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HomeMy WebLinkAbout050890 CC Agenda~ CYT~ ~OON~XL ' '~.~-~:~:-~,~p~N -6z3Q ~ - Closed litiqation session pursuant to ~Go~~Code Section 54956.9, Outdoor Media Group vs the City of o n, / invocation Flag Salute Pastor Jack Flournoy Trinity Christian Fellowship Birdsall, Lindauans, MOore, Mufioz, Parks A total of 15 minutes is provided so members of thepublic can address the Council on items that' are not listed on the Agenda. Speakers are limited to two (2) minutes each..If you desire to speak to the council about an itemnot listedonthe Agenda, a pink "Request To Speak" form should be filled out and filed with the City Clerk. r.~you are calledto speak, please come forward and state name and address. For all other agenda items 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. IIOTXC~ TO T~Z PUR~ZC 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 to be removed from the Consent Calendar for separate action. 1 " 06/03/00 1. ~4 pure- RECOHMENDATION: 1..~ " Approve minutes of April .3, 1990 as mailed. 1.2 Approve minutes of April iI0, 1990 as mailed. 1.3 Approve minutes of April 17, 1990 as mailed. Reso] Ut~ on &gJ~ov~-a Payment of RECOMMENDATION: 2.1 Adopt a resolution entitled: RESOLUTION NO. 90- A P~OLUTZON OF ~ CITY CO. OIL OF ~ cn~ c~z~ ~ D~S ~ H~ FOR~ IN mlBIT A. Pa-t~c~tion in TC!~L Xlployee Del.-re4 Co~geneat{on Plan RECOMMENDATION: 3.1 Adopt a Resolution entitled: RESOLUTiON NO. 90- ~8OL~I~M ~ ~ CITY CO~CZL OF ~ CITY ~ T~C~ ~~~ BT I~~~ COHPO~TION ~equest foF Proposal - Bankinq 8erv{ces fop the Fiscal Year Und~r June 30. xO9X. RECOMMENDATION: 4.1 Approve issuance of an RFP (request for proposal) for banking services for the fiscal year ending Ju~e 30, 1991. I~C~&TION: ~dopt a rHolut~on entitled: ~8OL~XON NO. 90- A ~L~I~ ~ ~ CI~ ~IL OF ~ C~ OF TMC~ uTn usB BY T~ vnc~ MWU~eOWCUq~nt ]~t4V,4t¥ Report RECOMMENDATION: 6.1 Receive and file report. o RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO. 90- A RESOLUTZONOFTIIBCZTY COUNCIL OF THECZTYOF TBMBCUL~ MiBNDIJHJ THE FISCAL YR~R 1989-90 BUDQBT TO APPROPRIATE $3600 FOR THE PURPOSB OF PROVIDING ADDXTXOI~L FII~NCE D~P/tRTMBNT S~T.s~TBS o Resolution in Su~uort of State Const4tut4onal amendment 'RECt:)MMENDA~ION: 8.1 Adopt a resolution entitled: RESOLUTION NO. 90- ARESOLUTION OF THECZTYCOUNCZLOFTH~CZTYOF TBMECUL~ IN B~T OF B~ 1; ~ ~XC ~GBBTION R~X~ BP~Z~ L~TATZON A~ OF 1990. Cqn~t Str4u4q.a P]AL-- for' ~tuoho O.a,14~f~l-J~41 Rol40~-,,~- ]:-1. from P,*ont s~,*eet: to Ynes :]tOad'. RECONME~)ATION: 9.1 Approve the concept striping plan for Rancho California Road between Front Street and Ynez Road and give Bedford Properties authorization to proceed with completion of the design based upon said approval. 10. Tantat4ve Pa~oel Ma~ No. 24762 RECOMMENDATION: 10.1 Receive and File Cffg~TTNG - (To be held at 8=00 PM) Please see separate agenda OOUN~XL BUSXNB~8 11. Po14oy starsent - Chanqo of ~one App,~4clt4ons RECOMMENDATION: 11.1 Adopt a policy of not accepting and acting on Zone Change Applications without associated development proposals. 12. Debt Advisory Colittee P~CONMENDATION: 12.1 Retain the services of Fieldman, Rolapp and Associates to prepare a report on forming a Debt Advisory Committee for the City of Temecula. 13. Parks and Reo~eat4onMaster P.~an RECOMMENDATION: 13.1 Approve and adopt the interim Park and Recreation Plan for the city ,of Temecula as attached in Exhibit "A". 14. City Hall PaPchases Lease and Tenant Tq~ove~ents RECOMMENDATION= 14.1 Accept the purchase offer of WestMar Commercial Brokerage, acting on behalf of Windsor Projects, for the two buildings in Windsor Park I. 14.2 Authorize the City Manager to direct the City Attorney's Real Property Staff or contract services to negotiate the final purchase offer. 14.3 Approve the tenant improvements in an amount not to exceed $85,000 to be immediately constructed by Windsor Construction Company in the new building located behind the existing City Hall building. 15. Developer Fees Report RECOMMENDATION: 15.1 Approve a Contract with Willdan and Associates to prepare a Fee Study. 16. Riverside County Sheriff's Department Aareement RECOMMENDATION: 16.1 Approve the preparation and negotiation of an agreement based on the proposal submitted by the Riverside County Sheriff's Department. 16.2 Refer any changes to the City Manager for consideration in the budget hearings. 17. Cable Television Franchise 17.1 Receive and file 18. Close~ Personno.1 Session to Consider Appoint~ent of City Manager Pursuant to ~overnment Code Section 549570 RECOMMENDATION: 18.1 Continue this item to a meeting on May 12, 1990, 9:00 AM, Temecula City Hall, 43172 Business Park Drive, Temecula, California MINUTES OF A REGULAR MEETING OF THE TF~ECULA CITY COUNCIL HELD APRIL 3, L990 A regular meeting of the Temecula City Council was called to order at 7:03 PM in the Rancho California Water District, Community Room, 28061 Diaz Road, Temecula, California. Mayor Ron Parks presiding. PRESENT 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore Mufioz, Parks ABSENT: 0 COUNCILMEMBERS: None Also present were City Manager Frank D. Aleshire, City Attorney Scott F. Field, and Deputy City Clerk June S. Greek. INVOCATION The invocation was given by Pastor Tim Riter, Rancho Christian Church. PLEDGE OF ALLEGIANCE The audience was led in the Pledge of Allegiance by Councilmember Peg Moore. PUBLIC COMMENTS: Claudia Brode, 41480 Luz Del Sol, addressed the City Council speaking in the opposition to the recall movement. She also spoke regarding the absence of Neighborhood Watch news letters and signs in her area of the City and asked that the City staff follow up to determine why the newsletters are not being delivered. Bill Bopf, 28924 Front Street, Suite 109, spoke in support of the City Council and their actions. He said cities can't solve problems without money and they need to have growth to generate the necessary funds for their day-to-day operations. George Buhler, 40265 Paseo movement. He praised the Councilmember Pat Birdsall. Serino, spoke against the recall devotion to the City displayed by Howard Chesher, 29710 Valle Olvera representing The Temecula Town Center Association, read a statement prepared by The Town Association in opposition to the recall movement. Ronald C. Perry, 44550 La Paz Road, announced that he was representing a committee called Temeculans Against Recall and stated he represents a large silent majority who do not favor the recall movement. He stated that the City Council needs to be able M i nutes\4\3\90 - 1 - 05/02/90 City Council Minutes April 3. 1990 to focus their attention on doing the job before them, not on having to defend their actions after only 125 days. Dennis Chiniaeff, 29321 Via Norte, representing Rancon Financial, spoke in support of the members of the City Council and all of their recent efforts. Frank Geyer, 40466 Chauncey Way, stated that he opposes any effort to recall members of the City Council. Len Francis, 42041 Ave. Alvarado, stated he wished to go on record as being in opposition to the recall efforts. C.M. Max Gilliss, 25655 Corte Rive, Murrieta, spoke in favor of the actions of the current City Council and requested that the recall committee redirect their energy in more productive areas. Joe Schneider, 29951 Camino Del Sol, spoke in opposition to the recall movement. Ronni Crossland, 30632 HollyBerry Lane, spoke in opposition to the recall movement and stated that she favors the City Council spending the monies to fund a traffic study on the Club Valencia Apartments Projects rather than in recall election expenditures. CONSENT CALENDAR It was moved by Councilmember Moore, seconded by Councilmember Muhoz to approve consent calendar items as follows: 1. Minutes 1.1 Approved minutes of March 13, 1990. 2. Application for Alcoholic Beverage License. 2.1 Received and filed an application filed by Valentin H. Worth for the Ponderosa Inn, 41925 3rd Street, Temecula. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mu5oz NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None # i nutes\~\3\90 - Z- 05/0Z/90 City Council Minutes ADril 3, 1990 PUBLIC HEARING CUP-3076 Auto Dealership On West Side Of Ynez Road. South of Winchester. City Manager F. D. Aleshire introduced a staff report recommending adoption of the resolution approving Conditional Use Permit No. 3076 and modifying certain conditions which had been imposed by the County of Riverside during their approval process. City Attorney Scott Field outlined certain minor changes contained in the resolution which was transmitted in the City Council packet. Mayor Parks declared the public hearing open at 7:30 P.M. Keith Andrews, the proponent addressed the City Council and requested their favorable consideration of this appeal. There being no further speakers, the Mayor declared the public hearing closed at 7:33 P.M. It was moved by Councilmember Lindemens, seconded by Councilmember Moore to adopt a resolution entitled: RESOLUTION NO. 90-3S A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TF~ECUL~ APPROVING CUP-3076 TO PERMIT ~ AUTO D~ERSHIP AT YNEZ ROAD° The motion carried by the following roll call vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None COUNCIL BUSINESS 4. Residency Requirements for City Commissioners. John Affolter, 34121 DePortola Road, addressed the City Council speaking in favor of non-resident members of the City's business community being allowed to participate on the various City Commissions as well as long-time residents who live in areas just outside the 26 square mile City boundaries. Councilmember Mufioz stated that the committees currently working on law enforcement and traffic have non-resident # J nutes\4\3 \90 - 3 - 05/01/90 City Council Minutes APril 3, 1990 members and that there will be many other opportunities on various committees for non-resident citizens. Councilmember Birdsall stated that she still feels strongly that the business members of the community should be eligible for selection as members of the city commissions. Councilmember Lindemens requested that the City also look at establishing a Debt Advisory Committee. Mayor Parks stated that he agrees there are many qualified citizens living in the community who can fill these positions. e Temecula Community Center Expansion. Councilmember Birdsall announced that as a member of the Temecula Town Association Board of Directors she will be abstaining from the consideration on this matter. Douglas Burgess, 29605 Solana Way, spoke in favor of the City Council supporting the Town Association's request for funds. It was moved by Councilmember Mufioz seconded by Councilmember Moore to authorize the Mayor to send a letter of support to the Riverside County Board of Supervisors. The motion carried by the following vote: AYES: 4 NOES: 0 ABSENT: 0 ABSTAIN: 1 COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: Lindemens, Moore, Mufioz Parks None NONE Birdsall e Request for Allocation for Curb, Gutter and Sidewalks on Puiol Street along the Temecula Town Association property. Councilmember Birdsall again announced that due to her position with the Board of Directors of the Temecula Town Association she would be abstaining from consideration of this matter. City Manager Aleshire reported that the Town Association has requested the sum of $35,120 be allocated to install curbs, #J nutes\4\3\90 -/,- 05/01/90 -~- City Council Minutes APril 3. 1990 gutters and sidewalks on Pujol Street at the property line of the Temecula Town Association. Councilmember Muhoz questioned if these funds could possibly be construed as being used for the benefit of a private organization. City Attorney Scott Field advised that this is not the case as long as the allocation is clearly for a project of public benefit. Douglas Burgess stated the entire community uses the facilities of the Town Center and all members of the community will be benefited by these improvements. Councilmember Lindemens stated that he feels this association has been self-supporting and should continue to be a self- supporting organization. It was moved by Councilmember Lindemans Councilmember Muhoz to deny the request of funds. seconded by allocation of The motion carried by the following roll call vote: AYES: 4 COUNCILMEMBERS: Lindemarts, Moore, Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: Birdsall RECESS Mayor Parks declared a recess at 7:56 P.M. The meeting was reconvened at 8:10 P.M. with all councilmembers present. 9. City Limits Si~n License Agreement. City Manager Frank Aleshire advised the City Council that it needs to understand the work program to be considered during the budget discussions. He then introduced Dave Sheldon Deputy Chief Engineer, who gave the City Council maps of the District and other informational material regarding the make up of the Flood Control District. He explained how the District functions in the area of development and maintenance. nutes\4\3\90 -5- 05/01/90 city Council Minutes April 3. 1990 Mr. Sheldon discussed the district's budget and the manner in which the District receives revenues. Councilmember Muhoz question the way in which retention basins are implemented by the County and asked how the City can assist in development of flood control measures. Mr. Sheldon advised that, ultimately retention basins are the most cost effective and that they are constructed on a regional basis. Councilmember Lindemans asked what the relationship is between the City Council and the County and the District staff. Mr. Sheldon responded that the Flood Control and Water conservation District staff are the technical advisors to the City Council and to the County authorities. Mayor Parks questioned if the district makes all flood control decisions on regional facilities. Mr. Sheldon responded that this is the case. Mayor Parks also questioned the development of the Temecula Creek flood control channel and what is anticipated for development. Mr. Sheldon responded that the dual uses of the channel will have to be worked out with the other agencies involved, such as the Parks and Recreation Commission of the County, etc. Councilmember Birdsall stated there is a severe problem getting the channel cleared and asked how the City can get this matter resolved. Mr. Sheldon responded that the District does work with other agencies but some problems dealing with clearing, such as the issue of animal habitats in the creek, have an impact on their ability to clear these areas. Councilmember Lindemans asked if the idea of placing locks at the end of the creek is a viable one. Mr. Sheldon responded that this has been looked at by the Flood Control District in the past and they would not recommend this action, however, they are willing to discuss it further should Mr. Lindemans desire. Frank Peairs, Planning Section Director of the Riverside County Flood Control District, gave a report outlining the actions of the Murrieta Creek Advisory Committee to provide for passive recreational use of the Temecula Creek. He also reported on the efforts to achieve 100 year flood control protection and the establishment of goals and timelines to solve the flooding potential of the creek. He further # i nutes\4\3\90 -6- 05/01/90 ..... City Council Minutes April 3, 1990 discussed the need for a concrete channel in the area of Old Town to assure flood protection. He described the use of an Armorflex System which softens the affect of the concrete and the use of a riparian corridor within the development of the project. Councilmember Birdsall questioned if the private property involved will be subject to acquisition through Imminent Domain. Mr. Perez responded that some of the properties have been conditioned for dedication and some, that are not conditioned in this way, will be acquired through Imminent Domain. Councilmember Muhoz asked if more public input could be received on this question, stating he felt it is an issue that is not well known and that there may be many interested citizens who can offer expertise on these matters. Mr. Sheldon responded that all of the meetings of the Murrieta Creek Advisory Committee are public hearings. Mayor Parks questioned if the District is responsible for all of the drainage facilities in the area and Mr. Sheldon responded that the Assessment Districts are responsible for the smaller drainage projects and the District is responsible for the major regional facilities. City Manager Aleshire then introduced Ivan Tennant, Deputy Road Commissioner for the County of Riverside, who outlined the functions to be included in routine maintenance of City streets and the traffic signal maintenance cost. He showed the City Council a map of the City showing existing and plan traffic signals. Councilmember Muhoz questioned if the cost for signal maintenance is for each signal or for each intersection. Mr. Tennant responded that the cost is for each location. Mayor Parks questioned if the Road Department will continue to serve the City as City Engineer after June 30 for projects which are currently underway. City Manager Aleshire stated that the agreement with the County provides that plan checking will be transferred to Willdan and Associates as of the first of April and there will be a sharing of fees with the County. Ron Espalin with Willdan and Associates stated that as new plans are submitted they will be processed from start to finish by Willdan. Projects which are started with the County will be completed by the County. The applicants will not be required to go through two planning checks. M i nutes\4\3\90 - 7- 05/01/90 City Council Minutes April 3, 1990 Councilmember Birdsall questioned when a traffic signal needs to be removed or relocated who is responsible for bearing the cost. Mr. Tennant responded that some of the costs are handled by the county, some need to be assessed to the new developers and that conditions vary with each location. Mr. Tenant responded to a question from Mayor Parks that the Road Department functions as the Superintendant of Streets for the County. The Department also disperses the funds collected from bonds and the County will continue to handle the various Assessment Districts. The city Council will be the legislative body for Assessment Districts within the City. Councilmember Lindemans requested that the members of the City Council be provided with copies of the minutes of the Murrieta Creek Advisory Committee. Mayor Parks directed county staff to provide the City staff with copies of the Advisory Committee minutes for distribution to the council. Councilmember Mufioz stated he would like the committee to address the possibility of holding evening meetings that would be more convenient for public attendance. Request for Donation to Solutions Recovery Service City Manager Aleshire presented the staff report outlining the request from Solutions Recovery Service and recommended that the City Council direct staff to consider this matter during budget consideration. Rockey Hill representing the Substance Abuse Council, outlined the request and stated that this funding is to pay the Betty Ford Center for a deficit in the recent program which three City Councilmembers attended. Mayor Parks stated that he feels the City should pay for the members who attended this program at a cost of $510.00 each. Councilmember Moore also stated that she feels the program was most beneficial to the three members who attended and agrees that the City should reimburse for the Councilmembers attendance. It was moved by Coucilmember Moore, seconded by Councilmember Birdsall to reimburse the Substance Abuse Council of Southwest Riverside County in the amount of $1,530.00 The motion was unanimously carried. nutes\4\3\90 -8- 05/01/90 .... City Council Minutes April 3. 1990 City Hall Lease City Manager Aleshire recommended that a short range plan be considered for City office space. He introduced Joe Hreha who has been working on a program to provide the space for a three to five year period. Joe Hreha presented a report which outlined the existing facilities and the proposed 20,446 square foot building located immediately to the rear of the existing city hall. Mr. Hreha went over the terms of the lease offer from WestMar and Commercial Brokerage. Councilmember Lindemans questioned if the rental figures per month fit within the perimeters of the budget prepared by John McTighe. Mr. Jimmy Moore, former president of the Incorporation Committee stated that the McTighe budget was only for administrative costs and the various function departments were outlined however rentals were not. It was moved by Councilmember Mu~oz seconded by Councilmember Birdsall to approve Transition Plan II as outlined in the agenda report by Mr. Hreha. Councilmember Birdsall inquired if WestMar Commercial Brokage would be interested in possibly negotiating an investment type lease. Steve Skenell representing WestMar stated that this type of investment lease exists in office parks who have a vacancy factor of 21% or greater, however, there is a possibility this could be negotiated since the City represents a very attractive lessee. The motion was unanimously carried. CITY MANAGER REPORTS CITY ATTORNEY REPORTS CITY COUNCIL REPORTS nut es\4\3\90 - 9- 05/01/90 --~ City Council Minutes ADril 3. 