: Includes an operating transfer out of General Fund reserves in the amount of $4.25 million to the CIP Fund. 4 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA ADOPTING THE FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS DEPARTMENT BUDGETS WHEREAS, the City Council of the City of Temecula has reviewed the proposed final 1998-99 annual operating budget and has held such public meetings as are necessary prior to adoption of the final operating budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. That certain document now on file in the office of the City Clerk of the City of Temecula entitled "City of Temecula 1998-99 Annual Operating Budget" is hereby adopted. Section 2. That the following controls are hereby placed on the use and transfers of budget appropriations: A. No expenditure of funds shall be made unless there is an unencumbered appropriation available to cover the expenditure. B. The Department Director may prepare a transfer of appropriations within departmental budget accounts, with the approval of the City Manager. C. The City Council must authorize transfers (appropriations) of funds from the Unreserved Fund Balance and transfers between departmental budget accounts. D. The City Council must authorize any changes to the Schedule of Authorized Positions. The City Manager may authorize the hiring of temporary or part time staff as necessary within the limits imposed by the controls listed above. E. The City Manager may authorize expenditures of funds in amounts up to $25,000. Any expenditure of funds in excess of $25,000 requires City Council action. F. Pursuant to Section 3.32.050 of the Municipal Code, the City Manager may authorize Public Works contracts in amounts up to $25,000. Any expenditures of Public Works funds in excess of $25,000 require City Council action, except that the City Manager may approve change orders on Public Works contracts approved by the Council in amounts up to project contingency established by Council. Section 3. Outstanding encumbrances shown on the City books at June 30, hereby appropriated for such contracts or obligations for 1998-99. Section 4. The City Clerk shall certify adoption of the resolution. PASSED, APPROVED AND ADOPTEI~ this 23rd day of June, 1998. 1998, are ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA) I I-1EREI~Y CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 23rd day of June, 1998, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk RESOLUTION NO. 98- A RESOLUTION OF THE TEMECULA, CALIFORNIA AUTHORIZED POSITIONS CITY COUNCIL OF THE CITY OF REVISING THE SCHEDULE OF WHEREAS, pursuant to the authority under Chapter 2.12.030 of the City's Municipal Code, the City Manager has the authority to hire, set salaries and adopt personnel policies: and, WHEREAS, the City Manager has recommended and the City Council now wishes to adopt the Revised Schedule of Authorized Positions; NOW, THERE, RE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. The attached Schedule of Authorized Positions is hereby adopted pursuant to Section 45001 of the California Government Code. Such list is attached to this Resolution and incorporated herein by this reference. Section 2. The Schedule of Authorized Positions shall become effective July 1, 1998, and may be thereafter amended. Section 3. The City Manager shall implement the attached Schedule of Authorized Positions and has the authority to select and appoint employees in accordance with the City's personnel policies. Section 4. All prior resolutions and parts of this resolution in conflict with this Resolution are hereby rescinded. Section 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk [SEAL] STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA) I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 23rd day of June, 1998, by the following vote of the City Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Susan W. Jones, CMC CITY OF TEMECULA SCHEDULE OF AUTHORIZED POSITIONS AS OF JULY 1, 1998 POSITION TITLES AUTHORIZED POSITIONS MINIMUM CITY COUNCIL Councilmember(s) TOTAL 5.00 $ 300 5.00 CITY MANA~FR City Manager Assistant City Manager Assistant to the City Manager Senior Management Analyst Management Analyst Executive Assistant Human Resources Specialist Human Resources Assistant Marketing Coordinator Office Specialist TOTAL 1.00 1.00 $6,691 1.00 $4,393 1.00 $3,624 0.50 $3,092 1.00 $2,781 1.00 $2,454 1.00 $2,232 1.00 $3,294 1.00 $1,707 9.50 CITY C! ;RK City Clerk/Director of Support Services Deputy Director of Support Services Information Systems Administrator Information Systems Specialist Records Coordinator Administrative Secretary Administrative Technician Office Specialist Office Assistant TOTAL 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 9.00 $5 353 $3 768 $3 722 $3 318 $2 215 $2 242 $1 637 $1 7O7 $1 560 FINANC; Director of Finance Assistant Finance Director Senior Management Analyst Senior Accountant Accountant Administrative Secretary Accounting Specialist Purchasing Specialist Accounting Assistant TOTAL 1.00 1.00 1.00 1.00 1.00 1.00 2.50 1.00 1.00 10.50 $5,837 $4,294 $3,624 $3,517 $2,819 $2,242 $2,117 $2,135 $1,780 MAXIMUM 300 $10,768 $8,151 $5 482 $4 523 $3.768 $3 467 $3 061 $2719 $4011 $2,128 $6,676 $4,699 $4,646 $4,042 $2,760 $2,796 $2,041 $2,128 $1,947 $7,279 $5,357 $4,523 $4,285 $3,516 $2,796 $2,640 $2,602 $2,221 EXEMPT/ NON/EXEMPT E E E E E E E E NE E NE E E E E NE NE NE NE NE E E E E NE NE NE NE NE R:I&4LLANJIEMPUSTIAUTHPO$.WPD 6/16/98 1 CITY OF TEMECULA SCHEDULE OF AUTHORIZED POSITIONS AS OF JULY 1, 1998 POSITION TITLES AUTHORI7ED POSITIONS MINIMUM P! ANNINC~ Community Development Director Planning Manager Senior Planner Associate Planner Development Processing Coordinator Assistant Planner Community Development Technician Administrative Secretary Community Development Aide Office Assistant TOTAL 1.00 1.00 2.00 1.00 1.00 1.00 2.00 1.00 1.00 1.00 12.00 $5,642 $4 430 $3 922 $3 409 $3 087 $2 937 ~2 527 $2 242 $2,157 $1,560 BUll DINR & SAFFTY Chief Building Official Senior Building Inspector Plan Checker/Building Inspector Building Inspector II Code Enforcement Officer Community Development Technician Building Inspector I Administrative Secretary Office Specialist TOTAL 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 11.00 $5,348 $3,352 $3,119 $2,778 $2,707 $2,527 $2,492 $2,242 $1,707 PUB! IC WORKS Director of Public Works/City Engineer Deputy Director of Public Works Senior Engineer Associate Engineer Permit Engineer Maintenance Superintendent Senior Public Works Inspector Assistant Engineer Management Analyst Public Works Inspector Community Development Technician Administrative Secretary Lead Maintenance Worker Maintenance Worker Office Assistant TOTAL 1.00 1.00 3.00 3.00 1.00 1.00 2.0O 6.00 0.50 1.00 1.00 1.00 3.00 3.00 30.50 $6,120 $5,219 $4 540 $3,900 $3 900 $3.883 $3,380 $3 367 $3 092 $2 792 $2 527 $2 242 $2 198 $1 945 $1 560 MAXIMUM $7,037 $5,528 $4,894 $4,251 $3,761 ~3,661 $3,152 $2,796 $2,628 $1,947 $6,669 $4,180 $3,800 $3,462 $3,374 $3,152 $3,106 $2,796 $2,128 $7,632 $6,359 $5,531 $4,865 $4,865 $4,843 $4,215 $4,198 $3,768 $3,480 $3,152 $2,796 $2,744 $2,424 $1,947 EXEMPT/ NON/EXEMPT E E E NE NE NE NE NE NE NE E E NE NE NE NE NE NE NE E E E E E E NE NE E NE NE NE NE NE NE R:I~4U..ANJIEMPU, S7"iAUTHPO$.WPD 6/16,/98 2 CITY OF TEMECULA SCHEDULE OF AUTHORIZED POSITIONS AS OF JULY 1, 1998 POSITION TITLES AUTHORIZED POSITIONS MINIMUM COMMUNITY SlrRVIC!=S Director of Community Services Deputy Director of Community Services Maintenance Superintendent Development Services Administrator Recreation Superintendent Maintenance Supervisor Senior Landscape Inspector Development Services Analyst Recreation Supervisor Administrative Secretary Facility Maintenance Coordinator Recreation Coordinator Maintenance Worker Custodian Office Assistant TOTAL 1.00 $5,724 1.00 $4,333 1.00 ~3,883 1.00 $3,775 1.00 $3,768 1.00 $3,311 1.00 $2,846 1.00 $2,812 2.00 $2,743 1.00 $2,242 1.00 $2,172 3.00 $1,972 2.00 $1,945 1.00 $1,615 3.00 $1,560 21.00 RFnr:vr:! OPMENT AGFNCY Housing/Redevelopment Manager Senior Management Analyst Administrative Secretary TOTAL MAXIMUM $7 138 $5 403 $4 843 $4 712 $4 699 $4 036 $3 467 $3505 $3419 $2796 $2707 $2 460 $2 424 $2 016 $1 947 1.00 $4,397 $5,358 1.00 $3,624 $4,523 1.00 $2,242 $2,796 3.00 CITY COUNCIL ........................ 5.00 CITY MANAGER ....................... 9.50 CITY CLERK ......................... 9.00 FINANCE ............................ 10.50 PLANNING ........................... 12.00 BUILDING & SAFETY ................... 11.00 PUBLIC WORKS ....................... 30.50 COMMUNITY SERVICES ................. 21.00 REDEVELOPMENT AGENCY ............... 3.00 TOTAl OF AUTHORI7!=n POSITIONS ....... 111.50 EXEMPT/ NON/EXEMPT E E E E E E NE NE NE NE NE NE NE NE NE E E NE R:IBALLANJIEMPUST1AUTHPO$.WPD 6/16/98 3 ITEM 17 APPROVAL CITY ATTORNEY DIR. OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: SUBJECT: City Council Ronald E. Bradley, City Manager June 23, 1998 Adoption of the FY 1999-03 Capital Improvement Program PREPARED BY: Genie Roberts, Director of Finance ~ Gus Papagolos, Interim, Senior Management Analyst.~:~---~. RECOMMENDATION: Adopt a Resolution entitled: RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE CAPITAL IMPROVEMENT PROGRAM FOR FY 1999-03 AND ADOPTING THE CAPITAL IMPROVEMENT BUDGET FOR FY 1998-99. DISCUSSION: The Capital Improvement Program (CIP) is the City's plan for providing public improvements which exceed $25,000 in cost, have long-term life spans, and are nonrecurring. The proposed CIP document serves as a planning tool for the coordination of financing and scheduling of all capital improvement projects over the next five years. CIP DEVELOPMENT The CIP was developed by taking recommendations provided by staff and the City Council during a series of workshops. The primary focus of these workshops was to identify community needs in the areas of roads/streets; bridges; public buildings; parks and recreation facilities; and redevelopment projects. All projects were reviewed to ensure consistency with the provisions of the City's General Plan, as well as the long term vision of the City as developed by the City Council. On June 3, 1998, the Planning Commission found the proposed CIP to be consistent with the General Plan in accordance with Government Code Section 65403 of the State Planning and Zoning Law. The Public / Traffic Safety Commission at their June 4, 1998 meeting reviewed the Circulation and Infrastructure portion of the document and found it highly acceptable. On June 11, 1998, the City Council held a workshop to review and discuss the draft CIP. The feedback from both Commissions was presented to City Council at this workshop. The attached CIP document reflects changes based on Council's direction and staff's input which are listed below: Avenida de Missions Southerly Extension has been renamed to Temecula Creek Crossing, Access to Highway 79 South. The actual crossing location has not been determined and the project remains unfunded. 2 Advance the priority (from III to I) for the Margarita Road improvement from Pauba Road to 79 South and move the project design into FY 98/99. The design is funded at $125,00O. 3 Increase Rancho California Road Interchange project costs by $200,000. Also, increase Old Town Streetscape Improvement project costs by $600,000 to reflect the project additives approved by Council. 4 The CFD 88-12 revenue was increased by $290,000 and the Old Town Southside Parking Lot Project cost was reduced by $510,000.. 5 Increase Assembly Bill 2766 revenues for two (2) projects, Rancho Sports Park Sidewalk ($40,000) and Bike Path Citywide ($9,500), for a total increase of $49,500. Also, move the Bike Path Citywide project up from FY 01/02 to FY 98/99 in accordance with funding criteria. In addition to the above changes, staff has recommended the following changes based on Council discussion: Diaz Road Extension has been moved to FY 02/03, the priority changed to priority III, and revenue sources are unspecified. 2 Street Name Sign Replacement has been adjusted to reflect only the street signs in Los Ranchitos area as the Meadowview area street signs have been removed from the project resulting in a $66,000 reduction. COSTS The total cost to complete the projects proposed in the CIP is $220,871,950. Of this amount $49,588,300 is scheduled for the 1998 - 99 fiscal year. A total of 76 projects are included in the program, consisting of thirty (30) Circulation Projects, seventeen (17) Infrastructure/Other Projects, eighteen (18) Park Projects, and eleven (11) Redevelopment Agency/Housing Projects. The following illustrates the total costs for each project classification: Project Circulation Infrastructure/Other Projects Parks Redevelopment RDA/Housing Cost $111,168,400 $ 58,760,200 $ 19,666,750 $ 31,276,600 REVENUE Projected revenue from identified sources for the Five Year Capital Improvement Program is $127,480,810. Through the first two years of the five year program, there is adequate funding for all proposed projects. However, for the remaining three years, in the unspecified category, the deficiency begins and continues to increase to a total of $100,339,950. Included in this five year plan are nine (9) projects which currently do not fit into the five year window, but warrant consideration and review in this document. These projects are proposed to be funded by both assessment districts and unspecified funds in future years for a total cost of $53,31 5,200. The following projects have been added to this CIP document: CIRCULATION · · · · · · 1-15 / Additional Interchange at Santiago Road* 1-15 Southbound Off - Ramp Widening at Winchester Road 1-15 Southbound Off - Ramp Widening at Rancho California Road Via Montezuma Extension Westerly to Diaz Road* Street Name Sign Replacement Temecula Creek Crossing, Access to Highway 79 South* INFRASTRUCTURE/OTHER · · · · · Maintenance Facility Modification Library* Performing Arts Center* Children's Museum* Civic Center* 3 PARK PROJECTS Rotary Park Improvements Rotary Park Expansion Sports park Tot Lot (ADA Upgrade) Parkview Park Site Park Security Lighting La Serena Park Site REDEVELOPMENT AGENCY/RDA HOUSING PROJECTS Old Town Southside Parking Lot * Unspecified Funding Source (all or partial project costs) FISCAL IMPACT: The adoption of the FY 1999-03 Five Year Capital Improvement Program establishes the project appropriations for FY 1998-99. Projects which do not have sufficient funds within the funding source will not proceed until the funding has been secured. Attachments: Resolution 98- Draft Capital Improvement Program 1999-03 4 RESOLUTION NO. 98- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE CAPITAL IMPROVEMENT PROGRAM FY 1999-03 AND ADOPTING THE CAPITAL IMPROVEMENT BUDGET FOR FY 1998-99 WHEREAS, the City of Temecula requires public infrastructure improvements in the areas of streets, highways, transportation facilities, parks, recreational facilities and public buildings and facilities; and WHEREAS, the careful timing of the installation of such improvements is necessary so as to best serve the public health, safety and welfare; and WHEREAS, in order to prioritize these public infrastructure and improvements, Capital Improvements Program is necessary; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Capital Improvement Program FY 1999-03 is hereby approved. A copy of the FY 1999-03 Program is attached hereto as Exhibit "A" and will be kept on file in the office of the City Clerk. Section 2. Adoption of this Program is categorically exempt from environmental review under the California Environmental Quality Act CCEQA"). Pursuant to Section 15262 of the State Guidelines for Implementation of CEQA, a project involving only feasibility or planning studies for possible future actions, which actions the City Council has not approved, adopted or funded, does not require preparation of an EIR or Negative Declaration, but does require consideration of environmental factors. In reviewing this Program and conducting public hearings on it, the City Council has considered relevant environmental factors. Section 3. That certain document now on file in the office of the City Clerk of the City of Temecula entitled "City of Temecula Capital Improvement Program FY 1999-03" included herein appropriations for FY 1998-99 is hereby adopted. Section 4. On June 3, 1998 the Planning Commission found the Capital Improvement Program consistent with the General Plan in accordance with Government Code Section 65403® of State Planning and Zoning Law. Section 5. That the following controls are hereby placed on the use and transfers of budget appropriations: A. No expenditure of funds shall be made unless there is an unencumbered appropriation available to cover the expenditure. B. The City Manager may authorize expenditures of funds in amounts up to $25,000. Any expenditure of funds in excess of $25,000 requires City Council action. C. The City Manager may approve change orders on Public Works contracts in amounts up to $25,000, if sufficient appropriated funds are available. D. Notwithstanding Section 5B, pursuant to Section 3.13.080 of the Municipal Code, the City Manager may authorize Public Works contracts in amounts up to $25,000. Any expenditures of Public Works funds in excess of $25,000 require City Council action, except that the City Manager may approve change orders on Public Works contracts approved by the Council in amounts up to project contingency established by Council. Section 6. Certification. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED AND ADOPTED this 23rd day of June, 1998. ATTEST: Ron Roberts, Mayor Susan W. Jones, CMC Acting City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS CITY OF TEMECULA ) I, Susan W. Jones, Acting City Clerk of the City of Temecula, HEREBY DO CERTIFY that the foregoing Resolution No. 98- was duly adopted at a regular meeting of the City Council of the City of Temecula on the 23rd day of June 1998 by the following roll call vote. 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Z <:LU ~'0 O~  00000 § .~ ~ ~ ooooo ~0~ ~ ~ .~ ~ °° · - '- O0 O0 ~ S ~ oo ~ ~ ~ ooooo 00000 00000 ~0~ ~ ~ 00000 00000 ~ ~ ~ ~ ooooo ~0~ ~ ~ ~ oo o O0 ~ ~ oo o ~ ~ ~ ~ o o ~ o o 000 000 C)~ I"IU ..11U C~ o, o, 0 0 00~ 0000 00~ 0 0 ~- 0o '~ 0 i-O X~> ~>- 88 0 0 Z~ 0 0 0 rlYl~ Z IJJ Z 0 0 (D 0 I- Z 0 LIJ Z 0 0 0 0 0 0 > c~- 0 o ~ 0 o rn r~.. Q. I-- Z Z O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 O0 0 0 0 0 0 o ~ o ITEM 18 ORAL PRESENTATION DEPARTMENTAL REPORTS APPROVe, CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER TO: FROM: DATE: SUBJECT: Prepared by: RECOMMENDATION: Receive and File Discussion: The following is a summary of the Community Development Planning Division caseGoad and project activity for the month of May 1998: Caseload Activity; CITY OF TEMECULA AGENDA REPORT City Manager/City Council Gary Thornhill, Community Development Director/~'~ ~ June 23, 1998 Monthly Report ~ Valerie Wimberly, Administrative Secreta Department's The Department received 29 applications for administrative cases and 6 applications for public hearing cases for the month of May. The following are the public hearing cases: · Minor Conditional Use Permit 2 · Development Plan - subject to CEQA 1 · Parcel Map - w/CEQA 2 · Parcel Map - schedule E - sewers 1 Total 6 Attachments: List of Activities with Detail - page 3 Revenue Status Report - page 4 R:kMONTHLY.RPT~1998hMAY.WPD 6/16/98vgw Ongoing Projects: Sign Ordinance: This item is scheduled for City Council consideration on May 26, 1998 Electric Vehicle Charging Stations: The charging stations at the 6th Street parking lot and the maintenance facility have been installed. Regional Mall: Phase I grading operations have ended, Phase II to commence in June. Building construction is expected to commence in early summer of 1998, with the opening scheduled for 1999. Murdy Ranch Specific Plan: Staff is awaiting contact from the new owner. No activity on this case. Roripaugh Ranch Specific Plan: A Notice of Preparation for EIR has been completed. Staff is awaiting submittal of the Specific Plan application. Southside Specific Plan: Staff is hearing the drafted Specific Plan and incorporating the Planning comments from the May 20, 1998. Massage Business Ordinance: This item will be scheduled for City Council workshop in August. Adult Business Ordinance: The Adult Ordinance committee (Ron Roberts, Ron Guerriero) will meet on May 11, 1998 to examine the appropriate zones that adult business should be permitted. After this Meeting, the ordinance will be schedule for City Council. Staff has received comments from the City Attorney and will be scheduled for public hearing as soon as the land inventory is complete. General Plan Circulation Element Update (and revision to citywide traffic study): The consultant has commenced work. The third Steering Committee meeting to be held on July 6. Project is on schedule. Subdivision Ordinance: Staff is in the process of developing an appropriate subdivision ordinance for the City. The City currently uses Riverside County Ordinance No. 460 to regulate the subdivision of land. Redhawk/Vail Ranch Annexation Study: Staff is proceeding with the annexation of the Redhawk/Vail Ranch area. A resolution for the commencement of proceedings for the annexation and pre-zoning has been scheduled for Planning Commission on July 1, 1998 and to City Council on July 28, 1998. Staff will submit the application to LAFCO shortly there after. R:~IONTHLY.RPTX1998~VIAY.WPD 6/16/98 vgw 2 ATTACHMENT NO. 1 LIST OF ACTIVITY BY CASE NUMBER R:LMO~Y.RPT~I998LMAY.WPD 6/16/98 vgw 3 Z ATTACHMENT NO. 2 REVENUE STATUS REPORT R:XMONTHLY. RP'I'x1998WIAY.WPD 6/16/98 vgw 4 REVPRIN2 06/04/98 001 161 ACCOUNT # 4101 4102 4103 4104 4105 4106 4107 4108 4109 4110 4112 4113 4114 4115 4116 4117 4118 4119 4120 4121 4122 4123 4124 4125 4126 4127 4128 4129 4130 4131 4135 4136 4139 4140 4170 4171 4190 4195 4200 4206 4369 4370 07:33:42 GENERAL FUND PLANNING DESCRIPTION AMENDED FINAL MAP APPEALS CERT. OF LAND DIV. COMPLIANCE EXTENSION OF TIME SINGLE FAMILY TRACTS MULTI-FAMILY TRACTS PARCEL MAPS LOT LINE ADJUSTMENT MINOR CHANGE PARCEL MERGER (2-4 LOTS) REVERSION TO ACREAGE (5+LOTS) MINOR CONDITIONAL USE PERMIT SECOND UNIT PERMITS CHANGE OF ZONE CONDITIONAL USE PERMIT CONSISTENCY CHECKS GENERAL PLAN AMENDMENT PLOT PLAN PUBLIC USE PERMIT REVISED PERMIT SETBACK ADJUSTMENT SPECIFIC PLAN SUBSTANTIAL CONFORMANCE TEMORARY OUTDOOR EVENT TEMPORARY USE PERMIT VARIANCE ZONING INFORMATION LETTER CEQA (INITIAL STUDIES) CEQA ENVIROMENT IMPACT REPORT DEVELOPMENT AGREEMENT PARCEL MAP/WAIVER MERGER CONDO TRACT MAP REVERSION TO ACREAGE K-RAT STUDY FEES HOME OCCUPATIONS DEVLPMNT PLAN-ADMINISTRATIVE DIF REDUCTION APPLICATION IN HOUSE PLAN CHECKS ANNEXATION FEES LAND DIV UNIT MAP LANDSCAPE PLAN CHECK CITY OF TEMECULA REVENUE STATUS REPORT MAY 1998 ADJUSTED ESTIMATE .00 .00 .00 5,900.00 24,700.00 .00 30,500.00 16,800.00 700.00 2,900.00 .00 13,500.00 .00 3,600.00 31,100.00 16,300.00 5,600.00 111,900.00 .00 .00 200.00 .00 .00 .00 5,200.00 .00 .00 .00 .00 13,700.00 .00 .00 .00 .00 .00 4,500.00 7,400.00 .00 .00 .00 500.00 .00 MAY REVENUE .00 .00 .00 268.00 .00 .00 3,722.40 230.00 .00 .00 .00 .00 .00 .00 1,064.00 .00 .00 5,474.00 .00 .00 .00 .00 1,110.00 146.00- .00 .00 18.00 1,151.85 .00 .00 .00 500.00 .00 .00 .00 .00 .00 .00 970.00 .00 .00 1,435.00 1997-98 REVENUE .00 1,950.00 900.00 1,704.00 8,868.80 .00 26,538.80 3,450.00 .00 .00 .00 .00 .00 2,746.00 26,386.00 .00 .00 99,899.00 .00 .00 .00 .00 9,620.00 2,528.00 190.00 1,476.00 162.00 23,438.95 .00 .00 .00 3,000.00 14,370.00 .00 .00 .00 .00 1,300.00 10,080.00 .00 374.00 51,704.00 PAGE BALANCE .00 1,950.00- 900.00- 4,196.00 15,831.20 .00 3,961.20 13,350.00 700.00 2,900.00 .00 13,500.00 .00 854.00 4,714.00 16,300.00 5,600.00 12,001.00 .00 .00 200.00 .00 9,620.00- 2,528.00- 5,010.00 1,476.00- 162.00- 23,438.95- .00 13,700.00 .00 3,000.00- 14,370.00- .00 .00 4,500.00 7,400.00 1,300.00- 10,080.00- .00 126.00 51,704.00- COL 28.9 35.9 87.0 20.5 0.0 0.0 0.0 76.3 84.8 0.0 0.0 89.3 0.0 3.7 0.0 0.0 0.0 74.8 PLANNING 295,000.00 15,797.25 290,685.55 4,314.45 98.5 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: FROM: DATE: City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 SUBJECT: Department of Public Works Monthly Activity Report RECOMMENDATION: Attached for City Council's review and filing is the Department of Public Works' Monthly Activity Reports for the month of May, 1998. R:tA GDRP~MOA CTRPT. FRM 1 6/$/98/ajp CAPITAl, IMPROVEMENT PROJECTS Monthly Activity Report May 1998 Submitted by: Joseph Kicak Prepared by: Bill Hughes Date: June 12, 1998 I. WORK UNDER CONSTRUCTION: 1.1-15/Rancho California Road Interchange Modification.q: The construction includes widening the south side of the bridge over the freeway, adding a new lane on the south side of Rancho California Road from Front Street to the .west side of the bridge and from the east side of the bridge to Ynez Road, providing a new loop entrance ramp to northbound 1-15, and relocation of the existing northbound exit ramp. Bridge abutment footings and the retaining wall located on the south side of Rancho California Road adjacent to Kentucky Fried Chicken will be under construction for the next two months. The placement of fill for the proposed northbound loop on ramp between Embassy Suites and the existing off ramp began Monday, June 8. Please note that traffic will be allowed through the work area. Completion based on an accelerated schedule is now February 1999. 2. City Wide Intelligent Traffic Man.'lgement System fITMS): The traffic signals are now interconnected and coordinated. The City and Caltrans will be monitoring the traffic flow throughout the City and adjusting the signal timing for the next several months. 3. ADA Improvement Project: This improvement project includes sidewalk access ramps, new playground equipment, and rubberized surfacing around existing play equipment for access by wheel chairs at Veterans Park, John Magee Park, and Calle Aragon Park as well as ADA improvements to Rancho Vista fields at the Rancho California Sports Park. Installation of the play structures is nearly complete and final tests on sprinkler system is being performed. Play structures at Calle Aragon Park are scheduled for installation the third week of June. The improvements to the other three parks are substantially complete. Completion is anticipated to be in late June 1998. 4. Margarita Community Park - Phaqe I: The project improvements include restrooms, parking areas, picnic areas, play equipment, tennis courts, a roller hockey rink, ballfields, lighting, picnic shelters, sidewalks, landscaping with open turf areas as well as widening Margarita Road adjacent to the park to its ultimate width. Grading of the site has been completed. Placement of the storm drain and sewer systems are presently underway along with placement of parking lot concrete curbing. The project is estimated to be completed in October 1998. R:\M OACTRPT\CIP\98~J UN.M AR seh 5. Winchester Creek Park: The project consists of a 4.5 acre neighborhood park with various improvements including restrooms, basketball courts, volleyball courts, play equipment, polygon shelters with picnic tables, concrete walkways, and a parking lot. Grading has been completed. Installation of the restroom building, concrete flatwork, and the irrigation system is presently underway. The project is estimated to be completed in September 1998. 6. Cosmic Drive and Agena Street - Street Sidewalk PrQject//6: The project consists of the installation of sidewalks on the west side of Cosmic Drive between Rancho California Road and Agena Street and south side of Agena Street between Santa Cecilia Drive and Cosmic Drive. The project is substantially complete. A final punch list walk through is scheduled for June 9. The project is estimated to be completed in June 1998. 7. Traffic Signal at Pauba Road and Fire Station 84 The contractor has competed installation of the underground conduits and is expecting the signal equipment by the end of June 1998. The anticipated completion date is July 1998. 8. Traffic Signal at Pala Road and Rainbow Canyon Road The contractor is currently installing the underground conduits, wires, and pole foundations. The signal poles have been received and the contractor is awaiting arrival of the controller and controller cabinet. The anticipated completion date is August 1998. 9. Traffic Sil~al at Rancho California Road and Meadows Parkway All underground work has been completed and the contractor is expecting to receive the signal equipment by the end of June 1998. The anticipated completion date is July 1998. 10. CRC Gymnaqium Air Conditioning System: Since the opening of the Temecula Community Recreation Center gymnasium the facility has operated without an air conditioning or cooling system. This project will provide for [he installation of an air conditioning and temperature control system for the CRC Gymnasium. A pre-construction meeting was held on June 3 and actual construction will begin June 15. All work will be completed by late July 1998. 11. Traffic Signal at Marg3rita Road and Santiago Road A pre-constmction meeting was held on June 4, 1998. The contractor has ordered the signal equipment. An expected delivery date is August 1998. The anticipated completion date is November 1998. R:~ OACTRPT\CIP\9 8~J UN,M AR seh II. BID: 1. Flashing Reacons at Various l~entions: A recommendation to award the project is on the City Council agenda for the June 16 meeting. This project consists of installing flashing beacons that warn motorists of children in school zones at eight (8) different school sites. Construction is anticipated to begin in July 1998 with an estimated completion date of September 1998. III. WORK IN DESIGN: 1.1-15/Overland Drive Over Crossing Intprovements: The roadway and structural plans have been signed by Caltrans (District 8) and Caltrans (Division of Structures), respectively. SCE is also working on the design for the relocation of the existing 115, 33, & 12 KV overhead power lines. These lines are scheduled to be relocated concurrently with the construction of the proposed Overland Drive Overcrossing Improvement Project. The transmission and distribution sections of SCE have fimli?ed their alignment. The City is in the process of acquiring right of way, utility easements and temporary construction easements necessary for the project. Construction is anticipated to begin in November 1998 with an estimated completion date of October 1999. 2. FY96-97 Pavement Manal~,ement System: The consultant is expected to submit a plan check to the City by the second week of June. Staff expects to return the plan check within two (2) weeks after the submittal date. This project will provide street rehabilitation of Jefferson Avenue from the northerly City limits to Rancho California Road. This project will also include the installation of street lighting along the entire length of the project. Construction is anticipated to begin in October 1998 with an estimated completion date of February 1999. 3. Winchester Road & Ynez Road Street Widening: The consultant received the second plan check comments from Caltrans on June 4 and expected to resubmit plans the week of June 8. The scope of work includes the street widening improvements on the south side of Winchester Road between Ynez Road and Margarita Road, and the improvements on the east side of Ynez Road between Winchester Road and Overland Drive. Construction is anticipated to begin in August 1998 with an estimated completion date of April 1999. 4. Overland Drive Street Improvements & Margarita Road Street Widening: The consultant received the second plan check comments from Riverside County Flood Control on June 1 and expected to resubmit plans the week of June 15. The proposed improvements will be on Overland Drive between Ynez Road and Margarita Road and on Margarita Road from Overland Drive to Winchester Road. Construction is anticipated to begin in August 1998 with an estimated completion date of April 1999. R:'~M OACTRPT\CIP\98~ UN.MAR ~eh 5. Margarita Road Sidewalk (Rancho Vista to Pauba): The plans are presently in for final plan check. The improvements will include the installation of concrete curbs, gutter, and sidewalk along the west side of Margarita Road between Rancho Vista Road and Pauba Road. The sidewalk will improve access to the Rancho California Sports Park. Also, as part of the design, additive alternate improvements will include ADA ramp access from Margarita Road to the adjacent ballfields along with an expanded parking area. The project is anticipated to bid in June. Construction is anticipated to begin in August 1998 with an estimated completion date of October 1998. 6. 1-15/Winchester Southbound Off-rarrto Widening: The consultant received Caltrans' plan check comments on June 9 and expects to return the plans and specifications the week of June 15. The project will provide an additional turning lane from the southbound off-ramp onto Winchester Road. This project will also require a retaining wall between the southbound off- ramp and the southbound loop on-ramp due to the existing grades in the area of the ramp widening. Construction is anticipated to begin in October 1998 with an estimated completion date of April 1999. 7. Winchester Road Median l.qlands: The plans are substantially complete and once Caltrans approves the plans and specifications staff will request City Council's authorization to solicit consauction bids. This project includes installation of median islands wi~h landscaping and irrigation along Winchester Road between Enterprise Circle West and Jefferson Avenue along with the installation of a traffic signal at Enterprise Circle West. Also, the existing median island at Jefferson Avenue will be modified to provide for a longer left turn pocket for east bound traffic. Construction is anticipated to begin in October 1998 with an estimated completion date of May 1999. 8. Pala Road Bridge: A Consultant is in the process of preparing the preliminary documentation required by Caltrans to receive HBRR Funds as well as performing utility research and design surveys. This project will include the realignment of Pala Road from Highway 79 South to Rainbow Canyon Road, which will require that a new bridge be constructed, two new traffic signals to be installed, the removal of two (2) traffic signals, the installation of sound walls, sidewalks, landscaping, irrigation, street lighting, bike lanes, signing, striping, channel improvements, and provisions for Wetland Mitigation. Consauction is anticipated to begin in October 1998 with an estimated completion date of December 1999. 