1990 Councilmember Muhoz urged that the staff begin working immediately on establishing a Sphere of Influence, securing a consultant if necessary. The council took a unanimous straw vote to direct staff to solicit bids for a Sphere of Influence study. City Manager Aleshire indicated to the Council that he had already been talking with Bill Mechem. Councilmember Muhoz also stated that we would like to know the current status of securing a code enforcement officer. Mr. Aleshire explained that this matter would be covered on the next City Council agenda. ADJOURNMENT It was moved by Councilmember Moore, seconded by Councilmember Muhoz to adjourn the meeting at 10:00 P.M. to a meeting to be held April 10, 1990, at 7:00 P.M. at the Temecula Community Center, 28816 Pujol Street, Temecula, California. The motion was unanimously carried. ATTEST: RONALD J. PARKS, MAYOR F. D. ALESHIRE, CITY CLERK nutes \4\3\90 - 10 - 05/01/90 MINUTES OF A REGULARMEETING OF THE TEMECUL~ CITY COUNCIL HELD APRIL 10t 1990 A regular meeting of the Temecula City Council was called to order at 7:02 PM in the Temecula Community Center, 28816 Pujol Street, Temecula, California. Mayor Ron Parks presiding. PRESENT: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore Muhoz, Parks ABSENT: 0 COUNCILMEMBERS: None Also present were City Manager Frank Aleshire, City Attorney Douglas Holland and Deputy City Clerk June S. Greek. INVOCATION The invocation was given by Reverend Steven Struickmans of Rancho Community Church. PLEDGE OF ALLEGIANCE The audience was led in the Pledge of Allegiance by Councilmember Sal Muhoz. PRESENTATIONS AND PROCLAMATIONS A presentation was given to Sergeant Ronald Roberts and Officer Ronald J. Garcia as 1990 Police Officers of the Year. Council commended these officers for their outstanding service and excellence in their fields. PUBLIC COMMENTS Jim Allman read a prepared statement on behalf of Citizens For Quality Leadership. The statement included an allegorical story, depicting the City Councilmembers as well as the Recall Committee. The statement recommended the Council formulate a plan, publicize it and act on it immediately, to prevent further recall actions. Michael Primiceria, also a member of Citizens for Quality Leadership, spoke in opposition to the use of "derogatory terms" to describe the recall proponents by speakers during a previous meeting. He also questioned the reason for videotaping the meeting of April 3, 1990. Steven A. Shrader spoke out against recall efforts and announced a meeting of an anti-recall committee called Responsible Citizens of the Community, to be held on Tuesday, April 17, 1990 at the at the Rancho California Water District. John Clogan, of 41304 Bravos Ct., requested a Code of Ethics Resolution be adopted for the City of Temecula. He provided the City Clerk with copies of a code of ethics resolution from the City of Fountain Valley. CONSENT CALENDAR It was moved by Councilmember Lindemans, seconded by Councilmember Moore to approve the items on the consent calendar as follows: Resolution Amending Fiscal Year 1989-90 Budget RESOLUTION NO. 90-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING THE FISCAL YEAR 1989-90 BUDGET TO APPROPRIATE $13,000 FOR ELECTION SERVICES PROVIDED BY THE RIVERSIDE COUNTY REGISTRAR OF VOTERS FOR THE NOVEMBER 7, 1989 ELECTION. Resolution ADDroving Payment of Demands RESOLUTION NO. 90-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN Ew~_IBIT A. Plot Plan 11556 3.1 Plot Plan 11556 was received and filed. Plot Plan 11557 4.1 Plot Plan 11557 was received and filed· The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: NOES: 0 ABSENT: 0 COUNCIL BUSINESS Birdsall, Lindemans, Moore, Muhoz, Parks COUNCILMEMBERS: None COUNCILMEMBERS: None -2- o4/u/~o City Council Minutes April 10, 1990 5. Request for Funds - The Arts Council of the Temecula Valley City Manager Aleshire recommended that this matter be referred to staff to be presented to Council for consideration in the 1990/1991 Fiscal Year Budget. The time frame is approximately one month from now. The Arts Council was represented by Mary Jo Helmeke, 30540 Avenida Buena Suerte, who answered questions from Councilmembers. Councilmember Lindemans asked if research had been done with other cities regarding their Arts Council. Mrs. Helmeke stated that they had researched several other cities as the basis for their report. She reported the Arts Council's slogan as being, "The Art of Living is Living with Art". In response to Councilman Muhoz question of whether all the people of the community would be served, the Arts Council responded that they will strive to make all events available at a nominal fee. The Council would serve as an umbrella organization for smaller groups. These groups could apply to the Arts Council for funding. A straw vote was taken showing support of funding the Arts Council in next year's budget. The vote was unanimously in favor. It was moved by Councilmember Moore and seconded by Councilmember Birdsall to refer this matter to staff for inclusion in the 1990/1991 Fiscal Year Budget considerations. 6. Code Enforcement Report City Manager Frank Aleshire reported that code violations were numerous in the community and a report prepared by Anne Houston-Rogers detailed the extent of the problem. He then asked Ms. Rogers to present her finding to the City Council. Mrs. Rogers reported on the number and types of violations. It was Mrs. Rogers recommendation that the city should hire a code enforcement person, either as a consultant to temporarily "clean things up", or a full-time employee. Mrs. Rogers stated that she took a sampling of public opinion and found most people still need directional signs, but would prefer these to be standardized and not in places hazardous either to pedestrians or motorist. Mr. Newt Knowland, Sr. Code Enforcement Officer, from City Council Minutes ADril 10, 1990 Riverside County reported that a new officer would be in the field next week to help with these problems, and he outlined the types of signs which are non-conforming and requiring abatement. Code violations in the past have been handled by The Riverside County Building Department, for private property violations, and Howard McMann, the Riverside Road Commissioner, for signs in the road right-of-way. Councilmember Birdsall asked that the junk car problem on Pujol Street be looked into. She reported it not only being an eyesore but also a safety hazard as there is a preschool directly across the street. Councilmember Muhoz asked Mr. Knowland what the City could do in the interim about the signage problem. Mr. Knowland suggested the City hire a full-time code enforcement officer and also suggested the City give the County a prioritized list of specific problems they would like handled. Mayor Parks stated he is not in favor of levying heavy fines for code violators at this point. He said when the city adopts an ordinance reasonable and fair to businesses and private citizens, a warning letter might be in order. Mayor Parks added he would like the new Planning Commission to take a long, hard look at the sign standards to assure the provision are equitable. Councilmember Muhoz moved and Councilmember Birdsall seconded a motion directing staff to draft a letter to the community requesting voluntary compliance and outlining the provisions of the sign ordinance and describing what constitutes a violation. The motion was carried by the following vote: AYES: 4 COUNCILMEMBERS: Birdsall, Moore, Munoz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 1 COUNCILMEMBERS: Lindemans 7. Establishment of No Parking Zones City Manager F.D. Aleshire recommended that the City Council MINUTES 4110190 -4- 04112/90 City Council Minutes April 10, 1990 approve a resolution establishing no-parking zones in front of Temecula Valley High School. This is at the request of the School District for safety and visibility for traffic in and out of high school. It was moved by Councilmember Moore and seconded Councilmember Munoz to adopt a resolution entitled: by RESOLUTION NO. 90-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TERECULA ESTABLISHING A NO P&RKING ZONE ON I~NCHO VISTA ROAD FRONTING TERECULA VALLEY HIGH SCHOOL. The motion carried by the following vote: AYES: 5 NOES: ABSENT: RECESS COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz, Parks 0 COUNCILMEMBERS: None 0 COUNCILMEMBERS: None Major Parks declared a recess at 7:58 PM. The meeting was reconvened following the scheduled CSD Meeting at 8:49 P.M. 8. Rancho California Road Reimbursement Agreement city Manager Aleshire reported that Bedford Properties had presented several amendments to the Reimbursement Agreement for improvements on Rancho California road. These amendments were not received in time for Council to review, therefore, Mr. Aleshire suggested continuing this for one week. It was moved by Councilmember Birdsall and seconded by Councilmember Moore to continue this for one week. The motion was unanimously carried. 9. City Limits Signs City Manager Aleshire reported that Monument Signs on the freeway are up, however a lease agreement has not been city Council Minutes April 10. 1990 10. approved. He advised this agreement also requires some minor changes which Council has not had ample time to review, and he requested this be continued for one week to make changes. It was moved by Councilmember Muhoz and seconded by Councilmember Moore to continue this item for one week the make the necessary changes. The motion was unanimously carried. Purchase of City Vehicles City Manager Aleshire introduced the staff report recommending approval of the purchase of two city vehicles (4-door sedan and a 15-passenger van) through the County of Riverside. Joe Hreha, Manager of Information Systems, gave a formal presentation. Mr. Hreha reported that 120 dealers had participated in the County's bidding process and he feels the City will receive the best possible purchase price. Councilmember Lindemansquestioned the need for a 15 passenger van. Mr. Hreha answered that the 15 passenger van actually came out at a lower cost than the 12 passenger van. Mr. Hreha expressed the need for a vehicle to move cargo, i.e. furniture, etc., as well as a passenger van. Councilmember Lindemans questioned purchasing outside of Temecula, indicating his preference to use local vendors whenever possible. Mr. Aleshire reported that large purchases, by City Ordinance, must be opened for bids. Mr. Aleshire reported that the cars are included in this year's budget and April 14th bids close for this fleet purchase. The City is presently reimbursing employees 25 cents a mile for use of their personal vehicles and renting trucks when hauling is needed. Mr. Aleshire reported that this is a much greater expense than owning city vehicles. Councilmember Muhoz questioned the City's need for two vehicles at this time. Mayor Parks agreed in theory that whenever possible, purchase within Temecula is preferable. Because the City will shortly be in need of at least two vehicles to carry out its duties, especially in view of the upcoming Planning Department, he feels this purchase should be authorized. It was moved by Councilmember Moore and seconded by Councilmember Birdsall to approve the purchase of two vehicles as described in the staff report. MINUTES 4/10/90 --6- 04/12/90 city Council Minutes April 10. 1990 The motion carried by the following roll call vote: AYES: 3 COUNCILMEMBERS: Birdsall, Parks Moore, NOES: 2 COUNCILMEMBERS: Lindemans, Muhoz ABSENT: 0 COUNCILMEMBERS: None 11. Sphere of Influence Study City Manager Aleshire presented a staff report describing a proposal from the firm of Philip L. Anthony, Inc. This proposal was broken down into two parts. One would be the Sphere of Influence Study, the second to negotiate and process annexations for the city at a total estimated cost of $23,000. Mr. Aleshire reported that the City must establish a Sphere of Influence by December 30th or LAFCO will create one for us which will likely be coterminous with the current boundaries if the City does not propose a larger area. It was City Manager Aleshire's recommendation that the City solicit bids from other firms before making a final decision. Councilmember Lindemans stated he is very impressed with the firm of Philip Anthony and believes the urgency of the study gives precedence over the price of the bid. RECESS Mayor Parks declared a one minute recess to allow tapes to be changed at 9:14 P.M. The meeting was reconvened at 9:15 P.M. 11. Sphere of Influence (cont.) Mayor Parks believed that it is in the best interest of the City to provide the opportunity for other consultants in the area to submit proposals. Mayor Parks believed this issue should be continued for three weeks and allow City Manager to do a request for proposal to other engineering firms and give City a chance to review all proposals before making a decision. It was moved by councilmember Moore do refer this matter to staff to solicit R.F.P's. The motion died for lack of a second. MINUTES 4/10/90 -7- 04/12/90 City Council Minutes ADril 10, 1990 It was moved by Councilmember Muhoz and seconded by Councilmember Lindemans to retain the firm of Philip L. Anthony, Inc. to prepare the Sphere of Influence Study. The motion carried by the following roll call vote: AYES: 4 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz NOES: 1 COUNCILMEMBERS: Parks ABSENT: 0 COUNCILMEMBERS: None Mr. Meacham then outlined the following timetable. This study would take approximately 30 to 45 days. At this time a recommendation would be brought back to the City Council. The final decision would be up to the Council as to exactly which boundaries should be contained in the Sphere of Influence. The Council would then submit an application to LAFCO requesting that particular sphere. LAFCO would then hold public hearings on the application and make their final decision based upon those findings. 12. 8%l~!~aX~ Update on North San Dieqo County Landfills City Manager Aleshire introduced Bill Meacham, of Phillip L. Anthony, Inc., to present a report on the North San Diego County Landfills. Mr. Aleshire informed Council that we must file comments prior to April 16th, so this meeting will be the last opportunity to decide whether comments will be made. Mr. Meacham reported that there is an apparent lack of coordination and consideration of impacts to Riverside County and The City of Temecula. The Blue Canyon Site, whose intent is to utilize Highway 79 and not Highway 76, will have a serious impact on Temecula. It is proposed to move 40 trucks per hour, 10 days a week. This would affect traffic, noise and air quality. Councilmember Mufioz suggested using other means of transportation, such as rail, for a site at Eagle Mountain, which has already been excavated due to prior mining operations. He stated that a study should be done on whether the fuel for trucks transporting to the landfill would have a greater impact on the environment than incineration at a local plant. The Aspen Site, due to it's close proximity could cause ..... City Council Minutes April 10. 1990 extensive dust and odor blowing directly into the Temecula area. Mr. Bill Boff, stated that the impact on the San Margarita River Basin and it's effect on future water supply had not been considered. This should be coordinated with the Eastern Municipal Water District. Councilmember Birdsall moved and Councilmember Munoz seconded a motion to direct staff to prepare a letter expressing the City's opposition to the use of Highway 79-South as the route to the proposed Blue Canyon Site, and to express objection to the Aspen Site on the basis of the odor and air pollution this site will generate. The motion was unanimously carried. CITY MANAGER REPORT Mr. Aleshire reported that applications are now being accepted at City Hall for Planning Positions. The consultants from Willdan and Associates are presently in City Hall on Fridays. Within two weeks a contract will be ready for Willdan and Associates to become the City's Planning Department. A Planning Commission should then be on board to begin hearings. Mayor Parks asked how the housing of Willdan and Associates was going. Mr. Aleshire reported that carpeting had been put in the warehouse area, along with lights, etc. Mr. Aleshire also gave an update on the recall process. The Citizens for Quality Leadership refiled on April 9, 1990 and can now legally proceed with the recall. CITY ATTORNEY REPORT None presented. CITY COUNCIL REPORTS Councilmember Lindemans requested action on the following: Investigate the viability of hiring a consultant to audit the various fees and taxes being held by the County of Riverside. Report on the Traffic Mitigation Fee Ordinance from the City Attorney. Start proceedings to acquire the land needed for the Apricot Street over-crossing. --- City Council Minutes April 10, 1990 4. Place the business license fees on calendar. 5. Investigate formation of a debt advisory committee. e Requested a legal opinion regarding the fixed fees levied on vested tract maps. Would like to schedule discussion of a moratorium on billboards. e Would like a report of all Quimby Act dedications of land within the City Limits. Would like a study of the Enterprize Circle Area to address the confusing street markings. Councilmember Moore requested that the acting City Engineer address the left turn problem into the proposed Club Valencia Apartments on Rancho California Road and report to the Council. Mayor Parks requested the authorization of the council to communicate with Thomas Brothers Map Company requesting the use of City of Temecula rather than Rancho California by this company. Mayor Parks also requested the City Attorney to set up a meeting with the Rancho California Water District, the Eastern Municipal Water District and the City Council to discuss the water shortage problem and conservation methods. &DJOURNMEI~ Next meeting: April 17, 1990, 7:00 p.m., Temecula Community Center, 28816 Pujol Street, Temecula, California. RONALD J. PARKS, MAYOR ATTEST: JUNE G. GREEK, DEPUTY CITY CLERK MI~ 4/10/~0 -10- 04112190 HINUTES OF AN ADJOURNED REGUL~.R ~EETING OF THE TEI~ECULA CITY COUNCIL HELD APRIL L7, ~990 An adjourned regular meeting of the Temecula City Council was called to order at 7:02 p.m. in the Temecula Community Center, 218816 Pujol Street, Temecula, California. Mayor Ron Parks presiding. PRESENT: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks ABSENT: 0 COUNCILMEMBERS: None Also present were City Manager Frank Aleshire, City Attorney Scott F. Field, and Deputy City Clerk June S. Greek. INVOCATION The invocation was given by Pastor Kenneth Molnar, New Community Lutheran Church. PLEDGE OF ALLEGIANCE The audience was led in the Pledge of Allegiance by Councilmember Peg Moore. ANNOUNCF~ENTS PUBLIC CO141~ENTS Leigh Engdahl of 41859 Corte Selva, representing the Board of Directors of the Temecula Chamber of Commerce, voiced strong opposition to the recall effort. The Chamber Board of Directors requested all Citizens very carefully review consequences of a premature recall and suggested supporting existing Council and working toward solutions, not creating unnecessary problems. The Board requested that citizens do not sign the recall petition. CONSENT CALENDAR Mayor Parks requested the removal of items two, three and four from the Consent Calendar. It was moved by Councilmember Birdsall and seconded by Councilmember Muhoz to approve Consent Calendar Item No. 1 as follows: Minutes4/17/90 - 1 - 04125/90 City Council Minutes April 17, 1990 Application for Alcoholic Beveraoe License Receive and file. The motion carried by the following vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks COUNCILMEMBERS: None COUNCILMEMBERS: None Ordinance and Resolution Regarding Parks and Recreation - Commission 2.1 Councilmember Birdsall moved and Councilmember Mufioz seconded a motion to introduce Ordinance No. 90-05, read by title only and waive further reading. Ordinance with minor amendment in Section 1, was changed from Temecula Traffic Commission, to Temecula Parks and Recreation Commission. Ordinance passed first reading by the following vote: ORDINANCE NO. 90-05 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDINH CHAPTER 13.01 TO THE TEMECULA MUNICIPAL CODE RELATINH TO THE ESTABLISHMENT OF A TEMECULA PARKS AND RECREATION COMMISSION. The first reading passed by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Minut~a4/17/90 -2- 04/25/90 city Council Minutes April 17, 1990 2.2 Councilmember Patricia Birdsall moved and Councilmember Sal Mufioz seconded a motion to adopt Resolution 90-39 as follows with amendment to Section 4 changing once a week to once a month. RESOLUTION NO. 90-39 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING THE ORGANIZATIONS, OBJECTIVES, AND RESPONSIBILITIES OF A TEMECULA PARKS AND RECREATION COI.~ISSZON. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Ordinance and Resolution Regarding Public Safety Commission. 3.1 Councilmember Mu5oz moved and Councilmember Birdsall seconded a motion to introduce Ordinance No. 90-06, read by title only and waive further reading. Ordinance passed first reading by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 3.2 Councilmember Mufioz moved and Councilmember Moore seconded a motion to adopt with minor corrections Resolution No. 90-40. The changes are as follows: in Section 4, changing once a week to once a month, and adding to Section 7: This Resolution shall become effective concurrently with the effective date of the City Ordinance adding Chapter 11.01 to the City Municipal Code. Minutes4/17/90 -3- 04125190 City Council Minutes April 17, 1990 The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mu5oz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 4. Ordinance and Resolution Reaardina Traffic Commission. 4.1 Councilmember Muhoz moved and Councilmember Moore seconded a motion to introduce Ordinance No. 90-07, read by title only and waive further reading. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 5. City Hall Lease With Purchase Analysis. City Manager Aleshire introduced a staff report by Joe Hreha, Manager of Information Systems, which provides an analysis of lease vs. purchase for a City Hall. It was Mr. Hreha's recommendation that the Council to authorize the City Manager to enter into a lease agreement between the City of Temecula and Windsor Projects for a City Hall located at Windsor Park I on Business Park Drive for a period of five years. Mr. Hreha outlined the lease indicating the square footage is within the desired range and the parking minimum of 3.5 per 1,000 during business hours and 5.1 per 1,000 during Council Meeting hours in satisfied. He expressed the view that the lease involved less risk and the City does not, as yet, have a clear view of future needs. Mr. William L. Bopf of Wine Country Real Estate, spoke regarding the advantages of purchase rather than lease. Mr. Bopf provided Council with an offer to purchase three buildings, the total amount of square footage of 42,035 sq. ft. at a total price of $2,693,190. Mr. Bopf reported that this offer provides 17,000 more square feet than the contemplated lease and is provided at a cost that is Minute~4/17/90 4- 04/25/90 City Council Minutes ADril 17, 1990 approximately $270,000 per year which is less than the proposed lease. Mr. Bopf also informed Council that government agencies can obtain loans at a much reduced interest rate of 7.5% using tax exempt bonds. He also stated that property owned generally appreciates and this could also be a financial benefit to the City. Mr. Bopf indicated that if the City were to solicit RFP's, many offers would be obtained. Mr. Don Goldberg, representing Windsor Projects spoke regarding the benefits of leasing. Mr. Goldberg pointed out the advantage of the location of the subject property and the saving in moving costs available. He pointed out the parking requirements would not only be met, but exceeded. Mr. Goldberg outlined the flexibility of the lease agreement, outlining 30 day first refusal and five months free rent. He also stressed the advantage of being able to occupy by September. Ms. Pia Oliver, 27919 Front St., asked the Council if research had been done to determine the number of properties available for sale. She indicated that she could obtain a much better price than the offer submitted. Councilmember Lindemans requested consideration to form a Debt Advisory Committee to handle studies regarding certificates of participation and financing for purchase of a City Hall. Councilmember Moore suggested contacting all other brokers to submit a bid for their properties. Mr. Bopf suggested the Council solicit RFP's for the purchase of a City Hall. Councilmember Mufioz requested staff confirm the type of financing available and determine if the City is exempt from parking requirements. He also asked the ramifications if the City did not approve the lease. Mr. Joe Hreha stated that the Windsor Property will go back on the market April 18, 1990. Mayor Parks suggesting staff look into financing options open to the City, (i.e. triple net charges and tax exempt status). Mr. Bopf suggesting contacting a Bond Council and Financial Consultant for information to aid in this study. These agencies will provide the City with data regarding the market rate for bonds, and information on how to do certificates of participation. Minutes4/17/90 -5- 04/25/90 - City Council Minutes April 17, 1990 It was moved by Councilmember Muhoz and seconded by Councilmember Lindemans to direct staff to solicit bids to allow the City Council to make a determination on all available properties for both lease and purchase. Staff was also directed to report on the various funding mechanisms available within 30 days. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz , Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Mayor Parks adjourned the meeting at 8:25 PM. Mayor Parks reconvened the meeting at 8:40 PM. 6. Building and Safety Services City Manager Frank Aleshire reported that the purpose of this item is to give the Council a briefing on the various programs and services that are being offered in the City. Mr. Aleshire introduced Tom Ingram, Director of the Riverside County Building and Safety Department. Mr. Ingram began by describing services that are ongoing. He reported that there are presently 66 people assigned to the Temecula office. He outlined their functions as Building Inspection, Land Use Approval, Collection of Developer fees, Grading Permit and Structural Plan Review. Mr. Ingram reported that the Temecula office currently handles 7,316 active building permits. 4,566 are residential permits, the balance fall into other categories. Within the City of Temecula there are approximately 3,017 active building permits, 119 permits that are in for structural plan review and 541 permits that are in for Grading. Staff from the County is primarily responsible for doing two things: 1. Enforcing codes as they are written. 2. Assisting public/professional builders or private homeowners. MinuteM/17/90 4- 04125190 -- City Council Minutes April 17. 1990 Mr. Ingram said that the County is under contract to provide the City of Temecula services until June 30, and would be willing to provide services beyond that date to aid in transition. City Manager Aleshire reported that Riverside County did not want a contract to continue after July 1, 1990 and suggested calling for outside bids. Mayor Parks asked if Mr. Ingram could assist the City Manager in formulating City needs in this area. Mr. Parks expressed his concern that the County will discontinue their service to Temecula prior to the City having the ability to provide the necessary level of service independently. Councilmember Lindemans asked if it would be possible to move County Building and Safety employees into City Hall. Mayor Parks suggested setting May 1, 1990 as the date to discontinue issuing Building Permits in Riverside for the City of Temecula and to begin issuing those permits at city Hall. Councilmember Mufioz moved and Councilmember Birdsall seconded a motion to refer to staff a proposal to use County of Riverside Department Personnel in City Hall beginning May 1, 1990 to perform the Building and Safety Services. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz , Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 7. Willdan Contract City Manager Aleshire recommended adopting a resolution appointing Willdan and Associates as Acting City Engineer and Traffic Engineer. This will transition Willdan's services to the City instead of the County. Mr. Aleshire recommended approving the contract and hiring Willdan to work for the City immediately. Mr. Aleshire reported that Willdan is currently accepting applications in City Hall. Minutes4/17/90 -7- 04/25/90 City Council Minutes 7.2 7.3 ADril 17, 1990 It was moved by Councilmember Mu5oz, seconded by Councilmember Lindemans to adopt a resolution entitled: RESOLUTION NO. 90-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPOINTING AN ACTING CITY ENGINEER AND TRAFFIC ENGINEER AND ANACTING PLANNING DIRECTOR. The motion carried by the following vote: AYES: 5 NOES: 0 ABSENT: 0 Councilmember COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks COUNCILMEMBERS: None COUNCILMEMBERS: None Lindemans expressed concern that the auto insurance liability on the contract was too low. City Attorney Scott Field stated he will check into this. Mr. Field reported that Willdan would be responsible for coverage over and beyond the contract, not the City of Temecula. Mr. James Estock, 40420 Calle Medusa, requested that builders who had volunteered to do a traffic study, be allowed to do SO. Ron Parks said that the City has no objection to the study, and will meet with them to support this effort. Councilmember Moore moved and Councilmember Mufioz seconded a motion to execute the contract subject to review by the City Attorney. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None It was moved by Councilmember Mufioz, seconded by Councilmember Lindemans to authorize the City Manager to notify the County that as of April 6, 1990, all new planning and engineering applications will be processed by the City of Temecula. Minutes4/17/90 -8- 04F25/90 City Council Minutes April 17, 1990 The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None Councilmember Lindemans moved and Councilmember Muhoz seconded a motion to continue the meeting to 10:30 p.m. The motion was unanimously carried. 8. Rancho California Road Reimbursement Agreement City Manager Aleshire gave a staff report advising that through this agreement Bedford Properties has offered to finish widening Rancho California Road. The City will agree to try and collect fees from individual property owners as property is developed. If the City fails in this attempt, it is agreed that Bedford will not be reimbursed. It was moved by Councilmember Lindemans, seconded by Councilmember Birdsall to execute an agreement with Bedford Properties for improvements on Rancho California Road. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Muhoz , Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 9. City Limits Sign License Agreement City Manager Aleshire reported that the agreement provides for the City to maintain city Limits for City identification. Bedford Properties retains the right to rescind use of these signs upon 30 day notice. Councilmember Moore moved and Councilmember Mu~oz seconded a motion to authorize the Mayor to execute the agreement for the City Limits Monument Signs. Minutes4/17/90 -9- 04r/5/90 .... City Council Minutes April 17, 1990 The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 10. Buildinq Insoection Contract City Manager Aleshire recommended that the Council authorize a call for proposals to provide building inspection and grading services for the fiscal year beginning July 1, 1990. Mayor Parks expressed the opinion that we should begin to develop a City Building Staff. He suggested hiring a Director of Building and Safety. Councilmember Mufioz expressed concern that this is not the right time to hire staff when a new City Manager is expected to be in place shortly. He stated the new Manager might wish to hire his own department heads. City Manager Aleshire reported that his goal has been to get the city effectively functioning by July 1, 1990. Mr. Aleshire felt the only way to successfully do this is by hiring a consultant to handle the Building Department functions. It was moved by Councilmember Birdsall, seconded by Councilmember Mufioz to authorize the City Manager to prepare Requests for Proposals (RFP's) to provide Building and Safety Services for a short-term and to begin recruitment for permanent city staff positions immediately. The motion carried by the following vote: AYES: 5 COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None 11. Sphere of Influence Study City Manager Aleshire gave a staff report recommending the appointment of two members of the City Council to serve on a Minutes4/17/90 - 1 O- 04?'~/90 city Council Minutes April 17. 1990 committee to advise the consultant and help organize the public input program. Councilmember Birdsall moved and Councilmember Lindemans seconded a motion to appoint Mayor Parks and Councilmember Muhoz to serve as committee members and Councilmember Moore as alternate. The motion carried by the following vote: AYES: 5 NOES: 0 ABSENT: 0 COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: Birdsall, Lindemans, Moore, Mufioz, Parks None None CITY MANAGER REPORT 12. Request to Speak Follow-up city Manager Aleshire presented staff report dealing with zip code boundaries. 13. Comments North County Landfill E.I.R. city Manager Aleshire advised that the City of Temecula submitted comments on April 12, 1990 to San Diego County regarding impact of Land Fills on City of Temecula. Councilmember Lindemans gave Mr. Aleshire a copy of a report dealing with the incineration of refuse to provide energy for public facilities in Amsterdam, Holland. CITY ATTORNEY REPORT None given CITY COUNCIL REPORTS Councilmember Lindemans requested the following: Requested a date when the Traffic Mitigation Fees matter will be ready for Council consideration. Requested that the matter of a Debt Advisory Committee be placed on the next agenda. Minutes4/17/90 -11- 04/25/90 city Council Minutes April 17, 1990 Requested staff to look at the mechanisms for increasing the vested map fees. Councilmember Mufioz requested that a citywide effort be made to do a pre-festival clean-up program prior to the Balloon and Wine Festival. Adjournment It was moved by Councilmember Mufioz and seconded by Councilmember Lindemans to adjourn at 10:35 PM to a meeting to be held April 24, 1990, 7:00 PM, at the Temecula Community Center, 28816 Pujol Street, Temecula, California. Minutes4/17/90 - 12- 04/25/90 RESOLUTION NO. 90- 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 TKE CITY OF TEMECULA DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the following claims and demands as set forth in Exhibit A have been audited by the City Manager, and that the same are hereby allowed in the amounts of $62,635.66. Section 2. The City Clerk shall certify the adoption of this resolution. APPROVED AND ADOPTED, this 8th day of May, 1990. Ronald J. Parks, Mayor ATTEST: June S. Greek, Deputy City Clerk [SEALI 3/re~os/49 05103190 CITY OF TEMECULA LIST OF DEMANDS MAY 8, 1990 VENDOR DESCRIPTION AMOUNT 5001 WINDSOR PROPERTIES RENT - MAY $3,898.58 5002 VOID 5003 ALESHIRE EXPENSE REIMBURSEMENT 142.61 5004 PHILIP ANTHONY LANDFILL STUDY 3,950.00 5005 AUERBACH PUBLISHERS PUBLICATION 113.98 5006 C&C LOCKSMITH REKEY WHSE DOORS 51.00 5007 CALIFORNIAN SUBSCRIPTION 18.00 5008 CA CONTRACT CITIES DUES 150.00 5009 COMMUNITY NEWS ADVERTISING 904.00 5010 COUNTY PURCHASING OFFICE SUPPLIES/EQUIP 922.00 5011 DOUGLAS FORD MELLO ROOS 2,410.00 5012 FEDERAL EXPRESS DELIVERIES 50.50 5013 FREEMAN'S OFFICE SUPPLIES 236.94 5014 GOLDEN STATE TRADING COMPUTER EQUIPMENT 14,096.18 5015 GTEL PHONE RENT 126.41 5016 K. HARRINGTON EXPENSE REIMBURSEMENT 20.25 5017 WL HOLLEY CONSULT - PARKS & REC 3,515.00 5018 IMS POSTAGE METER 6,898.61 5019 LUNCH & STUFF CATER MEETING 53.15 5020 MEI MICRO COMPUTER SUPPLIES 181.40 5021 MARILYN'S COFFEE COFFEE SERVICE 166.86 5022 OFFICE TYPE SECTY SERVICE 152.95 5023 R. PARKS EXPENSE REIMBURSEMT 317.48 5024 POSITIVE IMAGE COUNCIL PHOTOS 515.11 5025 PRESS ENTERPRISE PUBLISHING 1,164.25 5026 PRICE SECURITY SERVICE - 4/11 25.00 5027 RAN-TEC RUBBER STAMPS 171.49 5028 RANCHO NEWS PUBLISHING 397.72 5029 R. FORTIER CONSULT - PERSONNEL 75.00 5030 SCE ELECTRIC 648.94 5031 SIR SPEEDY PRINTING 89.28 5032 SUBSTANCE ABUSE SEMINAR - SUBST ABUSE 1,530.00 5033 TEMECULA TOWNE ASSOC MEETING HALL 72.00 5034 TOWN CENTER STATIONERS OFFICE SUPPLIES 44.50 5035 WINDSOR CONSTRUCTION STORAGE FENCE 1,100.00 5036 T. HAFELI PRINTER - FINANCE 1,861.86 1144 J.S. MUNOZ EXPENSE REIMBURSEMT 250.00 1145 DAVLIN AUDIO/VIDEO 825.00 1146 UNIGLOBE TRAVEL TOUR BUS 341.55 PAYROLL 2 WEEKS ENDING 4/20 15,168.06 $62,635.66 I HEREBY CERTIFY THAT THE FOREGOING IS TRUE AND CORRECT. DATE F.D. ALESHIRE, CITY MANAGER CITY OF TEMECULA AGENDA REPORT AB#: MTG: 5/8/90 DEPT: FINANCE TITLE: RESOLUTION TO PARTICIPATE IN THE DEPT HD ICMA EMPLOYEE DEFERRED COMPENSATION PLAN CITY ATTY CITY MGR ~ RECOMMENDATION: That the City Council adopt a resolution to allow City employees to participate in the ICMA deferred compensation plan. DISCUSSION: An important component of the City's benefit package is employee access to a deferred compensation plan. The most widely used administrator is ICMA Retirement Corp. As discussed in the attached brochure employees may transfer their accounts from other governmental entities, which will aid in attracting talented staff. ALTERNATIVES: There are several private administrators that may be added at a later date. However, ICMA is the most universal administrator. FISCAL IMPACT: No cost to the City. own account maintenance costs. Employees bear their RESOLUTION NO. 90- A RF_~OLUTION OF ~ CITY COUNCIL OF TffF~ CITY OF TEMEC[H.A ESTABIJSmNG AN EMPLOYEE DEFERRED COMPENSATION PLAN TO BE ADMINISTERED BY ICMA RETIREMENT CORPORATION. WHEREAS, the City has employees rendering valuable services; and WHEREAS, the establishment of a deferred compensation plan for such employees serves the interests of the City by enabling it to provide reasonable retirement security for its employees, by providing increased flexibility in its personnel management system, and by assisting in the attraction and retention of competent personnel; and WHEREAS, the City has determined that the establishment of a deferred compensation plan to be administered by the ICMA Retirement Corporation serves the above objectives; and WHEREAS, the City desires that the investment of funds held under its deferred compensation plan be administered by the ICMA Retirement Corporation, and that such funds be held by the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their deferred compensation plans and money purchase retirement plans; NOW THEREFORE BE IT RESOLVED that the City hereby adopts the deferred compensation plan attached hereto as Appendix A, and appoints the ICMA Retirement Corporation to serve as Administrator thereunder; and BE IT FURTHER RESOLVED that the City hereby executes the Declaration of Trust of the ICMA Retirement Trust, attached hereto as Appendix B. BE IT FURTHER RESOLVED that the Finance Director shall be the coordinator for this program and shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the City, any required votes under the program. Administrative duties to carry out the plan may be assigned to the appropriate departments. APPROVED AND ADOPTED this 8th day of May, 1990. ATTEST: Ronald J. Parks, Mayor June S. Greek, Deputy City Clerk [SEAL] Resos/52 05/02/90 11:47am ("Employer") Deferred Compensation Plan 10/89 Article I. INTRODUCTION The Employer hereby establishes the Employer's Deferred Compensa- tion Plan, hereinafter referred to as the "Plan." The Plan consists of the provisions set forth in this document. The primary purpose of this Plan is to provide retirement income and other deferred benefits to the Employees of the Employer in accordance with the provisions of Section 457 of the Internal Revenue Code of 1986, as amended (the "Code"). This Plan shall be an agreement solely between the Employer and participating Employees. Article II. DEFINBONS Section 2.01 Account: The bookkeeping account maintained for each Participant reflecting