9. Winchester Sidewalk: Caltrans has issued an encroachment permit for this project. The plans and specifications are complete. Staff is requesting City Council's authorization to solicit consauction bid at the June 23 meeting. This project consists of the installation of sidewalks on the west side of Winchester Road between Margarita Road and Winchester Creek Avenue. Consauction is anticipated to begin in July 1998 with an estimated completion date of November 1998. R:\M OACTRPT\CIP\98~J UN.MAR aeh 10. Temecula Duck Pond Park: The Temecula Duck Pond Park Project will include both park and offsite street improvements. Park improvements will include a gazebo/bandstand, picnic facilities, a restroom, walkways, a parking lot, security lighting, monumentation, landscaping and irrigation. The street improvements will consist of the widening of Ynez Road to full width between Rancho California Road and Tierra Vista Road and will include new sidewalks along with additional turn lanes, traffic signal modifications at Ynez Road and Rancho California Road, a new traffic signal at Ynez Road and Tierra Vista Road, and pavement re-striping to improve traffic circulation. Final revisions to the plans are anticipated to be completed the fifird week of June. Consauction is anticipated to begin in September 1998 with an estimated completion date of February 1999. 11. Traffic Signal at Rancho California Road and Via l~s Colinaq: The design is substantially complete. Once all necessary easements are obtained staff will request City Council's authorization to solicit construction bids. Consauction is anticipated to begin in October 1998 with an estimated completion date of February 1999. R:\M OACTRPT\CIP\9 8~ UN.MAR seh LAND DEVELOPMENT MONTHLY ACTIVITY REPORT SPECIAL PROJECTS MAY 1998 Submitted by: Joseph Kicak Prepared by: Ronald J. Parks Date: June 15, 1998 1. PW95-07 - Phase I Western Bypass Corridor: The Interstate 15/State Route 79 South (I-15/SR79S) interchange improvements including Front Street realignment and its intersection with Western Bypass Corridor are underway. 2. PW95-08 - First Street Fxtension: The construction phasing plans will be completed upon finalizing the design criteria with Riverside County Flood Control and Water Conservation District. 3. PW95-~6 - 6th Street Parking Project: Awaiting for the Contractor to submit the affidavit and maintenance bond in order to file the notice of completion will be filed. 4. PW96-05 - Project Study Report (PSR) And Project Report (PR) For Ultimate Interchange Improvements at Interstate 15/State Route 79 South (I-15/SR79S): The PSR analysis will resume once the update on the Circulation Element of the General Plan is finaled. 5. General Plan Circulation Fiemerit Update: The consultant has been selected. A committee comprised of Cities of Temecula and Murrieta representatives has been formed to provide direction for the update process. 6. The Regional Mall Project: The design of the perimeter infrastructure improvements are in progress. The consultants are in the process of revising the plans per the plan check comments. 7. PW97-05 - The Old Town Streetscape Project: The low bidder was selected and the contract has been awarded. Construction is scheduled to start by June first. R :~M 0 AC'I'RP'I'~E'V~9~ ~ A y. WPD MEMORANDUM TO.' FROM: DATE: SUBJECT: Joseph Kicak, Director of Public Works/City Engineer Brad Buron, Maintenance Superintendent June 1, 1998 Monthly Activity Report - May 1, 1998 The following activities were performed by Public Works Department, Street Maintenance Division in- house personnel for the month of May, 1998: SIGNS A. Total signs replaced 6 B. Total signs installed 11 C. Total signs repaired 0 II. TREES A. Total trees trimmed for sight distance and street sweeping concerns III. ASPHALT REPAIRS A. Total square feet of A. C. repairs B. Total Tons 3.170 25.5 IV. CATCH BASINS A. Total catch basins cleaned 196 Vo RIGHT-OF-WAY WEED ABATEMENT A. Total square footage for right-of-way abatement 82.459 VI. GRAFFITI REMOVAL A. Total locations B. Total S.F. 5 564 VII. STENCILING A. 128 New and repainted legends B. 0 L.F. of new and repainted red curb and striping R:\MAINTAIN\M O ACTRPT\98\MAY.RPT Also, City Maintenance staff responded to 45 service order requests ranging from weed abatement, tree trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is compared to 38 service order requests for the month of Al~ril. 1998. The Maintenance Crew has also put in 61 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 May. 1998 was $18.354.50 compared to $47.149.07 for the month of Al~ril. 1998. Account No. 5402 Account No. 5401 Account No. 999-5402 8,134.50 9,270.00 950.00 CC: Ron Parks, Deputy Director of Public Works Ali Moghadam, Senior Engineer - (CIP/Traffic) Jerry Alegria, Senior Engineer - (Land Development) Bill Hughes, Senior Engineer - (CIP) R:\MAINTAIN~M OACTRPT\98\MAY.RPT ~oo U ~E 0 o o 0 z ~ ~ ~ ~ o o o ~ ~o ~ ~ o ~ I- 0 I- STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of MAY, 1998 DATE DFSCRIPTION ACCOUNT STRF!=T/CHANN!=L/BRIDGE OF WORK CONTRACTOR: Date: 05/07/98 # 5402 MONTELEONE EXCAVATING "Old Town" TOTAL COST Water truck to wash down streets in Old Town due to rain Date: 05/19/98 # 5402 Walcott Road @ Klare TOTAL COST Repair failing slope $ 2,939.50 Date: 05/27/98 # 5401 Vallejo Channel TOTAL COST Clear channel of debris and silt $ 4,935.00 Date: 05/27/98 # 5401 Via Lobo Channel TOTAL COST Clear channel of debris and silt. $ 4,285.00 Date:05/11/98 # 999-54O2 Service Level "R" Areas TOTAL COST $ 4,985.00 Grading of dirt roads due to rains. TOTAL COST $ 950.00 R:\M AIN TAIN\M 0 ACTRPT\9 8~M AY.RPT STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of, 1998 DATE DFSCRIPTION ACCOUNT STREFT/CHANN!=L/BRIDRF OF WORK CONTRACTOR: Date: 05/07/98 # 5402 BECKER ENGINEERING Calle Medusa at Everest Emergency street failure. TOTAL COST Date: TOTAL COST $ 2,939.5O Date: # TOTAL COST Date: TOTALCOST TOTAL AMOUNT ACCT #5402 TOTAL AMOUNT ACCT #5401 TOTAL AMOUNT ACCT #999-5402 TOTAL COST $ 8,134.50 $ 9,270.00 $ 950.00 R:\M AIN TAIN \M OACTRPT\9 8\M AY.RPT I DATE O5101~98 05/18/98 05/2098 05/21/98 LOCATION AREA//1 (SEE DAILY FOR LOCATIONS) AREA//1 (SEE DAILY FOR LOCATIONS) BIKE LANES "CITYWIDE" BIKE LANES "CITYWIDE" CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION STENCILS / STRIPING MONTH OF MAY, 1998 I REPAINTED REPAINTED REPAINTED REPAINTED WORK COMPLETED 24 LEGENDS 44 LEGENDS 10 LEGENDS 50 LEGENDS TOTAL NEW & REPAINTED LEGENDS NEW & REPAINTED RED CURB & STRIPING L.F. 128 0 R:WIAINTAINXWKC MP LTD\STRI PIN GX98xMAY.RPT DATE RECEIVED o5/ol/98 o5/Ol/98 o5/ol/98 05104198 05104198 05/04/98 05/05/98 05/05/98 05/05/98 05106198 05/06/98 05/06/98 05/06/98 05/07/98 05/07/98 05/07/98 05/07/98 05/08/98 05/11/98 05/11/98 05/12/98 05/12/98 05/14/98 05/14/98 05/18/98 05/18/98 05/19/98 05/19/98 CITY OF TEMECUI~ DEPARTMENT OF PUBLIC WORKS ROADS DMSION SERVICE ORDER REQUEST LOG MONTH OF MAY, 1998 LOCATION 20690 MERCEDES 33179 CORTE YACA 42080 HUMBER STREET 43164 CORTE ALMONTE 41315 RUE JADOT 43600 SAN FERMIN 32209 COUR MEYNEY 41844 FOURTH STREET JOHN WARNER ROAD 41830 6TH STREET 30542 BAYHILL DRIVE 41200 VIA AGUILA 42020 KAFFIRBOOM COURT 41830 6TH STREET 42108 AGENA STREET NICHOLAS ROAD 45278 TOURNAMENT LANE 31096 TECUMSEH COURT 43210 CORTE ALMONTE 43021 CALLE JEMINEZ MARGARITA ROAD AT SOLANA WAY 27538 ROSEBAY COURT 28735 PUJOL RANCHO CALIFORNIA ROAD AT CARL'S JR. 31847 VINEYARD AVENUE 30809 CALVADO COURT 39370 LIEFER ROAD JOHN WARNER ROAD REQUEST STORM DRAIN CLEANING TREE REMOVAL SIDEWALK REPAIR TREE REMOVAL SKATEBOARD RETRIEVING EROSION CONTROL TREE REMOVAL DEBRIS REMOVAL ROAD GRADING DEBRIS REMOVAL TREE TRIMMING TREE REMOVAL WEED REMOVAL DEBRIS REMOVAL TREE TRIMMING ROAD GRADING TREE REMOVAL TREE REMOVAL TREE REMOVAL PAINT SPILL POTHOLES STUMP GRINDING GRAFFITI SEWER CLEAN-OUT TREE CONCERN BROKEN GLASS ROAD GRADING THANK-YOU DATE WORK COMPLETED 05/01/98 05/01/98 05/01/98 05/0498 05/04/98 05/04/98 05/05/98 05/05/98 05/05/98 05106198 05106198 05106198 05/06/98 05/07/98 05/07/98 05/07/98 05/07/98 05/08/98 05/11/98 05/11/98 05/12/98 05/12/98 05/14/98 05/14/98 05/18/98 05/18/98 05/19/98 05/19/98 R:WIAINTAIN~,WKCM PLTD\SO Rs\9g~MA y. RPT DATE RECEIVED 05/19/98 05/19/98 o5/19/98 05120198 05/20/98 05/21/98 05/21/98 05/22/98 05/22/98 05/22/98 05/22/98 05/26/98 05/27/98 05/28/98 05/28/98 05/29/98 05/29/98 LOCATION MARGARITA AT AVENIDA BARCA 42623 REMORA 30294 CUPENO LANE 31251 FELICITA ROAD MORNING RIDGE & SUMMER BREEZE APTS. 42932 CORTE SIERO 42623 REMORA 30381 SANTA CECELIA 28699 FRONT STREET 31450 DE PORTOLA ROAD 45990 CLUBHOUSE 43125 CORTE ALMONTE 31380 SANTIAGO ROAD SUNRIDGE CHURCH DIAZ AT WINCHESTER 44860 CORTE ANTIGUA 402,~0 TANAGER REQUEST TRENCH FAILURE TREE REMOVAL DEBRIS REMOVAL POTHOLES INSTALL SIGNS SIDEWALK REPAIRS TREE REMOVAL TREE TRIMMING TREE REMOVAL SINKHOLE TREE TRIMMING POTHOLE INSTALL A.C. BERM TREE TREATMENT GLASS IN STREET GATES UNLOCKED SIDEWALK REQUEST DATE WORK COMPLETED 05/19/98 o5/19/98 05/19/98 05120198 05/20/98 05/21/98 05/21/98 05/22/98 05/22/98 05/22/98 05/22/98 05/26/98 05/27/98 05/28/98 05/28/98 05/29/98 05/29/98 TOTAL SERVICE ORDER REQUESTS 4~ R:WLAINTAIN~WKCM PLTD\SORSk98',MA Y.RPT DATE 05/01/98 05/01/98 05104198 05104198 05/05/98 05/07/98 05/14/98 05/21/98 05/21/98 05/28/98 05/28/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION SIGNS MONTH OF MAY, 1998 LOCATION [ WORK COMPLETED VIA SABINO AT CORTE MARGARINO INSTALLED N.H.W. SIGN RANCHO CALIFORNIA ROAD AT MARGARITA REPLACED 2 DELINEATORS SANTIAGO AT 1st STREET REPLACED R-I, R-1A, TYPE K 30170 SANTA CECILIA REPLACED W-65 42200 MARGARITA ROAD INSTALLED 2 P.O.P. SIGNS 42200 MARGARITA ROAD INSTALLED 1 P.O.P. SIGN CABRILLO AT EAST VALLEJO INSTALLED W-9 W-6 "25" SUMMER BREEZE APARTMENTS INSTALLED HOUSING SIGN MORNING RIDGE APARTMENTS INSTALLED HOUSING SIGN SOUTHERN CROSS INSTALLED R-2 25 AND R-48 JOHN CHRISTIAN AT WARBLER INSTALLED W-5 3 TOTAL SIGNS REPLACED TOTAL SIGNS INSTALLED TOTAL SIGNS REPAIRED R:~tAINTAINXWKCM PLTDx, SIGN S\98~lAY.KPT DAOT E o5/ol/98 05/06/98 05106198 05/07/98 05/08/98 05/11/98 05/11/98 05/11/98 05/12/98 05/15/98 05/15/98 05/18/98 05/20/98 05/21/98 05/22/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION ASPItALT (POTHOLES) REPAIRS MONTH OF MAY, 1998 LOCATION SCOPE OF WORK RANCHO CALIFORNIA ROAD 600' WEST OF YNEZ RYCREST AT SOLANA WAY MAJOR ARTHERIALS DIAZ ROAD JEFFERSON SOUTH OF WINCHESTER CALLE MEDUSA AT EVEREST JOHN WARNER AT CABRILLO PAUBA AT YNEZ CITYWIDE (SEE DAILYS) SOLANA AT MARGARITA OLD TOWN JOHN WARNER AT CABRILLO JOHN WARNER AT CABRILLO CABPdLLO SOUTH OF VALLEJO CABRILLO SOUTH OF VALLEJO R&R A.C. FILLED POTHOLES FILLED POTHOLES FILLED POTHOLES FILLED POTHOLES R&R A.C. OVERLAY FILL POTHOLES FILL POTHOLES FILL POTHOLES FILL POTHOLES INSTALL BERM AND RADIUS OVERLAY OVERLAY OVERLAY SoF. 96 4 32 5 12 110 45 10 97 5 3 480 578 905 738 TOTAL TONS 3 TONS T.A.C. T.A.C. T.A.C. T.A.C. 3 1.5 T.A.C. T.A.C. T.A.C. T.A.C. 9A.C. 3.5 A.C. 3.5 A.C. 2A.C. TOTAL S.F. OF REPAIRS TOTAL TONS 3.120 25.$ RS/VlAINTAIN}WKC M PLTD~ASPHALT RPR\98q~IAY.RPT CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION CATCH BASIN MAINTENANCE MONTH OF MAY, 1998 DATE 05/05/98 05106198 05/06/98 05/! 2/98 05/13/98 05/14/98 LOCATION CITYWIDE "RAIN" AREAS//3 & 4 CITYWIDE "RAIN" CITYWIDE "RAIN" CITYWIDE "RAIN" CITYWIDE "RAIN" WORK COMPLETED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED 25 CATCH BASINS 8 CATCH BASINS 20 CATCH BASINS 65 CATCH BASINS 51 CATCH BASINS 27 CATCH BASINS TOTAL CATCH BASINS CLEANED & CHECKED Rz:~VIAIN'~AIN~WKCM PL ETD\C ATC H BAS~98~IA Y. KPT IDATE 05108198 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY TREE TRIMMING MONTH OF MAY, 1998 LOCATION TOURNAMENT AT SILVERADO WORK COMPLETED TRIMMED 1 R.O.W. TREES TOTAL R.O.W. TREES TRIMMED 1 R:~MAINTAIN~W KC M P LTD\TRE I~ S~98~MAY. 1t. FF CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION RIGHT-OF-WAY WEED ABATEMENT MONTH OF MAY, 1998 DATE 05/04/98 05/04/98 05/05/98 05/05/98 05/08/98 05/08/98 05/08/98 05/11/98 05/14/98 05/18/98 05/27/98 05/28/98 05/29/98 LOCATION FELIX VALDEZ AT 6TH 6TH STREET AT PUJOL PUJOL AT 6TH STREET JEDEDIAH SMITH EAST OF CABRILLO JEDEDIAH SMITH BETWEEN CABRILLO & MARGARITA NORTH GENERAL KEARNY SOUTH OF CITY LIMITS MARGARITA AT RUSTIC GLEN MARGARITA NORTH OF WINCHESTER YNEZ AT SOLANA CALLE MEDUSA BUTTERFIELD STAGE NORT OF WINDFARE PUJOL STREET (CITY OWNED LOTS) PUJOL STREET (CITY OWNED LOTS) I ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED WORK COMPLETED 1,109 S.F. R.O.W. WEEDS 864 S.F. R.O.W. WEEDS 215 S.F. R.O.W. WEEDS 10,000 S.F. R.O.W. WEEDS 17,625 S.F. R.O.W. WEEDS 4,536 S.F. R.O.W. WEEDS 22,550 S.F.R.O.W. WEEDS 2,000 S.F. R.O.W. WEEDS 10,000 S.F.R.O.W. WEEDS 1,000 S.F. R.O.W. WEEDS 5,160 S.F. R.O.W. WEEDS 2,700 S.F. R.O.W. WEEDS 4,700 S.F. R.O.W. WEEDS TOTAL S.F. R-O-W WEEDS ABATED 82.459 R:'ff~AINTAIN~WKC M P LTD\WE E DS~98~4A YRPT DATE 05/12~98 05/14/98 05114/98 05/18/98 05~26/98 41919 MORENO DRIVE 28735 PUJOL EMPIRE CREEK 28735 PUJOL 29750 CALAZADA CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION GRAFFITI REMOVAL MONTH OF MAY, 1998 LOCATION WORK COM2PLETED REMOVED 4 REMOVED 200 REMOVED 35 REMOVED 300 REMOVED 25 S.F. OF GRAFFITI S.F. OF GRAFFITI S.F. OF GRAFFITI S.F. OF GRAFFITI S.F. OF GRAFFITI TOTAL S.F. GRAFFITI REMOVED 564 TOTAL LOCATIONS 5 R~kMAI NTA]NIWKC M PLTD\G KA FFIT[X9~BMA Y RPT i ! t t ITEM 18 ORAL PRESENTATION DEPARTMENTAL REPORTS APPROVe. CITY ATTORNEY /~' ~'~"// DIRECTOR OF FINANCE CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Gary Thornhill, Community Development Directo/~ ~ DATE: June 23, 1998 SUBJECT: Monthly Report ~~ Prepared by: Valerie Wimberly, Administrative Secreta RECOMMENDATION: Receive and File ~.,~1 Discussion: The following is a summary of the Community Development Department's Planning Division caseload and project activity for the month of May 1998: Caseload Activity: The Department received 29 applications for administrative cases and 6 applications for public hearing cases for the month of May. The following are the public hearing cases: · Minor Conditional Use Permit 2 · Development Plan - subject to CEQA 1 · Parcel Map - w/CEQA 2 · Parcel Map - schedule E - sewers 1 Total 6 Attachments: 1. 2. List of Activities with Detail - page 3 Revenue Status Report - page 4 R:XMONTItLY.RPTX1998WIAY.WPD 6/16/98 vgw Ongoing Projects: Sign Ordinance: This item is scheduled for City Council consideration on May 26, 1998 Electric Vehicle Charging Stations: The charging stations at the 6th Street parking lot and the maintenance facility have been installed. Regional Mall: Phase I grading operations have ended, Phase II to commence in June. Building construction is expected to commence in early summer of 1998, with the opening scheduled for 1999. Murdy Ranch Specific Plan: Staff is awaiting contact from the new owner. No activity on this case. Roripaugh Ranch Specific Plan: A Notice of Preparation for EIR has been completed. Staff is awaiting submittal of the Specific Plan application. Southside Specific Plan: Staff is hearing the drafted Specific Plan and incorporating the Planning comments from the May 20, 1998. Massage Business Ordinance: This item will be scheduled for City Council workshop in August. Adult Business Ordinance: The Adult Ordinance committee (Ron Roberts, Ron Guerriero) will meet on May 11, 1998 to examine the appropriate zones that adult business should be permitted. After this Meeting, the ordinance will be schedule for City Council. Staff has received comments from the City Attorney and will be scheduled for public hearing as soon as the land inventory is complete. General Plan Circulation Element Update (and revision to citywide traffic study): The consultant has commenced work. The third Steering Committee meeting to be held on July 6. Project is on schedule. Subdivision Ordinance: Staff is in the process of developing an appropriate subdivision ordinance for the City. The City currently uses Riverside County Ordinance No. 460 to regulate the subdivision of land. Redhawk/Vail Ranch Annexation Study: Staff is proceeding with the annexation of the Redhawk/Vail Ranch area. Aresolution for the commencement of proceedings for the annexation and pre-zoning has been scheduled for Planning Commission on July 1, 1998 and to City Council on July 28, 1998. Staff will submit the application to LAFCO shortly there after. R:LMONTHLY.RPT~1998~VIAY.WPD 6/16/98 vgw 2 ATTACHMENT NO. 1 LIST OF ACTIVITY BY CASE NUMBER R:XMO~Y.RPTM998~VIAY.WPD 6/16/98 vgw 3 oo ~ o ~D z °~ ATTACHMENT NO. 2 REVENUE STATUS REPORT R:hMONTI-ILY.RPT~1998hMAY. WPD 6/16/98 vgw 4 REVPRIN2 06/04/98 001 161 ACCOUNT # 4101 4102 4103 4104 4105 4106 4107 4108 4109 4110 4112 4113 4114 4115 4116 4117 4118 4119 4120 4121 4122 4123 4124 4125 4126 4127 4128 4129 4130 4131 4135 4136 4139 4140 4170 4171 4190 4195 4200 4206 4369 4370 07:33:42 GENERAL FUND PLANNING DESCRIPTION AMENDED FINAL MAP APPEALS CERT. OF LAND DIV. COMPLIANCE EXTENSION OF TIME SINGLE FAMILY TRACTS MULTI-FAMILY TRACTS PARCEL MAPS LOT LINE ADJUSTMENT MINOR CHANGE PARCEL MERGER (2-4 LOTS) REVERSION TO ACREAGE (5+LOTS) MINOR CONDITIONAL USE PERMIT SECOND UNIT PERMITS CHANGE OF ZONE CONDITIONAL USE PERMIT CONSISTENCY CHECKS GENERAL PLAN AMENDMENT PLOT PLAN PUBLIC USE PERMIT REVISED PERMIT SETBACK ADJUSTMENT SPECIFIC PLAN SUBSTANTIAL CONFORMANCE TEMORARY OUTDOOR EVENT TEMPORARY USE PERMIT VARIANCE ZONING INFORMATION LETTER CEQA (INITIAL STUDIES) CEQA ENVIROMENT IMPACT REPORT DEVELOPMENT AGREEMENT PARCEL MAP/WAIVER MERGER CONDO TRACT MAP REVERSION TO ACREAGE K-RAT STUDY FEES HOME OCCUPATIONS DEVLPMNT PLAN-ADMINISTRATIVE DIF REDUCTION APPLICATION IN HOUSE PLAN CHECKS ANNEXATION FEES LAND DIV UNIT MAP LANDSCAPE PLAN CHECK CITY OF TEMECULA REVENUE STATUS REPORT MAY 1998 ADJUSTED ESTIMATE .00 .00 .00 5,900.00 24,700.00 .00 30,500.00 16,800.00 700.00 2,900.00 .00 13,500.00 .00 3,600.00 31,100.00 16,300.00 5,600.00 111,900.00 .00 .00 200.00 .00 .00 .00 5,200.00 .00 .00 .00 .00 13,700.00 .00 .00 .00 .00 .00 4,500.00 7,400.00 .00 .00 .00 500.00 .00 MAY REVENUE .00 .00 .00 268.00 .00 .00 3,722.40 230.00 .00 .00 .00 .00 .00 .00 1,064.00 .00 .00 5,474.00 .00 .00 .00 .00 1,110.00 146.00- .00 .00 18.00 1,151.85 .00 .00 .00 500.00 .00 .00 .00 .00 .00 .00 970.00 .00 .00 1,435.00 1997-98 REVENUE .00 1,950.00 900.00 1,704.00 8,868.80 .00 26,538.80 3,450.00 .00 .00 .00 .00 .00 2,746.00 26,386.00 .00 .00 99,899.00 .00 .00 .00 .00 9,620.00 2,528.00 190.00 1,476.00 162.00 23,438.95 .00 .00 .00 3,000.00 14,370.00 .00 .00 .00 .00 1,300.00 10,080.00 .00 374.00 51,704.00 PAGE BALANCE .00 1,950.00- 900.00- 4,196.00 15,831.20 .00 3,961.20 13,350.00 700.00 2,900.00 .00 13,500.00 .00 854.00 4,714.00 16,300.00 5,600.00 12,001.00 .00 .00 200.00 .00 9,620.00- 2,528.00- 5,010.00 1,476.00- 162.00- 23,438.95- .00 13,700.00 .00 3,000.00- 14,370.00- .00 .00 4,500.00 7,400.00 1,300.00- 10,080.00- .00 126.00 51,704.00- % COL 28.9 35.9 87.0 20.5 0.0 0.0 0.0 76.3 84.8 0.0 0.0 89.3 0.0 3.7 0.0 0.0 0.0 74.8 PLANNING 295,000.00 15,797.25 290,685.55 4,314.45 98.5 APPROVAL CITY ATTORNEY DIRECTOR OF FINANCE CITY MANAGER TO: FROM: DATE: SUBJECT: CITY OF TEMECULA AGENDA REPORT City Manager/City Council Joseph Kicak, Director of Public Works/City Engineer June 23, 1998 Department of Public Works Monthly Activity Report RECOMMENDATION: Attached for City Council's review and filing is the Department of Public Works' Monthly Activity Reports for the month of May, 1998. R: [A GDRPTIMOA C TRPT. FRM 1 6/9/98/ajp CAPITAL IMPROVEMENT PROJECTS Monthly Activity Report May 1998 Submitted by: Joseph Kicak Prepared by: Bill Hughes Date: June 12, 1998 I. WORK UNDER CONSTRUCTION: 1.1-15/Rancho California Road Interchange Modifications: The construction includes widening the south side of the bridge over the freeway, adding a new lane on the south side of Rancho California Road from Front Street to the west side of the bridge and from the east side of the bridge to Ynez Road, providing a new loop entrance ramp to northbound 1-15, and relocation of the existing northbound exit ramp. Bridge abutment footings and the retaining wall located on the south side of Rancho California Road adjacent to Kentucky Fried Chicken will be under construction for the next two months. The placement of fill for the proposed northbound loop on ramp between Embassy Suites and the existing off ramp began Monday, June 8. Please note that traffic will be allowed through the work area. Completion based on an accelerated schedule is now February 1999. 2. City Wide Intelligent Traffic Mana~,ement System (ITMS): The traffic signals are now interconnected and coordinated. The City and Caltrans will be monitoring the traffic flow throughout the City and adjusting the signal timing for the next several months. 3. ADA Improvement Project: This improvement project includes sidewalk access ramps, new playground equipment, and rubberized surfacing around existing play equipment for access by wheel chairs at Veterans Park, John Magee Park, and Calle Aragon Park as well as ADA improvements to Rancho Vista fields at the Rancho California Sports Park. Installation of the play structures is nearly complete and final tests on sprinkler system is being performed. Play structures at Calle Aragon Park are scheduled for installation the third week of June. The improvements to the other three parks are substantially complete. Completion is anticipated to be in late June 1998. 4. Margarita Community Park - Phase I: The project improvements include restrooms, parking areas, picnic areas, play equipment, tennis courts, a roller hockey rink, ballfields, lighting, picnic shelters, sidewalks, landscaping with open turf areas as well as widening Margarita Road adjacent to the park to its ultimate width. Grading of the site has been completed. Placement of the storm drain and sewer systems are presently underway along with placement of parking lot concrete curbing. The project is estimated to be completed in October 1998. R:\M OACTRPT\CIP\9 8\J UN.M AR seh 5. Winchester Creek Park: The project consists of a 4.5 acre neighborhood park with various improvements including restrooms, basketball courts, volleyball courts, play equipment, polygon shelters with picnic tables, concrete walkways, and a parking lot. Grading has been completed. Installation of the restroom building, concrete flatwork, and the irrigation system is presently underway. The project is estimated to be completed in September 1998. 6. Cosmic Drive and Agena Street - Street Sidewalk Project #6: The project consists of the installation of sidewalks on the west side of Cosmic Drive between Rancho California Road and Agena Street and south side of Agena Street between Santa Cecilia Drive and Cosmic Drive. The project is substantially complete. A final punch list walk through is scheduled for June 9. The project is estimated to be completed in June 1998. 7. Traffic Signal at Pauba Road and Fire Station 84 The contractor has competed installation of the underground conduits and is expecting the signal equipment by the end of June 1998. The anticipated completion date is July 1998. 8. Traffic Signal at Pala Road and Rainbow Canyon Road The contractor is currently installing the underground conduits, wires, and pole foundations. The signal poles have been received and the contractor is awaiting arrival of the controller and controller cabinet. The anticipated completion date is August 1998. 9. Traffic Signal at Rancho California Road and Meadows Parkway All underground work has been completed and the contractor is expecting to receive the signal equipment by the end of June 1998. The anticipated completion date is July 1998. 10. CRC Gymnasium Air Conditioning System: Since the opening of the Temecula Community Recreation Center gymnasium the facility has operated without an air conditioning or cooling system. This project will provide for the installation of an air conditioning and temperature control system for the CRC Gymnasium. A pre-construction meeting was held on June 3 and actual construction will begin June 15. All work will be completed by late July 1998. 11. Traffic Signal at Margarita Road and Santiago Road A pre-construction meeting was held on June 4, 1998. expected delivery date is August 1998. The anticipated completion date is November 1998. The contractor has ordered the signal equipment. An R:\M OACTRPT~CIP\9 8\J UN.M AR seh II. BID: 1. Flashing Beacons at Various Locations: A recommendation to award the project is on the City Council agenda for the June 16 meeting. This project consists of installing flashing beacons that warn motorists of children in school zones at eight (8) different school sites. Construction is anticipated to begin in July 1998 with an estimated completion date of September 1998. IH. WORK IN DESIGN: 1.1-15/Overland Drive Over Crossing Improvements: The roadway and structural plans have been signed by Caltrans (District 8) and Caltrans (Division of Structures), respectively. SCE is also working on the design for the relocation of the existing 115, 33, & 12 KV overhead power lines. These lines are scheduled to be relocated concurrently with the construction of the proposed Overland Drive Overcrossing Improvement Project. The transmission and distribution sections of SCE have finalized their alignment. The City is in the process of acquiring right of way, utility easements and temporary construction easements necessary for the project. Construction is anticipated to begin in November 1998 with an estimated completion date of October 1999. 2. FY96-97 Pavement Management System: The consultant is expected to submit a plan check to the City by the second week of June. Staff expects to return the plan check within two (2) weeks after the submittal date. This project will provide street rehabilitation of Jefferson Avenue from the northerly City limits to Rancho California Road. This project will also include the installation of street lighting along the entire length of the project. Construction is anticipated to begin in October 1998 with an estimated completion date of February 1999. 3. Winchester Road & Ynez Road Street Widening: The consultant received the second plan check comments from Caltrans on June 4 and expected to resubmit plans the week of June 8. The scope of work includes the street widening improvements on the south side of Winchester Road between Ynez Road and Margarita Road, and the improvements on the east side of Ynez Road between Winchester Road and Overland Drive. Construction is anticipated to begin in August 1998 with an estimated completion date of April 1999. 4. Overland Drive Street Improvements & Margarita Road Street Widening: The consultant received the second plan check comments from Riverside County Flood Control on June 1 and expected to resubmit plans the week of June 15. The proposed improvements will be on Overland Drive between Ynez Road and Margarita Road and on Margarita Road from Overland Drive to Winchester Road. Construction is anticipated to begin in August 1998 with an estimated completion date of April 1999. R:\M OACTRPT\CIP\9 8\J UN.M AR seh 5. Margarita Road Sidewalk (Rancho Vista to Pauba): The plans are presently in for final plan check. The improvements will include the installation of concrete curbs, gutter, and sidewalk along the west side of Margarita Road between Rancho Vista Road and Pauba Road. The sidewalk will improve access to the Rancho California Sports Park. Also, as part of the design, additive alternate improvements will include ADA ramp access from Margarita Road to the adjacent ballfields along with an expanded parking area. The project is anticipated to bid in June. Construction is anticipated to begin in August 1998 with an estimated completion date of October 1998. 6. 1-15/Winchester Southbound Off-ramp Widening: The consultant received Caltrans' plan check comments on June 9 and expects to return the plans and specifications the week of June 15. The project will provide an additional turning lane from the southbound off-ramp onto Winchester Road. This project will also require a retaining wall between the southbound off- ramp and the southbound loop on-ramp due to the existing grades in the area of the ramp widening. Construction is anticipated to begin in October 1998 with an estimated completion date of April 1999. 7. Winchester Road Median Islands: The plans are subslantially complete and once Caltrans approves the plans and specifications staff will request City Council's authorization to solicit construction bids. This project includes installation of median islands with landscaping and irrigation along Winchester Road between Enterprise Circle West and Jefferson Avenue along with the installation of a traffic signal at Enterprise Circle West. Also, the existing median island at Jefferson Avenue will be modified to provide for a longer left turn pocket for east bound traffic. Construction is anticipated to begin in October 1998 with an estimated completion date of May 1999. 8. Pala Road Bridge: A Consultant is in the process of preparing the preliminary documentation required by Caltrans to receive HBRR Funds as well as performing utility research and design surveys. This project will include the realignment of Pala Road from Highway 79 South to Rainbow Canyon Road, which will require that a new bridge be constructed, two new traffic signals to be installed, the removal of two (2) traffic signals, the installation of sound walls, sidewalks, landscaping, irrigation, street lighting, bike lanes, signing, striping, channel improvements, and provisions for Wetland Mitigation. Construction is anticipated to begin in October 1998 with an estimated completion date of December 1999. 9. Winchester Sidewalk: Caltrans has issued an encroachment permit for this project. The plans and specifications are complete. Staff is requesting City Council's authorization to solicit construction bid at the June 23 meeting. This project consists of the installation of sidewalks on the west side of Winchester Road between Margarita Road and Winchester Creek Avenue. Construction is anticipated to begin in July 1998 with an estimated completion date of November 1998. R:\M OACTRPT\CIP\98\J UN.M AR seh 10. Temecula Duck Pond Park: The Temecula Duck Pond Park Project will include both park and offsite street improvements. Park improvements will include a gazebo/bandstand, picnic facilities, a restroom, walkways, a parking lot, security lighting, monumentation, landscaping and irrigation. The street improvements will consist of the widening of Ynez Road to full width between Rancho California Road and Tierra Vista Road and will include new sidewalks along with additional turn lanes, traffic signal modifications at Ynez Road and Rancho California Road, a new traffic signal at Ynez Road and Tierra Vista Road, and pavement re-striping to improve traffic circulation. Final revisions to the plans are anticipated to be completed the third week of June. Construction is anticipated to begin in September 1998 with an estimated completion date of February 1999. 11. Traffic Signal at Rancho California Road and Via Los Colinas: The design is substantially complete. Once all necessary easements are obtained staff will request City Council's authorization to solicit construction bids. Construction is anticipated to begin in October 1998 with an estimated completion date of February 1999. R:\M OACTRPT\CIP\9 8\J UN.MAR seh LAND DEVELOPMENT MONTHLY ACTIVITY REPORT SPECIAL PROJECTS MAY 1998 Submitted by: Joseph Kicak Prepared by: Ronald J. Parks Date: June 15, 1998 1. PW95-07 - Phase I Western Bypass Corridor: The Interstate 15/State Route 79 South (I-15/SR79S) interchange improvements including Front Street realignment and its intersection with Western Bypass Corridor are underway. 2. PW95-08 - First Street Fxtension: The construction phasing plans will be completed upon finalizing the design criteria with Riverside County Flood Control and Water Conservation District. 3. PW95-;~6 - 6th Street Parking Project: Awaiting for the Contractor to submit the affidavit and maintenance bond in order to file the notice of completion will be filed. 4. PW96-05 - Project Study Report (PSR) And Project Report (PR) For Ultimate Interchange Improvements at Interstate 15/State Route 79 South (I-15/SR79S): The PSR analysis will resume once the update on the Circulation Element of the General Plan is finaled. 5. General Plan Circulation Element Update: The consultant has been selected. A committee comprised of Cities of Temecula and Murrieta representatives has been formed to provide direction for the update process. 6. The Regional Mall Project: The design of the perimeter infrastructure improvements are in progress. The consultants are in the process of revising the plans per the plan check comments. 7. PW97-05 - The Old Town Streetscape Project: The low bidder was selected and the contract has been awarded. Construction is scheduled to start by June first. R :~ 0 ACT RPT ~DEV~4 A Y.WPD E.om Z 0 Z [u .=1 Z [u .J T f-- ~o© 0 ILl I,~ LU n~ 0 IZ Z UJ O. 0 --I 0 ~Y < · Z I11 I.'3 -I 0 I- . Z 0 0 0 ~ ~ oooo o ~ ~ 0 .... MEMORANDUM TO: FROM: DATE: SUBJECT: Joseph Kicak, Director of Public Works/City Engineer Brad Buron, Maintenance Superintendent June 1, 1998 Monthly Activity Report - May 1, 1998 The following activities were performed by Public Works Department, Street Maintenance Division in- house personnel for the month of May, 1998: SIGNS A. Total signs replaced 6 B. Total signs installed 11 C. Total signs repaired 0 II. TREES A. Total trees trimmed for sight distance and street sweeping concerns III. ASPHALT REPAIRS A. Total square feet of A. C. repairs B. Total Tons 3,120 25.5 IV. CATCH BASINS A. Total catch basins cleaned !96 RIGHT-OF-WAY WEED ABATEMENT A. Total square footage for right-of-way abatement 82,459 VI. GRAFFITI REMOVAL A. Total locations B. Total S.F. 5 564 VII. STENCILING A. 128 New and repainted legends B. 0 L.F. of new and repainted red curb and striping R:\M AINTAIN \M OACTRPT\9 8\M AY.RPT Also, City Maintenance staff responded to 45 service order requests ranging from weed abatement, tree trimming, sign repair, A.C. failures, litter removal, and catch basin cleanings. This is compared to 38 service order requests for the month of April. 1998. The Maintenance Crew has also put in ~! 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 May. 1998 was $18.354.50 compared to 842.149.02 for the month of April, 1998. Account No. 5402 Account No. 5401 Account No. 999-5402 8,134.50 9,270.00 950.00 CC; Ron Parks, Deputy Director of Public Works Ali Moghadam, Senior Engineer - (CIP/Traffic) Jerry Alegria, Senior Engineer - (Land Development) Bill Hughes, Senior Engineer- (CIP) R:~,M AI N TAI N \M OACTRPT\9 8\M AY.RPT 0 0 (0 0 aD 0 0 v-.- 0 (~1 0 ~- 0 ~ 0 0 0 0 CO ~0 ~0 0 0 0 0 0 0 0 0 0 0 0 0 ~1- I~ 0 r,.O i.O i~ I~,,.. ~.