the cumulative amount of the Participant's Deferred Compensation, including any income, gains, losses. or increases or decreases in market value attributable to the Employer's investment of the Participant's Deferred Compensation, and further reflecting any distri- butions to the Participant or the Participant's Beneficiary and any fees or expenses charged against such Participant's Deferred Compensation. Section 2.02 Administrator: The person or persons named to carry out certain nondiscretionary administrative functions under the Plan, as hereinafter described. The Employer may remove any person as Admin- istrator upon 60 days' advance notice in writing to such person, in which case the Employer shall name another person or persons to act as Administretor. The Administrator may resign upon 60 days' advance notice in writing to the Employer, in which case the Employer shall name another person or persons to act as Administrator. Section 2.03 Beneficiary: The person or persons designated by the Participant in his Joinder Agreement who shall receive any benefits payable hereunder in the event of the Participant's death. In the event that the Participant names two or more Beneficiaries, each Beneficiary shall be entitled to equal shares of the benefits payable at the Partici- pant's death, unless otherwise provided in the Participant's Joinder Agreement. If no Beneficiary is designated in the Joinder Agreement, if the Designated Beneficiary predeceases the Participant, or if the desig- nated Beneficiary does not survive the Participant for a period of fifteen (15) days, then the estate of the Participant shall be the Beneficiary. Section 2.04 Deferred Compensation: The amount of Normal Compen- sation otherwise payable to the Participant which the Participant and the Employer mutually agree to defer hereunder, any amount credited to a Participant's Account by reason of a transfer under Section 6.03, or any other amount which the Employer agrees to credit to a Partici- pant's Account. Section 2.05 Employee: Any individual who provides services for the Employer, whether as an employee of the Employer or as an independ- ent contractor, and who has been designated by the Employer as eligible to participate in the Plan. Section 2.06 Includible Compensation: The amount of an Employee's compensation from the Employer for a taxable year that is attributable to services performed for the Employer and that is inctudible in the Employ- ee's gross income for the taxable year for federal income tax purposes; such term does not include any amount excludable from gross income .... under this Plan or any other plan described in Section 457(b) of the Code or any other amount excludable from gross income for federal income tax purposes. Includible Compensation shall be determined without regard to any community property laws. Section 2.07 Joinder Agr~s.,,cnt-- An agreement entered into between an Employee and the Employer, including any amendments or modifica- tions thereof. Such agreement shall fix the amount of Deferred Compen- sation, specify a preference among the investment alternatives designated by the Employer, designate the Employee's Beneficiary or Beneficiaries, and incomorate the terms, conditions, and provisions of the Plan by reference. Section 2.08 Normal Compaass~i~n: The amount of com13ensetion which would be payable to a Participant by the Employer for a taxable year if no Joinder Agreement were in effect to defer compensation under this Plan. Section 2.09 Normal Retirement Age: Age 70~z, unless the Participant has elected an alternate Normal Retirement Age by written instrument deliv- ered to the Administrator prior to Separation from Service. A Partici- pants Normal Retirement Age determines the period dudng which a Participant may utilize the catch-up limitation of Section 5.02 hereun- der. Once a Participant has to any extent utilized the catch-up limitation of Section 5.02, his Normal Retirement Age may not be changed. A Participant's alternate Normal Retirement Age may not be earlier than the eadiest date that the Participant will become eligible to ratire and receive unreduced retirement benefits under the Employer's basic retirement plan covering the Participant and may not be later than the date the Participant will attain age 70~. If a Participant continues employ- ment after attaining age 70~, not having previously elected an alternate Normal Retirement Age, the Participant's alternate Normal Retirement Age shall not be later than the mandatory retirement age, if any, estab- lished by the Employer, or the age at which the Participant actually separates from service if the Employer has no mandatory retirement age. If the Participant will not become eligible to receive benefits under a basic retirement plan maintained by the Employer, the Participant's alternate Normal Retirement Age may not be earlier than age 55 and may not be later than age 70~. Sen~n 2.10 Participant: Any Employee who has joined the Plan pursuant to the requirements of Article IV. Section 2.11 Plan Year: The calendar year. Section 2.12 Retirement: The first date upon which both of the following shall have occurred with respect to a participant: Separation from Service and attainment of age 65. Section 2.13 Separation from Service: Severance of the Participant's employment with the Employer which constitutes a "separation from service" within the meaning of Section 402(e)(4)(A)(iii) of the Code. In general, a Participant shall be deemed to have severed his employment with the Employer for purposes of this Plan when, in accordance with the established practices of the Employer, the employment relationship is considered to have actually terminated. In the case of a Participant who is an independent contractor of the Employer, Separation from Service shall be deemed to have occurred when the Participant's con- tract under which services are performed has completely expired and terminated, there is no foreseeable possibility that the Employer will renew the contract or enter into a new contract for the Participant's services, and it is not anticipated that the Participant will become an Employee of the Employer. Articfe IlL ADMINISTRATION Section 3,01 Duties of Employer: The Employer shall have the author~ to make all discretionary decisions affecting the dghts or benefits of Participants which may be required in the administration of this Plan. Section 3.02 Duties of Administrator. The Administrator, as agent for the Employer, shall perform nondiscretionary administrative functions in connection with the Plan, including the maintenance of Participants' Accounts, the provision of periodic rel:~rts of the status of each Account, and the disbursement of benefits on behalf of the Employer in accor- dance with the provisions of this Plan. Article IV. PARTICIPATION IN THE PLAN Section 4.01 Initial Participation: An Employee may become a Participant by entering into a Joinder Agreement prior to the beginning of the calendar month in which the Joinder Agreement is to become effective to defer compensation not yet earned. Section 4.02 Amendment of Joinder Agreement: A Participant may amend an executed Joinder Agreement to change the amount of compensation not yet earned which is to be deferred (including the reduction of such future deferrals to zero) or to change his investment preference (subject to such restrictions as may result from the nature or terms of any investment made by the Employer). Such amendment shall become effective as of the beginning of the calendar month commencing after the date the amendment is executed. A Participant may at any time amend his Joinder Agreement to change the designated Beneficiary, and such amendment shall become effective immediately. Article V. LIMITATIONS ON DEFERRALS Section 5.01 Normal Limitation: Except as provided in Section 5.02, the maximum amount of Deferred Compensation for any Participant for any taxable year shall not exceed the lesser of $7,500.00 or 33% percent of the Participant's Includible Compensation for the taxable year. This limitation will ordinarily be equivalent to the lesser of $7,500.00 or 25 percent of the Participant's Normal Compensation. .... ~ .,m~on 5.02 Catch-Up Limitation: For each of the last three (3) taxable years of a Participant ending before his attainment of Normal Retirement Age, the maximum amour~t of Deferred Compensation shall be the lesser of: (1) $15,000 or (2) the sum of (i) the Normal Limitation for the taxable year, and (ii) the Normal Limitation for each prior taxable year of the Participant commencing after 1978 less the amount of the Participant's Deferred Compensation for such prior taxable years. A prior taxable year shall be taken into account under the preceding sentence only if (i) the Participant was eligible to participate in the Plan for such year (or in any other eligible deferred compensation Dian established under Sec- tion 457 of the Code which is properly taken into account pursuant to regulations under section 457), and (ii) compensation (if any) deferred under the Plan (or such other plan) was subject to the deferral limita- tions set forth in Section 5.01. Section 5.03 Other Plans: The amount excludable from a Participant's gross income under this Plan or any other eligible deferred compensa- tion plan under section 457 of the Code shall not exceed $7,500.00 (or such greater amount allowed under Section 5.02 of the Plan), less any amount excluded from gross income under section 403(b), 402(a)(8), or 402(h)(1)(B) of the Code, or any amount with respect to which a deduction is allowable by reason of a contribution to an organization described in section 501 (c)(18) of the Code. Article Vl. INVESTMENTS AND ACCOUNT VALUES Section 6.01 Investment of Deferred Compensation: All investments of Participants' Deferred Compensation made by the Employer, including all property and rights purchased with such amounts and all income attributable thereto, shall be the sole property of the Employer and shall not be held in trust for Participants or as collateral security for the fulfillment of the Employer's obligations under the Plan. Such property shall be subject to the claims of general creditors of the Employer, and no Participant or Beneficiary shall have any vested interest or secured or preferred position with respect to such property or have any claim against the Employer except as a general creditor. Section 6.02 Crediting of Accounts: The Participant's Account shall reflect the amount and value of the investments or other property obtained by the Employer through the investment of the Participant's Deferred Com- pensation. It is anticipated that the Employer's investments with respect to a Participant will conform to the investment preference specified in the Participant's Joinder Agreement, but nothing herein shall be con- strued to require the Employer to make any particular investment of a Participant's Deferred Compensation. Each Participant shall receive periodic reports, not less frequently than annually, showing the then- current value of his Account. Section 6.03 Transfers: (a) Incoming Transfers: A transfer may be accepted from an eligible deferred compensation plan maintained by another employer and cred- ited to a Participant's Account under this Plan if (i) the Participant has separated from service with that employer and become an Employee of the Employer, and (ii) the other employer's plan provides that such transfer will be made. The Employer may require such documentation from the predecessor plan as it deems necessary to effectuate the transfer, to confirm that such plan is an eligible deferred combensation plan within the meaning of Section 457 of the Code, and to assure that transfers are provided for under such plan. The Employer may refuse to accept a transfer in the form of assets other than cash, unless the Employer and the Administrator agree to hold such other assets under the Plan. Any such transferred amount shall not be treated as a deferrel subject to the limitations of Article V, except that, for purposes of applying the limitations of Sections 5.01 and 5.02, an amount deferred during any taxable year under the plan from which the transfer is accepted shall be treated as if it has been deferred under this Plan during such taxable year and compensation paid by the transferor embloyer shall be treated as if it had been paid by the Employer. (b) Outgoing Transfers: An amount may be transferred to an eligible deferred compensation plan maintained by another employer, and charged to a Participant's Account under this Plan, if (i) the Participant has separated from service with the Employer and become an employee of the other employer, (ii) the other employer's plan provides that such transfer will be accepted, and (iii) the Participant and the employers have signed such agreements as are necessary to assure that the Employer's liability to pay benefits to the Participant has been dis- charged and assumed by the other employer. The Employer may require such documentation from the other plan as it deems necessary to effectuate the transfer, to confirm that such plan is an eligible deferred compensation plan within the meaning of section 457 of the Code, and to assure that transfers are provided for under such plan. Such trans- fers shall be made only under such circumstances as are permitted under section 457 of the Code and the regulations thereunder. Section 6.04 Employer Liability: In no event shall the Employer's liability to pay benefits to a Participant under Article VI exceed the value of the amounts credited to the Participant's Account; the Employer shall not be liable for losses arising from depreciation or shrinkage in the value of any investments acquired under this Plan. Article VII. BENEFITS Section 7.01 Retirement Benefits and Election on Separation from Service: Except as otherwise provided in this Article VII, the distribution of a Participant's Account shall commence as of April 1 of the calendar year after the Plan Year of the Participant's Retirement, and the distribu- tion of such Retirement benefits shall be made in accordance with one of the payment options described in Section 7.02. Notwithstanding the foregoing, the Participant may irrevocably elect within 60 days following Separation from Service to have the distribution of benefits commence on a fixed or determinable date other than that described in the preced- ing sentence which is at least 60 days after the date such election is delivered in writing to the Employer and forwarded to the Administrator, but not later than April 1 of the year following the year of the Participant's Retirement or attainment of age 70~, whichever is later. 2 Section 7.02 Payment Options: As provided in Sections 7.01, 7.04, and 7.05, a Participant or Beneficiary may elect to have the value of the Participant's Account distributed in accordance with one of the follow- ing payment options, provided that such option is consistent with the limitations set forth in Section 7.03: (a) Equal monthly, quarterly, semi-annual or annual payments in an amount chosen by the Participant, continuing until his Account is exhausted; (b) One lump-sum payment; (c) Approximately equal monthly, quarterly, semi-annual or annual payments, calculated to continue for a period certain chosen by the Participant. (d) Annual Payments equal to the minimum distributions required under Section 401(a)(9) of the Code over the life expectancy of the Participant or over the life expectancies of the Participant and his Beneficiary. (e) Payments equal to payments made by the issuer of a retirement annuity policy acquired by the Employer. (f) Any other payment option elected by the Participant and agreed to by the Employer and Administrator, provided that such option must provide for substantially nonincreasing payments for any period after the latest benefit commencement date under Section 7.01. A Participant's or Beneficiary's election of a payment option must be made at least 30 days before the payment of benefits is to commence. If a Participant or Beneficiary fails to make a timely election of a payment option, benefits shall be paid monthly under option (c) above for a padod of five years. Section 7.03 Umitation on Options: No payment option may be selected by a Participant or Beneficiary under Sections 7.02, 7.04, or 7.05 unless it satisfies the requirements of Sections 401(a)(9) and 457(d)(2) of the Code, including that payments commencing before the death of the Participant shall satisfy the incidental death benefits requirement under section 457(d)(2)(B)(i)(I). Unless otherwise elected by the Participant, all determinations under Section 401(a)(9) shall be made without recal- culation of life expectancies. Section 7.04 Post-retirement Death Benefits: (a) Should the Participant die after he has begun to receive benefits under a payment option, the remaining payments, if any, under the payment option shall be payable to the Participant's Beneficiary com- mencing within the 30-day period commencing with the 61st day after the Participant's death, unless the Beneficiary elects payment under a different payment option that is available under Section 7.02 within 60 days of the Participant's death. Any different payment option elected by a Beneficiary under this section must provide for payments at a rate that is at least as rapid as under the payment option that was applicable to the Participant. In no event shall the Employer or Administrator be liable to the Beneficiary for the amount of any payment made in the name of the Participant before the Administrator receives proof of death of the Participant. (b) If the designated Beneficiary does not continue to live for the remain- ing period of payments under the payment option, then the commuted value of any remaining payments under the payment option shall be paid in a lump sum to the estate of the Beneficiary. in the event that the Participant's estate is the Beneficiary, the commuted value of any remain- ing payments under the payment option shall be paid to the estate in a lump sum. Section 7.05 Pre-retirement Death Benefits: .... (a) Should the Participant die before he has begun to receive the benefits provided by Section 7.01, the value of the Participant's Account shall be payable to the Beneficiary commencing within the 30-day period commencing on the 91 st day after the Participant's death, unless the Beneficiary irrevocably elects a different fixed or determinable benefit commencement date within 90 days of the Participant's death. Such benefit commencement date shall be not later than the later of (i) December 31 of the year following the year of the Participant's death, or (ii) if the Beneficiary is the Participant's spouse, December 31 of the year in which the Participant would have attained age 70~. (b) Unless a Beneficiary elects a different payment option prior to the benefit commencement date, death benefits under this Section shall be paid in approximately equal annual installments over five years, or over such shorter period as may be necessary to assure that the amount of any annual installment is not less than $3,500. A Beneficiary shall be treated as if he were a Participant for purposes of determining the payment options available under Section 7.02, provided, however, that the payment option chosen by the Beneficiary must provide for pay- ments to the Beneficiary over a period no longer than the life expec- tancy of the Beneficiary, and provided that such paded may not exceed fifteen (15) years if the Beneficiary is not the Participant's spouse. (c) In the event that the Beneficiary dies before the payment of death benefits has commenced or been completed, the remaining value of the Participant's Account shall be paid to the estate of the Beneficiary in a lump sum. In the event that the Participant's estate is the Beneficiary, payment shall be made to the estate in a lump sum. Section 7.06 Unforesesable Emergencies: (a) In the event an unforeseeable emergency occurs, a Participant may apply to the Employer to receive that part of the value of his Account that is reasonably needed to satisfy the emergency need. If such an applica- tion is approved by the Employer, the Participant shall be paid only such amount as the Employer deems necessary to meet the emergency need, but payment shall not be made to the extent that the financial hardship may be relieved through cessation of deferral under the Plan, insurance or other reimbursement, or liquidation of other assets to the extent such liquidation would not itself cause severe financial hardship. (b) An unforeseeable emergency shall be deemed to involve only cir- cumstances of severe financial hardship to the Participant resulting from a sudden unexpected illness, accident, or disability of the Partici- pant or of a dependent (as defined in Section 152(a) of the Code) of the Participant, loss of the Participant's property due to casualty, or other similar and extraordinary unforeseeable circumstances arising as a result of events beyond the control of the Participant. The need to send a Participant's child to college or to purchase a new home shall not be considered unforeseeable emergencies. The determination as to whether such an unforeseeable emergency exists shall be based on the merits of each individual case. Section 7.07 Transitional Rule for Pre-1989 Benefit Elections: In the event that, prior to January 1, 1989, a Participant or Beneficiary has com- menced receiving benefits under a payment option or has irrevocably elected a payment option or benefit commencement date, then that payment option or election shall remain in effect notwithstanding any other provision of this Plan. Article VIII. NON-ASSIGNABIBTY Section 8.01 In General: Except as provided in Section 8.02, no Partici- pant or Beneficiary shall have any right to commute, sell, assign, pledge, transfer or otherwise convey or encumber the right to receive any payments hereunder, which payments and rights are expressly declared to be non-assignable and non-transferable. Section 8.02 Domestic Relations Orders: (a) Allowance of Transfers: To the extent required under a final judg- ment, decree, or order (including approval of a property settlement agreement) made pursuant to a state domestic relations law, any portion of a Participant's Account may be paid or set aside for payment to a spouse, former spouse, or child of the Participant. Where necessary to carry out the terms of such an order, a separate Account shall be established with respect to the spouse, former spouse, or child who shall be entitled to make investment selections with respect thereto in 3 APPENDIX B DECLARATION OF TRUST OF ICMA RETIREMENT TRUST ARTICLE I. NAME AND DEFINITIONS Section 1.1 Name: The Name of the Trust, as amended and restated hereby, is the ICMA Retirement Trust. Section 1,2 Definitiona: Wherever they are used hereto, the following terms shall have the following respective meanings: (a) By-Laws. The By-Laws referred to in Section 4.1 hereof, as amended from time to time. (b) Deferred Compensation Plan. A deferred compensation plan e~ablished and maintained by a Public Employer for the purpose of providing retire- merit income and other deferred benefits to its employees in accordance with the provisions of section 457 of the Internal Revenue Code of 1954, as amended. (c) Employees. Those employees who participate in Qualified Plans. (d) Employer Trust. A trust created pursuant to an agreement between RC and a Public Employer for the purpose of investing and administering the funds set aside by such Employer in connection with its Deferred Compen- sation agreements with its employees or in connection with its Qualified Plan. (e) Guaranteed Investment Contract. A contract entered into by the Retire- ment Trust with insurance companies that prowdes for a guaranteed rate of return on investments made pursuant to such contract. (f) ICMA. The International City Management Association. (g) ICMA/RC Trustees. Those Trustees alected by the Public Employers wh(~ in accordance with the provisions of Section 3.1(a) hereof, are also mem- bers of the Board of Directors of ICMA or RC, (h) Investment Advise[ The Investment Adviser that enters into a contract with the Retirement Trust to provide advice with respect to investment of the Trust Property. (i) Portfolios. The Portfolios of investments established by the Investment Adviser to the Retirement Trust, under the supervision of the Trustees, for the purpose of providing i~ents for the Trust Proparty. (~ Public Employee Trustees, Those Trustees electecl by the Public Employers who, in accordance with the prowsions of Section 3.1(a) hereof, are full-time employees of Public Employers, (k) Public Employer Trustees. Public Employers who serve as trustees of the Qualified Plans. (I) Public Employer. A unit of state or local government, or any agency or instrumentality thereof, that has adopted a Deferred Compensation Plan or a Qualified Plan and has executed this Declaration of Trust. (m) Qualified Plan. A plan sponsored by a Public Employer for the purpose of providing retirement income to '~ employees which satisfies the qualift- cation requirements of Section 401 of the Internal Revenue Code, as amended. (n) RC. The International City Management Association Retirement Corpo- ration. (o) Retirement Trust. The Trust created by this Declaration of Trust. (p) Trust Proparty. The amounts held in the Retirement Trust on behalf of the Public Employers in connection with Deferred Cempansation Plans and on bet~alf of the Public Employer Trustees for the exclusive benefit of Employees pursuant to Quail- tied Plan~ The Trust Property shall include any income resulting from the invest- ment of the amounts so held. (q) Trustees. The Public Employee Trustees and ICMA/RC Trustees elected by the Public Employers to serve as members of the Boarcl of Trustees of the Retirement Trust. ARTICLE II. CREATION AND PURPOSE OF THE TRUS~, OWNERSHIP OF TRUST PROPERTY Section 2.1 Creation: The Ratirement Trust is created and established by the execution of this Declaration of Trust by the Trustees and the Public Employer~ Section 2,2 Putpole: The purpose of the Retirement Trust is to prowde for the cornmingled investment of funds held by the Public Employers in connec- tion with their Deferred Compensation and Qualified Plans, The Trust Prop- erty shall be invested in the Portfolios, in Guaranteed Invesa~ent Contracts, and in other investments recommended by the Investment Adviser under the supanasio~ of the Board of T~ No part of the Trust Property will be invested in securities issued by Public Employers. seerion 2,30wnemhlp of 1Yult Property: The Trustees shall have legal title to the Trust Property. The Public Employers shall be the beneficial owners of the portion of the Trust Proparty allocable to the Deferred Compensation Plans. The portion of the Trust Proparty altocable to the Qualified Plans shall be held for the Public Employer Trustees for the exclusive benefit of the Employee~ ARTICLE IlL TRUSTEES Se,~on 3.1 Number and Qualification of Trusteea. (a) The Board of Trustees shall consist of nine Trustees. Five of the Trustees shall be full-time employees of a Public Employer (the Public Employee Trustees) who are authorized by such Public Employer to serve as Trustee. The remaining four Trustees shall consist of two persons who, at the time of election to the Board of Trustees, are members of the Board of Directors of ICMA and two parsons who, at the time of election, are members of the Board of Directors of RC (the ICMA/RC Trustees). One of the Trustees who is a director of ICMA, and one of the Trustees who is a director of RC, shall, at the time of election, be full-time employees of a Public Employer. (b) No person may serve as a Trustee for more than one term in any ten-year peried. Section 3.2 Bection and Term. (a) E~cept for the Trustees appcxnted to fill vacancies pursuant to Section 3.5 hereof, the Trustees shall be elected by a vote of a majority of the Public Employers in accorclance w~th the prcceduras set forth in the 8y-Law~ (b) At the first election of Trustees, three Trustees shall be elected for a term of three years, three Trustees shall be elected for a term of two years and three Trustees shall be etected for a term of one year. At each subsecluent election, three Trustees shall be elected for a term of three years and until his or her successor is elected and qualified. Section ;3.3 Nominations: The Trustees who are full-time employees of Public Employers shall serve as the Nominating Committea for the Public Employee Trustees. The Nominating Committee shall choose candidates for Public Employee Trustees in accordance with the procedures set forth in the By-Laws. Section 3.4 Resignation and Removal. (a) Any Trustee may resign as Trustee (without need for prior or subseduent accounting) by an instrument in writing signed by the Trustee and delivered to the other Trustees and such reagnation shall be effective upon such delivery, or at a later date according to the terms of the instrument. Any of the Trustees may be removed for cause, by a vote of a majority of the Public Employers. (b) Each Public Employee Trustee shall resign his or her position as Trustee within sixty days of the date on which he or she ceases to be a full-time employee of a Public Employer. Section 3.5 Vacancies: The term of office of a Trustee shall terminate and a vacancy shall occur in the event of the death, resignation, removal, adjudi- cated incompetence or other incapacity to perform the duties of the office of a Trustee. in the case of a vacancy, the remaining Trustees shall appoint such person as they in their discretion shall see fit (subject to the limitations set forth in this Section), to serve for the unexpired portion of the term of the Trustee who has resigned or otherwise ceased to be a Trustee~ The appointment shall be made by a written instrument signed by a malority of the Trustee,& The per- son appointed must be the same type of Trustee (i.~, Public Employee Trus- tee or ICMA/RC Trustee) as the person who has ceased to be a Trustee. An app~ntment of a Trustee may be made in anticipation of a vacancy to occur at a later date by reason of re~rement or reagnaion, providad that such appont- ment shall not become effective prior to such retirement or reagnation. When- ever a vacancy in the number of Trustees shall occur, until such vacancy is filled as provided in this Section 3.5, the Trustees in office, regardless of their number, shall have all the powers granted to the Trustees and shall discharge all the duties imposed upon the Trustees by this Declaration. A written instru- ment certifying the existence of such vacancy signed by a malority of the Trustees shall be conclusive evidence of the existence of such vacancy. Section 3.6 Trustees Serve in Representative Capaoity: By executing this Oeclarafion, each Public Employer agrees that the Public Employee Tru.stees elected by the Public Employers are authorized to act as agents and represen- tatives of the Public Employers collectively. ARTICLE IV. POWERS OF TRUSTEES Section 4.1 General Powere: The Trustees shall have the power to conduct the business of the Trust and to cam/on its operation& Such power shall include, but shall not be limited to, the power to: (a) receive the Trust Property from the Public Employers, Public Employer Trustees or other Trustee of any Employer Trust; (b) enter into a contract with an Investment Adviser providing, among other things, for the establishment and operation of the Portfolios, selection of the Guaranteed Invesa'nent Contracts in which the Trust Property may be invested, saleotion of ceher invesa~ents for the Trust ProbeVy and the payment of reasora- ble fees to the Investment Adviser and to any sub-investment adviser retained by the Investment Adviser; (c) review annually the bedormance of the Investment Adviser and approve annually the contract with such Investment Adviser; (d) invest and reinvest the Trust Propen'y in the Portfolios, the Guaranteed Interest Contracts and in any other investment recommended by the Investment ,NSviser, but not including secures issued by Public Employers, prowded that if a Public Employer has directed that its monies be invested in specified Portfolios or in a Guaranteed Investment Contract, the Trustees of the Retirement Trust shall invest such monies in accordance with such directions; (e) keep such portion of the Trust Property in cash or cash balances as the Trustees, from time to time, may deem to be in the best interest of the Retire- ment Trust created hereby, without liability for interest thereon; (f) accept and retain for such time as they may deem adviseble any securi- ties or other property received or accluired by them as Trustees hereunder, whether or not such secu 'nties or ~ property would normally be purchased as investments hereunder; (g) cause any securities or other property held as part of the Trust Property to be registered in the name of the Retirement Trust or in the name of a nomi- nee, and to hold any investments in bearer form, but the books and records of the Trustees shall at all times show ~at all such investments are a part of the Trust Property; (h) make, execute, acknowledge, and deliver any and all documents of trans- fer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers hereto granted; or powers of attorney with or without power of substitution; exercise any con- verdon privileges, subscription rights, or other options, and make any pay- ments incidental thereto; oppose, or consent to, or otherwise participate in, corporate reorganizations or other changes effecting corporate securities, and delegate discretionary power& and pay any assessments or charges in con- nection therewith; and generally exemise any of the ~ of an owner with respect to stocks, bonds, securities or other property held as part of the Trust Property; (j) enter into contracts or arrangements for goods or serwces required in con- nection with the operation of the Retirement Trust, including, but not limited to, contracts with custodians and contracts for the provision of administrative services; (k) borrow or raise money for the purposes of the Retirement Trust in such amount, and upon such ts~ms and conditions, as the Trustees sha# deem edvis- 30% of the value of the Trust Properly. No pemon lending money to the Trustees shall be bound to see the application of the money lent or to inquire into its validity, expediency or propriety of any such borrowing; (I) incur reasonable expenses as required for the operation of the Retirement Trust and deduct such expenses from the Trust Property; (m) pay expanses properly allocable to the Trust Property incurred in connec- tion with the Deferred Compensation Plans, Qualified Plans, or the Employer Trusts and deduct such expenses from that portion of the Trust Property to whom such expenses are properly allocable; (n) pay out of the Trust Property all real and personal property taxes, income taxes and other taxes of any and all kinds which, in the opinion of the Trustees, are propedy levied, or assessed under exuding or future laws upon, or in respect of, the Trust Property and allocate any such taxes to the appropriate accounts; (o) adopt, amend and rebeal the By-Laws, provided that such By-Laws are at all times consistent with the terms of this Declaration of Trust; (p) employ persons to make available interests in the Retirement Trust to employers eligible to maintain a Deferred Compensation Plan under Section 457 or a Qualified Plan under Section 401 of the Internal Revenue Code, as amended; (q) issue the Annual Report of the Retirement Trust, and the disclosure docu- ments and other literature used by the Retirement Trust; (r) make Idans, including the pumhase of deb~ obligations, provided that all such loans shall bear interest at the current market rate; (s) contract for, and delegate any powers granted hereunder to, such officers, agents, employees, auditom and attorneys as the Trustees may select, provided that the Trustees may not delegate the powers set forth in paragraphs (b), (c) and (o) of this Section 4.1 and may not delegate any powers if such delega- tion would violate their fiduciary duties; (t) provide for the indemnification of the officers and Trustees of the Retirement Trust and purchase fiduciary insurance; (u) maintain books and records, including separate accounts for each Public Employer, Public Employer Trustee or Employer Trust and such additional sep- arate accounts as are required under, and consistent with, the Deferred Com- pensation or Qualified Plan of each Public Employer; and (v) do all such acts, take all such proceedings, and exercise all such dghts and privileges, although not spe~ficatly mentioned herein, as the Trustees may deem necessary or appropriate to administer the Trust Property and to carry out the purposes of the Retirement Trust. Section 4.2 Dl~tribution of 'lYu~t Property: Distributions of the Trust Prop- erty shall be made to, or on behalf of, the Public Employer or Public Employer Trustee, in accordance with the terms of the Deferred Compensation Plans, Qualified Plans or Employer Trusts. The Trustees of the Retirement Trust shall be fully protected in making payments in accordance with the directions of the Public Employsre, Public Employer Trustees or other Trustee of the Employer Trusts w~thout ascertaining whether such payments are in compliance w~th the prowsions of the Deferred Compensation or Qualified Plans, or the agreements creating the Employer Trusts. Section 4.3 Execution of Instruments: The Trustees may unanimously designate any one or more of the Trustees to execute any instrument or docu- ment on behalf of all, including but not limited to the signing or endorsement of any check and the signing of any applmations, insurance and other con- tracts, and the action of such deagnated Trustee or Trustees shall have the same force and effect as if taken by all the Trustees. ARTICLE V. DUTY OF CARE AND LIABILITY OF TRUSTEES Section 5.1 Dub/of Care: In exercising the powers hereinbefore granted to the Trustees, the Trustees shall pedorm all acts within their authority for the exclusive purpose of prowding benefits for the Public Employers in connec- tion w~th Deferred Compensation Plans and Public Employer Trustees pursuant to Qualified Plans, and shall bedorm such acts with the care, skill, prudence and diligence in the circumstances then prevailing that a prudent person act- ing in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. Section 5.2 Uabilib/: The Trustees shall not be liable for any mistake of judg- ment or other action taken in good faith, and for any action taken or omitted in reliance in good faith upon the books of account or other records of the Retirement Trust, upon the opinion of counsel, or upon reports made to the Retirement Trust by any of its officers, employees or agents or by the Invest- ment Adviser or any sub-investment adviser, accountants, appraisers or other experts or consultants selected with reasonable cam by the Trustees, officers or employees of the Retirement Trust. The Trustees shall also not be liable for any loss sustained by the Trust Property by reason of any investrnent made in good faith and in accordance with the standard of cam sef forth in Section 5,1. Section 5.3 Bond: No Trustee shall be obligated to give any bond or other secudty for the performance of any of his or her duties hereunder. ARTICLE Vl. ANNUAL REPORT TO SHAREHOLDERS The Trustees shall annually submit to the Public Employera and Public Employer Trustees a written report of the transactohS of the Retirement Trust, including finan- cial statements which shall be certified by independent public accountants cho- sen by the Trustees. ARTICLE VII. DURATION OR AMENDMENT OF RETIREMENT TRUST Section 7.1 Withdra~al: A Public Employer or Public Employer Trustee may, at any time, withdraw from this Retirement Trust by detivering to the Board of Trustees a written statement of withdrawal. In such statement, the Public Employer or Public Employer Trustee shall acknowledge that the Trust Prop- erty allocable to the Public Employer is denveal from compensation deferred by employees of such Public Employer pursuant to its Deferred Compensa- tion Plan or from conthbutJons to the accounts of Employees pursuant to a Qualified Plan, and shaJl designate the financial inslitution to which such property shall be transferred by the Trustees of the Retirement Trust or by the Trustee of the Employer Trust. S~on 7.2 Ouretioft: The Retirement Trust shall continue until terminated by the vote of a majonty of the Public Employers, each casting one vote~ Upon termination, all of the Trust Property shall be pad out to the Public Employers, Public Employer Trustees or the Trustees of the Employer Trusts, as appropnate. Se~-*tion 7.:3 A.