~0 o o o ,-- mo. O~ 0 00~ 0 0 0 0 0 0 0 0 0 0,1 '~-- ~- 0'~ 0 ~0 (~ OCO ~o~ m. o STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of MAY, 1998 DATE DESCRIPTION TOTAL COST ACCOUNT STREET/CHANNEL/BRIDGE OF WORK SIZE CONTRACTOR: Date: 05/07/98 # 5402 MONTELEONE EXCAVATING "Old Town" Water truck to wash down streets in Old Town due to rain Date: 05/19~98 # 5402 Walcott Road @ Klare TOTAL COST Repair failing slope 2,939.50 Date: 05/27/98 # 5401 Vallejo Channel TOTAL COST Clear channel of debris and silt $ 4,935.00 Date: 05/27/98 # 5401 Via Lobo Channel TOTAL COST Clear channel of debris and silt. $ 4,285.OO Date: 05/11/98 # 999-5402 Service Level "R" Areas TOTAL COST $ 4,985.00 Grading of dirt roads due to rains. TOTAL COST $ 950.00 R:\M AIN TAI N\M OACTRPT\98 \MAY.RPT STREET MAINTENANCE CONTRACTORS The following contractors have performed the following projects for the month of, 1998 DATE DESCRIPTION ACCOUNT STREET/CHANNFL/BRIDG!:: OF WORK BECKER ENGINEERING : : : Calle Medusa at Everest Emergency street failure. CONTRACTOR: Date: 05~07~98 5402 TOTAL COST Date: TOTAL COST $ 2,939.50 Date: TOTAL COST Date: TOTAL COST TOTAL AMOUNT ACCT #5402 TOTAL AMOUNT ACCT #5401 TOTAL AMOUNT ACCT #999-5402 TOTAL COST $ 8,134.50 $ 9,270.00 $ 950.00 R:\MAINTAIN \MOACTRPT\98\MAY.RPT DATE 05/01/98 05/18/98 05/2098 05/21/98 LOCATION AREA #l (SEE DAILY FOR LOCATIONS) AREA #1 (SEE DAILY FOR LOCATIONS) BIKE LANES "CITYWIDE" BIKE LANES "CITYWIDE" CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION STENCILS / STRIPING MONTH OF MAY, 1998 REPAINTED REPAINTED REPAINTED REPAINTED WORK COMPLETED 24 LEGENDS 44 LEGENDS 10 LEGENDS 50 LEGENDS TOTAL NEW & REPAINTED LEGENDS NEW & REPAINTED RED CURB & STRIPING L.F. 128 0 R:LMAINTA IN\WKC M PLTD\STRIPIN GX98\MAY.RPT ~DATE RECEIVED o5/ol/98 o5/ol/98 o5/01/98 05104198 05104198 05/04/98 05/O5/98 05/05/98 05/05/98 05106198 05/06/98 05/06/98 05106198 05/07/98 05/07/98 05/07/98 05/07/98 05/08/98 05/11/98 05/11/98 05/12/98 05/12/98 05/14/98 05/14/98 05/18/98 05/18/98 05/19/98 05/19/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION SERVICE ORDER REQUEST LOG MONTH OF MAY, 1998 LOCATION REQUEST STORM DRAIN CLEANING TREE REMOVAL SIDEWALK REPAIR TREE REMOVAL SKATEBOARD RETRIEVING EROSION CONTROL TREE REMOVAL DEBRIS REMOVAL ROAD GRADING DEBRIS REMOVAL TREE TRIMMING TREE REMOVAL WEED REMOVAL DEBRIS REMOVAL TREE TRIMMING ROAD GRADING TREE REMOVAL TREE REMOVAL TREE REMOVAL PAINT SPILL POTHOLES STUMP GRINDING GRAFFITI SEWER CLEAN-OUT TREE CONCERN BROKEN GLASS ROAD GRADING THANK-YOU 20690 MERCEDES 33179 CORTE YACA 42080 HUMBER STREET 43164 CORTE ALMONTE 41315 RUE JADOT 43600 SAN FERMIN 32209 COUR MEYNEY 41844 FOURTH STREET JOHN WARNER ROAD 41830 6TH STREET 30542 BAYHILL DRIVE 41200 VIA AGUILA 42020 KAFFIRBOOM COURT 41830 6TH STREET 42108 AGENA STREET NICHOLAS ROAD 45278 TOURNAMENT LANE 31096 TECUMSEH COURT 43210 CORTE ALMONTE 43021 CALLE JEMINEZ MARGARITA ROAD AT SOLANA WAY 27538 ROSEBAY COURT 28735 PUJOL RANCHO CALIFORNIA ROAD AT CARL'S JR. 31847 VINEYARD AVENUE 30809 CALVADO COURT 39370 LIEFER ROAD JOHN WARNER ROAD DATE WORK COMPLETED' 05/01/98 05/01/98 05/01/98 05/0498 05104198 05104198 05/05/98 05/05/98 05/05/98 05/06/98 05/06/98 05/06/98 05/06/98 05/07/98 05/07/98 05/07/98 05/07/98 05/08/98 05/11/98 05/11/98 05/12/98 05/12/98 05/14/98 05/14/98 05/18/98 05/18/98 05/19/98 05/19/98 R:\MAINTAIN\WKCMPLTD\SORS\98\MAY RPT DATE RECEIVED o5/19/98 05/19/98 o5/19/98 05120198 05/20/98 05/21/98 05/21/98 05/22/98 05/22/98 05/22/98 05/22/98 05/26/98 05/27/98 05/28/98 05/28/98 05/29/98 05/29/98 LOCATION MARGARiTA AT AVENIDA BARCA 42623 REMORA 30294 CUPENO LANE 31251 FELICITA ROAD MORNING RIDGE & SUMMER BREEZE APTS. 42932 CORTE SIERO 42623 REMORA 30381 SANTA CECELIA 28699 FRONT STREET 31450 DE PORTOLA ROAD 45990 CLUBHOUSE 43125 CORTE ALMONTE 31380 SANTIAGO ROAD SUNRIDGE CHURCH DIAZ AT WINCHESTER 44860 CORTE ANTIGUA 40240 TANAGER RE{>UEST TRENCH FAILURE TREE REMOVAL DEBRIS REMOVAL POTHOLES INSTALL SIGNS SIDEWALK REPAIRS TREE REMOVAL TREE TRIMMING TREE REMOVAL SINKHOLE TREE TRIMMING POTHOLE INSTALL A.C. BERM TREE TREATMENT GLASS IN STREET GATES UNLOCKED SIDEWALK REQUEST iDATE WORK COMPLETED 05/19/98 O5/19/98 05/19/98 05/20/98 05/20/98 05/21/98 05/21/98 05/22/98 05/22/98 05/22/98 05/22/98 05126198 05/27/98 05/28/98 05/28/98 05/29/98 05/29/98 TOTAL SERVICE ORDER REQUESTS 45 R:\MAINTAIN\WKCM P LTD\SORS~98\MAY.RPT DATE 05/01/98 05/01/98 05/04/98 05/04/98 05/05/98 05/07/98 05/14/98 05/21/98 05/21/98 05/28/98 05/28/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS : LOCATION VIA SABINO AT CORTE MARGARINO RANCHO CALIFORNIA ROAD AT MARGARITA SANTIAGO AT 1st STREET 30170 SANTA CECILIA 42200 MARGARITA ROAD 42200 MARGARITA ROAD CABRILLO AT EAST VALLEJO SUMMER BREEZE APARTMENTS MORNING RIDGE APARTMENTS SOUTHERN CROSS JOHN CHRISTIAN AT WARBLER ROADS DIVISION SIGNS MONTH OF MAY, 1998 i WORK COMPLETED INSTALLED N.H.W. SIGN REPLACED 2 DELINEATORS REPLACED R-l, R-1A, TYPE K REPLACED W-65 INSTALLED 2 P.O.P. SIGNS INSTALLED 1 P.O.P. SIGN INSTALLED W-9 W-6 "25" INSTALLED HOUSING SIGN INSTALLED HOUSING SIGN INSTALLED R-2 25 AND R-48 INSTALLED W-5 3 TOTAL SIGNS REPLACED TOTAL SIGNS INSTALLED TOTAL SIGNS REPAIRED 6 11 0 R:\MAINTAIN\WKCMP LTD\SIGN S\98LMAY. RPT DAOT E 05101198 05106198 05/06/98 05/07/98 05/08/98 05/11/98 05/11/98 05/11/98 05/12/98 05/15/98 05/15/98 05/18/98 05/20/98 05/21/98 O5/22/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION ASPHALT (POTHOLES) REPAIRS MONTH OF MAY, 1998 LOCATION RANCHO CALIFORNIA ROAD 600' WEST OF YNEZ RYCREST AT SOLANA WAY MAJOR ARTHERIALS DIAZ ROAD JEFFERSON SOUTH OF WINCHESTER CALLE MEDUSA AT EVEREST JOHN WARNER AT CABRILLO PAUBA AT YNEZ CITYWIDE (SEE DAILYS) SOLANA AT MARGARITA OLD TOWN JOHN WARNER AT CABRILLO JOHN WARNER AT CABRILLO CABRILLO SOUTH OF VALLEJO CABRILLO SOUTH OF VALLEJO sco ,v oF womc:siF.: R&R A.C. FILLED POTHOLES FILLED POTHOLES FILLED POTHOLES FILLED POTHOLES R&R A.C. OVERLAY FILL POTHOLES FILL POTHOLES FILL POTHOLES FILL POTHOLES INSTALL BERM AND RADIUS OVERLAY OVERLAY OVERLAY TOTAL: ~ iTONS 96 3 TONS 4 T.A.C. 32 T.A.C. 5 T.A.C. 12 T.A.C. 110 3 45 1.5 10 T.A.C. 97 T.A.C. 5 T.A.C. 3 T.A.C. 480 9 A.C. 578 3.5 A.C. 905 3.5 A.C. 738 2 A.C. TOTAL S.F. OF REPAIRS TOTAL TONS 3,120 25.5 R:\MAINTAINIWKCMPLTDXASPHALT. RPR\98\MAY.RPT CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DMSION CATCH BASIN MAINTENANCE MONTH OF MAY, 1998 I ~OATE 05/05/98 05/06/98 05/06/98 05/12/98 05/13/98 05/14/98 LOCATION CITYWIDE "RAIN" AREAS//3 & 4 CITYWIDE "RAIN" CITYWIDE "RAIN" CITYWIDE "RAIN" CITYWIDE "RAIN" WORK COMPLETED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED CLEANED & CHECKED 25 CATCH BASINS 8 CATCH BASINS 20 CATCH BASINS 65 CATCH BASINS 51 CATCH BASINS 27 CATCH BASINS TOTAL CATCH BASINS CLEANED & CHECKED 196 R::\MAINTAIN\WKCMPLETD\CATCHBAS\98\MAY.RPT DATE 05/08/98 CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY TREE TRIMMING MONTH OF MAY, 1998 LOCATION TOURNAMENT AT SILVERADO WORK COMPLETED TRIMMED 1 R.O.W. TREES TOTAL R.O.W. TREES TRIMMED R:LMAINTAIN\WKC M PLTD\TRE E S~98~MAY.RPT CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION RIGHT-OF-WAY WEED ABATEMENT MONTH OF MAY, 1998 I DATE O5/04/98 05/04/98 05/05/98 05/05/98 05/08/98 05/08/98 05/08/98 05/11/98 05/14/98 05/18/98 05/27/98 05/28/98 05/29/98 LOCATION FELIX VALDEZ AT 6TH 6TH STREET AT PUJOL PUJOL AT 6TH STREET JEDEDIAH SMITH EAST OF CABRILLO JEDEDIAH SMITH BETWEEN CABRILLO & MARGARITA NORTH GENERAL KEARNY SOUTH OF CITY LIMITS MARGARITA AT RUSTIC GLEN MARGARITA NORTH OF WINCHESTER YNEZ AT SOLANA CALLE MEDUSA BUTTERFIELD STAGE NORT OF WINDFARE PUJOL STREET (CITY OWNED LOTS) PUJOL STREET (CITY OWNED LOTS) I ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED ABATED COm'LZTED ] 1,109 S.F. R.O.W. WEEDS 864 S.F. R.O.W. WEEDS 215 S.F.R.O.W. WEEDS 10,000 S.F. R.O.W. WEEDS 17,625 S.F. R.O.W. WEEDS 4,536 S.F. R.O.W. WEEDS 22,550 S.F. R.O.W. WEEDS 2,000 S.F. R.O.W. WEEDS 10,000 S.F. R.O.W. WEEDS 1,000 S.F. R.O.W. WEEDS 5,160 S.F. R.O.W. WEEDS 2,700 S.F. R.O.W. WEEDS 4,700 S.F. R.O.W. WEEDS TOTALS.F.R-O-WWEEDS ABATED 82.459 R:\MAINTAIN\WKC M PLTD\WE E D S\98WlAY.RPT DATE 05/12/98 05/14/98 05/14/98 05/18/98 05~26~98 41919 MORENO DRIVE 28735 PUJOL EMPIRE CREEK 28735 PUJOL 29750 CALAZADA CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS ROADS DIVISION GRAFFITI REMOVAL MONTH OF MAY, 1998 LOCATION i REMOVED REMOVED REMOVED REMOVED REMOVED CO I TE'D. 4 S.F. OF GRAFFITI 200 S.F. OF GRAFFITI 35 S.F. OF GRAFFITI 300 S.F. OF GRAFFITI 25 $.F. OF GRAFFITI TOTAL S.F. GRAFFITI REMOVED ,564 TOTAL LOCATIONS 5 R:~VlAINTAINIW KC M P LTD\G RA FF~BgE~B MA Y.RPT 0 Annual Operating Budget Fiscal Year 1998-99 CITY OF TEMECULA, CALIFORNIA CITY COUNCIL Ronald H. Roberts, Mayor Steven J. Ford, Mayor Pro Tempore Jeff Comerchero, Councilmember Karel F. Lindemarts, Councilmember Jeffrey E. Stone, Councilmember CITY MANAGER Ronald E. Bradley FINANCE DEPARTMENT Genie Roberts, Director of Finance July 1, 1998 (This Page Intentionally Left Blank) CITY OF TEME CULA VALUE STATEMENT As employees of the City of Temecula, in striving to be unique in our local government, we value the following: EAMWORK among all employees. A NHANCEMENT of the work environment through open lines of communication. UTUAL respect of others. DUCATION of employees and citizens about the operations and accomphshrnents of the City. USTOMEI~ service is our most important product. NLIMITED potential for continued personal growth and organizational development. EADERSHIP in local government. SSUMING 100% responsibility for projects and assignments. iv City of Temecula TABLE OF CONTENTS Introduction Page Budget Message ................................................................. 1 Resolution Adopting the FY 1998-99 Annual Operating Budget ................................... 9 City Seal and Mission Statement ...................................................... 11 Government Finance Officers Association Award ........................................... 12 California Society of Municipal Finance Officers Award ...................................... 13 Directory ..................................................................... 14 City Organizational Chart .......................................................... 15 Budget Process ................................................................. 16 Understanding the Budget Document ................................................... 18 Description of Funds ............................................................. 19 Summary of Accounting Principles .................................................... 21 Explanation of Major Revenue Sources ................................................. 22 Debt Administration .............................................................. 25 Gann Appropriations Limit ......................................................... 26 Community Profile .............................................................. 27 Locator Map .................................................................. 28 Budget Summaries Budget Summaries Overview ........................................................ 29 General Fund Revenues ........................................................... 30 General Fund Revenues by Source .................................................... 31 Gas Tax Fund Revenues by Source ................................................... 32 Revenues by Fund - Community Services District .......................................... 33 Revenues by Fund - Redevelopment Agency .............................................. 34 Expenditures by Department - General Fund .............................................. 36 Expenditure Summary by Category - General Fund ......................................... 37 Expenditure Summary by Category - Community Services District Funds ........... , ............... 38 Expenditure Summary by Category ~ Internal Service Funds ................................... 39 Expenditure Summary by Category - Redevelopment Agency Funds .............................. 40 Expenditure Summary by Department - General Fund ........................................ 41 Expenditure Summary by Fund - Commumty Services District .................................. 45 Expenditure Summary by Department - Internal Service Funds ................................. 47 Expenditure Summary by Department - Redevelopment Agency ................................. 48 Changes in Fund Balance by Fund 1998-99 ............................................... 50 Authorized Positions by Department ................................................... 54 Summary of Authorized Positions ..................................................... 55 General Fund General Fund Overview ........................................................... 57 City Council ................................................................... 58 City Manager .................................................................. 62 City Attorney .................................................................. 71 City Clerk .................................................................... 74 Finance ...................................................................... 80 Community Development .......................................................... 86 Public Works .................................................................. 99 Police ...................................................................... 105 Fire ....................................................................... 110 v City of Temecula TABLE OF CONTENTS (Continued) Pa~e Animal Control ................................................................ 114 Non-Departmental .............................................................. 110 Community Services District Community Services ............................................................ 118 Internal Service Funds Insurance .................................................................... 129 Vehicles .................................................................... 130 Information Systems ............................................................. 131 Support Services ............................................................... 132 Facilities .................................................................... 133 Redevelopment Agency Redevelopment Agency .......................................................... 135 Community Development Block Grant Community Development Block Grant ................................................. 141 Capital Improvement Program Summary Capital Improvement Program Summary ............................................... 143 Project Summary by Type of Project and Priority .......................................... 145 Description of CIP Revenue Sources .................................................. 153 Appendix Glossary of Terms .............................................................. 155 Assessed and Estimated Actual Value of Taxable Property (values in thousands) From Incorporation ......................................... 158 Grant Activity ................................................................. 159 Construction, Bank Deposits, and Property Value (values in thousands) From Incorporation ....................................................... 160 Property Tax Rates - Direct and Overlapping Governments From Incorporation ....................................................... 161 Principal Taxpayers - June 30, 1997 .................................................. 162 Legal Debt Margin ............................................................. 163 Computation of Direct and Overlapping Bonded Debt - June 30, 1997 ............................ 164 Largest Employers by Number of Employees - June 30, 1997 .................................. 165 vi City of Temecula 43200 Bus~ness Park Drrve · Temecula, CA 92590 · Mailing Address: P O Box 9033 · Temecula, CA 92589-9033 (909) 694-6444 · Fax (909) 694-1999 June 23, 1998 The Honorable Mayor and Members of the City Council: I am pleased to submit the proposed Operating Budget for the Fiscal Year 1998-99. This fiscal plan was developed to serve not only as a monetary statement of programs and policies, but as a document that reflects the many goals, programs, and service priorities that the City of Temecula is committed to providing its citizens. The 1998-99 Fiscal Year Operating Budget has been developed al~er a considerable review process. Departmental budget submittals were prepared and reviewed by line-item in connection with projected revenues and detailed performance objectives. The result is this document: a conservative, balanced budget that provides for quality services while effectively utilizing available resources. CITY OF TEMECULA PROFILE The City of Temecula is a dynamic community comprised of 46,564 citizens of various cultural backgrounds spread across 26 square miles of gently rolling hills. The City maintains approximately 115 miles of the 200 total miles of streets within our borders. Additionally, the City has created 18 parks on 163 developed acres throughout the community which provide recreation opportunities for both the citizens of Temecula and surrounding communities. Contracted services provided through Riverside Cotmty include Police and Fire protection. The Temecula Valley Unified School District provides 15 schools for 14,575 students at the kindergarten through 12th grade levels within the City. The City of Temecula prides itself on its Community focus and quality of life. As the Southern California economy moves into expansion phase, Temecula is at a key juncture in its history. The City enjoys some of the strongest economic and demographic indicators in the Inland Empire. Its job creation, local payroll, taxable trade, home sales and values, income, school performance, crime rates are all very positive. Residential construction and population are beginning to accelerate. A major regional mall is about to start construction. And, the community enjoys a reputation as a family-oriented, beautiful place to live. REVENUES AND ECONOMIC CONDITION Fiscal Year 1998-99 General Fund revenues are projected to reach $20,830,500, an increase of $878,150 or 4.4% from 1997-98, and reflects the continued growth of the local economy. In the past year the City has experienced si~tmificant interest in relocation and expansion of existing businesses. The City has continued to work with the Chamber of Commerce and the Temecula Valley Economic Development Corporation in its effort to encourage the expansion or relocation of industries that generate local sales tax and employment advantages. The City has also worked with these organizations to develop and market Temecula as a tourist destination. Temecula's emergence as a center of job growth is primarily the result of the migration of firms and people to the Inland Empire from the coastal counties of Southern California. This migration is occurring as the density of land development in Orange, Los Angeles and San Diego counties has created a shortage of manufacturing, distribution and housing space, and increased space costs. June 23, 1998 Honorable Mayor and Members of the City Council In most cases, this phenomena is increasing the demand for business space and homes along transportation corridors in cities directly adjacent to Orange and Los Angeles counties. Temecula is unique in two ways. It has been able to attract firms and families to leap frog across miles of undeveloped land to locate within its borders. And, the jobs coming to the City are better paying than the Inland Empire average. Since the City's inception, local leaders have undertaken a consistent and successful program to lure high technology firms to the area. These efforts have been aided by the City's physical beauty and moderate climate. Meanwhile, the 1-15 freeway has given commuters and firms located in Temecula ready access to San Diego and Orange county markets, while allowing them to avoid the land restrictions and high costs of those areas. The following graphic details the major components of the City's General Fund revenues: 1998-99 Projected General Fund Revenues (Value in $ Million) Operating Transfers In Intergovernmental Licenses & Services (5;0.83) (5; 1.98) (5;3.33) --~ L J Investment Interest .~'* ~'~'"~,~ ,.. *" ~"~;~;~"',~'g.'~ .~' ".~'.I';'~.~~'__...---"~,,. ~--Propertv Tax (Si.42) Tax (5;;0.94) 'z~P'~i~f'll~eqlt~' ':'"~ ~,~ ~~~', '~, ~'~.~~~ ...............~ ---5 Sales Tax (5;9.85) ~{e..~Franchise Fees (5; 1.14) Changes in Revenue Sales and Use Tax: This revenue source is projected to increase from an estimate of $9,013,000 in FY 1997-98 to $9,850,000 in FY 1998-99 as a result of continued increases in the automobile and industrial segments of the City's tax base. The City continues to maintain a strong and diverse sales tax base by promoting economic development in areas such as manufacturing and light industrial as well as retail businesses. Sales tax is the City's largest revenue source representing 48 % of the total General Fund revenue. Temecula continues to exceed the state, county, and surrounding areas with respect to sales per capita. June 23, 1998 Honorable Mayor and Members of the City Council The following chart cornpares City sales per capita to the state and county. for historical reference purposes. Quarterly Sales Per Capita The prior 12 quarters are shown graphically $5,600 , ~ "Y $4,9O0 $3,500 5 i: o~,~-~* :. : $2,800 $2,100 $1,400 $700 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr 3rd Qlr 4th Qtr '95 '95 '95 '95 '96 '96 '96 '96 '97 '97 '97 '97 Tcmecula -- Stateof California -a--Riverside County[ Franchise Fees: This revenue source is anticipated to increase from $1,132,000 to $1,145,000 due to an increase in population. However, the anticipated increase is minimal due to rate reductions for electric utilities. Property Tax: The 1998-99 revenue estimate for property taxes is based on a 2% increase in assessed valuation City- wide. Future additional assessed valuation increases will be offset by the impact of pending assessed valuation appeals by property owners. The FY 1998-99 estimate of $1,417,000 presents approximately 6.8 % of the General Fund revenue. Motor Vehicle in Lieu: This State subvention will increase by $80,050 to an adjusted total of $1,800,700 in FY 1998-99. Motor Vehicle in Lieu fees are calculated annually by the State on a per capita basis. Interest Revenue: This revenue is anticipated to decrease from $1,025,000 to $750,000 due primarily to lower cash balances as a result of significant expenditures for capital projects in FY 1998-99. Licenses, Permits and Service Charges: An overall increase of 2.7% or $86,000 is estimated in FY 1998-99 for Business Licenses and Planning, Building, and Engineering services, for a total projection of $3,186,000. This increase is an indication of the growth in the local economy and building industry. Gas Tax: This revenue reflects a 4% increase over the prior year due to population growth. These revenues continue to fund the maintenance, rehabilitation or improvement of public streets. Community Services District Assessments: This revenue source is obtained by a parcel charge and is directly related to program and service levels approved for the coming fiscal year in the Temecula Community Services District (TCSD). The special tax was approved by the voters in Temecula in March 1997. June 23, 1998 Honorable Mayor and Members of the City Council Parks/Lighting Services Special Tax: This new revenue source replaces the previous parcel charge for parks and recreation and arterial street fighting throughout the City/TCSD. The special tax was approved by the voters of Temecula in March 1997. ~ EXPENDITURES Total General Fund expenditures (excluding operating transfers out) are proposed to be $20,792,795 in Fiscal Year 1998- 99. This proposed expenditure level results in a margin in the General Fund of $37,705 of projected revenues over proposed expenditures. In addition, operating transfers out are proposed to set aside reserves for possible use in fimding capital improvement projects ($4,250,00). Public safety continues to represent the largest percentage of the General Fund operating budget at 37.8 %. Police and Fire services combined total $7.8 million (net of a $1.6 million fire tax credit). The following graphic includes a breakdown of general fund operating expenditures by function: 1998-99 General Fund Budget by Function Public Safety 37.82% Public Works 15.94% .~__i~,~ll~ . - ' . : ::'~ ' ,",. i .,'~,.~,.' .... .... · ,~,.2. ,.'... Administration ~:- --~]i]i][H]Or ~/./~ 0 : : Development 18.51% 1998-99 GOALS AND OBJECTIVES The City Council developed a Mission Statement in 1991 which created a long-term vision for development of City policy. The Mission Statement is found on page 11 and addresses community safety, housing, jobs, financial stability, and quality of life issues. Using this Statement as a foundation, in November 1993 the Council adopted the City's first General Plan, which sets forth a long-term comprehensive plan for the physical development of the City through the Plan's Vision Statement. The elements in the General Plan are land use, circulation, housing, open space and conservation, growth management, public safety, noise, air quality, design, and economic development. Based on the goals and policies identified in the plan, staff prepared objectives and performance measures to begin implementing the plan. June 23, 1998 Honorable Mayor and Members of the City Council During Fiscal Year 1995-96, the City began the strategic planning process to expand the City's vision beyond the scope of the elements listed above. Team building workshops were held with all City staff which resulted in the development of a value statement by the employees of the City. In 1996-97 the City finalized a value statement. This value statement, found on page 16, will be used as: 1) a tool in the employee hiring/selection process, 2) a guide in conducting City business, and 3) a statement to the citizens affirming what the City as an organization stands for and the level of service they can expect from the City. Two goal and priority setting workshops were held with the City Council in February 1998. The prtmary area of focus was addressing the deficiencies in the City's traffic circulation system. Other items of discussion included a review of City reserve polices, economic development/redevelopment strategies, and the support for the community based nonprofit and cultural arts organizations. Departmental goals and objectives are updated yearly and included in the Operating Budget section of this document. Goals and objectives are listed by program within each department. The following is a partial listing of the Fiscal Year 1998-99 performance objectives as they relate to key elements of the City's Mission Statement and General Plan Vision Statement. Maintain fiscal stability: · Maintain a 30 % reserve for economic uncertainty. · Emphasize safety and liquidity over yield when investing City funds. Maintain a safe/secure environment: · Respond to calls for police and fire services in a timely manner. Perform public safety education programs, maintain neighborhood watches, and conduct timely traffic investigations. The FY 1998-99 budget includes the addition of two dedicated sergeants and a narcotics task force officer which were approved by the City Council in February 1998. · Continue to increase fire services through the funding of 50% of the operating costs for the French Valley Fire Station and the addition of one Fire Systems Inspector position. Provide quality jobs and promote commerce: · Develop a comprehensive City plan for economic development for Council adoption. · Utilize the award-winning "Temecula Fast Track Process" to provide one stop streamlined development permitting. · Continue to promote Temecula through the City's marketing program. · Allocate the necessary resources to implement the terms of a development agreement which will lead to the construction of a 950,000 square foot regional mall. Encourage programs for all ages: · Expand drop-in recreation programs, activities, and services through the operation of the Temecula Community Recreation Center and the Temecula Community Center. · Expand senior recreation programs, activities, and services through the Old Town Temecula Senior Center. · Develop a broad, comprehensive aquatics program for the community. · Develop a comprehensive cultural/theatrical program for the community. 5 June 23, 1998 Honorable Mayor and Members of the City Council Identify alternatives to the county-operated library system m an effort to provide to the citizens Temecula improved services. Provide adequate infrastructure concurrent with development: Update the Five Year Capital Improvement Program (CIP). Design and construct capital projects within funding and time requirements specified in the CIP. Allocate $31.3 million in 1998-99 for Citywide circulation projects to improve traffic flow and alleviate traffic congestion on the City's major freeway overpasses. Utilize human resources effectively: Meet with City Council in a strategic planning forum, and conduct an annual retreat for department directors to estimate program and service levels. Provide m-house training oppormmties for all employees which will enhance productivity and performance. Enhance and revitalize historic area: Coordinate the preparation of Old Town streetscape standards. Implement the Old Town Facade Improvement Program. Commence the Main Street Program, the purposes of which are to: 1) 2) 3) 4) Guide the restructuring of the business commumty in economically declining areas. Enhance the Old Town area's character and ensure its attractiveness, and preserve its historic buildings and atmosphere. Identify needed public improvements. Organize the local business community to advertise and promote the Old Town area as a single destination area. PERFORMANCE MEASURES This budget document has been formatted to detail the operational goals, objectives, and performance measurements of each department. This year, to enhance the department detail, the Finance Department has worked with all departments to include their significant accomplishments, as well as improved quantified performance measures. The goal of the organization is to estabhsh a comprehensive reporting system which will give the public, City Council and staff the ability to evaluate the level and value of service we provide the community. IMPACT OF LEGISLATION ON BUDGET The major issue currently facing local governments in the State of California involves several proposals to reduce or eliminate the vehicle hcence fee (VLF) paid on all vehicles registered in the State. These fees are the source of the City's motor vehicle in-heu revenue, the City's second largest General Fund revenue source (9 %) estimated at $1,800,000 for 1998-99. The current version of the governor's proposed State budget for 1998-99 includes a provision that would reduce the VLF by 50% effective January 1, 1999, and by a total of 75% effective January 1, 2002. There is also pending legislation (Assembly Bill 1776) which would completely eliminate the VLF over a five year period. Both the proposed State budget and Assembly Bill 1776 contain provisions to hold local governments "harmless" from the VLF reductions by using other State General Fund revenues to repay local governments for any funding lost as a result of the VLF reductions. Given the strong current condition of the California economy and current State budget surplus, it is considered likely that any current year reduction m the VLF will have little or no impact on the City this year. However, while the current VLF funding source represents a stable, predictable revenue source that local governments can depend on, there are strong doubts about the State's future ability to guarantee a continuing, stable replacement revenue source. June 23, 1998 Honorable Mayor and Members of the City Council STAFFING POLICY The proposed Fiscal Year 1998-99 Operating Budget is a well planned budget that increases the City's current levels of service to the commumty. City staffing levels are continuously reviewed to identify over/understaffmg so that appropriate changes can be made either during the annual budget process or during the mid-year review. The total City staffing for FY 1998-99 will include 111.5 regular FTE (full-time equivalent) positions, an increase of 1.0 position from the prior year. ACCOUNTING, AUDITING AND FINANCIAL REPORTING POLICY The City of Temecula receives an independent audit annually as well as maintaining a solid internal audit capacity. Additionally, the City produces all annual financial reports in strict compliance with Generally Accepted Accounting Procedures (GAAP), as outlined by the Governmental Accounting Standards Board. The City maintains a strong system of internal controls, which has resulted in an unqualified audit opinion for the past several years. RESERVE POLICY The City Council previously identified an objective of developing and maintaining a reserve of 30% of the General Fund Budget for economic tincertainties and contingencies, which will amount to $6,237,839 of the projected $8,836,875 total General Fund fund balance at June 30, 1999. COMMUNITY SERVICES DISTRICT POLICY The Temecula Community Services District (TCSD) was established to provide a comprehensive, balanced neighborhood and community park system in Temecula by constantly reviewing growth, demographics, and facilities available. The TCSD also provides tree management, hazardous waste procedures, and a recycling program for the community. Oversight responsibility rests with the City Council, who serve as the TCSD's Board of Directors. All services are funded primarily by fees and a special tax charged on the assessor's parcel roll. The proposed budget for TCSD totals $7,482,730. The budget includes additional operating and maintenance costs for the Temecula Community Recreation Center and 19.5 acres of new parks expected to be dedicated during FY 1998-99. At council direction, the City will make a $850,020 contribution to the TCSD budget in FY 1998-99 based on the City's success in recruiting new businesses to the area. This amount represents an increase of $212,960 from the prior fiscal year. REDEVELOPMENT AGENCY POLICY On April 7, 1991 the City Council approved ordinances which adopted the Redevelopment Plan for Temecula. This action established the Redevelopment Agency (RDA), which assumed responsibility for the plan effective July 1, 1991. The RDA is responsible for enhancing the existing character and economic foundation of project areas, and to encourage expansion of existing industry. It is also designed to provide quality housing opportunities for low to moderate income citizens. The total gross tax increment revenue is projected to be $6,170,000 in FY 1998-99. This amount includes monies for low and moderate income housing set aside, administrative costs, debt service, and redevelopment projects. CAPITAL IMPROVEMENT PROGRAM POLICY The City's Five Year Capital Improvement Program (CIP) will be presented to City Council under separate