~¢11~,~¢.11: The Retirement Trust may be amended by the vote of a majority of the Public Employers, each casting one vote. $e~tiO~l ?.4 Procedure: A resolution to terminate or amend the Retirement Trust or to remove a Trustee shall be submitted to a v~e of the Public Employers if: (i) a majority of the Trustees so direct, or; (ii) a petition requesting a vote, signed by not less than 25°/0 of the Public Employers, is sulornitted to the Trustees. ARTICLE VIII. MISCELLANEOUS Section 8.1 Governing Law: Except as otherwise required by state or local law, this Declaration of Trust and the Retirement Trust hereby created shall be construed and regula~cl by the laws of the Distdct of Columbia. Section 8.2 Coullterpart~: This Declaration may be executed by the Public Employers and Trustees in two or more counterparts, each of which shall be deemed an onginal but all of which together shall constitute one and the same instrument. the same manner as the Participant; any amount so set aside for a spouse, former spouse. or child shall be ;)aid out in a lump sum at the earliest date that benefits may be paid to the Participant, unless the order directs a different time or form of payment. Nothing in this Section shall be construed to authorize any amount to be distributed under the Plan at a time or in a form that is not permittecl under Section 457 of the Code. Any payment made to a person other than the Participant pursu- ant to this Section shall be reduced by required income tax withholding; the fact that payment is made to a person other than the Participant may not prevent such baymerit from being includible in the gross income of the Participant for withholding and income tax reporting purposes. (b) Release from Liability to Participant: The Employer's liability to pay benefits to a Participant shall be reduced to the extent that amounts have been paid or set aside for payment to a spouse, former spouse, or child pursuant to paragraph (a) of this Section. No such transfer shall be effectuated unless the Employer or Administrator has been provided with satisfactory evidence that the Employer and the Administrator are released from any further claim by the Participant with respect to such amounts. The Participant shall be deemed to have released the Employer and the Administrator from any claim with respect to such amounts, in any case in which (i) the Employer or Administrator has been served with legal process or otherwise joined in a proceeding relating to such transfer, (ii) the Participant has been notified of the pendency of such proceeding in the manner prescribed by the law of the jurisdiction in which the proceeding is pending for service of process in such action or by mail from the Employer or Administrator to the Participant's last known mailing address, and (iii) the Participant fails to obtain an order of the court in the I~roceeding relieving the Employer or Administrator from the obligation to comply with the judgment, decree, or order. (c) Participation in Legal Proceedings: The Employer and Administrator shall not be obligated to defend against or set aside any judgment, decree, or order described in paregraph (a) or any legal order relating to the garnishment of a Participant's benefits, unless the full expense of such legal action is borne by the Participant. In the event that the Participant's action (or inaction) nonetheless causes the Employer or Administrator to incur such expense, the amount of the expense may be charged against the Participant's Account and thereby reduce the Eml~loyer's obligation to pay benefits to the Participant. In the course of any proceeding relating to divorce, separation, or child support, the Employer and Administrator shall be authorized to disclose information relating to the Participant's Account to the Participant's spouse, former spouse, or child (including the legal representatives of the spouse, former spouse, or child), or to a court. Article IX. RELATIONSHIP TO OTHER PLANS AND EMPLOYMENT AGREEMENTS This Plan serves in addition to any other retirement, pension, or benefit plan or system presently in existence or hereinafter established for the benefit of the Employer's eml~loyees, and participation hereun- der shall not affect benefits receivable under any such plan or system. Nothing contained in this Plan shall be deemed to constitute an employ- ment contract or agreement between any Participant and the Employer or to give any Participant the right to be retained in the employ of the Employer. Nor shall anything herein be construed to modify the terms of any employment contract or agreement between a Participant and the Employer. Article X. AMENDMENT OR TERMINATION OF PI.AN The Employer may at any time amend this Plan provided that it transmits such amendment in writing to the Administrator at least 30 days prior to the effective date of the amendment. The consent of the Administrator shall not be required in order for such amendment to become effective, but the Administrator shall be under no obligation to continue acting as Administrator hereunder if it disapproves of such amendment. The Employer may at any time terminate this Plan. The Administrator may at any time propose an amendment to the Plan by an instrument in writing transmiffed to the Employer at least 30 days before the effective date of the amendment. Such amendment shall become effective unless, within such 30-day period, the Employer notifies the Administrator in writing that it disapproves such amend- ment, in which case such amendment shall not become effective. In the event of such disapproval, the Administrator shall be under no obliga- tion to continue acting as Administrator hereunder. If this Plan docu- ment constitutes an amendment and restatement of the Plan as previously adopted by the Employer, the amendments contained herein shall become effective on January 1, 1989, and the terms of the preced- ing Plan document shall remain in effect through December 31, 1988. Except as may be required to maintain the status of the Plan as an eligible deferred compensation plan under section 457 of the Code or to comply with other applicable laws, no amendment or termination of the Plan shall divest any Participant of any rights with respect to com- pensation deferred before the date of the amendment or termination. Article Xl. API~.ICABLE LAW This Plan shall be construed under the laws of the state where the Employer is located and is established with the intent that it meet the requirements of an "eligible deferred compensation plan" under Sec- tion 457 of the Code, as amended. The provisions of this Plan shall be interpreted wherever possible in conformity with the requirements of that section. Article XlI. GENDER AND NUMBER The masculine pronoun, whenever used herein, shall include the feminine pronoun, and the singular shall include the plural, except where the context requires otherwise. 4 The R C Distinction Mally good companies offer retirement plans tbr local and state gov- ernment employees... Fewer provide sen'ices ranging from toll-free hotlines to regular news- letters to no-fee VISA cards... Fewer still are flexible enough to allow participants to custom develop the plan. at retirement and before, that suits them best... And only one company-the only one founded by public employees for public employees--does it all Welcome to ICMA Retirement Corporation. Here at RC, we offer the best-managed, most flexible, personalized and easiest to administer retirement programs available amevhere. How are we better than the rest? SPECIALIZATION, EFFICIENCY, INDEPENDENCE, UNDERSTANDING AND COMMITMENT TO PERSONALIZED SERVICE-THAT'S THE RC DISTINCTION. We Specialize. We only provide retirement plans: deferred compensation (457), money purchase (401(a)) and salary reduction plans (401(k)). We Are Non-Profit. All dividends, profits and earnings are returned to you, our participants, and not a corporation, insurance company, or group of shareholders. We Know Investments. We provide a comprehensive arrav of investment fund choices designed to protect and build for a secure future. We offer investment funds appropriate for both younger and older individuals recognizing that preferences differ as retirement nears. We Are Independent. We are not owned by a bank or an insurance company. Our products and services are designed exclu- sively for the retirement plans we offer and not as an afterthought to another line of business. We Know Local Government. We have a team of seasoned professionals, many of whom have worked in local government, which helps us know more about your special needs. We Are Committed To Service. As a non-profit, non-stock, independent corporation, our only objective is to provide superior products and service to government employees. Since our beginning, we have not wavered from our commitment. zvorkzngfor you !7te ' reh'reme t. _'-?; r, ':.- Lifetime Service, Flexibility and Growth... ~1~4 Your Iotal contribution will be Apl~ximotu Beo~fi! PByme~ (~,~ Deferred per year for 30 years) ..... THE CHART ABOVE ASSLZUES A CONTRIBUTION OFS3,000 PER }'EAR .tA'D ,4A' ANNL:IL ILtTE OF GROWTH OF 8 PERCE,VT. THIS CHART IS FOR ILL USTtLlTIO.V PURPOSES O,VIJ.' At RC, there are no addi- tional fees for... }IIV('~,I [ll(ql [ IlliX ( ha n~'ing your ~ ( :usl()mcr ~('r¥ice al any thn(' {wi()re ()r alloF I cliltUllt'111. ~ Wilh(lnm-als l clirPn]el]L ... while you work .kt RC, we offer a level of sen'- ice during your wnrking years that is hard to find with other providers: · Nationally portable--Wi~h RC. %OU can change johs as nlanv times as V()il wish t~ithout changing retiretnent plans. a~ long as each new emplm'er has adopted a deferred compensation or qualified plan. When you retire. will receive benefit payments ~om only one o~anization. re~rdless of the number of governmental en~ployem you have sen'ed. · A choice of investments--The IC*IA Retirement Trust alhm's xou to choose h'onl a wide range t)f im'eslment options-- from k~t)wth stock to guaran- teed tunds--to find the (me ()r ones that are right fi)r you. What3 more. you can appof don your investment in illIV combination monthh'. and re-shift your invesmlents quarterl}; Long-term thinking--A good retirement thnd is managed with an eve t()ward the fi. uure. RCg philosophy of l)lanning fi)r the l(mg-term x~itl maxi- mize your assets [~)r retirement. · Always nearby--Free quarterlv statements alld newsletters, toll-free hotlines. helpful field representatives and retirement plan specialists. and area and re~onal offices throughout the countn' are jnst some t)f the ways R(: makes it easy [o keet) in touch. Minimal fees--RC strives t() offer tile Jowest t~e structure of'any del~rred compensation or qualified plau provider in the countn'. No hidden charges--At RC. you will never be surprised with hidden sales or back-end load charges. · Salaried employees--L'nlike nlos[ companies. our service representatives are salaried. Their primar? motivation is to ensure that you receive the best retirement plan available. and they view service and education as key components of their jobs. · Penalty-free--Participants are not penalized by RC for trans- t~rring funds. reducing or stopping contributions. with- drawing all or part of their halante. m' for taking benefits in a hlmp sum or over a short time period. At RC, you decide how and when to use your money. ... during retirement During your retirement. our flexibility and persnnalized serv- ice allow you to use your money while vottF asse~s continue to g~ow. ~ Customized payouts--For slarters. xou Cilll have any payout schedule--levelized. lump sum. graduamd--you want. ~ will help you de~er- mine the one that will keep your mx hurden to a mini- ~num and work best tk)r you. No penalties for withdrawals at retirement--Unlike some providers, RC does not shift participants' investments into a lower-earning thnd ~vben d~ev begin to wilhdmw tbr retirement. ~bu retain the right to direct your asse~s into the investment options will work best tbr you. Full reimbursement in the event of death--hi the event of a participant's death. bene- ficiaries are eli~ble to receive the full value of the account. including earnings. They may withdraw the asseLs in a lump sum or in periodic payments. Organized for Security · ICMA Retirement Corpora- tion. A Ifighly skilled team of experus in investments, finan- cial sen'ices and local govern- merit operations cha ,rged with administering and manag-ing participant tunds. ICMA Retirement Trust. The legal guardian of all partici- pant thnds. This means that all participant assets are protected from any legal or financial obligations of the Corpora- tion. Additionally, Trust hoard members are elected by you, the participating employers, which provides an added measure of control. · ICMA-RC Services, Inc. The brokerage arm of RC, is a member of the National Asso- ciation of Securities Dealers. Inc. ~ NASD } and the Securities Investors Protection Corpora- tion (SIPC), and is registered with the U.S. Securities and Exchange Commission as a broker/dealer. Three reasons an annuity may not be right for you... {Hill{) Sll[II {)il; 111{'ll[. Employers Win with RC, Too ;hey ~'an },e im-(;ived ~.,iti~ ~}~e ,-inn ...................... ~ ~he >ntisihcrio]~ ,:,f kn()winv tilex' l)]-ox'icicci the .... "en' ;:,est :~ux-(ieierred savin~'s plan available Five things RC offers employers: · Administrative ease--simple fi)rms desi~,med tbr easy understanding. · No additional fees or hidden COSkS. · The option to have as much or as little involvement in the plan as you desire. · Personalized sen'ice thrnugh our service representatives. tield offices and toll-free ~elephone nuinber. · Free quarterl}' statements. news- letters and emph)yer bulletins. The Last T4brd Lets suppose... ... I have an accident or get sick and have expenses over and above what my insurance com- pany will pay. Can I withdraw money from my deferred com- pensation plan? ... ! inherit a lump sum after I've retired and my tax bill will go through the roof unless I can reduce other income. Can I adjust the payment schedule for my 401 plan. ...I move to a job in the private sector and stop contributing to my deferred compensation plan. Will I be penalized? ... I change jobs within the public sector. Can I transfer my account? RC Plans If you have a medical emergency. RC will allow you to withdraw from your 457 plan without penalty: Of course. ~bu control your money. and we will be happy to make changes to your disburse- ment schedule as long as the changes meet the requirements prescribed by law. No. Although under law you may not continue to contribute atier you have left government sen'ice, you are free to withdraw your vested funds or keep them in the plan and enjoy RC's full range of services. No problem. In fact. RC pio- neered the concept of national portability. As long as your employer has a compatible plan. your assets may be transtarred directly to your new employer's plan. Typical Plan Maybe. mavl)e not. Some })ians allow it, others assess a penalty. Also depends on the plan. If you hought an annuity. you are stuck with a fixed rate of disbursement. Many oilier plans (l~ impose l)enalties ~r reduce their [t'x ¢'lx ~ffserxice. Ag'ain. it depends. Some plans may assess a penahv: ()thers inav require that you take a lump sum deduction. CITY OF TEMECULA AGENDA REPORT AB~ TITLE: REQUEST FOR PROPOSAL FOR DEPT HD y~ DATE: 5/8/90 BANKING SERVICES FOR THE FISCAL CITY ATT DEPT: FINANCE YEAR ENDING JUNE 30, 1996 CITY MGR ~ RECOMMENDATION: That the City Council approve the request for proposal for banking services for the fiscal year ending June 30, 1990. DISCUSSION: The City's banking services are currently provided by Overland Bank under a temporary agreement. Attached is a request for proposal for banking services for the fiscal year ending June 30, 1991. Upon Council approval the request will be distributed to the following banks: Bank of America First Interstate Bank North County Bank Overland Bank San Diego Trust & Savings Bank Security Pacific Bank Wells Fargo Bank Upon receipt of the proposals, staff will analyze the responses in conjunction with the City's investment policy and return to Council with a recommendation on or about June 26. FISCAL IMPACT: None. ATTACHMENTS: Request for proposal for banking services. C~TY OF TF~ECUL~ RE~U~REI~ENTS FOR Bi~TK~N~ SERVICES I. OVERVIEW OF BANKING REQUIREMENTS Description of Bank Account Structure and Basic Services Master Account - The city will use this account for making deposits and writing checks and warrants. The City will make approximately 8 deposits and write 100 checks/warrants per month. Currently, expenditures total approximately $9 million annually. This account may be funded from an investment sweep account and/or investment portfolios managed by the State of California. The account should also serve as the master account for a zero balance payroll account. Payroll Account - The payroll account will be established as a zero- balance account funded by the general checking account. Direct deposit for funding employee salaries is desired. The city also would like to consider utilizing a payroll preparation service. The City will prepare payroll on a biweekly basis and will have approximately 40 employees. Automated Sweep Investment Account - The sweep account will automatically sweep excess collected balances to an overnight investment facility. This account would automatically fund the master account. Based on the data provided and after you have completed the remaining sections of this Request for Proposal, please describe below, or attach separately, your bank's recommended approach to satisfying the city's banking needs. ---. II. DEPOSITORY AND DISBURSEMENT SERVICES Estimated Volume Per Month ACCOUNT MAINTENANCE ao co de Sweep account Demand deposit/checking master account ZBA sub account (payroll) Monthly bank statements Monthly account analysis (summary plus indi- vidual accounts) 1 1 2 DISBURSEMENT SERVICES ae Check paid Debits Stop payments Check printing Internal transfers Outgoing wire transfers (telephonic) 100 100 1 DEPOSITORY SERVICES Deposits Incoming wire transfers Return items 8 2 1 Unit Price Total __i III. INFORMATION SERVICES The City is considering utilizing an on-line system for balance reporting in the future. The minimal balance reporting informational needs are as follows: ledger balance, collected balance, checks paid and chargebacks per account, deposits per account, wire transfers per account, and summary information for each category. Yes No A. Can your bank provide electronic balance reporting? At what time is this information available? On what type of terminal can information be accessed? Terminal Balance Reportinq Unit Cost Monthly maintenance charge Reporting account charge Additional charges: Automated Telephone Balance Reporting Monthly Maintenance charge Reporting account charge Additional charges: Estimated Volume Per Month 1 (see volumes listed) Unit Cost Total Be Can your bank provide wire transfer initiation by terminal? Estimated Volume Per Month Monthly maintenance charge Outgoing wire nonrepetitive Outgoing wire repetitive 2 Accounts 1 3 Unit Cost Yes No Total Is incoming wire transfer information available on same day or next day basis? What information is contained in the wire advice, e.g., amount, originator, etc.? Do Please describe the services which are included in the balance reporting/wire transfer system priced in Sections A, B, and C. Please describe any additional components of your on-line information system that may be of benefit to the City. How much would these additional services cost? MISCELLANEOUS SERVICES There may exist other collection and disbursement services which your bank feels would benefit the City, but have not been mentioned. Please describe and price below (or attach separately) any additional services your bank would like to provide the City. ACCOUNT RECONCILEMENT A. Please describe and detail costs for reconciliation services as listed below: B. Describe full reconciliation services here: your bank's C. Describe partial reconciliation service here: Full reconciliation Partial reconciliation Additional Charges: Estimated Volume Per Unit Month Price 100 100 Total Be Explain what the City's data processing requirements would be in order to implement: Partial Reconciliation: Full Reconciliation: ..... VI. PAYROLL SERVICES As an optional requirement, the City may include payroll services as part of the banking relationship. However, since payroll services can be contracted for independently from the banking relationship, they will be evaluated as additional services available. The City will prepare the payroll on a biweekly basis and will have about 30 employees during the fiscal year ending June 30, 1991. A. Can your bank provide payroll services? Be Can your bank offer its own payroll service or do you subcontract with a third party vendor? If your bank subcontracts, which vendor do you use? Ce Do What is the minimum number of employees required for direct deposit to be cost effective? What data processing requirements would the city need to meet in order to provide direct deposit? Ee Can you meet these requirements for payroll services: Preparation of payroll checks. Calculation and deposit of all federal and state employer and employee taxes. Availability of electronic direct deposit option for payees. Ability to make benefit and pension contribution deductions as well as other miscellaneous deductions and transfer those funds to the appropriate entity. Courier service to pick-up and deliver payroll. Capability of easily adding or deleting employees and inputting changes to existing payroll files. Zero balance funding. Yes No VII. INVESTMENT SERVICES The City of Temecula requests that the bank selected provide an automatic sweep investment facility for the master account. Can your financial institution provide for the "automatic" sweep investment of collected balances in the City's checking accounts? Be Money market sweeping account Other (describe): Yes No Estimated Monthly Cost Co Specify the investment vehicle to be used (i.e., Repurchase Agreement, Master Note, Pooled Repurchase Agreement, etc.): De What index rate is used as the basis for the interest calculation? E. Provide a sample calculation: VIII. PAYMENT FOR OPERATING SERVICES Are there any additional charges for the requested services? If so, please describe and indicate the fee per unit and an estimate of the total monthly cost based on volumes per this proposal. Description Price Total for additional charges: Be Will the bank provide the following payment options? Fees Combination of fees and balances Ce Does the bank assess a surcharge if the fee option is chosen to pay for services? If yes, provide itemized price lists for both options. Yes No Ee If balances are used for payment, are service requirements deducted from the balance prior to the calculation of the earnings allowance? Please provide your institution's formula for calculating collected balances and the earnings credit. Collected Balance Calculation: Earnings Credit Calculation: What is the basis for your earnings credit rate (e.g., 30 day CD rate, fed funds rate, other)? Ge Please provide your institution's formula for calculating the multiplier (collected balance required per $1 of service charge. He Je Will earnings credit be carried forward to future months (as opposed to backward to prior months)? Yes No If yes, how many months forward? Months Can earnings credits in one account be applied to charges incurred in another account? If the financial institution was compensated for services with a noninterest-bearing time deposit, would the compensating balance requirement be reduced to reflect the small reserve requirement on noninterest-bearing time deposits? Will the City be assessed for you institution's FDIC insurance charges? If yes, please describe how your FDIC charges are assessed against customer accounts. Ke Is the bank willing to establish a one-year fixed price contract with the City? If not, for what period of time are the prices of services indicated in this proposal application? Future price changes will be based upon the following: The City will be given increase. days notice prior to a price The City requires that no miscellaneous charges be made to any of its bank accounts without the express authorization of the City. Yes No Can your financial institution advise the City of the amount and nature of any miscellaneous charges prior to charging the City's accounts? IX. OTHER INFORMATION The City of Temecula requests that the bank provide certain other information: The City requests that the bank designate an individual, with significant operating authority, to coordinate and be responsible for services to the City. Would you please indicate who that individual will most likely be: Bo Do Name Title Financial strength - The City requires that the selected financial institution be financially strong. Please provide your financial institution's most current capital to asset ratio as defined by Federal Reserve Board of Office of the Comptroller of the Currency Guidelines: Total capital ratio as of / / / Quarterly call reports (Schedule RC only) for the past two years. Annual financial reports for the past two years. PROPOSAL RELEASE FORM Frank D. Aleshire Interim City Manager P.O. Box 3000 Temecula, California 92390 Dear Mr. Aleshire: We have read the City of Temecula's Request for Proposal to Provide Banking Services and a Line of Credit and fully understand its intent. We certify that we have adequate personnel, equipment, and facilities to fulfill the requirements thereto. We understand that our ability to meet the criteria and provide the required services shall be judged solely by the City of Temecula. We have attached the following: 1. Quarterly call reports (Schedule RC only) for the past two years. 2. Annual financial reports for the past two years. It is further understood that all information included in, attached to, or required by this Request for Proposal shall be public record upon their delivery to the City. Submitted by: Bank Authorized Signature Authorized Signature Telephone Date Eastern ]V unicip [Wat er District General Manaeer J. Andrew $chlange Legal Counsel Redwine and Sherrill Director of The Metropolitan ~hter District Of Southern Cal#brnia Doyle F. Boen Treasurer Rogers M. Cox of Directors Richard C. Kellev. President Rodger D. Siems. Vice President Wm. G. Aidridge John M. Coud .... Chester C. Gilbea Secreta~ Ju~Aa L. Machek April 23, 1990 Mr. Frank Aleshire Interim City Manager City of Temecula P.O. Box 3000 Temecula CA 92390 Dear Mr. Aleshire: Enclosed is a certified copy of Resolution No. 2558 which was approved by Eastern Municipal Water District's Board of Directors April 4, 1990. It establishes a policy that encourages voluntary water conservation by 10 percent. We would appreciate your Board or Council endorsing this or a similar policy. At this point, we are supplying all requested water deliveries and are beginning the process of establishing a framework for the possibility of mandatory curbs. To that end, we are communicating with the County of Riverside and Metropolitan Water District on ways we can prepare a unified drought strategy. We would appreciate a copy of any drought ordinance or resolution you may prepare for your customers. If you have any suggestions or comments regarding impacts from mandatory restrictions, or would like to actively participate in future discussions, please contact me or Peter Odencrans, Community Relations Director. Thank you. Very truly yours, S CHLAN~E eral Manager Mail To: Post Office Box 8300 · SanJacinto, California 92383-1300 a Telephone (714)925-7676 · Fax (714)929-0257 Main Office: 2045 S. SanJacinto Street, SanJacinto · Customer Service/Engineering Annex: 440 E. Oakland Avenue, Hemet, CA RF~OL~ON NO. 90- A RF~OLUTION OF ~ CITY COUNCIL OF ~ crrY OF TEMECIR,A ADOPTING A PROGRAM OF VOLUNTARY WATER CONSERVATION TO REDUCE WATER USE BY TEN PERCENT. WHEREAS, the City Council of the City of Temecula has grave concerns regarding the continuing drought condition, and WHEREAS, it appears California has entered the fourth year of below-normal water supplies, with actual shortages already being experienced in some areas of the state and potential shortages being projected for other areas, including the Fatstem Municipal Water District's service area; and WHEREAS, Eastern Municipal and Metropolitan Water Districts have requested the assistance and cooperation of the nearly 15 million people within their service area to voluntarily reduce their water use by ten percent; and WHEREAS, the adoption of voluntary conservation measures by Eastern Municipal Water District has been encouraged and promoted by the passage of Resolution No. 2558, attached hereto as Exhibit A; NOW THEREFORE BE IT RESOLVED that the City of Temecula hereby adopts the water use reduction measures contained in said Resolution No. 2558 of the Eastern Municipal Water District, and urges the cooperation of all water users in the City of Temecula to attain a goal of reducing individual water uses by at least ten percent. APPROVED AND ADOPTED, this 8th day of May, 1990. ATTEST: Ronald J. Parks, Mayor June S. Greek, Deputy City Clerk [SEAL] 2/gesos/54 05/03/90 RESOLUTION NO. 2558 A RESOLUTION OF THE BOARD OF DIRECTORS OF EASTERN MUNICIPAL WATER DISTRICT ADOPTING A PROGRAM OF VOLUNTARY WATER CONSERVATION TO REDUCE WATER USE BY TEN PERCENT WHEREAS, the Eastern Municipal Water District (Eastern) is a municipal water district and is a member agency of The Metropolitan Water District of Southern California {MWD) and is empowered to provide water and wastewater service within its boundaries; and WHEREAS, it appears California has entered the fourth year of below-normal water supplies, with actual shortages already being experienced in some areas of the state and potential shortages being projected for other areas, including MWD's service area; and WHEREAS, MWD has requested the assistance and cooperation of the nearly 15 million people within its service area to voluntarily reduce their water use by ten percent; and WHEREAS, the adoption of voluntary conservation measures by water service purveying entities will provide the basis and framework for effective public support; and WHEREAS, Eastern has always encouraged and supported voluntary water conservation measures and continues to do so; and WHEREAS, Eastern has the power and authority to adopt and enforce water conservation measures within its boundaries pursuant to Water Code Sections 375 through 377 and 71600 through 71644. NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of Eastern Municipal Water District in Regular Session assembled this 4th day of April, 1990, hereby: Finds that a potentially serious statewide water supply shortage exists, as the result of several years of inadequate precipitation and that the conservation and protection of local and imported supplies against wasteful and unreasonable uses are necessary and in the best interests of the public and water users within Eastern's service area. II. Believes that reducing water use by an average of at least ten percent could be achieved by the compliance with voluntary reasonable conservation measures by all water users within Eastern without adverse economic or quality of life impacts. III. Requests and urges that, among other things, the following water use reduction measures be taken by all water users and water service purveyors within Eastern's service area with a goal of reducing individual water uses by at least ten percent. A. Retail Water Users Program 1. Refrain from hosing down driveways and other hard surfaces, except for health or sanitary reasons. Use a broom or blower instead. Resolution No. 2558 -2- 2. Repair faucets, toilets, pipes and other potential sources of water leaks. 3. Irrigate lawns and landscape only before 10:00 a.m. or after 5:00 p.m. Adjust automatic time clocks accordingly. e Adjust and operate all landscape irrigation systems in a manner which will maximize irrigation efficiency and avoid overwatering or watering of hardscape and the resulting runoff. 5. Shut down decorative fountains unless they are equipped with a recycling system. e Install plumbing fixtures with low-flow devices, except for those that require high-flow fixtures for health and/or sanitary reasons. 7. Where possible, install pool and spa covers to minimize water loss due to evaporation. 8. Do not allow hoses to run while washing vehicles. Use a bucket or a hose with an automatic shutoff valve. 9. When installing new landscaping, plant low water demand trees and plants. Avoid large turf areas. B. Agricultural/Co~nercial/Industrial Water Users Agricultural/Commercial/Industrial Water Users who use water as part of their operations are encouraged to incorporate, where possible, the above suggestions. In addition, agricultural customers are requested to consult with the staff of the Resource Conservation District for their area for appropriate water conservation measures and to implement them as soon as possible. Commercial and industrial customers are encouraged to contact their trade associations for water conservation related assistance specific to their operation. C. Local Water Agencies Local Water Agencies, including the cities of Hemet, San Jacinto, and Perris, Rancho California Water District, Lake Hemet Municipal Water District, Nuevo Water Company, Edgemont Gardens Mutual Water Company and Sunnymead Mutual Water Company, are urged to adopt voluntary conservation measures within their boundaries to reduce water use by at least ten percent. These agencies are further encouraged to take immediate steps to inform their retail customers of the urgent need to conserve water because of the shortage facing local and imported water suppliers. Resolution No. 2558 -3- IV. Directs the staff to implement the water conservation measures of this Resolution by: Immediately renewing efforts to assure application and use of all appropriate water conservation measures for all District operations and facilities; B. Notifying all of Eastern's retail water users of the conservation measures set forth in this Resolution and requesting their assistance and cooperation in conserving water; C. Providing all of Eastern's wholesale customers (local water agencies and municipalities) with a certified copy of this Resolution together with an appropriate request that they adopt and promulgate similar conservation measures for their respective service areas; D. Making information brochures and home retrofit water saving kits available to the public and taking steps to inform the public of the availability of such information; and E. Promoting and encouraging water conservation by all appropriate means. Directs the staff to monitor the results for the above provided for voluntary program, with the understanding that if the voluntary measures do not achieve the goal of a ten percent reduction of water use or if the drought worsens or if MWD finds it necessary to implement mandatory water supply restrictions it may be necessary for this Board to consider adoption of a mandatory water conservation program. The staff and legal counsel are directed to prepare a contingency program for such an occurrence for consideration by this Board if and when appropriate. DATED: April 4, 1990 /s/Richard C. Kelley Richard C. Kelley, President ATTEST: /s/Juanita L. Machek Juanita L. Machek, Secretary SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) I, Juanita L. Machek , Secretary of Eastern Municipal Water District and the Board of Directors thereof, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Board of Directors of said District at a regular meeting of said Board held on the 4th da-~' of April , 199._.~0, and that it was so adopted by the following vote: AYES: DIRECTORS Richard C. Kelley Rodger D. Siems Wm. G. Aidridge John M. Coudures NOES: DIRECTORS None · ABSENT: DIRECTORS Chester C. Gilbert Secr ry~Eas~er/n Municipal Water District and the Board of Directors thereof (SEAL) Rev. 9/88 CERTIFICATION I, Juanita L. Machek , Secretary of Eastern Municipal Water District and the Board of Directors thereof, DO H£EEB¥ CERTIFY that the foregoing is a full, true and correct copy of RESOLUTIOI~ MO. 255~ duly adopted by said Board of Directors at a regular meeting held April 4 , 1990 , and that sa-~- Resolution has not been amended or repealed. Secr~ary of the Eastern Municipal Water District and the Board of Directors thereof (SEAL) CITY OF TEMECULA AGENDA REPORT AB#: TITLE: LAW ENFORCEMENT ACTIVITY REPORT DEPT HD MTG: CITY ATTY DEPT: F~ CITY MGR R~CO~I~3&TION.' Review attached reports from Riverside Sheriff and California Highway Patrol. Sheriff's Report reflects activity of additional duty officers only. California Highway Patrol extra duty expected to start 5/1/90. BACKGROUND: NONE. FISCAL IMPACT: NONE. ALTERNATIVES NONE. ATTACHMENTS: 1. City of Temecula Weekly Stat Reports April 15-21, 1990. 2. California Highway Patrol First Quarter Report for City Activity. CITY OF TEMECULA FIRST QUARTER - 1990 January through March 1990 Three Months Activity Summary by the CHP in the City of Temecula ae Total arrests in City made by CHP (includes citations) 561 Total DUI arrests in City made by CHP 61 Total traffic collisions in City investigated by CHP 1. Injury traffic collisions a. 37 101 Primary collision causes a. Auto right-of-way (31) b. Unsafe speed (24) c. Improper turn (10) d. Wrong side of road (4) e. DWI Alcohol/Drugs (6) Total accidents by day of week MONDAY. TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 12 23 12 18 17 11 8 These statistics only include traffic collisions investigated on scene by CHP. They do not include late reports documented as "counter reports" taken at the CHP office at a later time and date. These statistics do not include activity generated on 1-15 and Winches%er Road (SR79) in the City limits. ~ . City of Temecula Weekly Stat Report April 15-21, 1990 · During the week of April 15 through 21, extra duty deputies provided an additional 72 hours of patrol Note-This activity "" · I~..~ in addition to that of the regular patrol units. · Deputies drove a total of 933 miles · There were a total of 54 calls for service 30 were criminal in nature 24 were non-criminal in nature · 13 traffic citations were issued · There were a total of 2 arrests made I felony 1 misdemeanor CITY OF TEMECULA AGENDA REPORT AB#: MTG: DEPT: TITLE: THAT THE CITY COUNCIL APPROVE 5/8/90 THE ADDITION OF ONE ACCOUNT CLERK FOR FINANCE THE FINANCE DEPARTMENT AND AMEND THE FY 1990 BUDGETED FINANCE DEPARTMENT SALARIES BY $3600 DEPT HDTy~~ CITY AT CITY MGR ~ RECOMMENDATION: That the City Council approve the addition of one account clerk for the Finance Department and amend the FY 1990 budget for Finance Department salaries by $3600. DISCUSSION: In anticipation of a significant increase in accounting activity resulting from the June 30 "take over" of City activities, principally from the CSD, staff requests the addition of one account clerk to the Finance Department to ensure that financial data is kept current. FISCAL IMPACT: Amend the FY 1990 budget for Finance Department salaries by $3600. follows: RESOLUTION NO. 9O- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING THE FISCAL YEAR 1989-90 BUDGET TO APPROPRIATE $3,600 FOR THE PURPOSE OF PROVIDING ADDITIONAL FINANCE DEPARTMENT SALARIES. The City Council of the City of Temecula does resolve, determine and order as Section 1: That the FY 1989-90 Annual Budget of the City of Temecula is hereby amended to appropriate $3,600 for Finance Department salaries. Section 2: The City Clerk shall certify the adoption of this resolution. APPROVED AND ADOPTED this 8th day of May, 1990. ATTEST: Ronald J. Parks, Mayor June S. Greek, Deputy City Clerk [SEAL] Resos/S1 05/01/90 9:20am RESOLUTION NO. 90- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA IN SUPPORT OF SCA 1, THE TRAFFIC CONGESTION REI.IEF AND SPENDING LIMITATION ACT OF 1990. WHEREAS, the State of California faces serious problems in its fiscal policy which threaten the critical areas of education, transportation, health services, law enforcement and other taxpayer services, thereby endangering the state's current and future economic health; WHEREAS, SCA 1 would alter the Gann spending limit to allow the state greater flexibility in making use of all available revenues generated by California's strong economy; WHEREAS, it would allow the state to raise the gasoline tax to provide increased funding for maintenance and improvement of highway and mass transit projects without reducing funds for other state programs; WHEREAS, it would continue the guarantees of Proposition 98 that grades Kindergarten through 12th and the community colleges receive 40% of the state budget; WHEREAS, without a change in the Gann spending limit, it will be impossible to maintain the generally high level of education, transportation, health, law enforcement and other vital services to the residents of California; WHEREAS, $CA 1 is supported by a broad coalition including the Governor of California, State Superintendent of Schools, California Taxpayers Association, League of Women Voters of California, California School Boards Association, California Chamber of Commerce, International Union of Operating Engineers, AFL-CIO, California Association of Highway Patrolmen, California