cover. This program provides a multi-year plan for capital improvements which is updated annually to ensure compliance with the program. The impact of developing capital projects on the maintenance and operating costs were taken into consideration as the operating budget was developed; and, based on all projections, there are no significant impacts to the General Fund. Circulation, infrastructure, parks, and other projects are identified in the Capital Improvement Program budget with estimated projects costs totaling $220,871,950 over the next five years. Emphasis has been placed on traffic/circulation projects in FY 1998-99. The CIP reflects an aggressive $31,282,300 in circulation/traffic project costs to be incurred in FY 1998-99. June 23, 1998 Honorable Mayor and Members of the City Council CASH MANAGEMENT/INVESTMENT POLICY In accordance with Government Code Sections 53601 through 53659, the City of Temecula annually adopts an investment policy identifying the rules and procedures that apply to investment instruments that maybe used in investing idle cash. Temecula's investment policy is adopted in June of each year, and follows the objectives of maintaining safety, !iq~fidity, and yield (in that order of priority). It is important to note that the City does not invest in high risk investments such as derivatives and reverse repurchase agreements. All investments are made in compliance with the Government Code and the City of Temecula Investment Policy which is updated annually. DEBT POLICY The City of Temecula is in the process of developing and adopting specific Debt Policies. The propesed docnment includes policies for determining the City's approach to land secured and conduit financing. It is the City's intent to support projects which address a public need and provide a public benefit. These policies are also designed to comply with Section 53312.7(a) of the Government Code. The City has not issued any general obligation debt. CONCLUSION The Fiscal Year 1998-99 Operating Budget is balanced and provides for increased services in fire protection, with the addition of a new fire station; and in parks and recreation programs, with new parks continuously being dedicated to the Community Services District. The budget was constructed by utilizing a conservative approach in calculating revenues and corresponding expenditures. This conservative approach is necessary, as the City must continue to be sensitive to the conditions of the State and local economy. In addition, if the £mal State Budget results in additional cuts, or if local conditions change and negatively impact the projected revenue stream, then staff will return to the Conncil with recommendations to make the appropriate adjustments. I would like to thank all of the Department Directors, their staffs, and the City Council for all of the assistance and support that was provided during this year's budget process. A special thanks to Tim McDermott, Jesse Diaz and Linda Norton for their long hours and dedication to the City and this process. SincereIs,,. Ronald E. Bradley City Manager RESOLUTION NO. 98- A RESOLUTION OF ~ CITY COUNCIL OF ~ CITY OF TEMECULA, CALIFORNIA ADOPTING ~ FY 1998-99 ANNUAL OPERATING BUDGET AND ESTABLISHING CONTROLS ON CHANGES IN APPROPRIATIONS FOR THE VARIOUS DEPART1VrENT BUDGETS WHEREAS, the City Council of the City of Temecula has reviewed the proposed f'mal 1998-99 annual operating budget and has held such public meetings as are necessary prior to adoption of the final operating budget. NOW, TItEREFORE, BE IT RESOLVED by the City Council of the City of Temecula as follows: Section 1. That certain document now on file in the office of the City Clerk of the City of Temecula entitled "City of Temecula 1998-99 Annual Operating Budget" is hereby adopted. Section 2. That the following controls are hereby placed on the use and transfers of budget appropriations: A. No expenditure of funds shall be made unless there is an unencumbered appropriation available to cover the expenditure. B. The Department Director may prepare a transfer of appropriations within departmental budget accounts, with the approval of the City Manager. C. The City Council must authorize transfers (appropriations) of funds from the Unreserved Fund Balance and transfers between departmental budget accounts. D. The City Council must authorize any changes to the Schedule of Authorized Positions. The City Manager may authorize the hiring of temporary or part-time staff as necessary within the limits imposed by the controls listed above. E. The City Manager may authorize expenditures of funds in amounts up to $25,000. Any expenditure of funds in excess of $25,000 requires City Council action. F. Pursuant to Section 3.32.050 of the Municipal Code, the City Manager may authorize Public Works contracts in amounts up to $25,000. Any expenditures of Public Works funds in excess of $25,000 require City Council action, except that the City Manager may approve change orders on Public Works contracts approved by the Council in amounts up to project contingency established by Council. Section 3. Outstanding encumbrances shown on the City books at June 30, 1998, are hereby appropriated for such contracts or obligations for 1998-99. Section 4. The City Clerk shall certify adoption of the resolution. PASSED, APPROVED AND ADOPTED this 23rd day of June, 1998. Ron Roberts, Mayor ATTEST: Susan W. Jones, CMC Acting City Clerk [SV_a~] STATE OF CAIJFORNIA) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA) I, Susan W. Jones, Acting City Clerk, DO HER~RY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 23rd day of June, 1998, by the following vote of the City Council: COUNCIL MEMBERS: NOES: C OUNCILMEMBERS: COUNCILMEMBERS: Susan W. Jones, CMC Acting City Clerk 10 1989 MISSION STATEMENT The mission of the City of Temecula is to maintain a safe, secure, clean, healthy, and orderly community; to balance the utilization of open space, parks, trail facilities, quality jobs, public transportation, diverse housing, and adequate infrastructure; and to enhance and revitalize historic areas. The City will encourage programs for all age groups, utilize its human resources, and preserve its natural resources while stimulating technology, promoting commerce, and utilizing sound fiscal policy. It is the City Council's resolve that this mission will instill a sense of pride and accomplishment in its citizens and that the City will be known as progressive, innovative, balanced and environmentally sensitive community. 11 The Government Finance Officers Association of the United Sines and C*,~* (GFOA) presented an awa~xi of 'Ehsfinguished Budget Presentation to the City of Temecula for its arereal budget for the fiscal year beginning July 1, 1997. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a £mancial plan and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine ils eligibility for another award. ENT FINANCE OFFICERS ASS Distinguished ud get Presentation Award PRESENTED TO City of Temecula, California For the Fiscal Year Beginning / J, uly 1, 1997 / P~r~siden~ ~Execu~irec~or~__~ 12 Certificate of Award Excellence in Operational Budgeting 1997-98 Presented to City of Temecula This certificate recognizes the achievement of Excellence in Operational Budgeting and reflects an outstanding budget document and the underlying budgeting process through which the budget is implemented. ;:q - February 23, 1998 " - air, u geting & F~,dncial Management Dedicated to Excellence in Municipal Financial Management 13 City of Temecula DIRECTORY Executive Management City Manager Assistant City Manager Assistant to the City Manager City Clerk/Director of Support Services City Attorney Director of Finance Community Development Director Chief Building Official Director of Public Works/City Engineer Chief of Police Fire Chief Director of Community Services Planning Manager Ronald E. Bradley Open Grant Yates Susan W. Jones Peter M. Thorson Genie Roberts Gary Thornhill Anthony Elmo Joe Kicak Pete Labahn Mike Brown Herman D. Parker Debbie Ubnoske Finance Department Director of Finance Assistant Finance Director Senior Management Analyst Senior Accountant Accountant Administrative Secretary Accounting Specialist Accounting Specialist Accounting Specialist Purchasing Specialist Accounting Assistant Accounting Assistant (Project) Genie Roberts Tim McDermott Vacant Bill Pattison Jesse Diaz Linda Norton Reta Weston Barbara Smith Theresa Alvarez Mary Vollmuth Zenaida Smith Jada Yonker 14 City of Temecula CITY ORGANIZATIONAL CHART Public Wor~ JoeKicak I ] DEYtLOPM~ ] I I Community Development Gary Thomhill I I Redevelopment I COMMISSIONS I City Clerk/ Support Services Susan W, Jones CIT2ENg OF TI~ECULA l COUnciL CITY MANAGER Ronald E. Bradley - I I [ ADMI~IS~^TION Fin~ce I CITY ATTORNEY Peter M Thorson I I P~'~LICS^FETV [ I I I I Comm~ity BerxicesPolice Fire Genie Roberts Herman Parker Pete Labahn Mike Brown 15 City of Temecula BUDGET PROCESS The development of the operating budget began in February 1998 with the first of two goal and priority setting workshops held with the City Council. The area of primary focus was how to address deficiencies in the City's traffic circulation system. Other items of discussion included a review of City reserve policies, economic development/redevelopment strategies, and the support of community based nonprofit and cultural arts organizations. In March the operating budget preparation guidelines were distributed to each department. The guidelines served to outline the policies and procedures to be used in preparing the Fiscal Year 1998-99 Operating Budget and to ensure the budget was prepared in accordance with the fiscal policies and guidelines established by the City Council. The milestones outlined in the guidelines reflected the involvement of City Manager and City staff in reviewing and discussing policies and service guidelines, along with the concurrent development of £mancial projections, objectives, and requirements at the staff level. With this approach, the policies, service guidelines, and priorities which guide expenditure considerations were incorporated into the proposed budget prior to formal submission to the City Council. Following the distribution of the operating budget guidelines, a budget workshop was convened. All Department Directors and other key City staff members attended and participated in the review of the guidelines. Clearly defined budget requirements and time sensitive budget document objectives were discussed, ensuring complete and accurate understanding by all. Performance measure meetings were also conducted to review and discuss the preparation of program objectives for Fiscal Year 1998-99. For the purposes of budget preparation and formulation, departmental budget submittals consisted of detail by expenditure line item. Specific justification was also required for the following: 1. Significant expenditure changes 2. Any staffing changes 3. Contracted services and supplies (both new and recurring) 4. Purchases of new equipment 5. Outlays for improvements and facility repairs 6. All special project expenses and one-time expenses 7. Travel, conference, and education expenses 8. Dues, memberships, and publications Review and analysis was then conducted of each department's request. The review of the budget requests included comparative analysis of historical and current expenditure levels. The information was compiled for review by the City Manager. The City Manager and Finance Department staff then held meetings with each Department Director to discuss the budget request and obtain additional information to assist in the assessment of the requests. The evaluation and final recommendation involved assigning relative phorities to the departmental requests and then comparing the associated costs to available funding resources. Following this review, Department Directors adjusted line item requests in accordance with the City Manager's direction. Finally, meetings were held individually with each council member to review and discuss the components of the proposed budget, prior to formal consideration for adoption. The Temecula Municipal Code requires that the City Manager submit the proposed annual budget and salary plan to the City Council for approval. The Municipal Code also requires that the Director of Finance compile the budget revenue and expenditure estimates for the City Manager. The City Council approves the annual budget submitted by the City Manager prior to the beginning of the new fiscal year. All appropriations lapse at year end except for those relating to encumbrances which are approved for carryover to the subsequent year. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to make adjustments within departmental budgets. Adjustments between departments require the approval of the City Council. 16 City of Temecula BUDGET PROCESS Budgetary controls are maintained to ensure compliance with the budget as approved by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level. Department Directors and other management staff with budgetary responsibilities are provided with bi-weekly budget versus actual expenditure reports. Quarterly financial statements are prepared for the City Council which include a budget to actual analysis for both revenues and expenditures. Revenue projections are revised as part of the mid-year budget analysis, and appropriations are adjusted, ff required. The following chart illustrates the budget phases which span the fiscal year. Policy/Strategy [COUNCIL[ Development Phase WORKSHOP Departmental Budget Development Budget Program Financial Phase Guidelines Obj ecfi yes Proj ecti ons Review Phase I I Finance/ Executive Council Review Briefings Adoption Phase OPERATING BUDGET Implementation Phase Biweekly Budget Reports Quarterly Financial Statements Mid-Year Analysis & Revision 17 City of Temecula UNDERSTANDING THE BUDGET DOCUMENT This budget document provides the imbhc with concise and readable information about City government and displays the City's objectives and budget for the 1998-99 fiscal year. The budget document begins with the City Manager's transmittal letter which provides an overview of the Fiscal Year 1998-99 Operating Budget by highlighting programs and major projects. The budget document is then divided into the following sections: · Introduction · Budget Summaries · Operating Budget: · General Fund · Community Services District · Internal Service Funds · Redevelopment Agency · Community Development Block Grant · Capital Improvement Program Summary · Appendix The Budget Summaries section provides revenue and expenditure analysis. This section presents historical and categorical data for comparative purposes. Staffing levels are also summarized. The Operating Budgets section contains the program description, key objectives, performance measures, and resource allocation plans for each operating program. Budget information is organized by department and identifies the major services provided by the City. Finally, the Appendix includes: Glossary of Terms Assessed and Estimated Actual Value of Taxable Property (Values in Thousands) from Incorporation Grant Activity Construction, Bank Deposits, and Property Value (Values in Thousands) from Incorporation Property Tax Rates - Direct and Overlapping Governments from Incorporation Principal Taxpayers - June 30, 1997 Legal Debt Margin Computation of Direct and Overlapping Bonded Debt - June 30, 1997 Largest Employers by Number of Employees - June 30, 1997 Index Additional information on the City's fiscal affairs is available in the following documents at the City offices: City Treasurer's Monthly Reports Quarterly Financial Statements Comprehensive Annual Financial Report 18 City of Temecula DESCIt lPTION OF FUNDS The City of Temecula revenues and expenditures are accounted for in a series of funds. Each fund is an autonomous accounting entity, established in accordance with legal and professional accounting standards. Funds are used to segregate the various financial activities of a governmental entity and to demonstrate compliance with specific regulations, restrictions or limitations, (i.e., demonstrating that restricted revenues are spent only for allowed purposes). Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary. Governmental funds include activities usually associated with a typical state or local government's operations (public safety, general government activities, etc.). Proprietary funds are used in government to account for activities often found in the private sector (utilities, stadiums and goff courses are prime examples). Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The funds utilized by the City of Temecula, governmental and proprietary, are detailed below. Governmental Funds General Fund This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund. Special Revenue Funds Gas Tax Fund. The City maintains the fund to account for the Highway User's Tax revenues received from the State of California under sections 2105, 2107 and 2107.5 of the Streets and Highways Code. Section 2107.5 revenues may only be spent for street and highway purposes. Community Services District. Benefit assessments are charged to property owners within the District (City) to provide recreation, park development, street lighting, slope maintenance, refuse collection, and emergency road construction and maintenance. Specific services provided are identified as follows: · Citywide Parks and Recreation - Parks and recreation facility maintenance, community recreation programs. · Service Level "A" - Arterial street lighting, traffic signals, and median maintenance. · Service Level "B" - Residential street lighting. · Service Level "C" - Perimeter landscaping and slope maintenance. · Service Level "D" - Refuse collection, recycling, and street sweeping. · Service Level "R" - Street and road maintenance. Redevelopment Agency. The activities of the Redevelopment Agency are accounted for in a separate fund. Twenty (20%) percent of the property tax increment must be reserved for use in low and moderate income housing programs. Community Development Block Grant~ (CDBG). Funds allocated to local government from the federal government, through Riverside County Economic Development Corporation, based on a formula, but required to be applied for and required to be used within a broad functional area such as community development. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources and payment of all general long-term debt obligations of the City and related entities. Capital Projects Funds Capital Projects Funds are used to account for financial resources used for the acquisition and improvement of major capital facilities. 19 City of Temecula DESCRIPTION OF FUNDS (Continued) Proprietary Funds Internal Service Funds Inqur~nce. This Internal Service Fund was established to fund the City's liability and property insurance premium costs. This fund also includes 25% of the salaries of the staff responsible for the program, namely the Senior Management Analyst and Administrative Secretary, both in the Finance Department. Vehicles. This Internal Service Fund was created to depreciate vehicles over estimated useful lives ranging from four to five years. Resources are accumulated for the purchase of future replacement vehicles. Information Systems. This Internal Service Fund was developed to fund computers and telephones operating and maintenance expense and to depreciate all computer and telephone equipment over estimated useful lives ranging from three to four years. This depreciation will create a fund balance for the purchase of future replacement computers and telephones. The salary and benefits for the Information Systems Administrator is included in this fund. Support Services. The Copy Center includes all costs associated with the Copy Center and all related copier equipment in the City. This fund includes the salary and benefits for the Administrative Technician. Facilities. This Internal Service Fund was developed to charge departments the cost of rent and maintenance for City Hall. This fund includes the salaries and benefits for the Facilities Coordinator, Custodian, and 25% of the Maintenance Superintendent. 20 City of Temecula SUMMARY OF ACCOUNTING PRINCIPLES Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the financial statements in this report into generic fund types and broad fund categories as follows: Governmental Funds: General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Proprietary Funds: Internal Service Funds Vehicles Information Systems Support Services Facilities Accounting Basis All governmental funds and the agency fund are accounted for and budgeted using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. The primary revenue sources susceptible to accrual are property and sales taxes, franchise fees, transient occupancy taxes, investment income, fines and forfeitures collected by County courts, gas tax subventions, and motor vehicle-in-lieu subventions. Expenditures are generally rec%mized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general role is principal and interest due on general long-term debt which is recognized when due. Internal Service Funds use the accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized ill the period incurred. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds. Open encumbrances are recorded as reservation of fund balance since the commitments will be paid by subsequent years budget appropriations. Encumbrances do not constitute expenditures or liabilities. 21 City of Temecula EXPLANATION OF MAIOR REVENUE SOURCES General Fund ' '~,:'~'r.~.,,?~ ~' :. ~ ".KX: i,~..,C /'".: "' ' :.',::~t:,'- ~ ;": ......... . 'x..~.X ~"! ~ .... .'~ ......... ' :, ........ ..... Actual FY 1995-96 Actu*l FY Estimated Projected 1996-97 FY 1997-98 FY 1998-99 ElProperty Tax Property Tax. The valuation of property in the City is determined by the Riverside County Tax Assessor. The County levies a base tax at the rate of one percent (1%) of assessed valuation. Approximately 4.4 percent of the base one percent levy is allocated to the City. The 1998-99 revenue estimate for property tax reflects a 2.1 percent increase over the projected 1997-98 amount. This increase reflects that assessed valuation increases realized as a result of new development are being partially offset by the impact of pending property owner assessed valuation appeals. Franchise Fees. The City imposes fees on refuse hauling, gas, electric and cable television companies operating in the City. The fees range from one to eight percent (1-8%) of gross receipts. Overall, a 1.i percent increase is projected in these fees in 1998-99 from the 1997-98 estimated amount. A slight decrease is projected in electric fees, due to an electric rate reduction and the potential impact of deregulation of the electric utility industry. A five percent (5%) increase is projected for all other franchise fees, as a reflection of continued commercial and residential growth in the City. Actual FY Estimated Projected 1996-97 FY 1997-98 FY 1998-99 [] F r anchice Fees -~""?)!I~ ........~ ........i~[_~ ......~1~41 ' ' tl'; ~ ,'~l : i .... Actual FY Actual FY EstimatedProjected 1995-96 1996-97 FY 1997-98 FY 1998-99 · Sales and Use Tax Sales and Use Taxes. In accordance with the California Revenue and Taxation Code, a 7.75 percent sales and use tax on all taxable sales in the City. The City receives 1.0 percent of the taxable sales in the City, and 0.50 percent is authorized by "Measure A" which is levied within Riverside County for various transportation purposes. Sales tax is the City's largest revenue source representing 47.3 percent of the total General Fund revenue. During 1997-98, the City was adversely impacted by a sales tax adjustment made by the State due to a refund issued to a local business. The total impact of $664,000 to the City will be realized primarily in 1997-98, with a portion being spread into 1998-99. However, the City is realizing strong growth in the industrial, autos, and transportation components of its local economy, in particular. As a result, the 1998-99 revenue projection for sales tax reflects a 9.3 percent increase from the 1997-98 estimate. 22 City of Temecula EXPLANATION OF MA.IOR REVENUE SOURCES (Continued) Property Tra~qfer Tax. The Temecula Municipal Code authorizes the imposition of a transfer tax on real property sold in the City. The tax rate is $0.275 for each $500 of purchase value. The amount projected for 1998-99 of $185,000 represents an increase of $10,000 from the 1997-98 fiscal year. Transient Occupancy Tax. The Temecula Municipal Code authorizes the City to levy a tax for the privilege of occupying lodgings on a transient basis. The tax is assessed at a rate of eight percent (8%). The estimated Transient Occupancy Tax revenue for 1998-99 of $940,000 represents an 11.9 percent increase from 1997-98. This increase is anticipated based on continued increases m hotel/motel occupancy rates over the past several years, and the addition of 130 hotel/motel rooms expected for 1998-99. Licenses and Permits. The California Government Code and State Constitution gives cities the authority to assess certain license and permit fees as a means of recovering the cost of regulating various activities. Examples include building permits and business licenses. Actual FY 1996-96 Actual FY Estimated 1996-97 Projected FY 1997-96 FY 1998-99 IITransicnt Occupancy Tax Charges for Services. Service charges or fees are imposed on the user for a specific service rendered based on the rationale that the benefitting party should bear the cost of the service rather than the general public. Fines and Forfeitures. The California Vehicle and Penal Codes impose fmes and penalties for traffic violations and vehicular parking. These revenues are collected by Riverside County through the County court system and a portion distn'buted to the City, less an administrative overhead cost. Effective July 1, 1993 the City assumed responsibility for the administration and collection of parking fmes. Interest Revenue. The City pools its available cash from various funds and invests in instruments as allowed in the City's investment policy approved by the City Council. Earnings are allocated to various funds on the basis of proportionme cash balances. A 26.8 % decrease m interest revenue is anticipated m 1998-99 due to the planned use of reserves to fund capital improvement projects. Actual FY Actual FYEsti~ted Projected 1995-96 1996-97 FY 1997-98 FY 1998-99 mMotor Vehicle In Lieu Intergovernmental. The primary revenue included in this category is the state allocated motor vehicle m-lien tax. Section 11005 of the California Revenue and Taxation Code imposes an annual license fee equivalent to 2 % of the market value of motor vehicles m-lieu of local property taxes. The code also specifies that 81.25 percent of the revenues are to be divided equally between cities and counties, and apportioned on the basis of population. The 1998-99 projected motor vehicle in-lieu revenue of $1,800,700 represents a 4.7 percent increase from the 1997-98 estimated amount due to continued population growth m the City. It is anticipated that any reduction m this revenue m 1998-99 as a result of State legislation will be backfilled by other State revenues (at least for 1998-99). Reimbursements. This category of revenue includes the recovery of personnel costs that are allocated to various capital improvement projects, and are thus reimbursed by various special revenue funding sources. Also included m this category are changes to the Temecula Community Services District and Temecula Redevelopment Agency for administrative overhead and other services provided by the City. 23 City of Temecula EXPLANATION OF MA IOR REVE~NUE SOURCF~S (Continued) Other Funds Gas Tax Fnndq. The State of California assesses a tax on gasoline purchases as authorized by Sections 2105, 2106, 2107 and 2107.5 of the California Streets and Highways Code. A portion of this tax is allocated to the City based on a per capita formula established by law. These funds are earmarked for the maintenance, rehabilitation or improvement of public streets. Gas tax revermes are projected to increase to $827,000 in 1998-99, a 3.5 percent increase from the 1997- 98 estimate due to population growth in the City. Assessments. The Temecula Commul~ity Services District levies a charge on real property to provide street lighting, perimeter landscaping and slope maintenance, refuse collection, emergency road maintenance, and to service the outstanding Certificates of Participation issued for the construction of the Community Recreation Center. Parks/Lighting Services Special Tax. This special tax was approved by the voters of Temecula on March 4, 1997. Proceeds from the special tax are required to be used for the ongoing operations, maintenance, and servicing of the City's public parks and recreation facilities, recreational and commul~ty service programs, median landscaping, arterial street lights and traffic signals. Tax Increment. The Temecula Redevelopment Agency receives the portion of ad valorem property taxes resulting from increases in the assessed valuation within the redevelopment project area over the base year assessed valuation. As required by California Health and Safety Code, 20 percent of the gross tax increment is set aside in a Low and Moderate Income Housing Fund to be used to increase, improve, or preserve the supply of low and moderate income housing. A two percent increase in tax increment revenue is proected due to anticipated increases in assessed valuation (which will partially be offset by the impact of pending property owner assessed valuation appeals). City of Temecula DEBT,4 DMINIS TR A ~ ON As of June 30, 1998, the Temecula Redevelopment Agency had $14,550,000 of Tax Allocation bonds outstanding. The bonds were issued to finance various public improvements within the Agency's redevelopment project area. The bonds bear interest from 5.25% to 5.5%, and are payable from property tax increment revenues generated within the project As of Juae 30, 1997, the Temecula Public Facilities Finaacing Corporation had $4,560,000 of Certificates of Participation outstanding. The Certificates of Participation were issued for the benefit of the Temecula Community Services District. Proceeds from the sale of the certificates were used to finance the construction of a community recreation center. The certificates bear interest at rates ranging from 3.4% to 7.125%, and are payable from the citywide rates and charges levied on real property located within the District. As of June 30, 1998, the City had no general obligation bonds outstanding. The 1998-99 fiscal year debt service requirements for the above-mentioned obligations are as follows: Issue Interest Date Description Rates Principal Interest Total 1993 Tax Allocation Bonds 5.25- 5.5% $ 655,000 $ 793,920 $ 1,448,920 1992 Certificates of Participation 3.4 - 7.125% 190.000 305.665 495.665 TOTAL $ 845.000 $ 1.099.585 $ 1.944.585 25 City of Temecula GANN APPROPRIATIONS LIMIT Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend each year. The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. For cities which incorporated after 1978-79, such as the City of Temecula, the initial appropriations limit was set by the voters at the time of incorporation. In accordance with the Government Code Section 56842.6 the City was required to recompute the Garm limit since incorporation based on actual tax revenues and place the new limit on the ballot at the first general election after incorporation which was November I 0, 1992. Each year the City Council must adopt, by resolution, an appropriations limit for the following year. Using cost of living data provided by the State of California, and population and per capita personal income data provided by the State Department of Finance, the City's Appropriations Limit for 1997-98 has been computed to be $23,021,965. Appropriations subject to the limitation in the 1997-98 budget total $12,812,111, which is $10,209,854 less than the computed limit. Additional appropriations to the budget funded by non-tax sources such as service charges, restricted revenues from other agencies, grants or beginning fund balances would be unaffected by the Appropriations Limit. However, any supplemental appropriations funded through increased tax sources would be subject to the Appropriations Limit and could not exceed the $10,209,854 variance indicated. Further, any overall actual receipts from tax sources greater than $10,209,854 from budget estimates will result in proceeds from taxes in excess of the City's Appropriations Limits, requiring refunds of the excess within the next two fiscal years or voter approval of an increase in the City's Appropriations Limit. $25,000,000 .~ i : 520,000,000 ~ S15,000,000 S10,000,000 55,000,000 S0 ' ',t~ . ~,~i~. i,'"' 1995-96 · '.*.,~' ~: ~:%,,_! .... ,'~ 1997-98 1998-99 1996-97 []Appropriations Subject to Limit [] Legal Limit This page to be updated upon adoption of the 1998-99 Gann Limit in July 1998. 26 City of Temecula COMMUNITY PROFILE GENERAL CITYDATA Date Incorporated December 1, 1989 Form of Government Council/Manager City Employment: Number of Authorized Positions 111.5 Population 46,564 Number of registered voters 19,671 Median family income $ 45,655 Area 26 Square Miles Streets 200 Miles City Maintained Streets 115 Miles Altitude: 1000-1200 Feet Rainfall: 19.52 inches per year Located: 55 miles N of San Dieso; 85 miles SE of Los Angeles PUBLIC SAFETY DATA Fire Protection: (contract with Riverside County) Number of Stations Number of Staff - Firefighters/Officers Number of Volunteer Firefighters Police Protection: (contract with Riverside County) Number of Stations Number of Sworn Officers Supervision / Manag. ement EDUCATIONAL DATA Education: Temecula Unified School District Number of Schools Number of Teachers Number of Students 15 711 14,575 1. 3 38 30 3 36 11 RECREATIONAL / TOURIST DATA Recreation and Culture: Parks Number of Acres (163 acres developed) Hotel/Motels: Number of Lodging Properties Total Number of Rooms 18 293 9 633 27 City of Temecula LOCATOR MAP I-S I0 I San Bernardino _~ San BernarOIno Count__. 10 Palm Springs '74 Catalina bland Son Diego Count Escortdido Locator Map of ~. ::' TEMECL'LA REGION' ISan Diego ·" and Soutllern California ~;,:~ ',.,: ,... . -,,,,, / 28 Ci~ of Temecula BUDGET SUMMARIES OVERVIEW The Budget Summaries Section includes a breakdown of revenues and expenditures by funds including General Fund specifics and City totals. The graphs and summaries presented include the following: General Fund Revenues General Fund Revenues by Source Gas Tax Fund Revenues by Source Revenues by Fund - Community Services District Revenues by Fund - R~levelopment Agency Expenditures by Department - General Fund Expenditure Summary by Category - General Fund Expenditure Summary by Category - Community Services District Funds Expenditure Summary by Category - Internal Service Funds Expenditure Summary by Category - Redevelopment Agency Funds Expenditure Summary by Department - General Fund (Four Year Comparison) Expenditure Summary by Fund - Community Services District (Four Year Comparison) Expenditure Summary by Fund - Internal Service Funds (Four Year Comparison) Expenditure Summary by Fund - Redevelopment Agency (Four Year Comparison) Changes in Fund Balance by Fund 1998-99 Authorized Positions by Department Summary of Authorized Positions 29 City of Temecula GENERAL FUND REVRNURS FY 98-99 GENERAL FUND REVENUES $20,830,500 Operating Transfers In Intergovernmental Investment Interest Licenses & Services 3.97% 9.50% f-- 3.60% 15.97% ~ ~J / Other 4.51% ' ' ' ~"~ Franchise Fees ~ 5.50% Sales Tax 47.29 % FOUR-YEAR COMPARISON S25 - $20 - $15 - $10 - $5 - $0 Actual 1995-96 20.792 ~ ~ ,, ',, ~, ~ ,,~", ~ ,,'- ". "'~ ......---- '~'.~ ~-~ n .... Actual 1996-97 Estimated 1997-98 Projected 1998-99 30 City of Temecula GENERAL FUND REVENUES BY SOURCE Actual Taxes and Franchises Property Tax $ 1,175,751 $ Franchise Fees 994,978 Sales and Use Tax 7,782,011 Property Transfer Tax 185,143 Transient Occupancy Tax 675,445 Actual FY 1996-97 1,171,883 $ 998,094 8,774,595 178,449 752,743 Estimated 1,207,000 1,132,000 9,013,000 175,000 840,000 Projected FY 1998-99 $ 1,232,000 1,145,000 9,850,000 185,000 940,000 Licenses, Permits, and Service Charges Business Licenses 138,915 150,220 150,000 160,000 Engineering 714,331 1,094,608 950,000 950,000 Building 1,346,488 1,415,960 1,495,000 1,536,000 Planning 202,366 343,591 310,000 340,000 Fire Plan Check and Inspection 87,712 115,578 195,000 200,000 Fines and Forfeitures 104,692 Use of Money Interest Revenue 812,345 1,482,463 61,948 243,596 162,000 75,000 65,230 778,501 130,448 Intergovernmental Revenues Motor Vehicle in Lieu Motor Vehicle License Fees Grants Reimbursement from Capital Improvement Program Community Services District Redevelopment Agency Other 953,382 1,614,424 33,231 260,188 216,133 162,000 75,000 60,342 796,905 104,561 66.124 Operating Transfers In Contributions Miscellaneous 137,000 1,025,000 1,720,650 33,000 124,000 240,000 162,000 125,000 15,000 869,000 34,700 19,952,350 Total $ 17,155,039 $ 19,402,335 $ 141,000 750,000 1,800,700 34,000 145,000 240,000 162,000 125,000 25,000 827,000 42,800 $ 20,830,500 City of Temecula GAS TAX FUND REVENUES BY SOURCE Actual FY 1995-96 Actual FY 1996-97 Estimated FY 1997-98 Projected FY 1998-99 Gas Tax Revenues $ 749,661 $ 776,447 $ 789,000 $ 821,000 Interest Revenue 14,354 15,379 10,000 6,000 Miscellaneous 14,485 4,605 Total $ 778,500 $ 796,431 $ 799.000 $ 827,000 FOUR YEAR COMPARISON $1,000 $800 'i $778,500~ $600 $400 $200 $0 '~ : Actual 1995-96 i $796,431 i $799,000 ~ Actual 1996-97 Estimated 1997-98 i$827,000i Projected 1998-99 Gas Tax Revenues $2. City of Temecula REVENUES BY FUND - COMMUNITY SERVICES DISTRICT Actual Actual Estimated Projected FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 City-Wide $ 2,985,093 $ 3,359,968 $ 3,533,670 $ Service Level A 149,414 196,788 224,500 3,632,610 281,800 Service Level B 253,141 273,242 286,050 313,840 Service Level C 499,097 535,273 571,460 591,180 Service Level D 1,856,425 1,868,205 2,055,500 2,277,690 Service Level R 19,172 19,220 19,210 12,800 Debt Service * 35,454 36,487 34,000 35,600 Total $ 5,797,796 $ 6,289,183 $ 6,724,390 $ 7,145,520 * Does not include operating transfer from City-Wide Fund. FOUR YEAR COMPARISON $8 / $5.797 I56'289 156.724 ~$7.146 .-- t 'i $0 ~ ~ Actual 1995-96 Actual 1996-97 Estimated 1997-98 Projected 1998-99 City-Wide Service Level D Service Level A / Service Level B :~::~ Service Level C Service Level R ':'"'~ Debt Service City of Temecula REVENUES BY FUND - REDEVELOPMENT AGENCY Actual Actual Estimated Projected FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Low/Moderate Income Set Aside $ 1,387,146 $ 1,575,790 $ 1,551,400 $ 1,384,000 CIP/Redevelopment 2,218,189 738,934 1,568,000 993,000 Debt Service 5,930,961 6,360,602 5,886,750 5,976,650 Toml $ 9,536,296 $ 8,675,326 $ 9,006,150 $ 8,353,650 $10 $8 ,~ $6 FOUR YEAR COMPARISON $9.536 $0 Actual 1995-96 $8.6751 $9.006 I 158.354 ........................... ~ ....................................................... ~:~:~:~:~:~:~:~:~:~:~:~:~:~ ~ ::::::::::::::::::::::::::::: ============================= ~:~:~:~:~:~:~:~:~:~:~:~:~:~:~ Actual 1996-97 Estimated 1997-98 Projected 1998-99 Low/Mod Set Aside ~ CIP DebtService 3q (This Page Intentionally Left Blank) 35 City of Temecula EXPENDITURES BY DEPARTMENT- GENI~,RAL FUND Non -Departmental ($1,470,020) Animal Control ($45,000) ~,,~ Police ($5,644,120} ..... City Council ($646,140) City Manager ($1,308,035) Community ~. .....;,., ........i~ ~Development '"~"~;~*~,~,:?~ "" !~ ~ ($3,848,870) ~ ~:- ~ --. .... ~.'.::."..: ...... City Attorney .....,.Q · ....~ .....~.: ......:.. ~..~ ..,:.~:.:..::..:::. ...........................:.::::..:::-::.. ($400,000) ~....*":':'::::'. '.. ~' .'~:":~:':'::... ~' .~E:"k · . ~:::.::'" ::" ""- ~.[:[.:::::~:::~..:.~::::.:::i~72:~ ~ :'~ ::~:~:~ ............ :: ............ ~:.?~:.:"~::)~[:[.:.::.~':?:'~:~:~::..~..:~;':.':::??::.}:~.:~ Human Remurces '-_ ~"'""'"'~'"'"""~ ($344,960) ~: .... Fire ($2,173,890) ~City Clerk ($636,860) / Public Works (3,314,980) Finance ($959,920) 1998-99 PROJECTED EXPENDITURES $20,792,795 (excluding Operating Transfers) 36 City of Ternecula EXPENDITURE SUMMARY BY CATEGORY- GENERAL FUND Operations Depatament Personnel & Maintenance City Council $ 69,580 $ 208,560 Community Support 368,000 City Manager 376,040 201,920 Economic Development 194,950 535,125 Human Resources 194,830 150,130 City Attorney 400,000 City Clerk 386,650 247,210 Finance 649,200 304,720 Community Development: Planning 1,027,220 525.730 Building & Safety 808,210 463,340 Land Development 735,510 248,610 Public Works 923,590 1.622.180 CIP Administration 639,560 119,650 Police 20,000 5.615.120 Fire 49,190 2,123.200 Animal Control 45,000 Non-Departmental 1,470,020 Total $ 6,074,530 $ 14,648.515 Outlay $ 3,000 6,000 10,000 20,250 10,000 5,000 5,000 9,000 1,500 $ 69,750 Operating --Transfers $ 4,250,000 $ 4,250,000 Total 278,140 368,000 577,960 730,075 344,960 400,000 636,860 959,920 1,562,950 1,291,800 994,120 2,550,770 764,210 5,644,120 2,173,890 45,000 5,720,020 25,042,795 3'7 City of Temecula EXPENDITURE SUMMARY BY CATEGORY- COMMUNITY SERVICES DIST. FUNDS Operations Capital Operating Fund Personnel & Maintenance Outlay Transfers City Wide* $ 1,426,330 $ 2,012,650 $ 10,500 $ Service Level A 2,850 278,950 Service Level B 7,430 343,410 Service Level C 119,490 497,420 Service Level D 44,680 2,233,010 Service Level R 13,230 Debt Service 501,980 Total $ 1.600,780 $ 5,880,650 $ 10,500 $ Total 3,449,480 281,800 35O,84O 616,910 2,277.690 13,23o 501,980 7,491,930 * Does not include $466,370 operating transfer to the Debt Service Fund. Service Level D ($2,277,690) t ~ll-- , I,Ill. Service Level R ($13.230) / Recreation ($3,449,480) Service Level C ($616,910) Service Level B ($350.840~ / Service Level A ($281,800) Debt Service ($501,980) Ci~ of Temecula EXPENDITURE SUMMARY BY CATEGORY- INTERNAL SERVICE FUNDS Operations Fund Personnel & Maintenance Insurance $ 31,780 $ 415,850 Vehicles 95,610 Information Systems 178,190 632,670 Support Services 51,500 177,980 Fac il ities 165,120 197,670 Total $ 426,590 $ 1.519,780 Capital Operating Outlay Transfers Total $ $ 447,630 95,610 810,860 229,480 $ 37,500 400,290 $ 37,500 $ $ 1,983,870 Facilities ($400,290) Support Services ($229,480) Vehicles ($95,610) Information Systems ($810,860) City of Temecula EXPENDITURE SUMMARY BY CATEGORY- REDEVELOPMENT AGENCY FUNDS Fund Personnel Low/Moderate Income Set Aside $ 162,270 Operations Capital Operating & Maintenance Outlay Transfers $ 865,660 Total 1,027,930 CIP/Redevelopment Debt Service Total 89,730 $ 252,000 $ 810,620 $ 3,000 5,050,820 $ 6,727,100 $ 3,000 $ 625,000 625,000 903,350 5,675,820 7.607.100 Low/Mod Set Aside ($1,027,930) CIP ($903,350) Debt Service ($5,675,820) City of Temecula EXPENDITURE SUMMARY BY DEPARTMENT- GENERAL FUND Four Year Comparison C1TY COUNCIL Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel Operations & Maintenance Capital Outlay 62,938 $ 62,674$ 150,356 179,168 63,270 208,340 Total $ 213,294 $ 241,842 $ 271,610 Program: Community Support Personnel Operations & Maintenance Capital Outlay $ 128,515 $ 209,506 $ 376,023 Total $ 128,515 $ 209,506 $ 376,023 CITY MANAGER Personnel Operations & Maintenance Capital Outlay 357,723 $ 374,140 $ 96,195 151,569 349,080 179,735 1.000 Total $ 453,918 $ 525,709 $ 529,815 Program: Economic Development Personnel Operations & Maintenance Capital Outlay $ $ $ Total $ $ $ Program: Haman Resources Personnel Operations & Maintenance Capital Outlay 160,260 $ 187,765 $ 186,380 98,097 115,169 144,676 Total $ 258,357 $ 302,934 $ 331,056 $ 69,580 208,560 $ 278.140 $ 368,000 $ 368,000 $ 376,040 201,920 $ 577.960 $ 194,950 535,125 $ 730.075 $ 194,830 150,130 $ 344,960 City of Temecula EXPENDITURE SUMMARY BY DEPARTMENT- GENERAL FUND (Cont 'd) Four Year Comparison (Continued) CITY ATTORNEY Personnel Operations & Maintenance Capital Outlay Total CITY CLERK Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 238,456 $ 402,479 $ 385,000 $ 238,456 $ 402,479 $ 385,000 Personnel $ 242,706 Operations & Maintenance 104,904 Capital Outlay Total $ 347,610 FINANCE Personnel $ 459,943 Operations & Maintenance 249,022 Capital Outlay Total $ 708.965 COMMUNITY DEVELOPMENT Program: Planning Personnel $ 658,329 Operations & Maintenance 288.515 Capital Outlay 2,070 Total $ 948,914 Program: Building & Safety Personnel $ 505,746 Operations & Maintenance 314,292 Capital Outlay Total $ 820,038 $ 295,636 $ 350,750 214,299 244,190 3,954 $ 509,935 $ 598,894 $ 504,657 $ 616,240 252,928 317,319 888 $ 757,585 $ 934,447 $ 685,464 $ 887,980 279,037 613,375 82,300 $ 964,501 $ 1,583,655 $ 597,319 $ 718,783 428,295 534,427 13,500 $ 1,025,614 $ 1,266,710 $ 386,650 247,210 3.000 $ 636,860 $ 649,200 304,720 6,000 $ 959,920 $ 1,027,220 525,730 10,000 $ 1,562,950 $ 808,210 463,340 20,250 $ 1,291,800 City of Temecula EXPENDITURE SUMMARY BY DEPARTMENT- GENERAL FUND (Cont'd) Four Year Comparison (Continued) Program: Land Development Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 403,271 $ 592,251 $ 784,991 $ 735,510 Operations & Maintenance 128,015 155,583 247,950 248,610 Capital Outlay 5,000 10,000 Toml $ 531.286 $ 747,834 $ 1,037,941$ 994.120 PUBLIC WORKS Personnel $ 635,981 $ 449,797 $ 681,785 $ 923,590 Operations & Maintenance 1,006,046 1,266,390 1,559,373 1,622,180 Capital Outlay 70,382 33,814 53,300 5,000 Total $ 1,712,409 $ 1,750,001 $ 2,294,458 $ 2,550,770 Program: CI~ Administration Personnel $ 448,809 $ 510,159 $ 611,394 $ 639,560 Operations & Maintenance 76,155 88,564 125,580 119,650 Capital Outlay 912 5,000 Total $ 525,876 $ 598,723 $ 736,974 $ 764,210 POLICE Personnel $ 20,000 $ 20,000 Operations & Maintenance $ 4,103,559 $ 4,385,095 5,081,765 5,615,120 Capital Outlay 30,980 116,615 33,609 9,000 Total $ 4,134,539 $ 4,501,710 $ 5,135,374 $ 5,644,120 Personnel $ 3,202 $ 39,888 $ 49,190 Operations & Maintenance $ 1,356,537 1,399,205 1,633,376 2,123,200 Capital Outlay 35,151 25,600 3,600 1,500 Total $ 1,391,688 $ 1,428,007 $ 1,676,864 $ 2,173,890 City of Temecula EXPENDITURE SUMMARY BY DEPARTMENT- GENERAL FUND (Cont'd) Four Year Comparison (Continued) ANIMAL CONTROL Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel Operations & Maintenance Capital Outlay $ 58,066 $ 35,699 $ 50,000 $ 45,000 Total $ 58,066 $ 35,699 $ 50,000 $ 45,000 NON-DEPARTMENTAL Personnel Operations & Maintenance Capital Outlay Operating Transfers Out $ 822,355 $ 880,972 $ 1,189,060 $ 1,470,020 2,709,675 3,408,872 7,574,700 4,250,000 $ 3,532,030 $ 4,289,844 $ 8,763,760 $ 5,720,020 Total General Fund Total $ 16,003.961 $ 18,291.923 $ 25,972.581 $ 25,042,795 City of Temecula EXPENDITURE SUMMARY BY FUND - COMMUNITY SERVICES DISTRICT Four Year Comparison Actual Actual Budgeted Proposed CITY-WIDE * FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 968,191 $ 1,124,006 $ 1,376,610 Operations & Maintenance 1,454,818 1,628,368 1,969,711 Capital Outlay 30,186 22,846 2,638 Total $ 2,453,195 5; 2,775,220 $ 3,348,959 $ SERVICE LEVEL A Personnel $ 22,858 $ 2,678 $ 2,790 $ Operations & Maintenance 171,917 194,303 216,447 Capital Outlay Total $ 194,775 $ 196,981 $ 219,237 $ SERVICE LEVEL B Personnel $ 27,678 $ 6,839 $ 7,230 $ Operations & Maintenance 244,224 280,124 300,770 Capital Outlay Total $ 271,902 $ 286,963 $ 308,000 $ SERVICE LEVEL C Personnel $ 90,956 $ 113,930 $ 98,920 $ Operations & Maintenance 441,958 440,037 507,400 Capital Outlay Operating Transfers Out Total $ 532,914 $ 553,967 $ 606,320 $ 1,426,330 2,012,650 10,500 3,449,480 2,850 278,950 281,800 7,430 343,410 350,840 119,490 497,420 616,910 * Does not include operating transfer to the Debt Service Fund. City of Temecula EXPENDITURE SUMMARY BY FUND - COMMUNITY SERVICES DISTRICT Four Year Comparison (Continued) SERVICE LEVEL D Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 16,575 $ 43,846 $ 43,170 Operations & Maintenance 1,839,594 1,754,111 2,081,860 Capital Outlay Total $ 1,856,169 $ 1,797,957 $ 2,125,030 $ 44,680 2,233,010 2,277,690 SERVICE LEVEL R Personnel Operations & Maintenance Capital Outlay Total 15,523 $ 9,940$ 19,220$ 13,230 $ 15,523$ 9,940$ 19,220$ 13,230 DEBT SERVICE Personnel Operations & Maintenance Capital Outlay Total $ 502,863 $ 501,600 $ 502,620 $ $ 502,863 $ 501,600 $ 502,620 $ 501,980 501,980 City of Temecula EXPENDITURE SUMMARY BY FUND - INTERNAL SERVICE FUNDS Four Year Comparison Actual Actual INSURANCE FY 1995-96 FY 1996-97 Personnel $ 25,534 $ 27,984 $ Operations & Maintenance 357,044 452,579 Capital Outlay Total $ 382,578 $ 480,563 $ VEHICLES Personnel Operations & Maintenance $ 53,136 $ 46,914 $ Capital Outlay Total $ 53,136 $ 46,914 $ INFORMATION SYSTEMS Personnel $ 77,787 $ 133,209 $ Operations & Maintenance 325,040 486,348 Capital Outlay Total $ 402,827 $ 619,557 $ SUPPORT SERVICES Personnel $ 29,503 $ 33,982 $ Operations & Maintenance 125,076 171,172 Capital Outlay Total $ 154,579 $ 205,154 $ FACILITIES Personnel $ 92,231 $ 108,667 $ Operations & Maintenance 218,128 241,788 Capital Outlay Total $ 310,359 $ 350,455 $ Budgeted FY 1997-98 30,340 $ 426,150 456,490 $ 66,000 $ 66,000 $ 141,170 $ 621,760 762,930 $ 46,810 $ 186,485 233,295 $ 142,570 $ 184,360 37,500 364,430 $ Proposed FY1998-99 31,780 415.850 447,630 95,610 95,610 178,190 632,670 810,860 51,500 177,980 229,480 165,120 197,670 37,500 400,290 City of Temecula EXPENDITURE SUMMARY BY FUND - REDEVELOPMENT AGENCY Four Year Comparison LOW/MODERATE INCOME SET ASIDE Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 19,027 $ 65,777 $ 205,720 Operations & Maintenance 79,302 664,458 1,125,860 Capital Outlay 4,000 Operating Transfers Out Total $ 98.329 $ 730,235 $ 1,335,580 $ CIP/REDEVELOPMENT Personnel $ 79,631 $ 136,249 $ 169,350 Operations & Maintenance 695,458 726,479 607,979 Capital Outlay 4,590 160,444 Operating Transfers Out Total $ 775.089 $ 867,318 $ 937,773 $ DEBT SERVICE Personnel Operations & Maintenance Capital Outlay $ 5,134,207 $ 5,312,902 $ 6,239,650 $ Total $ 5,134,207 $ 5,312,902 $ 6,239,650 $ 162,270 865,660 1.027.930 89,730 695,620 118,000 903,350 5,675,820 5,675,820 (This Page Intentionally Left Blank) C~y of Temecula CHANGES 1N FUND BALANCE BY FUND 1998-99 Revenues Other Sources: Operating Transfers In Total Revenues and Other Sources Expenditures (Appropriations) (1) Other Uses: Operating Transfers Out (2) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies (30% Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 Special Revenue Fund Redevelopment Agency General Gas Low/Moderate Capital Fund Tax Housing Projects $ 20,003,500 $ 827,000 $ 1,384,000 $ 368,000 $ 827,000 625,000 20,830,500 827,000 1,384,000 993,000 (20,792,795) (3,962,930) (%175,750) (4,250.000) (827,000) Debt Service 5,976,650 5,976,650 (5,050,820) (625,000) (4,212,295) (2,578,930) (8,182,750) 300,830 13,049,170 4,899,400 8,528.500 4.928,426 8,836,875 2,320,470 345,750 5,229,256 6,237,839 150,000 350,000 1,855,000 900,000 345,750 1,420,470 $ 244,036 $ $ $ $. 3,780,336 1,448.920 (1) Includes amounts budgeted for capital outlay through the capital improvement program. (2) General Fund Operating Transfers Out includes a $4,250,000 transfer to the City's Capital Projects Fund. The Capital Projects Fund is presented in the separate capital improvement program budget document. City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 (Continued) Revenues Other Sources: Operating Transfers In Insurance Vehicles $ 447,630 $ 95,610 $ Total Revenues and Other Sources Expenditures (Appropriations) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 Internal Service Funds Information Support Systems Services 841,660 $ 229,480 Facilities 382,670 447,630 95,610 841,660 229,480 382,670 (447,630) (95,610) (810,860) (229,480) (400,290) 1,345,947 253,462 1,345,947 253,462 30,800 (17,620) 420,193 161. 868 80,429 450,993 161,868 62,809 450.993 $ 161.868 $ 1,345.947 $ 253,462 62.809 City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 (Continued) Revenues Other Sources: Operating Transfers In City Wide Total Revenues and Other Sources Expenditures (Appropriations) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic U neertainty/C ontingencies Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 $ 3,632,610 $ 3,632,610 (3,449,480) (466,370) Community Services District Service Service Level A Level B 281,800 $ 313,840 Service Level C 591,180 281,800 313,840 591,180 (281,800) (350,840) (616,910) (283,240) (37,000) (25,730) 964,560 21,685 43,765 263,708 681,320 21,685 6,765 237,978 681,320 21,685 6,765 237,978 City of Temecula CHANGES IN FUND BALANCE BY FUND 1998-99 (Continued) Revenues Other Sources: Operating Transfers In Total Revenues and Other Sources Expenditures (Appropriations) Other Uses: Operating Transfers Out Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance/Equity, July 1, 1998 Fund Balance/Equity, June 30, 1999 Designations: Economic Uncertainty/Contingencies Continuing Appropriation Debt Service Reserves: Encumbrances Long-term Receivables Low/Moderate Housing Set Aside Debt Service Unreserved Fund Balance/Equity, June 30, 1999 Community Services District Service Level D 2,277,690 2,277,690 (2,277,690) Service Level R 12,880 12,880 (13,230) Debt Service 35.600 466,370 501.970 ~01,980) 166,038 166,038 050) 12,920 12,570 (10) 529,020 529,010 67,230 3,640 26,320 98.808 8.930 502.690 City of Temecula AUTHORIZED POSITIONS BY DF. PARTMF~NT Redevelopment Agency (3.00) Internal Services (5.85)~ Com mu nity Services~...~ , 1,,~~, ~, ~ ! !~ CIP Administration (6.35) City Council (5.00) cCity Manager (9.5) 1 ~.. ~/--C,t) Clerk (6.00) Public Works (14.25) ~ ~-~--~ -_ (32.90) TOTAL AUTHORIZED POSITIONS - 111.5 54 City of Temecula SUMMARY OF AUTHORIZED POSITIONS FY 1995-96 City Council 5.00 City Manager 7.00 City Clerk 5.50 Finance 9.00 Community Development Planning 10.90 Building and Safety 10.00 Land Development 8.00 Public Works 12.00 C[P Administration 5.00 Non-Departmental 0.00 Community Services 17.45 Internal Service Funds 4.65 Redevelopment Agency 1.10 Total Proposed Positions 96.0!) FY 1996-97 5.00 7.00 5.50 9.00 11.10 10.00 10.60 8.35 6.05 0.00 17.75 5.75 2.90 99.00 FY 1997-98 5.00 7.50 6.00 10.00 11.50 11.00 9.90 14.25 6.35 0.00 18.65 5.85 4.50 110.50 FY 199%98 5.00 9.50 6.00 10.00 12.00 11.00 9.90 14.25 6.35 0.00 18.65 5.85 3.00 111.50 55 (This Page Intentionally Left Blank) 56 City of Temecula GENERAL FUND OVERVIEW The following section is an expenditure summary and narrative account of the General Fund Operating Budget. The City functions have been categorized by department and operating program and are presented in the following order: DEPARTMENT City Council City Manager City Attorney City Clerk Finance Community Development Planning Building and Safety Land Development/Engineering Public Works Police Fire Animal Control Non-Departmental 57 City of Temecula DEPARTMENT: CITY COUNCIL Expenditure Summary Personnel $ Operations & Maintenance Capital Outlay Total $ Actual FY 1995-96 62,938 $ 150,356 213,294 $ Funding Source: Actual FY 1996-97 Budgeted FY1997-98 $ 63,27O 208,340 62,674 179,168 241,842 $ 271.610 GeneralFund Proposed FY1998-99 $ 69,580 208,560 $ 278,140 Program: Community Support Expenditure Summary Personnel Operations & Maintenance Capital Outlay Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 $ 128,515 $ 209,506 $ 376,023 GeneraFund Proposed FY1998-99 $ 368,000 Total $ 128,515 $ 209,506 $ 376,023 $ 368,000 Personnel Allocation Councilmember Total Authorized Proposed Recommended 1997-98 Changes 1998-99 5-8 City of Temecula DEPARTMENT SUMMARY - CITY COUNCL Program: City Council MISSION: The City Council is elected by the citizens of Temecula to set legislative policy and to identify the types and levels of programs and services to be provided by the City. 1997-98 ACCOMPLISHMENTS: · Attracted and approved a regional mall. · Expedited traffic improvements throughout the City. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: OBJECTIVES: PROVIDE A SAFE, SECURE, CLEAN, HEALTHY, AND ORDERLY COMMUNITY BY BALANCING THE UTILIZATION OF OPEN SPACE, PARKS, TRAIL FACILITIES, QUALITY JOBS, PUBLIC TRANSPORTATION, AND ADEQUATE INFRASTRUCTURE. Encourage recreational and educational programs for all age groups. Preserve natural resources while stimulating technology and promoting commerce. Adopt City Ordinances using sound fiscal policy. Enhance and revitalize historic areas. Provide clear policy direction to City staff in programs and services to be offered by the City of Temecula. Adopt policies and procedures using legislative action which is consistent with City goals. Encourage local job creation through retention and attraction efforts. ENHANCE COMMUNICATION TO ENSURE THAT CITIZENS ARE WELL INFORMED ON COMMrUNITY ISSUES. Submit to media a quarterly Mayor's Letter to the Editor to inform the citizens about City programs and accomplishments. Provide a City Council hotline whereby citizens can call and provide feedback on specific City issues. IMPROVE THE CITY'S INFLUENCE IN INTERGOVERNMENTAL AFFAIRS. Lobby State legislators to ensure they support positions that further the City's interest. Lobby Federal legislators to obtain Federal funds for the City's transportation systems upgrades. Continue City Council member attendance and participate on local, regional statewide and national boards and commissions. 59 City of Temecula DEPARTMENT SUMMARY - CITY COUNCIl. Program: City Council (Continued) PERFORMANCE MEASURES: Number of Mayor's Letters to the Editor Number of City Council Hotline calls processed Number of published traffic newsletters Actual FY 1996/97 506 Estimated FY 1997/98 250 Projected FY 1998/99 3OO 60 City of Temecula DEPARTMENT SUMMARY - CITY COUNCIL Program: Community Support MISSION: The Community Support program is responsible for funding various special programs within the City, such as the Community Service Funding Program, Library funding, Sister Cities and Temecula Educational Apprenticeship Model. It also funds the Temecula Valley Arts Council and the Temecula Valley Playhouse providing cultural events to the community. 1997-98 ACCOMPLISHMENTS: · Expanded hours of operation for the Temecula library. · First City delegation sent to sister city, Nakayama, Japan. GOAL 1: '~- OBJECTIVE: FUND LOCAL NON-PROFIT ORGANIZATIONS WHICH PROVIDE TIlE CITIZENS OF TEMECULA CULTURAL EVENTS, NEEDED SERVICES OR EDUCATIONAL SUPPORT FOR THE COMMUNITY. Initiate a new funding formula which commits to 0.75 % of the general fund budget to the Community Services Funding Program. PERFORMANCE MEASURES: Number of organizations funded Total funding for organizations/community Percent of General Fund budget used for funding non-profit community based organizations Actu~ Estimated Prqiected FY1996/97 FY 1997/98 FY 1998/99 22 28 30 $140,000 $303,000 $368,000 .86% 1.70% 1.77% 61 City of Temecula DEPARTMENT SUMMARY- CITY MANAGER I GENERAL ADMINISTRATION CITY MANAGER Ronald E. Bradley ASSISTANT CITY MANAGER (OPEN) ASSISTANT TO THE CITY MANAGER Grant Yates I HUMAN RESO~CES I EMERGENCY MANAGEMENT I ECONOMIC DEVELOPMENT Public Information Intergovernmental Public Relations Animal Control Benefits Employment Training Employee Relations Preparedness Coordination Training Emergency Operations Center (EOC) Business Attraction Business Retention Marketing Labor Development 62 City of Temecula DEPARTMENT: CITY MANAGER (Continued) Actual Expenditure Summary FY 1995-96 Personnel $ 357,723 $ Operations & Maintenance 96,195 Capital Outlay Total $ 453,918 $ Funding Source: Actual FY 1996-97 Budgeted FY 1997-98 374,140 $ 151,569 349,080 179,735 1,000 525,709 $ 529,815 General Fund Proposed FY 1998-99 $ 376,040 201,920 $ 577,960 Program: Economic Development Exoenditure Summary Personnel Operations & Maintenance Capital Outlay Actual FY 1995-96 Funding Source: Actual FY 1996-97 $ $ $ Total $ $ $ Budgeted FY 1997-98 General Fund Proposed FY 1998-99 $ 194,950 535,125 $ 730.075 Program: Human Resources Expenditure Summary Personnel Operations & Maintenance Capital Outlay Total Actual FY 1995-96 $ 160,260 $ 98,097 $ 258,357 $ Funding Source: Actual FY 1996-97 187,765 115,169 Budgeted FY1997-98 $ 186,380 144,676 302,934 $ General Fund Proposed FY 1998-99 $ 194,830 150,130 331,056 $ 344,960 City of Temecula DEPARTMENT: CITY MANAGER (Continued) Personnel Allocation Authorized 1997-98 Proposed Chan~es Recommended 1998-99 City Manager Assistant City Manager Assistant to the City Manager Senior Management Analyst Management Analyst Executive Assistant Human Resources Specialist Human Resources Assistant Marketing Coordinator Office Specialist 1.00 0.00 1.00 1.00 0.50 1.00 1.00 1.00 0.00 1.00 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 0.00 1.00 1.00 1.00 1.00 0.50 1.00 1.00 1.00 1.00 1.00 Department Total 7.50 9.50 City of Temecula DEPARTMENT SUMMARY- CITY MANAGER Program: General Administration MISSION: The City Manager is appointed by the City Council to serve as the Chief Administrative Officer of the organization. The City Manager's Office coordinates the implementation of policy and programs established by the City Council. The City Manager provides overall direction to the administration of City programs and services; monitors animal control; implements inter-departmental programs for human resources, strategic planning, and emergency preparedness; and coordinates inter- governmental relations, lobbying and public relations efforts. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: OBJECTIVES: GOAL 4: OBJECTIVES: COORDINATE THE WORK EFFORTS OF ALL CITY DEPARTMENTS TO ACHIEVE CITY COUNCIL AND COMMUNITY GOALS. Conduct weekly staff meetings with all Department Directors to ensure work efforts are coordinated effectively. Conduct annual Department Director retreat to establish service level and program goals. Respond to all citizen complaints within a timely manner. COORDINATE AND PROVIDE TIMELY AND ACCURATE INFORMATION TO THE PUBLIC AND MEDIA REGARDING CITY EVENTS AND ACTIVITIES. Prepare timely press releases regarding City events and activities. Continue to have open communication with media regarding City programs. REPRESENT THE CITY'S INTERESTS IN INTER-GOVERNMENTAL AFFAIRS. Attend monthly Western Riverside Council of Governments Technical Advisory Committee Meetings. Encourage Department Directors or assigned staff to attend relevant intergovernmental meetings and report back on pertinent issues. UPHOLD TIlE CITY'S HIGH QUALITY IMAGE BY PROACTIVELY SUPPORTING EMPLOYEES IN MAINTAINING POSITIVE CITIZEN RELATIONS. Provide training to all employees on the importance of positive customer service and public relations efforts. Facilitate staff and City Council workshops to obtain public input regarding various City projects. 65 City of Temecula DEPARTMENT SUMMARY - CITY MANAGER Program: Human Resources MISSION: Human Resources is responsible for providing a comprehensive human resources program throughout the City. Responsibilities of Human Resources include the administration of recruitment; selection; equal opportunity; classification; salary; employee benefits; worker's compensation; discipline; training development; employee relations; and development and implementation of personnel policies. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: PROVIDE PROFESSIONAL SUPPORT TO ALL DEPARTMENTS IN TIlE AREAS OF RECRUITMENT, EMPLOYEE BENEFITS, WORKER'S COMPENSATION, DISCIPLINE AND LABOR RELATIONS. Maintain a six (6) week recruitment processing time line. Coordinate Employee Benefit Committee meetings and conduct annual open enrollment for benefits. Conduct monthly employee safety meetings to implement the City's injury and illness prevention program. Meet quarterly with employee group representatives to discuss areas of mnmal interest. PROVIDE PROFESSIONAL TRAINING OPPORTUNITIES FOR CITY EMPLOYEES. Publish a list of in-house training opportunities as determined by the C.I.T.Y. training committee. Proactively involve employees in training opportunities, both m-house and outside. Provide three (3) training days per year for each City employee. PERFORMANCE MEASURES: Number of recruitments conducted Percent of recruitments within a six-week time line Number of applications processed Number of Workers' Compensation claims processed Number of employee safety meetings Number of quarterly employee group meetings Number of training days provided per employee Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 35 30 30 90% 95% 95% 1,500 1,200 1,200 17 10 12 11 11 11 4 4 4 2.5 3.0 3.0 66 City of Temecula DEPARTMENT S UMMAR Y - CITY MANAGER Program: Emergency Management MISSION: In the event of emergency, the City Manager is the Disaster Director. The City Manager's Office implements, monitors, and coordinates the Standardized Emergency Management System and Emergency Operations Center. This office is also responsible to provide overall coordination, promote training, and monitor operational readiness within the finance, logistics, operations and plans sections of the emergency management organizational structure. The City Manager's office promotes increased preparedness of Temecula citizens to respond to disaster. 1997-98 ACCOMPLISHMENTS: · Successfully managed the opening of the City's Emergency Operation Center in response to flooding threats resulting from the 1998 winter storms. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVE: ENSURE ALL CITY EMPLOYEES ARE ADEQUATELY TRAINED ON HOW TO REACT AND WHAT ROLE TO ASSUME DURING AN EMERGENCY. Send employees through the County of Riverside's Planning/Logistics course. Continue to work through the emergency management committee to implement the updated Multi-Hazard Function Plan. Continue to train employees by simulating actual City disasters. INFORM/INVOLVE THE COMMUNITY IN THE CITY'S DISASTER PLANS. Coordinate with the Fire Department and the Neighborhood Watch Program to develop a plan to involve homeowners' associations with disaster preparedness plans. PERFORMANCE MEASURES: Number of employees trained in Emergency Management courses Number of meetings/training drills held Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 24 30 40 8 12 16 67 City of Temecula DEPARTMENT SUMMARY- CITY MANAGER Program: Economic Development MISSION: The Economic Development Program is responsible for maintaining a sound and diverse economic base for the City. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: ':' OBJECTIVES: GOAL 2: '~- GOAL 3: OBJECTIVES: DEVELOP A STRONG BASE OF CLEAN MANUFACTURING ACTIVITIES WHICH EMPLOYS A SKILLED LABOR FORCE AND CAN BE SUCCESSFULLY INTEGRATED INTO TEMECULA'S COMMUNITY CHARACTER. Attract and retain industry that complements Temecula's character and takes advantage of Temecula's location for ease of goods movement and corporate mobility. Encourage the growth and expansion of existing industry by providing high quality municipal services, facilities, and economic development assistance. Maintain a local regulatory environment that is favorable to clean industry. Provide technical assistance to industries that will be affected by new regional air quality regulations and other regional regulations. DIVERSIFY ~ ECONOMIC BASE TO INCLUDE A RANGE OF MANUFACTURING, RETAIL AND SERVICE ACTIVITIES, AND VINTNERS. Provide for industrial land uses which facilitate a variety of user types, including manufacturing space, storage and distribution, back office space and research and development space. Plan for land use and development patterns that allow succession of use and will adapt to Temecula's economic conditions. Promote development of properly located and well-designed commercial centers to meet the diverse service needs of the City. Promote retail and other support activities that provide a broader selection of high quality goods and services for residents, workers and tourists, including apparel, general merchandise, home furnishings and appliances. Use redevelopment powers and opportunities to enhance development opportunities. MAINTAIN AN ECONOMIC BASE TO PROVIDE A SOUND FISCAL FOUNDATION FOR THE CITY AS WELL AS QUALITY COMMUNITY FACILITIES AND HIGH SERVICE LEVELS. Encourage a pattern of development that balances revenue generating land uses in phase with other uses that have negative fiscal impacts. Encourage the growth or relocation of industries that generate local tax and employment advantages. 68 City of Temecula DEPARTMENT SUMMARY- CITY MANAGER Program: Economic Development (Continued) GOAL 4: OBJECTIVES: GOAL 5: GOAL 6: OBJECTIVES: Evaluate fiscal impacts of new development on an on-going basis and provide appropriate mitigation strategies. Take advantage of Temecula's regional capture of taxable sales and continue to establish Temecula as a retailing center along the Interstate 15 corridor. ESTABLISH A DIVERSE EDUCATION AND TRAINING AND JOB PLACEMENT SYSTEM WHICH WILL DEVELOP AND MAINTAIN A IHGH QUALITY WORK FORCE IN TEMECULA. Support economic development goals through a range of education and training activities. Establish a proactive periodic dialogue early in the planning process between the City and educational institutions, including school districts and community colleges, on issues related to the phasing of development, service standards and demands. Explore the potential for a comprehensive extension center through the University of California Riverside and/or the California State University system. PROMOTE THE ADVANTAGES TO BUSINESSES LOCATING IN TEMECULA, INCLUDING COST ADVANTAGES, AMENITIES, HOUSING, COMMUNITY ACTIVITIES AND CIVIC SERVICES. Target high quality businesses from the following industry categories; small to mid-sized; high-tech manufacturing and communication services; paper; plastics; health-related manufacturing services; and vineyards/vintners. Develop and maintain a marketing program to publicize the virtues of Temecula. Monitor the economic conditions in Temecula in comparison to other locations in California and throughout the nation to determine relative advantages. Track prospects and closures of businesses for relocations and expansions. Monitor the supply of housing in relation to the supply of jobs in terms of balancing area- wide jobs, households, worker earnings and housing expenses. Monitor existing businesses in Temecula. Upgrade retention programs and increase number of retention visits. Facilitate the establishment of a Work Force Development Center in Temecula to address the labor training needs of business and prepare the existing labor pool for the skills required by employers. DEVELOP TEMECULA AS A COMPREHENSIVE, RECOGNIZABLE TOURIST DESTINATION, WITH A RANGE OF ATTRACTIONS THROUGHOUT AND BEYOND TIlE SPHERE OF INFLUENCE. Increase the number of tourists visiting Temecula including overnight visits and increase attendance at all Temecula special events through a comprehensive marketing program. Continue cooperative efforts with the wine-making industry in the Temecula Valley to promote Temecula as a destination resort. 69 City of Temecula DEPARTMENT SUMMARY- CITY MANAGER Economic Development (Continued) Revitalize and enhance Old Town to expand its role in local tourism and to improve its attractiveness, accessibility, and economic vitality. F~nhance the City's image through development of cultural facilities, including performing arts and museums. PERFORMANCE MEASURES: Actual Estimated FY 1996/97 FY 1997/98 Number of leads 63 75 Number of relocation/expansion inquiries 475 500 Number of Retention Visits 28 120 Number of RFPs Submitted 11 11 Number of RFPs Awarded 5 5 Number of Business Relocations 7 3 Number of business expansions 7 2 Number of speculative buildings 3 9 Number of speculative buildings (approved, but have not started construction) 3 Number of tourism calls 16,125' Number of special event attendees 10% increase 1 32,000** 10% increase Projected FY 1998/99 75 50O 120 15 1 10% increase * Denotes 1996 calendar year. ** Denotes 1997 calendar year. *** Denotes 1998 calendar year. 70 City of Temecula DEPARTMENT SUMMARY - CITY A~ORNEY CITY COUNCIL CITY ATTORNEY Peter M. Thorson CITY MANAGER Ronald E. Bradley 71 City of Temecula DEPARTMENT: CITY ATTORNEY (Continued) Expenditure Summary Personnel Operations & Maintenance Capital Outlay Total Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 $ 238,456 $ $ 238,456 $ 402,479 $ 385,000 402,479 $ 385,000 General Fund Proposed FY 1998-99 City of Temecula DEPARTMENT SUMMARY- CITY ATTORNEY Program: City Attorney MISSION: The City Attorney serves as legal advisor to the City Council, City Manager, and the various City departments, commissions, committees, and boards. The City Attorney prepares and approves for legality the majority of proposed City ordinances, resolutions, contracts, and other legal documents. The City Attorney also represents the City in all litigation. GOAL 1: OBJECTIVES: PROVIDE SOUND LEGAL COUNSEL TO THE CITY COUNCIL, CITY MANAGER, AND CITY STAFF, COMMISSIONS, COMMITTEES AND BOARDS ON ALL MATTERS CONCERNING THE CITY AND ADMINISTRATION OF CITY POLICY. Render legal advice on all City matters to Council and staff in a manner that permits timely and appropriate action. Review and advise staff in a timely manner on court decisions and new laws that affect City operations. Advise and represent the City on litigation matters in a complete and timely fashion. Review all ordinances, resolutions, contracts and agreements in a complete and timely manner. PERFORMANCE MEASURES: Complete review of contracts and agreements within 10 working days of submittal Complete review of all City ordinances and resolutions within 7 working days of submittal Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 95 % 97 % 98 % 95 % 95 % 95 % 73 City of Temecula DEPARTMENT SUMMARY - CITY CLERK CITY CLERK/ DIR. OF SUPPORT SERVICES Susan W. Jones DEPUTY DIRECTOR OF SLIPPORT SERVICES Michaela Ballreich I CITY CLERK SUPPORT SERVICES Council Support Elections Legislative History Public Information Records Management Copy Center/Mail Room/ Receiving Information Systems Reception Services 74 City of Temecula DEPARTMENT: CITY CLERK (Continued) Actual Exoenditure Summary FY 1995-96 Personnel $ 242,706 Operations & Maintenance 104,904 Capital Outlay Total $ 347,610 Funding Source: Actual FY 1996-97 295,636 214,299 509,935 Budgeted FY1997-98 $ 350,750 244,190 3,954 $ 598,894 General Fund Proposed FY 1998-99 $ 386,650 247,210 3.000 $ 636.860 Personnel Allocation City Clerk/Director of Support Services Deputy Director of Support Services Records Coordinator Administrative Secretary Office Specialist Office Assistant Department Total Authorized 1997-98 1.00 1.00 1.00 0.00 2.00 1.00 Proposed Changes 0.1210 0.00 0.00 1.00 (1.00) 0.00 Recommended 1998-99 1.00 1.00 1.00 1.00 1.00 1.00 7.5- City of Temecula DEPARTMENT S UMMAR Y - CI~ CLERK Progam: City Clerk MISSION: Provide management, care and maintenance of all official City records; preparation for City Council and other official City meetings; record and finalize all City Council, Temecula Community Services District, Temecula Redevelopment Agency, Winchester Hills Financing Authority, Planning Commission and Public/Traffic Safety Commission minutes; prepare and administer all City Council agendas; prepare and certify all official City documents; and administer City elections and ballot measures related to City issues. Publish notices and ordinances as required by law and assist staff and public in researching information. 199%98 ACCOMPLISItMENTS: · Created uniform standards for agendas, resolutions, ordinances and other City forms. · Transferred all ordinances and resolutions since incorporation onto acid-free paper. · Scanned all ordinances and resolutions since incorporation onto the City's imaging system. · Trained all department administrative support staff to use the City Imaging System to retrieve City records. · Completed, implemented and trained City Staff on the Records Management Manual. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: PROVIDE APPROPRIATE SUPPORT TO THE CITY COUNCIL, CITY STAFF, AND THE COMMUNITY REGARDING THE TIMELY PROCESSING OF CITY DOCUMENTS. Prepare and distribute agenda packets to the City Council within 72 hours of all meetings. Record, transcribe, and finalize meeting minutes for City Council, Temecula Commnnity Services District, Redevelopment Agency, Winchester Hills Financing Anthority, Planning Commission and Public/Traffic Safety Commission within 14 days of meeting. Provide timely processing of ordinances and resolutions within one week of adoption. Process contracts and agreements within ten (10) days of City Council action. PROVIDE EFFICIENT MANAGEMENT OF ALL CITY RECORDS IN EASILY ACCESSIBLE FORMATS. Implement Records Management Program with all City Departments through use of the Records Management Manual, to ensure proper handling of inactive records and transfer to the Records Center. Complete document imaging of all City Council Agenda packets generated since the City's incorporation. 76 City of Temecula DEPARTMENT SUMMA RY - CITY CLERK Program: City Clerk (Continued) GOAL 3: OBJECTIVES: Continue scanning of all agendas, minutes, resolutions and ordinances as adopted. Ensure easy accessibility of records to City Staff as well as the public. CONDUCT SECOND ANNUAL VOTER REGISTRATION DRIVE, TO ASSIST IMPLEMENT A REGISTRATION DRIVE, TO ASSIST CITY RESIDENTS IN BECOMING REGISTERED VOTERS. Hold a "Register to Vote Day" for the City of Temecula. The City Clerk's Office will remain open until 9:00 p.m. to allow residents who commute, ample opportunity to register to vote. Send two additional employees of the City Clerk's Office to training for Deputy Registrars, so they can also register citizens to vote. PERFOP,3La. NCE MEASURES: Average time to f'malize meeting minutes Average processing time of ordinances and resolutions from adoption Average processing time of contracts and agreements from City Council action Number of citizens registered to vote Actual Estimated Projected FY 1996/97 FY 1997/98 FY !998/99 2 weeks 3 weeks 2 weeks 6 days 6 days 6 days 8 days 10 days 8 days 50 100 50 Program: Support Services MISSION: The Support Services Division provides internal support functions at City Hall and other City facilities. These functions include the Copy Center, Mail Room, Receiving, Main Reception, Main Switchboard and Information Systems services. 1997-98 ACCOMPLISHMENTS: Modified Xerox contract and exchanged equipment to better serve the needs of City Staff. Integrated and implemented a City-operated Audio-Video broadcast system from City Hall to broadcast City Council meetings. Created City's Web-Site for the Internet 77 City of Temecula DEPARTMENT SUMMARY - CITY CLERK Program: Support Services (Continued) 1997-98 ACCOMPLISHMENTS: · Installed a radio repeater at Fire Station 84 to improve overall communications with City staff and facilities. · Installed a &qts and communication link between City Hall and the Temecula Community Center. · Installed a remote access server to the City's Network to allow City staff to access the City's Network offsite. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: ENSURE THAT CITY FACILITIES ARE APPROPRIATELY EQUIPPED WITH TltE NECESSARY EQUIPMENT TO MEET THE CITY'S INFORMATION SYSTEM NEEDS. Conduct on-going needs assessments and research in conjunction with the Information Systems Management Task Force; and perform analysis regarding project feasibility, equipment utilization, project development and cost. Distribute and implement newly developed Information Systems Manual, outlining policies, procedures, and standards relating to Information System programs. Replace computer hardware and software as required (within budgetary guidelines) and ensure all software complies with the Year 2000. CONVERT TO WINDOWS95 AND THE MICROSOFT OFFICE PROFESSIONAL APPLICATION AND ENSURE THAT CITY STAFF IS PROPERLY TRAINED TO MAKE THIS CHANGE AS SMOOTH AS POSSIBLE. Complete specific on-site training for Windows95 and Microsoft Office Professional Snite applications. OBJECTIVES: GOAL 4: 4. OBJECTIVE: GOAL 5: OBJECTIVES: Utilize the Information Systems PC User Group to provide peer suppert of applications. INSTALL AN ON-SITE WEB SERVER TO SUPPORT THE CITY'S INTERNET SITE. Make available to the community information about the City Council, City programs, services and administration. DEVELOP A WORK PLAN AND COMMITTEE TO IMPLEMENT A "SMART COMMUNITY PILOT PROGRAM". Work with University of California Riverside to develop a work plan and implement this program. PROVIDE QUALITY CUSTOMER SERVICE TO ALL USERS. Utilize the Information Systems Management Task Force to identify internal customer needs, priorities and resources to meet service demands. 78 City of Temecula DEPARTMENT SUMMARY- CITY CLERK Program: Support Services (Continued) GOAL 6: OBJECTIVES: GOAL 7: OBJECTIVES: GOAL 8: OBJECTIVES: Communicate priorities and resources available to employees who request Information Systems services. IMPLEMENT THE STRATEGIC PLAN DEVELOPED FOR PROVIDING INFORMATION SYSTEMS SUPPORT TO TH~ CITY HALL COMPLEX AND ALL SATELLITE CITY LOCATIONS CURRENTLY BEING SERVED. Distnt>ute and implement the written plan, prepared in conjunction with the Information Systems Management Task Force, to address annual and long-term needs. Facilitate meetings with the PC User's Group, Sierra Committee and GIS Committee, to determine current and projected needs by department. PROVIDE THE MOST EFFICIENT DUPLICATING EQUIPMENT AT THE BEST PRICE TO REDUCE STAFF TIME AND INCREASE PRODUCTIVITY Carefully analyze the effectiveness and efficiency of duplication and other equipment anti recommend cost-effective replacements as new technologies emerge. Provide prompt and efficient duplicating services to all of the City departments. Provide training to individuals on specialized copy equipment to maximize the benefits of high-tech equipment, such as the color copier and high-speed copiers. PROVIDE TIMELY PICK UP AND DELIVERY OF ALL OUTGOING AND INCOMING MAIL TO SERVE TItE CITY HALL STAFF EFFECTIVELY. Maintain consistent schedules and promptly communicate any changes in the schedules to assist City Staff in meeting deadlines for mailing of time-sensitive correspondence. Assist in the preparation and when necessary delivery of all overnight documents or packages to special delivery carriers, such as Federal Express, UPS, etc. PERFORMANCE MEASURES: Number of computers repaired/replaced Number of computer training days offered each year Number of information systems requests responded to Number of black and white copies made monthly Number of color copies made monthly Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 53 35 40 36 43 45 N/A 1,700 1,800 274,677 300,000 350,000 28,601 50,000 100,000 79 City of Temecula DEPARTMENT SUMMARY- FINANCE DIRECTOR OF FINANCE Genie Roberts ASST. FINANCE DIRECTOR Tim K. McDermott FINANCE OPERATIONS FINANCE MANAGEMENT SEI~OR MGMT. ANALYST FINANCE SUPPORT SERVICES Accounts Payable Accounts Receivable Payroll General Ledger Maintenance Operating Budget Financial Reporting Cash & Investments Contract Administration Capital Improvement Program Budget Risk Management Purchasing Business Licensing Cashiering Community Development Block Grant 80 City of Temecula DEPARTMENT: FINANCE (Continued) Expenditure Summary Personnel Operations & Maintenance Capital Outlay Total Actual FY 1995-96 $ 459,943 $ 249,022 $ 708,965 $ Funding Source: Actual FY 1996-97 504,657 252,928 757,585 Budgeted FY1997-98 $ 616,240 317,319 888 $ 934,447 General Fund Proposed FY 1998-99 $ 649,2~ 304,720 6,000 $ 959,920 Personnel Allocation Director of Finance Assistant Finance Director Senior Management Analyst Senior Accountant Accountant Administrative Secretary Accounting Specialist Purchasiag Specialist Accounting Assistant Department Total Authorized 1997-98 1.00 1.00 0.75 1.00 1.00 0.75 2.50 1.00 1.00 10.00 Proposed Changes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recommended 1998-99 1.00 1.00 0.75 1.00 1.00 0.75 2.50 1.00 1.00 City of Temecula DEPARTMENT SUMMARY- FINANCE Program: Finance Operations and Management MISSION: The Finance Operations and Management Program is responsible for managing the City's financial operations in accordance with estabhshed fiscal policies. Primary responsibilities include cash and investments management, financial reporting, preparation of the Annual Operating Budget, internal audit, payroll, accounts payable, accounts receivable, financial oversight, and administration of all City funds and accounts. Additionally, the department admimsters the public safety contracts of police and fire. 1997-98 ACCOMPLISHMENTS: Received awards from the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) for excellence in financial reporting for the City's Comprehensive Annual Financial Report. · Received awards from CSMFO and GFOA for excellence in operational budgeting for the City's 1997-98 Annual Operating Budget. · Received an unqualified audit opimon. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVE: GOAL 3: OBJECTIVES: PROVIDE COMPREHENSIVE AND METICULOUS GENERAL ACCOUNTING SYSTEMS TO ENSURE THE CITY OF TEMECULA MAINTAINS A SOUND FINANCIAL CONDITION. Manage the City's investment portfolio with the safety of principal as the primary objective and return on investment as the secondary objective, while maintaining liquidity to meet the City's obligations. Provide timely and accurate weekly check runs for accounts payable and bi-weekly processing of payroll. Provide timely and accurate fmancial reports, including the Comprehensive Annual Financial Report (CAFR) for the decision makers and operating departments. Continue to prepare the City's CAFR, obtain an unqualified audit opinion, and comply with the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) award criteria. PROVIDE A SOUND HNANCIAL PLAN FOR THE CITY THROUGH THE BUDGET PROCESS. Prepare an Annual Operating Budget which complies with the California Society of Municipal Finance Officers (CSMFO) and Government Finance Officers Association (GFOA) award criteria. PROVIDE CONTRACT COORDINATION AND OVERSIGHT OF THE CITY'S POLICE AND FIRE SERVICES CONTRACTS WITH RIVERSIDE COUNTY. Negotiate annual service contracts that provide the City with the highest level of services at the best possible cost. Ensure that police staffmg meets the City's goal of one (1) officer per 1,000 citizens. 82 City of Temecula DEPARTMENT SUMMARY- FINANCE Program: Finance Operations and Management (Continued) PERFORMANCE MEASURES: Percentage of bank reconciliations performed before the close of the subsequent month Invoices processed per year Number of payroll checks/direct deposits processed per year Number of CSMFO and GFOA award winning CAFR documents prepared (with unqualified opinions) Number of management letter comments as a result of City's annual audit Number of CSMFO and GFOA award winning operating budgets prepared Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 100% 100% 100% 10,823 11,900 13,200 3,600 4,400 5,000 1 1 1 0 1 0 1 1 1 83 City of Temecula DEPARTMENT S UMMAR Y - FINANCE Program: Finance Support Services I~HSSION: The Finance Support Services Program is responsible for preparation of the Capital Improvement Program (CIP) budget document, Risk Management, Purchasing, Business Licensing, Cotra~m~.ity Development Block Grant administration, and other Finance Support related projects. 199%98 ACCOMPLISHMENTS: Received the award for excellence in capital budgeting from the California Society of Municipal Finance Officers (CSMFO) for the City's 1998-2002 Capital Improvement Program budget. · Successfully implemented a new business license software program to improve reporting capabihties, efficiency, and customer service. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: OBJECTIVES: GOAL 4: OBJECTIVES: PROVIDE A COMPREHENSIVE CAPITAL IMPROVEMENT PROGRAM FOR THE CITY THROUGH THE CIP BUDGET PROCESS. Prepare a Capital Improvement Program document which qualifies for annual budget awards from the California Society of Municipal Finance Officers. Work with each department individually and in workshops to ensure completeness anti consistency throughout the CIP process. MINIMIZE CITY LIABILITY THROUGH THE PROPER ADI~HNISTRATION OF THE RISK MANAGEMENT PROGRAM. Conduct quarterly field inspections of right-of-way and parks with the Insurance Carrier's Loss Control Administrator. Conduct a preliminary review of all risk management claims within i0 calendar days of receipt. Update the Risk Management Policy Manual and Safety Manual annually for use by City staff. ENSURE A CUSTOMER SERVICE ORIENTED PURCHASING OPERATION WHICH PROVIDES SUPPORT FOR ALL CITY PURCHASES. Process 90 % of all purchase requests within 48 hours of receipt. Assist City Staff in the preparation and review of Requests for Proposals (RFPs) and Requests for Qualifications (RFQs). PROVIDE AN EFFECTIVE BUSINESS LICENSE PROGRAM WlllCH ENCOURAGES 100% PARTICIPATION BY CITY BUSINESSES. Process 90% of all new hcense applications within 5 working days. 84 City of Temecula DEPARTMENT S UMMAR Y - FINANCE Program: Finance Support Services (Continued) Process 95 % of all business license renewals by February 28th each year. Identify all businesses requiring licenses and ensure they become licensed within one month of identification. PERFORMANCE MEASURES: Number of business licenses issued New license applications processed within 5 working days Percent of business license renewals processed by February 28th Number of purchase orders processed Percent of purchase orders processed within 48 hours of receipt Percent of claims processed within 10 days of receipt Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 3,900 4,500 5,200 95 % 95 % 95 % 90 % 90 % 95 % 2150 2200 2300 95 % 95 % 95 % 100% 100% 100% 85 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT PLANNING MANAGER Debbie Ubnoske CURRENT PLANNING ~V~CE PLANNING COMMUNITY DEVELOPMENT DIRECTOR Gary Ihornhill I BUILDING SERVICES CHIEF BUILDING OFFICIAL Tony Elmo I CODE ENFORCEN~NT delete box L~D DE\q~LOPMENT/ ENGINT~ERING -- Development Review -- Public Informahon General Plan Ordinance Development Specific Plans CEQA Management -- Building & Services -- Plan Check Processing -- Permit Issuance -- Sign Abatement -- Abandoned Vehicle -- Zoning Violahon -- Substandard Living -- Public Nuisance -- Permit Issuance -- Permits -- Plan Checks -- Map Recordation -- Development Inspection 86 City of Temecula DEPARTMENT: COMMUNITY DEVELOPMENT (Continued) Program: Planning Expenditure Summaiv Personnel $ Operations & Maintenance Capital Outlay Total $ Funding Source: General Fund Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 887,980 $ 1,027,220 613,375 525,730 82,300 10,000 658,329 $ 685,4454 288,515 279,037 2,070 964,501 $ 1,583,655 $ 1.562.950 948,914 $ Program: Building and Safety Actual Expenditure Summary FY 1995-96 Personnel $ 505,746 Operations & Maintenance 314,292 Capital Outlay Total $ 820,038 Funding Source: General Fund Actual Budgeted Proposed FY 1996-97 FY 199%98 FY 1998-99 $ 597,319 $ 718,783 $ 808,210 428,295 534,427 463,340 13,500 20.250 $ 1,025,614 $ 1,266,710 $ 1,291,800 Program: Land Development/Engineering Actual Expenditure Summaiv FY 1995-96 Personnel $ 403,271 Operations & Maintenance 128,015 Capital Outlay Funding Source: Actual FY 1996-97 Budgeted FY 1997-98 General Fund Proposed FY 1998-99 $ 592,251 $ 784,991 $ 735,510 155,583 247,950 248,610 5,000 10,000 Total $ 531.286 $ 747,834 $ 1,037,941 $ 994,120 City of Temecula DEPARTMENT: COMMUNITY DEVELOPMENT (Continued) -Personnel Allocation Authorized 1997-98 PLANNING Community Development Director Planning Manager Senior Planner Associate Planner Development Processing Coordinator Assistant Plaxruer Community Development Technician Administrative Secretary Community Development Aide Office Assistant 1.00 1.00 1.00 1.50 1.00 1.00 2.00 1.00 1.00 1.00 Total 11.50 BUILDING & SAFETY Chief Building Official Senior Building Inspector Plan Checker Building Inspector 1I Code Enforcement Officer Community Development Technician Building Inspector I Administrative Secretary Office Specialist 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 Proposed Changes 0.00 0.00 1.00 (0.50) 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recommended 1998-99 1.00 1.00 2.00 1.00 1.00 1.00 2.00 1.00 1.00 1.00 12.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 Total 11.00 0.00 11.00 City of Temecula DEPARTMENT: COMMUNITY DEVELOPMENT (Continued) Personnel Allocation Authorized 1997-98 Proposed Changes Recommended 1998-99 LAND DEVELOPMENT Director of Public Works/City Engineer Deputy Public Works Director Senior Engineer Associate Engineer Permit Engineer Senior Public Works Inspector Assistant Engineer Public Works Inspector Community Development Technician Administrative Secretary Office Assistant 0.30 0.30 1.00 1.30 1.00 1.00 2.00 1.00 1.00 0.25 0.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.30 0.30 1.00 1.30 1.00 1.00 2.00 1.00 1.00 0.25 0.75 Total City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Current Planning MISSION: The Current Planning Program provides a variety of planning services to the community, including reviewing and processing of development proposals for conformance with City pohcies and regulations; implementation of the California Environmental Quality Act relative to development proposals; staff support services for the City Planning Commission and City Council; and assistance to the general public and applicants relative to planning information and application processing. 1997-98 ACCOMPLISHMENTS: · Adoption of a comprehensive Sign Ordinance · Adoption of an interim Adult Business Ordinance · Established an Electric Vehicle Charging Station Program and installed the first two charging stations at City Hall and the Sixth Street Parking Lot. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: PROVIDE FOR THE TIMELY PROCESSING OF PUBLIC HEARING APPLICATIONS WITHIN ESTABLISHED TIME LINES. Utilize pre-application meetings when possible to streamline the development review process. Utilize the "fast track" process for all projects meeting the "fast track" criteria. Schedule 90% of non-controversial public hearing cases before the Planning Commission one to two weeks after the application is deemed complete. Schedule 75% of Planning Director hearing cases within six weeks after deemed complete. Schedule 80% of public hearing cases before the Planning Commission £our to six weeks after the application is deemed complete. Schedule 80% of public hearing cases before the City Council four weeks after the project is heard by the Planning Commission. Schedule 100% of "fast track" cases before the Planning Commission the same day the application is deemed complete. Allow for concurrent processing of grading and building plans once an application is deemed complete. PROVIDE QUALITY CUSTOMER SERVICE. Respond to all calls received within the next half of a business day. Schedule meetings with applicants within two to four days after the initial request. Assist customers neecling assistance at the front counter within 15 minutes of arrival. 90 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Current Planning (Continued) Provide information requested to 95 % of the customers requiring assistance at the public information counter the same working day as the request is taken. Utilize the Development Processing Coordinator to facilitate small business development. Develop handbooks, brochures and handouts that explain the various development review processes. PERFORMANCE MEASURES: Number of public hearing cases submitted Number of pre-application meetings scheduled Number of applicants who use the "fast track" process A~u~ Estimated Pr~ected FY1996/97 FY1997/98 FY 1998/99 63 60 60 22 45 50 7 4 5 91 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Advance Planning MISSION: The Advance Planning Program is responsible for a variety of long-range planning issues affecting the community, including implementation and maintenance of the City's General Plan; preparation of special land use studies of concern to the City; and maintenance of vital demographic and physical information data. This program also provides support services to other departments/agencies, monitors various regional agencies and programs, and develops special projects in response to City Council direction. The purpose of the General Plan is to provide long-term vision and consistency for local development and infrastructure programs. 1997-98 ACCOMPLISHMENTS: · Approved the Promenade Mall and power center, including JC Penney, Robinsons-May, Sears, a major theater complex, and another major tenant totaling 1 .'7 million square feet of retail and commercial space. · Approved Winchester Meadows Shopping Center totaling 144,000 square feet of retail space. · Approved Winchester Marketplace to include a Mimi's Cafe, plus 144,000 square feet of retail space. · Approved the 90-room Temecula Valley Inn. · Approved a 8,900 square foot Marie Callenders Restaurant. · Approved 460,000 square feet of industrial buildings and 150,000 square feet of speculative industrial space. · Approved two new self- and recreational vehicle storage facilities. GOAL 1: ~s OBJECTIVES: GOAL 2: OBJECTIVES: ENSURE CITY INTERESTS ARE REPRESENTED ON VARIOUS REGIONAL AND INTER-JURISDICTIONAL ISSUES. Continue to staffprograms/projects such as the Margarita River Watershed Management Program, the Riverside County Habitat Conservation Plan, and the Multi-Species Plan. Coordinate all projects and efforts with the County of Riverside, City of Murrieta, Southern California Association of Governments, Western Riverside Council of Governments, Eastern Municipal Water District, and South Coast Air Quality Management District. CONTINUE TO IMPLEMENT THE CITY'S ADOPTED GENERAL PLAN ACCORDING TO THE REQUIREMENTS OF STATE LAW. Adopt an enhanced sign ordinance to maintain the community's high quality visual image, ensure a high quality business development, and provide appropriate signage for all local businesses. Adopt a new subdivision ordinance to improve the effectiveness and efficiency of the City's land subdivision process. 92 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DF, VELOPMENT Program: Advance Planning (Continued) GOAL 3: OBJECTIVES: GOAL 4: OBJECTIVES: Adopt ai~ quality mitigation measures for new development to support local clean air activities and regional air quality programs. UPDATE PORTIONS OF THE ADOPTED GENERAL PLAN TO ENSURE THAT THE PLAN CONTINUES TO PROVIDE ACCURATE GUIDANCE AND DIRECTION FOR LOCAL PLANNING ACTIVITIES AND MEET THE REQUIREMENTS OF STATE LAW. Update the Housing Element to ensure the provision for adequate housing opportunities in conjunction with the Regional Housing Needs Assessment Program. Update and maintain the accuracy of the Circulation Element and General Plan Traffic Model by ensuring that all land use amendments and changes in City- and area-wide development patterns are reflected. UNDERTAKE SPECIAL STUDIES, AS DIRECTED BY CITY COUNCIL, TO ACTIVELY PREPARE FOR THE FUTURE AND SATISFY THE COMMUNITY'S SPECIAL PLANNING NEEDS. Work with local property owners to develop and adopt a Southside Specific Plan to address changing circumstances along the Front Street corridor, south of Old Town, and to support the City's ongoing improvement and revitalization efforts in this area. Initiate a City Hall Master Plan Study to proactively address the City's long-term space and community facility needs. Imtiate a City-wide Geographic Information System (GIS) to make citywide physical data more usable to City government and the community. 93 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Building Services MISSION: The Building Services Program is responsible for enforcing the City's Building and Safety codes; performing plan checks on construction documentation to ensure that project proposals meet City codes; distn'buting plans for review by other agencies or City departments; issuing building permits a~er plans are completed and corrected; completing f'mal inspections; and issuing certificates of occupancy. The program also performs special respections; implements certain state laws such as the Unreinforced Masonry Building Law; is responsible for updating Building and Fire codes required by the State of California (including local amendments): and for providing guidance to the general public and development community regarding the Uniform Building Codes and project applications. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: g' OBJECTIVES: PROVIDE COMPREltENSIVE PLAN REVIEW FOR COMPLIANCE ~VITH FEDERAL, STATE, AND LOCALLY MANDATED BUILDING RELATED CODES FOR ALL NEW AND REMODEL PERMIT APPLICATIONS. Provide initial plan review comments and conditions within 12 working days from the date of submittal. Provide a re-review of initial comments and conditions in a 5 to 7 working day period. ENSURE THE TIMELY ISSUANCE OF BUILDING CONSTRUCTION RELATED PERMITS. Fully utilize the City's permit issuance and tracking computer software in the processing and issuance of building related permits. Maintain an efficient departmental communication network for obtaining final approval for building permit issuance. PERFORM BUILDING INSPECTIONS IN AN EFFICIENT AND TIMELY MANNER FOR ALL TYPES OF BUILDING CONSTRUCTION WITHIN THE CITY. Respond to inspection requests within 24 hours of receipt. Perform approximately 30,000 combination inspections on building related permits. 94 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Building Services (Continued) GOAL 4: OBJECTIVES: PROVIDE RESPONSIVE ASSISTANCE TO THE PUBLIC. Provide construction related information for the public as an "over the counter" service. Ensure inspectors have time allocated to respond to customer questions. Provide informational site inspections to homeowners performing home projects. Maintain an adequate inventory of current construction standard handouts and current code documents for public review. Conduct bi-annual workshops for active developers within the City. Address customer concerns and complaints within three (3) days of receipt. PERFORMANCE MEASURES: Percent of initial plan reviews within 12 working days Percent of residential plan re-review within 5-7 working days Percent of commercial plan re-review within 7-10 working days Number of building related permits issued Number of combination building inspections performed Number of Certificates of Occupancy inspections performed Provide bi-annual workshops for active developers within the City Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 100% 100% 100% 100% 100% 100% 100% 100% 100% 1,058 1,052 1,200 26,149 26,500 30,000 109 100 225 2 3 3 95 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Code Enforcement MISSION: The Code Enforcement Program is responsible for managing, directing, planning, and coordinating all code enforcement activities for the City; and for making administrative decisions and interpretations regarding inconsistencies or conflicts related to various ordinances and regulations on behalf of the City. This program plays a vital role in assisting the City Attorney in land use by providing documentation, photographs, and witnesses. The Code Enforcement Officer coordinates related enforcement activities with other City and County agencies, departments, and groups; prepares correspondence and reports on sensitive cases; and maintains standard workload measures. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: GOAL 3: GOAL 4: OBJECTIVES: ENSURE A SAFE, DECENT AND ATTRACTIVE ENVIRONMENT FOR RESIDENTS, BUSINESSES AND VISITORS AND TO PRESERVE AND UPGRADE THE CITY'S HOUSING AND COMMERCIAL PROPERTIES. Maintain a three-day response time for addressing citizen-generated concerns on housing, health and safety, land use, public nuisance, animal control, and vector control matters. Contact complainants at the close of the case. PROVIDE AN EFFECTIVE CITYWIDE WEED ABATEMENT PROGRAM. Commence annual weed abatement activities Citywide by May 1 and complete program activities in a timely manner. Complete weed abatement activities and obtain City Council confirmation of abatement cost assessments for timely recording on the following year's property lax rolls. PROVIDE RESPONSIVE ASSISTANCE TO THE PUBLIC. Ensure inspectors are allocated time to respond to public inquiries. Ensure information on land use and code enforcement is available to the public. MAINTAIN A RESPONSIVE PROGRAM FOR CONTROL OF VECTOR NUISANCES. Provide resource information to public within 24 hours of receipt for all citizen concerns. PERFORMANCE MEASURES: Percent of citizen-generated Code Enforcement concerns responded to within 3 working days Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 528 1,000 1,200 96 City of Ternecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Inspections MISSION: The Inspections program is responsible for the inspection of private development projects, construction within the public right-of-way exclusive of capital projects, and erosion control enforcement. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: OBJECTIVES: GOAL 4: OBJECTIVE: PERFORM INSPECTIONS IN AN EFFICIENT AND TIMELY MANNER. Respond to inspection requests within 24 hours of receipt. Protect the public safety through inspection and monitoring of traffic control installations during construction within the limits of the public right-of-way. MAINTAIN WATER QUALITY STANDARDS FOR RECEIVING WATERS TO CREEKS AND STREAMS THROUGH ENFORCEMENT OF ADEQUATE EROSION CONTROL MEASURES DURING CONSTRUCTION OPERATIONS. Provide continuous monitoring of construction activities to cause compliance with State and local requirements. PERFORMANCE MEASURES: Number of inspection requests received Number of inspections completed within 24 hours Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 26,149 26,500 30,000 100% 100% 100% 97 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT Program: Land Development Engineering MISSION: The Land Development/Engineering Program provides for the review and engineering approvals of all private development within the City to ensure compliance with City codes, ordinances and pohcies. 1997-98 ACCOMPLISltMENTS: To be provided later. GOAL 1: OBJECTIVES: PROPERLY ADMINISTER THE LAND DEVELOPblENT PROGRAM TO ENSURE COMPLIANCES WITH LOCAL, STATE, AND FEDERAL MANDATES. Ensure special design and construction projects are completexl witlfin specified time frames. Respond to other agency inquiries timely to resolve all issues. Ensure construction comphance throughout the community on land development projects. 98 City of Ternecula DEPARTMENT SUMMARY- PUBLIC WORKS DIRECTOR OF PUBLIC WORKS/ CITY ENGINEER Joe Kicak DEPUTY DIRECTOR Ron Parks -- I I I TRAFFIC ADMINISTRATION/ MAINTENANCE ENGINEERING SPECIAL PROJECTS CAPITAL PROJECTS ADMINISTRATION LAND DEX,~ELOPM ENT/ ENGINEERING* Pavement -- Traffic -- City/Council Management Commission Coordinating Signing/Striping -- Traffic Census Committees Tree Trimming -- Traffic Device -- FEMA Projects/ Weed Abatement Inventory Floodplain Drainage Channels -- Speed Surveys Administration Special Events -- Traffic Signal -- Non-CIP Graffiti Removal Maintenance Design Projects Contract -- Traffic Signal -- Assessment Administration Timing Districts Public Service -- Traffic Analysis -- Development Requests Investigation Review -- Public Service -- Other Agency Requests Review Project Development Grant Application Plans & Specifications Requests for Proposals/ Public Bidding Construction Mglnt Construchon Inspection -- Permits -- Plan Checks -- Map Recordation -- Development Inspection *The budget for this program is reflected in Cornrnunity Development. 99 City of Temecula DEPARTMENT: PUBLIC WORKS (Continued) Actual Expenditure Summary FY 1995-96 Personnel $ 635,981 $ Operations & Maintenance 1,006,046 Capital Outlay 70,382 Total $ 1,712,409 $ Funding Source: Actual FY 1996-97 449,797 1,266,390 33,814 1,750,001 Budgeted FY 1997-98 $ 681,785 1,559,373 53,300 $ 2,294,458 General Fund Proposed FY 1998-99 $ 923,590 1,622,180 5,000 $ 2,55O,77O Program: CIP Administration Expenditure Summary Actual FY 1995-96 Personnel $ 448,809 Operations & Maintenance 76,155 Capital Outlay 912 Total $ 525,876 Funding Source: Actual FY 1996-97 Budgeted FY 1997-98 510,159 88,564 611,394 125,580 598,723 $ 736,974 General Fund Proposed FY 1998-99 $ 639,560 119,650 5,000 $ 764,210 Personnel Allocation Director of Public Works/City Engineer Deputy Public Works Director Senior Engineer Maintenance Superintendent Associate Engineer Senior Public Works Inspector Assistant Engineer Management Analyst Administrative Secretary I_~ad Maintenance Worker Maintenance Worker Office Assistant Authorized 1997-98 0.70 0.70 2.00 1.00 1.70 1.00 4.00 0.50 0.75 3.00 3.00 2.25 Proposed Changes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recommended 1998-99 0.70 0.70 2.00 1.00 1.70 1.00 4.00 0.50 0.75 3.00 3.00 2.25 Total 20.60 0.00 20.60 City of Temecula DEPARTMENT SUMMARY- PUBLIC WORKS Program: Maintenance MISSION: The Maintenance program within the Public Works Department is responsible for all maintenance activities associated with the City's streets, drainage facilities, traffic control devices, street trees and parkways, graffiti removal, weed abatement, stenciling/striping, Pavement Management System, Service Order Requests, after hour call-outs, and special events. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: OBJECTIVES PROVIDE A COMPREltENSIVE MAINTENANCE PROGRAM FOR THE COlVIMUNITY. Respond to all service order requests within a 24-hour period. Ensure service requests requiring emergency repairs are completed within a 48-hour period. Remove graffiti within a 24-hour period. Implement a Pavement Management System which addresses a minimum of 85 % of all pavement projects. Restencil and inventory stencils Citywide routinely, and record restencil legends monthly. PERFORMANCE MEASURES: Number of service order responses Number of legends stenciled Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 336 400 600 2,228 2,500 2,500 101 City of Temecula DEPARTMENT SUMMARY- PUBLIC WORKS Program: Traffic Engineering MISSION: The Traffic Engineering Program provides staff for the Public Traffic/Safety Commission and is responsible for the collection and analysis of traffic volumes, accident reports, speed studies, and traffic device inventories. This program is also responsible for the maintenance and timing of all existing traffic signals, along with establishing future traffic signal priorities. 1997-98 ACCOMPLISItMENTS: To be provided later. GOAL 1: '~. OBJECTIVES: ENSURE OPTIMAL TRAFFIC CIRCULATION THROUGHOUT THE CITY THROUGH PROPER MAINTENANCE OF STREETS AND SIGNALS, AND MONITORING OF CONDITIONS TO IDENTIFY AREAS OF CONCERN. Conduct timely investigations of traffic incidents to identify potential preventive maintenance which could reduce occurrences. Maintain the Citywide traffic census program to account for all signals and to ensure all signals are in proper working order. Provide ongoing reviews of traffic conditions at major intersections to ensure optimal circulation. Review all construction plans timely to improve City traffic circulation. PERFORMANCE MEASURES: Average number of days to complete traffic investigations Percent of traffic signal timing reviews per year Average number of days to complete plan reviews Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/998 30 25 15 90% 100% 100% 21 14 14 102 City of Temecula DEPARTMENT SUMMARY- PUBLIC WORKS Program: Administration and Special Projects MISSION: The Administration Division is respons~le for providing coordination with other agencies and organizations involved in transportation, flood control, sanitary sewer, and water distribution. This Division represents the City at technical advisory committee meetings involving the Riverside County Transportation Commission and the Western Riverside Council of Governments in issues concerning federal funding, air quality, and congestion management. Additionally, the Division is involved in the Water Planning Task Force; the varions Santa Margarita Watershed groups; and the Joint Temecula/Murrieta Traffic Committee. The Administration Division also tracts division budgets, and coordinates all programs within the Public Works Department. 1997-98 ACCOMPLISHMENTS: To be provided later. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES PROVIDE A CENTRALIZED SUPPORT CENTER TO ENSURE THE EFFICIENT ADMINISTRATION OF ALL PUBLIC WORKS FUNCTIONS. Ensure all Public Works divisions comply with the adopted annual operating budget by tracking all purchase orders and expenditure reports. Process timely requests for information and/or Public Works inquiries within 72 hours. MAINTAIN ACTIVE PARTICIPATION IN REGIONAL GROUPS TO ENSURE COMPLIANCE WITH FEDERAL AND STATE MANDATES. Attend monthly Riverside County Transportation Technical Advisory Committee and Western Regional Council of Governments Technical Advisory Committee to ensure participation in all federal grant programs. Coordinate with the Regional Transportation Improvement Program (RTIP) in the administration of RTIP funding for Public Works projects. Communicate with federal agencies to ensure conformance with federally mandatexl regional policies. 103 City of Temecula DEPARTMENT SUMMARY- PUBLIC WORKS Program: Capital Improvement Program Administration MISSION: The Capital Improvement Program Administration and Construction Management Program is respons~le for preparing Requests for Proposals to secure professional services for design and construction of public works and park projects. This Division of the Public Works Department also reviews and approves all consultant plans; conducts the public bidding process; coordinates with other City Departments, utility companies and government agencies; and performs construction inspection. The Master Planning and Conceptual Design of all City parks is directed through the Temecula Community Services District and transferred to the Capital Projects Program for preparation of the plans and specifications, and for subsequent construction. 1997-98 ACCOMPLISltMENTS: To be provided later. GOAL 1: OBJECTIVES: GOAL 2: OBJECTIVES: PROVIDE TIMELY DESIGN AND CONSTRUCTION OF CIRCULATION, INFRASTRUCTURE AND PARK PROJECTS IDENTIFIED IN THE C1TY'S ADOPTED CAPITAL IMPROVEMENT PROGRAM. Update the Capital Improvement Program annually, including a comprehensive review of project conceptualization; initial cost estimates based on available and projected revenues; project timeliness; and project prioritization. Design and construct proposed projects within funding and time guidelines as set forth in the Capital Improvement Program document. PROVIDE A TURN-KEY CONTRACT MANAGEMENT OPERATION FROM PREPARING REQUESTS FOR PROPOSALS TO CONTRACT CLOSEOUT. Ensure timely and thorough preparation of Requests for Proposals. Ensure compliance with all requirements of the public bidding process. Provide timely review of plans and specifications. Maintain communication with all parties involved in Public Works projects. Provide timely and thorough inspections of construction projects. PERFORMANCE MEASURES: Total capital project costs incurred Total number of capital projects started Actual Estimated Pr~iected FY1996/97 FY1997/98 FY 1998/99 $15,352,400 $10,000,000 $49,588,300 13 10 18 104 City of Temecula DEPARTMENT SUMMARY - POLICE I POLICE ADMINISTRATION PATROL SERVICES POLICE CAPTAIN Pete Labahn I POLICE LIEUTENANT I I TRAFFIC SERVICES I COMMUNITY SERUCES I INVESTIG.&TI\'~ SERVICES -- Inveshgafions Administrative Support Volunteer Corps Reserve Police -- Patrol Operations -- Community Services Officer -- K-9 Unit -- Traffic Enforcement -- Special Event Planning -- Crime Prevention Unit -- School Resources Unit -- POP Team/ Satellite 105 City of Temecula DEPARTMENT: POLICE (Continued) Expenditure Summary Personnel Operations & Maintenance Capital Outlay Total Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 4,103,559 30,980 4,134,539 $ 20,000 4,385,095 5,081,765 116,615 33,609 4.501,710 $ 5,135,374 General Fund Proposed FY 1998-99 $ 20,000 5,615,120 9,000 $ 5,644,120 City of Temecula DEPARTMENT S UMMAR Y - POLICE Program: Police Administration MISSION: The City contracts with the Riverside County Sheriff's Department for police services. The Police Admimstration Program is responsible for providing leadership, direction, and general administrative support necessary for effective and efficient law enforcement. The program also includes budget coordination and management, personnel and payroll administration, planning, organizational development, and community support. Additionally, this program ensures cooperation between the Police Department and the City Manager, other departments, and City Council. The Police Administration Program is also responsible for overseeing volunteer support services, with an emphasis on office and logistics support. 1997-98 ACCOMPLISHMENTS: · Funded two sergeants and one police officer through law enforcement grants. · Expanded enforcement activities of the POP and School Resource Officers for prevention of juvenile drag, alcohol and tobacco use. · Added one part-time employee to assist in the storefront office in the City. · Began operation of the mobile command post, which was purchased with a Federal Grant. · Hosted the Second Annual Police Canine Trials where law enforcement agencies statewide participated. · Hosted the regional POP/COP Conference where more than 130 law enforcement personnel attended from neighboring counties. · Implemented a homeless assistance program, which assists with drag and alcohol assistance program enrollment, job training, and travel arrangements to be reunited with family members. · Implemented a Crime Free Multi-Housing Program designed to enhance safety at apartment complexes through education and crime prevention teclmiques. · Implemented an off-road vehicle enforcement program designed to target known problem areas in the City. · Implemented Trash Busters program, which is a cooperative effort whereby the City of Murrieta, City of Temecula, Police Explorers, Code Enforcement and waste management worked together to clear illegally dumped matedhals. GOAL 1: ~ OBJECTIVES: PROVIDE COMPREHENSIVE LAW ENFORCEMENT TO ENSURE A SAFE, CRIME-FREE ENVIRONMENT FOR TEMECULA CITIZENS. Provide Police Department representation at appropriate meetings. Ensure officer compliance with P.O.S.T. mandated training. Conduct ongoing recruitment of volunteers for the Police Department to support administrative operations, logistics program, and to assist law enforcement personnel at community events. 107 City of Temecula DEPARTMENT S UMMAR Y - POLICE Program: Police Administration (Continued) PERFORMANCE MEASURES Number of volunteers recruited Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 18 22 24 Program: Patrol Services ~HSSION: The Patrol Services Prograra provides first responders to law enforcement related public safety requests. Patrol Officers are responsible for maintaining safety and order in the community. Patrol staff includes general patrol, traffic, K-9, bicycle, motorcycle, and community service officers. Traffic Enforcement/Education services provide enforcement of traffic laws pursuant to the California Vehicle Code, investigate traffic collisions, and provide public education in the areas of bicycle and pedestrian safety. GOAL 1: OBJECTIVES: · ~. ENSURE EFFECTIVE AND EFFICIENT LAW ENFORCEMENT IN THE COMMUNITY. Consistently maintain a visible community law enforcement program. Respond to calls for service in a timely manner. © Enforce traffic laws to ensure public safety. PERFORMANCE MEASURES: Actual Number of general patrol officer hours provided per day Average response time for Priority 1 service calls Average response time for Priority 2 service calls Number of DUI arrests Number of Neighborhood Watch meetings attended per year Number of crime prevention workshops conducted per year Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 94 98.7 98.7 6.1 minutes 6.5 mmutes 6.5 minutes 10.9 minutes 11 minutes 11 minutes 171 175 200 21 22 23 20 20 20 108 City of Temecula DEPARTMENT SUMMARY - POLICE Program: Patrol Services (Continued) Number of residential security surveys conducted per year Number of business security surveys conducted per year Number of businesses visited per year Number of businesses visited per month for crime follow-up Number of news articles prepared per year on the business watch program Number of hours dedicated to graffiti prevention per year Number of new businesses visited per year 16 41 508 31 12 180hrs 48 24 50 300 40 12 180hrs 50 32 60 400 45 12 180 hrs 50 109 City of Temecuta DEPARTMENT SUMMARY- FIRE PREVENTION FIRE CHIEF Mike Brown I EMERGENCY RESPONSE Fire Prevention Fire Education Public Relations Planning/ Engineering Investigation Fire Suppression Emergency Medical Care Hazardous Materials 110 City of Temecula DEPARTMENT: FIRE (Continued) Funding Source: General Fund Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel Operations & Maintenance Capital Outlay $ 3,202 $ 39,888 $ $ 1,356,537 1.399,205 1,633,376 35,151 25,600 3.600 49,190 2,123,200 1.500 Total $ 1,391,688 $ 1,428,007 $ 1,676,864 $ 2,173,890 III City of Temecula DEPARTMENT SUMMARY- FIRE Program: Fire Prevention MISSION: Fire prevention functions include information, education, law enforcement, and planning/engineering. This includes numerous school and community educational programs. arson investigations and arrests, life and fire safety inspections of commercial businesses, and plans checks/field inspections for all new construction and building improvements to ensure life and fire safe environments for all citizens. 1997-98 ACCOMPLISHMENTS: · Added two permanent staff members to accommodate the increased workload occurring within the City. · Dedicated an inspector to the Public Oriented Policing (P.O.P.) Program. · Implemented an improved project tracking program. · Expanded the business fire and life safety inspection program. GOAL 1: OBJECTIVES: CONDUCT A FULL SERVICE, COMPREHENSIVE FIRE PREVENTION PROGRAM WITHIN THE CITY OF TEMECULA TO MAXIMIZE FIRE AND LIFE SAFETY FOR ALL RESIDENTS AND VISITORS. Educate citizens of all ages in proper life and fire safety practices. Maximize the fire and life safety environments in all commercial and assembly buildings in the City by conducting in-depth and accurate inspections. Provide accurate and timely plan checks and field inspections on all new and remodeled construction projects. Support needed fast tracking projects. Review annual statistics to evaluate prevention program performance and gain insight on how to improve the program. PERFORMANCE MEASURES: Number of business inspections Number of plan checks Number of Fire Prevention Bureau Inspections Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 1,432 2,225 2,300 924 1,150 1,350 1,379 1,700 2,200 112 City of TernecuIa DEPARTMENT S UMMAR Y - FIR E Program: Emergency Response MISSION: The Emergency Response Program is respons~le for handling all fire, life, and environmental emergencies within five (5) minutes utilizing highly trained and capable staff. 1997-98 ACCOMPLISHMENTS: · Opened Fire Station No. 84 (Parkview Fire Station). · Purchased and put into service the Cairns Iris Fire Helmets. · Completed personal computer upgrades. · Conducted a volunteer Firefighter I training academy. GOAL 1: OBJECTIVES: · :. TO GAIN THE COMMUNITY'S TRUST AND CONFIDENCE IN OUR ABILITY TO QUICKLY AND EFFICIENTLY HANDLE ALL EI~IERGENCIES. Respond to all emergencies within five minutes. Maintain all emergency vehicles in top mechanical condition. All personnel to be fully trained and certified at the highest current levels available. PERFORMANCE I~IEASURES: Average response times (minutes) Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 4.23 4.50 4.25 113 City of Temecula DEPARTMENT: ANIMAL CONTROL Exoenditure Summary Personnel Operations & Maintenance $ 58,066 $ Capital Outlay Total $ 58,066 $ Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 35,699 $ 50,000 35,699 $ 50,000 General Fund Proposed FY 1998-99 $ 45,000 $ 45.000 City of Temecula DEPARTMENT SUMMARY- ANIMAL CONTROL Program: Animal Control MISSION: The City contracts for animal control services with the Lake Elsinore Animal Friends (LEAF) who investigates reports of inhumane treatment of animals; responds to nnisance complaints and stray animal reports; issues citations as appropriate; issues quarantine orders in suspected or poss~le rabies cases; enforces dog and kennel licensing regulations; collects and impounds stray animals; investigates livestock diseases and zoonosis; collects specimens for laboratory analysis, and provides low cost rabies vaccination clinics for dogs. 1997-98 ACCOMPLISHMENTS: · Increased amount of dogs licensed in the City by 30 %. GOAL 1: OBJECTIVES: INCREASE PUBLIC AWARENESS OF ANIMAL CONTROL ACTIVITIES TO PROVIDE A SAFE ENVIRONBlENT FOR TESIECULA CITIZENS. Enforce animal ordinances and quarantine requirements to prevent an ootbreak of rabies. Prevent animal nuisances and uncontrolled breeding by educating the community on responsible animal ownership. Ensure a minimum of 80% of the dog population is vaccinated against rabies. Conduct animal educational programs at various elementary/middle schools throughout the City. PERFOR31ANCE MEASURES: Number of animal control educational programs conducted Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 4 6 12 115 City of Temecula DEPARTMENT: NON-DEPARTMENTAL Expenditure Summary Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 Personnel Operations & Maintenance $ 822,355 $ Capital Outlay Operating Transfers Out 2,709,675 Total $ 3,532,030 $ 880,972 $ 1,189,060 3,408,872 7,574,700 4,289,844 $ 8,763,760 General Fund Proposed FY 1998-99 $ 1,470,020 4,250.000 $ 5.720.020 City of Temecula DEPARTMENT SUMMARY- NON-DEPARTMENTAL Program: Non-Departmental MISSION: The Non-Departmental Program is a cost center for general administrative expenditures such as Sales Tax Reimbursements and Property Tax Administrative Fees. 117 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES DIRECTOR OF COMMUNITY SERVICES Herman Parker RECREATION SERVICES DEPUTY DIRECTOR OF COMMUNITY SERVICES (Vacant) I I DEVELOPMENT SERVICES MAINTENANCE SERVICES Youth & Adult Sports Special Events Volunteer & Cultural Services Teen & Recreational Services Senior & Human Services Park Acquisition Park Development Assessment Administration Development Review Solid Waste Administration Park Maintenance Median Maintenance Slope Maintenance Facility Maintenance 118 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) Funding Source: CITYWIDE * Actual Actual Expenditure Summary FY 1995-96 FY 1996-97 Personnel $ 968,191 $ 1,124,006 Operations and Maintenance 1,454,818 1,628,368 Capital Outlay 30,186 22,846 Total $ 2,453,195 $ 2,775,220 Special Tax Benefit Assessments General Fund Budgeted FY 1997-98 $ 1,376,610 $ 1,969,711 2,638 $ 3,348,959 $ Proposed FY 1998-99 1,426,330 2,012,650 10,500 3,449,480 SERVICE LEVEL A Exoenditure Summary Personnel Operations and Maintenance Capital Outlay Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 22,858 $ 2,678 171,917 194,303 Total $ 194,775 $ 196,981 $ 2,790 216,447 $ 219,237 $ 2,850 278,950 $ 281,800 SERVICE LEVEL B Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 27,678 $ 6,839 Operations and Maintenance 244,224 280,124 Capital Outlay Total $ 271,902 $ 286,963 * Does not include operating transfer to the Debt Service Fund. $ 7,230 300,770 $ 308,000 $ 7,430 343,410 $ 350,840 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) SERVICE LEVEL C Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 90,956 $ 113,930 $ 98,920 Operations and Maintenance 441,958 440,037 507,400 Capital Outlay Operating Transfers Out Total $ 532,914 $ 553,967 $ 606,320 $ 119,490 497,420 616,910 SERVICE LEVEL D Exoenditure Summary Personnel Operations and Maintenance Capital Outlay Total Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 16,575 $ 43,846 $ 43,170 $ 1,839,594 1,754,111 2,081,860 $ 1,856,169 $ 1,797,957 $ 2,125,030 $ 44,680 2,233,010 2.277,690 SERVICE LEVEL R Exoenditure Summary Personnel Operations and Maintenance Capital Outlay Total Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 15.523 $ 9,940 $ 19,220 $ 15,523 $ 9,940 $ 19,220 $ 13,230 $ 13,230 DEBT SERVICE Expenditure Summary Personnel Operations and Maintenance Capital Outlay Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 502,863 $ 501,600 $ 502,620 Total $ 502,863 $ 501,600 $ 502,620 $ 501,980 $ 501,980 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) Personnel Allocation Authorized 1997-98 CITYWIDE Director of Community Services Deputy Director of Community Services Maintenance Superintendent Development Services Administrator Recreation Superintendent Maintenance Supervisor Senior Landscape Inspector Recreation Supervisor Administrative Secretary Recreation Coordinator Maintenance Worker Office Assistant Custodian 1.00 1.00 0.70 0.75 1.00 0.95 0.40 2.00 1.00 3.00 1.00 2.10 1.00 Total 15.90 Proposed Changes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Recommended 1998-99 1.00 1.00 0.70 0.75 1.00 0.95 0.40 2.00 1.00 3.00 1.00 2.10 1.00 15.90 SERVICE LEVEL A Development Services Analyst 0.05 0.05 SERVICE LEVEL B Development Services Analyst Office Assistant Total 0.10 0.05 0.15 0.10 0.05 0.15 City of Temecula DEPARTMENT: COMMUNITY SERVICES (Continued) Personnel Allocation SERVICE LEVEL C Authorized 1997-98 Proposed Changes Recommended 1998-99 Maintenance Superintendent Maintenance Supervisor Senior Landscape Inspector Development Services Analyst Office Assistant 0.05 0.05 0.60 0.70 0.25 0.00 0.00 0.00 0.00 0.00 0.05 0.05 0.60 0.70 0.25 Total 1.65 1.65 SERVICE LEVEL D Development Services Administrator Development Services Analyst Office Assistant 0.25 0.15 0.50 0.00 0.00 0.00 0.25 0.15 0.50 Total Community Services Total 18.65 18.65 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services MISSION: The Recreation Services Program is responsible for providing a comprehensive, City-wide recreation program that meets the recreation and human service needs within the community. 1997-98 ACCOMPLISHMENTS: · Implemented a series of three concerts at Sam Hick's Monument Park. · Provided Citywide CPR/First Aid Training for all City staff. · Provided a minimum of six professional development opportunities for Recreation staff. · Expanded innovative recreational contract class opportunities, generating additional revenues. · Coordinated and implemented a regional Skate Board Competition at Temecula Skate Park. GOAL 1: OBJECTIVE: 0 DEVELOP AND IMPLEMENT A MARKETING PLAN FOR THE CITYWIDE VOLUNTEER PROGRAM. Increase community awareness of volunteers. Provide a minimum of 250 volunteer opportunities within the Police Department, Fire Department, Community Services Department, as well as City Hall. PERFORMANCE MEASURES: Number of volunteers serving the community Promote the volunteer program in the Recreation Brochure Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 100 150 250 0 0 2 GOAL 2: OBJECTIVE: · .~ INCREASE TIlE NUMBER OF EXCURSION OPPORTUNITIES OFFERED TO TEMECULA RESIDENTS. 0 Increase the number of excursion opportunities for all ages to a minimum of 15. PERFOR3IANCE MEASURES: Number of excursions provided by the Community Services Department Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 10 12 15 123 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services (Continued) GOAL 3: OBJECTIVE: DEVELOP AND IMPLEMENT A CITYWIDE SPECIAL EVENTS BANNER DISPLAY PROGRAM. Increase community awareness of Citywide special events by purchasing a minimum of four (4) banners promoting Citywide special events and displaying the banners in the main hallway of the Community Recreation Center prior to each event. PERFORbLS~NCE MEASURES: Number of outdoor banners for Special Event promotions Permanent Site Locations for Display Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 3 6 10 N/A N/A I GOAL 4: OBJECTIVE: · :° DEVELOP A "TEMECULA PRIDE" CAMPAIGN. Plan, program and implement a comprehensive campaign which educates and encourages Temecula residents to respect, enjoy, and to maintain their community. Special events, bumper stickers, special recognition awards are several suggested avenues for promotions. PERFORMANCE 5~ASURES: Number of events promoting "Temecula Pride" Number of "Temecula Pride" campaign promotional materials Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 2 N/A N/A 2 Program: Development Services MISSION: The Development Services Program is responsible for parksite acquisition and development, assessment engineering, development review, and solid waste administration. 1997-98 ACCOMPLISHMENTS: · Completed construction of the ADA Improvement Project · Began construction of Margarita Community Park. · Began construction of Winchester Creek Park. · Began design for an undercrossing at Santa Gertrudis Creek trail under Winchester Road. 124 City of Ternecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Program: Recreation Services (Continued) · Developed and implemented processes to address the impacts of Proposition 218. · Develol:~l and implemented dedication processes to ensure collection of energy fees. GOAL 1: OBJECTIVES: PROVIDE A COMPREHENSIVE AND BALANCED NEIGHBORHOOD AND COMMUNITY PARK SYSTEM THROUGHOUT THE CITY OF TEMECULA. Complete the construction of Margarita Community Park - Phase I. Complete the construction of Winchester Creek Park. Complete the construction of the Temecula Duck Pond - Phase II. Condition developers to provide park land to the community that meets City standards. PERFORMANCE MEASURES: Number of new City parks and facilities dedicated Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 3 0 3 GOAL 2: OBJECTIVES: GOAL 3: OBJECTIVES: EXPAND TIlE TRAILS ACQUISITION AND DEVELOPMENT PROGRAM. Construct the undercrossing facility at Santa Gertmalls Creek Trail under Winchester Road. Condition development projects for trail easements and/or improvements as appropriate. PROVIDE INNOVATIVE AND COMMUNITY RELEVANT PUBLIC EDUCATION WITH GOVERNMENT (PEG) PROGRAM31ING THROUGH CABLE FRANCHISE. Program a block of time during the weekend to broadcast local high school sporting events and other local events of interest to the community. Coordinate with Temecula Valley Unified School District. Appropriately program Community Bulletin Board. PERFORMANCE MEASURES: Number of televised local area events on PEG station Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 0 3 6 125 City of Temecula DEPARTMENT SUMMARY- COMMUNI~ SERVICES Program: Maintenance Services MISSION: The Maintenance Division is responsible for providing effective landscape and facility maintenance services to parks, slopes, medians, recreation facilities an City administrative offices. 1997-98 ACCOMPLISHMENTS: · Developed and implemented the Standby/Callout Program, which enables staff to respond to emergencies at any time of day or night. · Coordinated the cleanup, painting and lighting installation of the two City Monument Signs on Interstate 15. · Installed new carpet and interior and exterior paint at the Senior Center. · Replastered the Temecula Elementary School swimming pool. GOAL 1: OBJECTIVES: DEVELOP AND IMPLEMENT A SERVICE ORDER MANAGEMENT SYSTEM. Assess and improve customer service. Assess and improve contract services. Complete emergency repairs within 24 hours. Establish and implement a preventive maintenance program for City facilities. PERFOR3~IANCE MEASURES: Number of days to complete general maintenance items Average time to complete emergency repairs Percent of reduction unscheduled repairs Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 5 N/A N/A 24hrs N/A N/A 10% GOAL 2: OBJECTIVES: DEVELOP AND IMPLEMENT A COMPREHENSIVE MANAGEMENT SYSTEM FOR CITY FACILITIES. Establish effective key management system. Establish Citywide alarm monitoring system (Fire & Security) Train staff on operation of City Security System. SECURITY 126 City of Temecula DEPARTMENT SUMMARY- COMMUNITY SERVICES Maintenance Services (Continued) PERFORMANCE MEASURES: Staff trainings per year Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 N/A N/A 4 Program: Debt Service I~HSSION: The Debt Service Program is the operating budget for the Temecula Community Services District. Items budgeted include debt service principal and interest, propert), tax administrative fees, and pass-through agreements. 1997-98 ACCOMPLISHMENTS: · All debt service and related costs for the 1992 Certificates of Participation were made in a timely manner. GOAL 1: ENSURE TIMELY PAYMENT OF DEBT SERVICE AND RELATED COSTS. 127 City of Temecula DEPARTMENT SUMMARY- INSURANCE Funding Source: Charges to City, Community Service District, and Redevelopment Agency Actual Actual Budgeted Expenditure Summary FY 1995-96 FY 1996-97 FY 1997-98 Personnel $ 25,534 $ 27,984 $ 30,340 $ Operations and Maintenance 357,044 452,579 426,150 Capital Outlay Total $ 382,578 $ 480,563 $ 456,490 $ Proposed FY 1998-99 31,780 415,850 447,630 Personnel Allocation Senior Management Analyst Administrative Secretary Authorized Proposed Recommended 1997-98 Changes 1998-99 0.25 0.00 0.25 0.25 0.00 0.25 Sub-Total 0.50 0.00 0.50 Program: Insurance MISSION: The Insurance Fund is the cost center for the financing and accounting of the City's risk management and insurance functions. Costs reflected in the Insurance Fund include property, liability, automobile insurance, claims adjuster services, legal and other costs directly relating to claims, and potential litigation settlements. 1997-98 ACCOMPLISHMENTS: · Reduced claims administration costs due to internal review procexlures. Cost Allocation: Charges to departments are allocated based on the number of full-time equivalent personnel in each department. 129 City of Temecula DEPARTMENT SUMMARY- VEHICLES Funding Source: Exoenditure Summary Personnel Operations and Maintenance Capital Outlay Total Charges to City and Community Services District Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 53,136 $ 46,914 $ 66,000 $ 95,610 $ 53,136 $ 46,914 $ 66,000 $ 95,610 Program: Vehicle Replacement MISSION: The Vehicle Fund is used to account for the acquisition, depreciation and replacement of City vehicles. 1997-98 ACCOMPLISHMENTS: · Replaced two trucks for Building & Safety inspectors. · Replaced Citywide shared vehicle. · Purchased asphalt patch truck to perform pothole and patch repairs on City streets. Cost Allocation: Charges to departments are calculated based on the actual depreciation charge for vehicles used by each department. 130 City of Temecula DEPARTMENT SUMMARY- SUPPORT SERVICES Expenditure Summary Personnel Operations and Maintenance Capital Outlay Funding Source: Charges to City, Community Service District, and Redevelopment Agency Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 29,503 $ 33,982 $ 46,810 $ 51,500 125,076 171,172 186,485 177,980 Total $ 154,579 $ 205,154 $ 233,295 $ 229,480 Personnel Allocation Administrative Technician Sub-Total Authorized Proposed Recommended 1997-98 Changes 1998-99 1.00 0.00 1.00 1.00 0.00 1.00 Program: Support Services MISSION: The Support Services Fund is the cost center for central duplicating services, the mail room, receiving, and copy equipment maintenance for City Hall. 1997-98 ACCOMPLISHMENTS: · Accomplishments are noted in the City Clerk Department Summary section, Support Services program. Cost Allocation: Charges to depamnents are calculated based on the number of color and re.radar copies made by each department, as well as on the number of on-site personnel for each department. 132 City of Ternecula DEPARTMENT SUMMARY- FACILITIES Expenditure Summary Personnel Operations and Maintenance Capital Outlay Total Funding Source: Charges to City, Community Service District, and Redevelopment Agency Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 92,231 $ 108,667 218,128 241,788 $ 310,359 $ 350,455 $ 142,570 $ 184,360 37,500 165,120 197,670 37,500 $ 364,430 $ 400,290 Personnel Allocation Maintenance Superintendent Facilities Coordinator Maintenance Worker Office Assistant Sub-Total Authorized 1997-98 Proposed Changes Recommended 1998-99 0.25 0.~ 0.25 1.~ 0.~ 1.~ 1.~ 0.~ 1.~ 0.10 0.~ 0.10 2.35 0.00 2.35 Program: Facilities MISSION: The Facilities Fund is used to account for the cost of operating and maintaining City Hall and City Maintenance Facility. 1997-98 ACCOMPLISItMENTS: · Coordinated the upgrade of the City Hail HVAC system, with relocation of air handlers, thermostats, zone dampeners, and installed backup units to provide a more efficient filtration system. · Assisted with the relocation into the new Maintenance Facility. · Installed fire magnets and windows into designated doors throughout City Hall. Cost Allocation: Charges to departments are calculated based on the square footage of space utilized by each department at City Hall and the City Maintenance Facility. 133 (This Page Intentionally Left Blank) 134 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY ASSISTANT CITY MANAGER (Open) I HOUSING & REDEVELOPMENT MANAGER John Meyer I HOUSING REDEVELOPMENT ECONOMIC DEVELOPMENT* Temecula -- Capital Projects O.N.E. ~ Old Town First Time Specific Plan Homebuyer Imp t ementation Residential ~ Old Town Improvement Advisory Programs Committee Land Acquisition -- Mainslxeet Affordable Association Housing Project ~ Commumty Development Liaison Business Attraction Business Retention Marketing Labor Development *Information relating to this program may be found in the City Manager Department Summary section. City of Temecula REDEVELOPMENT AGENCY (Continued) Low/Moderate Income Homing Set Aside Funding Source: Tax Increment Expenditure Summary Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 19,027 Operations and Maintenance 79.302 Capital Outlay Operating Transfers Out Total $ 98,329 $ 65,777 $ 205,720 $ 664,458 1,125,860 4,000 $ 730,235 $ 1,335.580 $ 162,270 865,660 1.027,930 CIP/Redevelopment Expenditure Summary Funding Source: Tax Increment Tax Allocation Bond Proceeds Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 Personnel $ 79,631 Operations and Maintenance 695,458 Capital Outlay Operating Transfers Out $ 136,249 $ 169,350 $ 726,479 607,979 4,590 160,444 $ 867,318 $ 937,773 $ Total $ 775.089 89,730 695.620 118,000 903,350 Debt Service Expenditure Summar~ Personnel Operations and Maintenance Capital Outlay Total Funding Source: Actual Actual Budgeted FY 1995-96 FY 1996-97 FY 1997-98 $ 5,134,207 $ 5,134,207 5,312,902 $ 6,239,650 5,312,902 $ 6,239,650 Tax Increment Proposed FY 1998-99 $ 5,675,820 $ 5,675,820 City of Temecula REDEVELOPMENT AGENCY (Continued) Personnd Allocation Authorized Proposed Recommended 1997-98 Changes 1998-99 LOW/MOD HOUSING Redevelopment Director Housing/Redevelopment Manager Senior Management Analyst Associate Planner Administrative Secretary 0.50 (0.50) 0.00 0.75 0.00 0.75 0.00 0.75 0.75 0.12 (0.12) 0.00 0.50 0.00 0.50 Sub-Total 1.87 0.13 CIP/REDEVELOPMENT Redevelopment Director Housing/Redevelopment Manager Senior Management Analyst Associate Planner Marketing Coordinator Administrative Secretary 0.50 (0.50) 0.00 0.25 0.00 0.25 0.00 0.25 0.25 0.38 (0.38) 0.00 1.00 (1.00) 0.00 0.50 0.00 0.50 Sub-Total 2.63 (1.63) 1.00 Redevelopment Agency Total 4.50 (1.50) 3.00 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Program: Housing MISSION: The Housing Program is respons~le for providing public facilities and other types of housing assistance to low and moderate income citizens. 1997-98 ACCOMPLISHMENTS: · Funded 18 first time homebuyers. · Funded 30 residential improvements, consisting of painting, roofing and fencing repairs. GOAL 1: OBJECTIVES: PROVIDE QUALITY HOUSING OPPORTUNITIES FOR LOW AND MODERATE INCOME CITIZENS. Ensure compliance with all HUD regulations. Obtain property for the purpose of providing low and moderate income housing. Assist 10 parties through the First Time Homebuyer's Program. Assist with the rehabilitation of 50 housing units. PERFORMANCE MEASURES: Number of low/moderate income housing units provided Number of properties acquired for housing projects Number of first time homebuyers assisted Number of housing units rehabilitated Actual Estimated Projected FY 1996/97 FY 1997/98 FY !998/99 30 0 76 2 3 10 18 18 20 6 30 36 138 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Program: Redevelopment MISSION: The Redevelopment program is responsible for encouraging investment and upgrading the physical appearance in the project area. 1997-98 ACCOMPLISHMENTS: · Completed three projects through the Facade Improvement Program in Old Town. GOAL 1: OBJECTIVES: · :- IMPLEMENT THE OLD TOWN SPECIFIC PLAN. Develop standards that will assist the development community in making private and public improvements in Old Town. Assist in the private rehabilitation of buildings in Old Town. Manage the design of the Old Town Streetscape Improvement Plan. © Process applications for the Facade Improvement and Nonconforming Sign Removal Programs. PERFORMANCE MEASURES Number of facade improvements Number of nonconforming signs removed Number of processing fees waived for historic structures Actual Estimated Projected FY 1996/97 FY 1997/98 FY 1998/99 1 6 6 2 6 10 1 2 3 139 City of Temecula DEPARTMENT SUMMARY- REDEVELOPMENT AGENCY Debt Service MISSION: The Debt Service Program is the operating budget for the Redevelopment Agency. Items budgeted include debt service principal and interest, property tax administrative fees, and passthrough agreements. 1997-98 ACCOMPLISHMENTS: · All debt service and related costs for the 1993 Tax Allocation Bonds were made in a timely manner. GOAL 1: ENSURE TIMELY PAYMENT OF DEBT SERVICE AND RELATED COSTS. 140 City of Temecula DEPARTMENT SUMMARY- COMMUNITY DEVELOPMENT BLOCK GRANT Program: Community Development Block Grant Exoenditure Summary Personnel Operations & Maintenance Capital Outlay Funding Source: Community Development Block Grants Actual Actual Budgeted Proposed FY 1995-96 FY 1996-97 FY 1997-98 FY 1998-99 $ 396,274 $ 447,403 $ 424,354 $ 314,610 Total $ 396,274 $ 447,403 $ 424,354 $ 314,610 l~HSSION: The Community Development Block Grant Program is a mechanism for providing federal funding for local projects. The Program is administered by the Riverside County Economic Development Agency. 1997-98 ACCOMPLISHMENTS: · Administered and monitored 11 Community Development Block Grant sponsored programs. · Served 7,512 meals through the Emergency Food and Aid Program. · Provided new clothing and school supplies to more than 700 school age children throngh Operation School Bell. · Made final payment to purchase the Temecula Community Center and Rotary Park located in Old Town Temecuta. GOAL 1: OBJECTIVES: ENSURE THAT THE CITY COMPLIES WITH ALL COMlXH.JNITY DEVELOPMENT BLOCK GRANT PROGRAM REQUIREI~IENTS. Conduct appropriate noticing to receive public input. Conduct review of applications and prepare information for City Council review. Submit approved applications to Riverside County Economic Development Agency by specified deadlines. Submit completed Monthly Direct Benefit Reports and reimbursement requests from applicants to Riverside County. 141 (This Page Intentionally Left Blank) City of Temecula CAPITAL IMPROVEMENT PROGRAM SUMMARY The imrpose of the five-year Capital Improvement Program (CIP) budget document is to serve as a planning tool which coordinates the fmancing and scheduling of major projects undertaken by the City. This document is dynamic and, consequently, must be revisod annually to address changing needs, priorities, and financial conditions. The capital improvements presented in the CIP document are the City's major projects which exceed $25,000 in cost, have long-term life spans, and are generally nonrecurring. These projects include land and fight-of-way acquisition, design, construction or rehabilitation of public buildings or facilities, pubhc infrastructure design and construction, park design and construction, and redevelopment projects. The City's goal in providing a CIP budget is to develop a multi-year plan for capital improvement, update it annually, and follow through with all capital improvements in accordance with the plan. In determining the relative merit of a proposed project, key management team members evaluate projects for economic feasibility, community enhancement, infrastructure and historic preservation, and safety. The CIP budget document was developed using input from key management team members who, through several workshops, identified needs in the areas of roads/streets, bridges, public buildings, parks and recreation facilities, and redevelopment projects. Each project was reviewed in order to maintain consistency with the provisions of the City of Temecula General Plan, as well as in consideration of the City's long term vision as developed by the City Council. Additionally, a public workshop was held on June 11, 1998 to provide an opportunity for the Council to review each project in detail and ensure the completeness of this plan, as well as to receive public comment. Projects were scheduled in each of the next five fiscal years based on community needs, as determined by the City Council, and availability of funding. Priority rankings in each major category (Circulation, Infrastructure/Other, Parks, and Redevelopment Agency) have been assigned. The FY 1999-03 CIP identifies a total of 76 projects consisting of 30 Circulation projects totaling $111,168,400; 17 Infrastructure/Other projects totaling $58,760,200; 18 Park projects totaling $19,666,750; and 11 Redevelopment Agency/RDA Housing projects totaling $31,276,600. The total cost to complete all of the proposed projects is $220,400,350, of which $49,588,300 in expenditures is proposed for FY 1998-99. The administrative costs associated with managing these projects has been estimated (generally as 5 to 10 percent of estimated construction costs), and included in each project budget. These projects will affect the Public Works Department Capital Improvement Program division, as they manage the construction of those projects. In addition, the Parks projects construction will impact TCSD staff, as they are integral in assisting Public Works in the completion of their projects. Also, the Redevelopment Agency staff will assist in implementing and managing the various RDA/OId Town Temecula improvements. Also of note, the CIP budget reflects over $99 million in projects with unspecified funding sources. These projects have been identified as necessary infrastructure for the City, but require that funding sources be located before the projects can commence. Current and future operations and maintenance costs that result from the projects included in the CIP budget have been estimated. These costs consist primarily of park and street maintenance costs. However, beginning in 2002-03, $1,000,000 annually has been estimated for the total cost of operating a proposed City library. The 2001-02 amounts also reflect $750,000 for a proposed new fire station. These incremental future operations and maintenance costs will be funded by continued sales tax growth, increases in gas tax revenues due to per capita population growth, and by the City directly receiving the County Free Library portion of property taxes that is currently received by Riverside County. 143 City of Temecula CAPITAl. IMPROVEMENT PROGRAM SUMMARY (CONTINUED) The estimated total operation ax~cl maintenance costs relating to capital improvement projects are as follows for each of the next five fiscal years: 1998-99 $ 62,300 1999-00 320,550 2000-01 384,390 2001-02 1,286,290 2002-03 2.322.925 $ 4.376.455 On the following pages is a summary of ClP projects included in the five year CIP budget by type of project and priorit)', as well as a description of major CIP revenue sources. 144 Z UJ Q. Z e~ Z Z ,,'z Z Z Z 8 8 0 0 ILl 0 o City of Temecula DESCRIPTION OF CIP REVENUE SOURCES Assembly Bill 2766 (AB 2766L State funds which are available to implement programs and projects that reduce air pollution from motor vehicles. Assessment District (AD). A tool which allows the City to construct desired and authorized public improvements, with the costs and expenses of the project being paid for by the benefitted properties within the boundaries of a designated area. The project costs are then financed through the issuance of bonds payable over a period of years. Capital Projects Reserves (General Fund). Funds made available from City of Temecula General Fond. City of Murrieta. A neighboring City which contributes funds to a joint project which will benefit traffic conditions on major toterstate. Community Development Block Grants {CDBG). Funds allocated to local government from the federal government, usually through a local clearinghouse (Riverside County Economic Development Agency), based on a formula, bu~ required to be applied for and required to be used within a broad functional area such as community development. Community Donations. Funds made available by community members and groups to help finance a variety of City projects. Community Facilities District (CFD). A tool which allows the City to construct desired and authorized public improvements, with the costs and expenses of the project being paid for by the benefitted properties within the boundaries of a designated area. The project costs are then financed through the issuance of bonds payable over a period of years. Developer Bonds. These are bonds that developers post on their development projects for public improvements. These bonds can become a source of revenue if the developer does not construct the improvements of if the developer goes into bankruptcy. Development Impact Fees (DIF and DIF-Various). Fees generated by development applications to offset the effect of development to include infrastructure, fire protection, public facilities and services, libraries, roads, schools, parks, and traffic signal mitigation. Fees are determined by the cost of the project at the time of application. DHr/Park-in-Lieu Fees (Ouimby). The City's park-m-lieu or park development fee is assessed under provisions of the Subdivision Map Act which allows the City to require the dedication of land, or the payment of a fee in lieu of land to be used for the purchase (or development) of park property. DIF/Traffic Signal Mitigation Fees (Signal Mitigation). Fees required of a developer/builder for purposes of providing the actual or estimated costs of constructing future regional traffic signalization improvements in the vicinit3, of the development/building. These funds may be used only for the construction or reimbursement for construction of traffic signals within the area from which the fees comprising the fund were collected. Interest accruing from these funds can be used anywhere within the City. Federal Highway Admin[qtration (FFIWA). Federal funds which are available for highway improvements. Highway Bridge Replacement and Rehabilitation Program OtBRR). Federal funds which are available to improve or replace aging bridges. Intermodal Surface Transportation Efficiency Act (ISTEA). Federal funds which are available for street and road improvements and repairs. ISTEA/Congestion Mitigation & Air Quality Improvement Program (ISTEA/CMAO). Federal funds which are available for the development and implementation of transportation programs that reduce traffic congestion and air pollution. ISTEA/Surface Transportation Program (ISTEAJSTPL Federal funds which are available for local agencies to improve the safety and efficiency of the local transportation system. Funds are available for both planning and construction phases of improvement projects. City of Temecuta DESCRIPTION OF CIP REVENUE SOURCES (CONTINUED) ISTF, A/Trmtspertafion Enhancement Activities frEAk. Federal funds which are available for local agencies to improve the aesthetics and efficiency of the local transportation system. Funds are available for both planning and construction phases of improvement projects. Measure A. Funds generated from the one-haft percent sales tax levied throughout Riverside County to carry out transportation projects by the County and cities. Mitigation Contribution. Fee required by a developer to mitigate the impacts of the developer's private project. Redevelopment Agenqy Tax Increment Bond Funds (RDA). The Redevelopment Agency (RDA) has the authority to pay for public improvements which will be repaid from tax revenue received by the Agency. The size of the bond issue is dependent on the amount of tax revenue received. No additional tax is paid by properties within the redevelopment area. The total property tax paid by a property owner is limited by the State Constitution. The Agency receives its revenue from its ability to collect the full amount of taxes paid by all new development (above a base figure established by the County), rather than sharing this tax growth with other agencies, except as specified in vahous pass through agreements. RDA/LowfModerate Housing (RDA-Honsing~. This funding source is available from the City's Rextevelopment Agency. State Law requires that 20% of gross RDA proceeds be set aside to fund housing opportunities for low and moderate income families. Reimbursement A,_m'eements. Funding made available from other agencies or sources on a reimbursement basis. The actual reimbursement agreement states the conditions of reimbursement specific to a particular project. Senate Bill 300 (SB300]. State of California funds which may be used to fund local transportation projects. Senate Bill 821 (SB821). SB-821 grant funds are apphed for projects that enhance bicycle commuting and thus relieve parallel roadways. SB-821 funds are programmed by the Riverside County Transportation Commission from a state apportionment. Half of the county wide SB-821 Program ("Local" funds) is allocated to cities and the county on a population formula basis, the other haft ("Regional" funds) is awarded on a competitive basis to projects benefitting the county wide bike trail system. The SB-821 Local Funds may also be used on pedestrian facilities such as sidewalks and handicap ramps. State Grants. Includes various State of California grants to fund a variety of transportation, recreation and air quality improvement projects. Unspecified. Funds have not been identified for various proposed projects. 154 City of Tetnecula GLOSSARY OF TERMS ABATEMENT o Abatements usually apply to tax levies, special assessments and service charges. ACCOUNT GROUPS - Accotinting entities used to establish control over and accountability for the government's general fixed assets and the unmatured principal of its general long-term debt, including special assessment debt for which the government is obligated in some manner. ACCOUNTING SYSTEM - The methods and records established to identify, assemble, analyze, classif3,, record and report a government's transactions and to maintain accountability for the related assets and liabilities. ACCOUNTS PAYABLE - A short-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNTS RECEIVABLE - An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government )but not including amounts due from other governments). ACCRUED SALARIES AND WAGES PAYABLE - A liability account reflecting salaries and wages earned by employees but not due until a later date. ADOPTION - Formal action by the City Council which sets the spending limits for the fiscal year. AGENCY FUND - A fund normally used to account for assets held by a government as an agent for individuals, private orgmai?ations or other governments and/or other funds. The agency fund also is used to report the assets and liabilities of Internal Revenue Code, Section 457, deferred compensation plans. APPROPRIATION - A legal authorization granted by the City Council to make expenditure~ and incur obligations for specific purposes. ASSET - A probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. AUDIT - A systematic collection of the sufficient, competent evidential matter needed to attest to the fairness of management's assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. BALANCE SHEET - The f'mancial statement disclosing the assets, liabilities, and equity of an entity at a specified date in conformity with GAAP. BUDGET - A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a £mancial plan for a single fiscal year. BUDGETARY CONTROL - The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues. CAPITAL IMPROVEMENT PROGRAM (CIP) -Annual appropriations in the City's budget for capital purposes such as street improvements, building construction, and park improvements. CAPITAL EXPENDITURES - Expenditures resulting in the acquisition of or addition to the government's general fixed assets having a unit cost of greater than $1,000 and a useful life exceeding one year. CAPITAL OUTLAY - Expenditures which qualify as capital costs according to accounting standards. This includes furniture, fixtures, machinery, equipment, and other relatively minor fixed assets. 155 City of Temecula GLOSSARY OF TERMS (CONTINUED) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - Funds allocated to local government from the federal government, usually through a local clearinghouse (Riverside County Economic Development Agency), based on a formula, but required to be applied for and required to be used within a broad functional area such as community development. CONTINGENCY - A budgetary reserve set aside for emergency or unanticipated expenditures. CONTRACTUAL SERVICES - Contracts for professional services. DEPARTMENT - An organizational unit comprised of programs and program managers. Each department is managed by a single director. DEBT SERVICE FUND - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Sometimes referred to as a Sinking Fund. ENCUMBRANCES - An amount of money committed for the payment of goods and services not yet received or paid for. EXPENDITURES - The present of future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlements and shared revenues. FISCAL YEAR - The period designated by the City for the beginning and ending of financial transactions. The fiscal year begins July 1 and ends June 30. FRANCHISE - A special privilege granted by a government, permitting the continued use of public property, such as refuse disposal and cable television, and usually involving the elements of monopoly and regulation. FULL-TIME EQUiVALENTS (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Most full-time employees are paid for 2,080 hours in a year. FUND - An accounting entity with a set of self-balancing revenue and expenditure accounts used to record the financial affairs of a governmental organization. FUND BALANCE - The difference between the assets (revenues and other resources) and liabilities (expenditures incurred or committed to) for a particular fund. GAAP - Generally Accepted Accounting Principles. GANN APPROPRIATIONS LIMIT - This term refers to Article XIIIB of the California State Constitution which places limits on the amount of proceeds from taxes that state and local governmental agencies can receive and spend each year. GENERAL FUND - The fund used to account for all f'mancial resources except those required to be accounted for in another fund (i.e., enterprise or grant funds). Usually, the General Fund is the largest fund in a municipality. GOALS - The desired result of accomplishments within a given time frame, usually a fiscal year. GRANTS - Contn'butions or girls of cash or other assets from another government to be used or expended for a specified purpose, activity, or facility. INTERNAL SERVICE FUNDS - A fund used to account for financing of goods or services provided by one department to other departments on a cost-reimbursement basis. LONG-TERM DEBT - Debt with a maturity of more than one year after the date of issue. MOTOR VEHICLE IN LI~EU - A state subvention revenue that is calculated annually by the State on a per capita basis. City of Temecula GLOSSARY OF TERMS (CONTINUED.) OBJECTIVES - The necessary steps needed to be accomplished to achieve a desired goal. OBJECTS OF EXPENDITURE - The individual expenditure accounts used to record each type of expenditure City operations incur. For budgeting purposes, objects of expenditure are categorized into groups of similar types of expenditures called major objects of expenditure. The principal objects of expenditure used in the budget are: Personal Services, Maintenance and Operations, and Capital Outlay. OPERAT]~NG BUDGET - Plans of current expenditures and the proposed means of f'mancing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending and service delivery activities of a government are controlled. OPERATING EXPENSES - Proprietary fund expenses related directly to the fund's primary activities. OPERATIONS & MAINTENANCE - Office supplies and other materials used in the normal operations o£ City departments. Includes items such as books, maintenance materials, and contractual services. PERSONNEL - Salaries and benefits paid to City employees. Includes items such as special duty salaries and retirement. PROGRAMS/DEPARTMENTS - The budget organizes departmental expenditures into functional areas called programs. RDA/LOW/MODERATE HOUSING (RDA Housing) - This funding source is available from the City's Redevelopmen! Agency. State law requires that 20% of gross RDA proceeds be set aside to fund housing opportunities for low and moderate income families. RESOURCES - Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. REVENUES - The yield of taxes and other sources of income that a governmental unit collects and receives for public USe. SPECIAL ASSESSMENT - A compulsory levy made against cer~cn properties to defray all or part of the cost o£ a specific capital improvement or service deemed to benefit primarily those properties. TAXES - Compulsory charges levied by a government to f'mance services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does the term include charges for services rendered only to those paying such charges. TE~GECULA CO~ SERVICES DISTRICT (TCSD) - An assessment district that was establishexl in Temecnla to provide a comprehensive, balanced neighborhood and community park system by constantly reviewing growth, demographics and facilities available. It also provide tree management, hazardous waste procedures and a recycling program for the community. TRANSFERS IN/OUT - Payments from one fund to another fund primarily for work or services provided. USER CHARGES/FEES - The.payment of a fee for direct receipt of a public service by the party benefiting from the service (i.e., swimming pool fees, recreation classes). City of Temecula ASSESSED & ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (values in thousands) FROM INCORPORATION Total Exemptions Net Net Total Secured and Veteran Assessed Exemptions Assessed Fiscal Year Unsecured Church. etc. Value Homeowners Value 1991 $ 2,232,491 $ (11,913) $ 2,220,578 $ (27,927) $ 2,192,651 1992 2,626,508 (15,304) 2,611,204 (30,503) 2,580,701 1993 2,904,762 (22,111) 2,882,651 (34,149) 2,848,502 1994 3,022,349 (23,719) 2,998,630 (39,448) 2,959,182 1995 3,015,867 (29,906) 2,985,961 (44,082) 2,941,879 1996 3,167,818 (34,277) 3,133,541 (47,905) 3,085,636 1997 3,217,540 (36,629) 3,180,911 (53,023) 3,127,888 Estimated Actual Value 2,192,651 2,580,701 2,848,502 2,959,182 2,941,879 3,085,636 3,127,888 Note: Date of incorporation was December 1, 1989; however, 1990 data is unavailable. Source: Riverside County Assessor's Office 158 City of Temecula GRANT ACTIVITY (DATA TO BE INCLUDED IN FINAL DOCUMENT) Source: City of Temecula, Finance Department City of Temecula CONSTRUCTION, BANK DEPOSITS, AND PROPERTY VALUE (value in thousands) FROM INCORPORATION Commercial Construction Residential Construction Bank Deposits (1) (1) (2) Fiscal Number of Number of Year Units Value Units Value 1991 232 $ 18,717 387 $ 6,407 1992 158 902 337 10,605 1993 150 6,316 802 50,347 1994 130 10,639 1,186 113,002 1995 162 29,221 968 85,410 1996 136 23,572 987 93,674 1997 202 32,863 857 85,257 Property Values O) Commercial $ 1,270,735 $ 1,473,713 1,526,397 1,466,707 1,478,339 1,347,175 1,151,327 Residential 1,353,396 1,454,943 1,489,077 1,539,257 1,677,720 1,856,215 1,958,706 Note: Date of incorporation was December 1, 1989; however, 1990 information is unavailable. Source: (1) City of Temecula Building and Safety Department (2) Data unavailable (3) County Land Use Statistical Recap Report 160 City of Temecula PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS FROM INCORPORA~ON Basic County Various Fiscal Year City and School Water Taxes School Lev~ Cily Di~rict Di~ricts 1991 $ 1.0000 - $ 0.0492 $ 0.4565 1992 1.0000 0.1469 0.4468 1993 1.0000 - 0.0714 0.~.a.~.9 1994 1.0000 0.0543 0.4429 1995 1.0000 0.0685 0.4175 1996 1.0000 - 0.0944 0.3720 1997 1.0000 - 0.1011 0.3708 Total $ 1.5057 1.5937 1.5154 1.4972 1.4860 1.4664 1.4720 Note: Date of incorporation was December 1, 1989; however, 1990 information is unavailable. 161 City of Ternecula PRINCIPAL TAXPAYERS AS OF JUNE 30, 1997 Taxpayer Type of Bnsiness International Rectifier Corporation Guidant Corporation (Advanced Cardiovascular Systems) Randor Landgrant Rancho California Palm Plaza KI/FKLA Rancho Realty Hudson Respiratory Care, Inc. Kemper Lumbermens Properties Inc. AEW LBA Acquisition Company Winchester Hills Magellan Acacia Park Limited Partnership Manufacture Manufacture Real Estate Development Real Estate Development Real Estate Development Manufacture Real Estate Development Real Estate Development Real Estate Development Real Estate Development 1997 Assessed Valuation fin thonnandg) $ 154,900 89,053 46,491 38,419 34,495 23,163 22,340 20,645 17,416 15.975 $ 462.897 Percentage of Total Assessed Valuation 4.81% 2.77% 1.45% 1.19% 1.07% 0.72% 0.70% 0.64% 0.54% 0.50% 14.39% Source: Riverside County Assessor 1995/96 Secured Tax Rolls 162 City of Temecuta LEGAL DEBT MARGIN Computation of Legal Debt Margin as of June 30, 1997 Net Assessed Value Plus exempt Property Total Assessed Value Debt Limit - 15 % of total assessed value Amount of debt applicable to debt limit Total bonded debt Less assets in Debt Service Funds available for payment of principal Total amount of debt applicable to debt limit Legal Debt Margin 3,127,888 53.023 3.180,9II 477.137 477.137 Source: City of Temecula, Finance Department 163 City of Temecula COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AS OF.1UNE 30, 1997 1996-97 Assessed Valuation: $2,580,959,957 (after deducting $599,951,067 r, development incremental valuation) DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District Eastern Municipal Water District, I.D. No. U8 Temecula Valley Unified School District Temecula Valley Unified School District Community Facilities District No. 89-3 City o£ Temecula Rancho California Water District, Rancho Division Rancho California Water District, Santa Rosa Division Rancho California Water District, Community Facilities District No. 88-3 Riverside County Community Facilities District No. 88-12 Riverside County 1915 Act Bonds (Estimated) TOTAL DIRECT AND OVERLAPPING TAX ASSESSMENT DEBT Applicable 0.321 87.113 70.865 100.000 100.000 69.470 1.917 100.000 100.000 Various Dcb~ 6/30/97 $ 1,865,604 6,642,366 39,974,947 27,460.000 0 7.278.803 480,849 7,115,000 17.285~000 76,442,243 184,544,812 OVERLAPPING GENERAL FUND OBLIGATION DEBT: Riverside County General Fund Obligations 4.482 % Riverside County Board of Education Certificates of Participation 4.482 Riverside County Flood Control and Water Conservation District General Fund Obligations 5.326 Temecula Unified School District Certificates of Participation 70.865 Temecula Community Services District Certificates of Participation 100.000 Rancho California Water District Certificates o£ Participation 47.636 TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT Less: Temecula Unified School District Certificates of Participation (self-supporting from tax increment revenues) TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT GROSS COMBINED TOTAL DEBT NET COMBINED TOTAL DEBT 25,469,411 931,230 92,140 9,846,692 4,740,000 105,922,579 147,002,052 4.747,955 142,254.097 331,546,864 326,798,909 (1) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capilal lease obligations. Ratios to 1996-97 Assessed Valuation: Direct Debt ........................................................... 0.00% Total Direct and Overlapping Tax and Assessment Debt .............................. 5.80% Ratios to Adjusted Assessed Valuation: Gross Combined Total Debt ............................................... 12.85 ~ Net Combined Total Debt ................................................ 12.66% SHARE OF AUTHORIZED AND UNSOLD GENERAL OBLIGATION BONDS: Metropolitan Water District .................................................. $60,500 Rancho California Water District, Rancho Division ................................. $7,391,608 Rancho California Water District, Santa Rosa Division ............................... $362,984 Eastern Municipal Water District, I.D. No. U8 ................................... $4,529,876 Temecula Unified School District ............................................ $4,747,955 STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/97:$0 1996-97 TYPICAL TOTAL TAX RATE (TRA 13-004~: 1.17191 (Special Assessment Rate .3000) Source: California Municipal Statistics, Inc. 164 City of Temecula LARGEST EMPLOYERS BY NUMBER OF EMPLOYEES AS OF.IUNE 30, 1997 Employer Guidant Corporation Temecula Valley Unified School District International Rectifier (Hexfet America) Diversified Temporary Services Professional Hospital Supply Hudson Respiratory Care, Inc. Tension Envelope Bianchi International Opto 22 CJ' Resorts, Inc. BW/IP International, Inc. - Seal Division Charmell Commercial Sierra Pacific Farms, Inc. City of Temecula (includes seasonal part-time) Price Costco Dayton Hudson Corporation/Target Plant Equipment, Inc. Lucky Stores Eco-Farms Field, Inc. Capistrano Gardens Nursery Norm Reeves Auto Group American Materiel Management Alhance Claim Jumper K-Mart Corporation Rancho California Water District Mervyn's Coco's Bakery Restaurant Number of Employees 1,156 1,128 743 413 378 350 310 250 208 205 2O0 184 180 171 169 161 156 153 148 148 147 139 125 125 124 120 I00 Source: City of Temecula Business License Listing 165 (This Page Intentionally Left Blank)