Retired Teachers Association, California Professional Firefighters, California State Automobile Association, California Business Roundtable, University of California board of Regents, California State University Board of Trustees, and many others; NOW, THEREFORE, the City Council of the City of Temecula does resolve as follows: Section 1: That the City of Temecula does support passage of the traffic congestion relief and spending limitation act of 1990 (SCA 1). Section 2: The City Clerk shall certify the adoption of this resolution. APPROVED AND ADOPTED this 1st day of May, 1990. Ronald J. Parks, Mayor ATTEST: F.D. Aleshire, City Clerk [SEAL] Illll Illll PROPOSITIONS 111 AND 108 tl t The League Of California Cities A weekly Newsletter Published by the League of California Cities on the Impact on Cities by Propositions 111 and 108. ! II Propositions 111 and 108: Major Impacts On Cities Increasing the gas tax and truck weight fees for transportation improvements and revising the Gann spending limit calculations are the two major elements contained in two ballot measures which will appear on the June, 1990 ballot. Both will have major impacts on cities and the way we deliver services. In conjunction with Prop. 108, a rail bonds measure, $18.5 billion will be provided over the next ten years to do the following: o Funding the 1988 State Transportation Improvement Program (ST1P) shordall - $3.5 billion. Projects to be funded are in the current 1988 plan. o Subvention to cities and counties - $3 billion. Half the fund is for cities and half for counties. to be distributed to cities based on population. Cities will have to maintain their local contributions to the transportation system and in counties with an urbanized area of 50,000 or more, develop a Congestion Management Plan in order to receive the funds. Cities can expect to receive an average of $6.68 per capita annually once the full tax increase is in place. o Flexible Congestion Relief Program - $3 billion. Highways, local roads and transit guideway projects are eligible for funds under this program. Funds would be spent on the most cost-effective project designed to reduce conges- tion as determined by the California Transportation Commission. o State-local transportation partnership program - $2 billion. The money in this fund can be used entirely by local government for local for highway, local road or transit guideway projects, and must be matched at least on a dollar- for-dollar basis with local funds. o Interc~ rail, commuter rail and urban rail transit - $3 billion. Also on the June ballot is Proposition 108, which authorizes the sale of $1 billion in general obligation bonds to be used for mass transit guideways, on specified rail ;orridors, including urban rail, commuter rail ancl intercity rail. Two additional $1 bil!ion bond measures for the same purposes are scheduled to go before the vo[ers in November, 1992 and November, 1994. Fifteen percent of the $,3 billion is specifically allocated for intercity rail projects. CONTINUED Ill League Newsletter iTo Be Published Weekly This is the first edition of update, a weekly newsletter to be pub- lished until the June election. Cities are encouraged to copy and distribute this newsletter to j all members of the City Council, ! city managers and employees, · and other community groups ! and individuals. Material in this I newsletter may be reprinted I without permission and is not J copyrighted. · League Survey Complete: Nearly A Quarter of Cities At Their Gann Limit An analysis of the State Controllet's Report for cities by the League shows that nearly a quarter of the cities in California are at, above or within 10 percent their Gann Spend- ing Limit. There are 102 cities, or 22 percent, that are at this point, the review indicated. Cities of all sizes came up on the list, from the very smallest to the largest. · I I Major Impact- Continued o Inter-regional roads - $1.25 billion. This would be for specified state highway routes primarily outside urban areas. o Traffic system management - $1 billion. For use on transportation systems management projects on state highways and local roads designed to increase carrying capacity without increasing lanes, as determined by the CTC. o Retrofit soundwalls - $150 million. To complete all remaining sound- walls designated in the current soundwall program. o Environmental enhancement and mitigation - $100 million. For use on urban reforestation and other environmental mitigation measures to ease the environmental effects of transportation facilities. o Transit operation and/or capital - $500 million. This would fund the State Transit Assistance Program and would be apportioned to all areas of the state with haft the apportionment based on population and half on transit operator reve- Nues. o Maintenance and rehabilitation of state highways - $1 billion. To be used on additional state highway maintenance and rehabilitation costs. The revisions for the spending limit calculations will allow for your ap- propriations limit to be adjusted annually at a rate to keep pace with the economic growth in your city. This will have a tremendous impact for the 102 cities in California who are at or near their limits. It is expected that in the next few to several years, a large percent of cities will reach their spending limit. This means that money over the limit would have to be refunded to the taxpayers or voters would have to support the city keeping the funas. [] Guide To City Ac- tions On Ballot Measures Devel- oped For Cities An easy-reference guide was just developed and distributed to all city attorneys that explains the rules affecting cities' role to educate the public on ballot measures. Generally, cities may not spend tax money to advo- cate ballot measures, however, it is permissible to educate citi- zens on the impact the meas- ures will have on the city and to take a formal position in support or opposition. Contact your city attorney or the League staff to get a copy of this handy fact sheet. M Cities Encouraged To Take Position on 111 and 108; Educate Voters On Local Impact All cities are encouraged to review the elements of Propositions 111 and 108 and determine the impact they will have on your community. A resolution ~ndicating the city's position should be adopted at a City Council meeting. The local news media should be advised of th3 position and commu- nity groups should be notified. City employees should also be kept informed of what the impact will be on the city. Programs on cable television, speakers at servi,:e clubs, articles for community newsletters, forums for citizens. These are just a few of the activities that will help residents become aware of wha[ the impact of the propositions will have on the city. a I Fiscal Condition of Cities: Unhealthy! When adiusted for inflation and population growth, city general purpose revenues have declined by 17.5 percent per person from 1977/ 78 to 1987/88, a report just com- pleted by the League shows. De- creasing revenues, coupled with a growing demand for services have compelled many cities to diversify their revenue base in an attempt to preserve service levels. Still, cities have not reached their pre-Proposi- tion 13 funding levels. Very few individuals, let alone businesses, could sun/ive on nearly 18 percent less in revenue than a decade previous -- and maintain their levels of service or quality of life. The biggest cuts were from the federal government, with a decline of 78.2 percent. Sales tax revenues have increased an average of 2.3 percent per year from 1978/79 to 1987/88, while population growth has increased by 2.8 percent per year. The study showed that service charge revenues have increased, yet have had little impact on cities' declining general revenues. In conclusion, the report states, decreased federal aid, growing populations, rising expenditures, and greater limits on cities' revenue- raising authority have all contributed to sagging revenues. [] :3et More Info From the League Staff Additional information about how cities can get involved in inform- ing their citizens about the various ballot propositions, including Propositions 111 and 108, are encouraged to contact the League staff in Sacramento at 916/444-5790. [] " 'iA OFFD/£ AF'~ '~'] ,,-,c~ '~',--'0 LEA,~i_IE ,.}F CA ,_iTIE~, '-.,', ~-'III I i:'~I~ 1400 K STREET · SACRAMENTO, CA95814 ~ (916)444,-5790 Calitotnta C 1 s YOUR QUESTIONS AND ANSWERS TO PROPOSITIONS 111 AND 108 June 1990 Ballot Appearing on the June 1990'bal10twill be':a.measur'e,:'titisd Proposition. 111 (titled "The Traffic Congestion Relief and Spending Limitation Act of Ig90" and formerly known as SCA1),' It contains three elements:.. ' ' :. :' - It revises the spending limit calc~Jtations for'local 'government and the stoic. The revisions will allow for your· appropriations limit to be'adjusted annually at a rate to keep pace with the economic growth in your city. :' City transportation improvements,'.'Th'e'se ne~/'l~illldS, which come'fr0m increases in the gas and diesel tax andcommer'¢iai:'X;eh'{cl~.:weight!fees,~"Wbfild:be exempt from state and local ap- .. . . : ..- ,...'.: .... .:,:..',."... '..::...,:: ...(.'.-...: .... .' .' .. ."..' .' :.. · ,;".. ' '. ' ~ '.:::":L"~; ;:'i '~' ' ' i'[ ," .... ';.1 · ' · ' - It revises the school fundmgm~tmtive.passed m 1988'to balance the state's educational needs with the needs 'of other state 's~rvic~s.i:':".':: :." ' ,. i;:.'.'., i...~.!: :~: :.)... '. :." .. '. · Impact on: Spending; Limit Q. How would setting my city's limit be different? A. Currently, cities adjust their limits based on the change in the cost-of-living only, If Prop. i 11 is passed, a city would adjust its "Gann Limit," or spending limit, by either 1) the change in California's per capita personal income or 2) the percentage change of growth in total assessed value due to non-residential construction. In addition, cities currently may adjust their spending limits based on changes in population within the city. Legislation passed (Senate Bill 88) to implement Proposition 111 would allow for one of two methods to change the limit based on population increase.s: either I) changes in population in the city, or 2) the percentage increase in population for the. entire county. Finally, Prop. 111 would exclude from the spending limit any appropriations for certain capital expenses, defined a~ hind, capital iln. provemeats or equipment that exceed $100,000 and have a life expectancy of ten years or more. It would also exclude from the state limit any future increases in the gas tax or truck weight fees. '~,F't~ .--'0 "-:0 t~:£L L£Rt_;UE ('F' ':R C]'TZES D-" CR OF'~'ICE What if my city has an emergency and needs any surpluses it might have? A. Prop. 111 allows for funds to be spent in excess of the limit for emergencies declared by the governor without reducing subsequent years' limits. Q. How is the .wencling limit checked? A. The annual calculation of the appropriation limit will be reviewed as part of an annual audit· The nature of this review will be defined by statute, and it is intended that cities will be involved in the drafting of this statute. Q. If it paam~, when would the provisior~, go into effect? A. The base year for determining a city's limit would be the 1986/87 year. The provisions will go into effect on July 1, 1990. What is' the impact of Proposition 111 if our city is' not at its Gann Limit? A. First, it is expected that many cities not at their Gann limit will reach the limit in just a few years. Second, Proposition 111 excludes gas taxes from the State Gann Limit which is the only way to provide the opportunity for the state to raise new gas tax money. Without this Proposition, there will be no increases in the state gas tax. Third, the passage of Proposition 111 provides direct money for the local transportation system as well as providing new money for which local governments can compete. Impact on: Transportation Q. What does Prop. 111 do to relieve congestion? A. In conjunction .with Prop. 108, a rail Nmds measure, $18.5 bilhon will be provided over the next ten years to do the following: · Funding the 1988 State Transportation Im- provemeat Program (STIP) shortfall - $3.5 billion. Projects to be funded are in the cur- rent 1988 plan. · Subvention to cities and counties - $3 bil- [ion. Half the fund is for cities and half for counties, to be distributed to cities based on population. Cities will have to maintain their local contributions to the transportation system and in counties with ~n urbanized area of 50,000 or more, develop a Congestion Management Plan in order to receive the funds. Cities can expect to receive an average of $6.68 per capita annually once the full tax increase is in place. The t'irst year will result in about half that amount, with the subvention increasing each year until it reaches the full amount in five years. · Flexible Congestion Relief Pr%n'um - $3 billion. Highways, local roads and transit guideway projects are eligible for funds under this program. Funds would be spent on the most cost-effective project designed to reduce congestion as determined by the California Transportation Commission. · State-local tramportation partnership pro- gram - $2 billion. The money in this fund can be used entirely by local government for local highway, local road or transit guideway proj- ects, and must be matched at least on a dollar- for-dollar basis with local funds. · Iatereity rail, commuter rail and urban rail transit. $3 billion. Also on the June ballot is 2 aPP 7'0 '70 1_~: '-"Z LER'_~I_IE ,.'"F *'_R CITIES '::,", CR cFF'.T~.E F'.7.?, ;position 1(]8, which authorizes the sale of ...... 'Ilion in general obligation bonds to be a for mass transit guideways, on specified corridors, including urban rail, commuter and intercity rail. Two additional $I ion bond measures for the same purposes scheduled to go before the voters in No- nher, !,992 and November, 1994. Fifteen :cent of the $3 billion is specifically allo- ed for intercity rail projects. hint-regional roads - $1.25 billion. This uld be for specified state highway routes marily outside urban areas. rr-affic system management - $1 billion. For : on transportation systems management ~jects on state highways and local roads zigned to increase carrying capacity without :ressing lanes, as determined by the CTC. Retrofit soundwails - $150 million. To replete all remaining soundwalls designated '-~e current soundwall program. Environmental enhancement and mitigation 100 million. For use on urban reforestation d other environmental mitigation measures east the environmental effects of tramper- don facilities. Transit operation and/or capital - $500 mil- )n. This would fund the State Transit A~sis- nee Program and would be apportioned to I areas of the state with half the apportion- eat based on population and half on transit ~erator revenues. Maintenance and rehabilitation of state ghways - $1 billion. To be used on additional ate highway maintenance and rehabilitation )sis. Where does the money come from? .The money will come from an increase in oiine and diesel user tax rate of five cents gallon effective Aug. 1, ~990 and additional annual increases of one cent per gallon until the total reaches nine cents per gallon. In addition, it will come from an increase of 40 per,eat in weight fees for trucks over 4,000 pounds starting Aug. I, 1990 and another 10 percent increase on Jan. 1, 1995. Net revenues from the tax and fee increases will generate an estimated $15.$ billion during the ten-year period from July 1, 1990 to June 30, 2000. Wht does the additio $3 billion come from ? A. Prop. 108 would authorize the state to sell the first $1 billion of a total of $3 billion in general obligation bonds to raise funding for passenger rail transportation. The second $1 billion bond authorization will be placed on the November 1992 general election ballot and the third on the November 1994 general election ballot. ~ 14rhta'$ the Congestion Management Plan? A. The Congestion Management Plan (CMP) would be required in every county with an urbanized area of 50,000 citizens or more as a condition to compete for and receive the funds. The CMP would have to be developed and adopted annually and must contain the follow- ing: a) The CMP would be prepared by a public agency designated by the county board of supervisor~ and a majority of cities repre- senting a majority of the incorporated popu- lation in the county. This could either be an existing agency or the local governments could create a new agency. The CMP would be prepared in cooperation with regional transportation planning agencies, Caltrans,. air pollution districts, and other local govern- menu. 3 The agency that witl produce the CMP must be designated by a vote of the county and a majority of the cities representing a majority, of the population. b) CMP elements would include service standards for roads, highways and public transit, trip reduction efforts to promote alternative transportation methods, pro. grams to measure impacts of development on regional transportation systems, and a seven.year capital improvement program that maintains or improves service stan- dards, mitigates transportation impacts of development, and conforms vehicle emis- sions reductions and mitigation measures. c) The CM? capital program would became the basis for the Regional Transportation Improvement Program (RTIP) adopted far the region by the regional transportation planning agency. d) The regional transportation planning agency would evaluate the CMP for consis- tency with regional transportation plans and could exclude inconsistent projects from the RTIP. e) The agency responsible for developing the CMP would monitor implementation of the CMP by cities and counties and could recommend that the new gas tax subventions for local entities be withheld if cities are not in compliance. f) Authorizes the California Transportation Commission to give priority projects to cities and counties in compliance with their CMP. Q. How iv the noah/south split handled? A. All of the expenditures in the transportation package would be subject to the current method for determining the "north/south split" and "county. minimums," except highway mainte- nonce, safety, state-local partnership monies, transportation systems management monies, intercity rail, and expenditures for the Transpor- tation Planning and Development Account, Counties not receiving their minimums during the 1988-93 period would have these minimums carried forward to the 1993-1998 period of the funding proposal. After adopting the 1992 STIP, the California Transportation Commis- sion is prohibited from allocating any funds tbr any project if the STIP is not programmed in a manner that guarantees every county its county minimum. Impact on: Schools Q. How does Prop. 111 change funding for schools al~proved by Prop. 98? A. Prop. 98, approved by voters in 1988, guar- anteed K-14 schools would receive a share of the state general fund and determined what portion of the staro's annual surplus, if any, would go to schools. This amount then became part of the school's base funding. Prop. 111 provides that 50 percent of any state surplus over the state's limit will go to schools, but this amount will not become a part of the school's base funding. The remainder of any surplus would be returned to the taxpayers. For Copies of Propositions Ill and I08 contact the Secretary of State Elections and Political Reform Division 916/445.0820 M.~tctq 1990 4 CITY OF TEMECULA STAFF REPORT AB# TITLE: APPROVAL OF CONCEPT STRIPING PLAN FOR DEPT HD. MTG RANCHO CALIFORNIA ROAD OVER 1-15, FROM CITY ATTY DEPT~ ENGINEER FRONT STREET TO YNEZ ROAD CITY MGR ~_ RECOMMENDATION: That the City Council approve the Conceptual Striping Plan for Rancho California Road between Front Street and Ynez Road and give Bedford Properties the authorization to proceed with completion of the design based upon approval. DISCUSSION: This proposal is to remove the existing raised landscape medians on Rancho California Road between Front Street and Ynez Road and restripe the street to provide for two through lanes and longer left-turn pockets at Front Street and the freeway ramp. Right turn pockets will also be provided at Ynez Road, both freeway ramps and at Front Street. It is estimated by the developer's traffic representatives that an additional 1,000 vehicles an hour will be able to cross the bridge with the proposed striping. The proposed striping will enable vehicles to enter left turn lanes prior to entering the bridge and will prevent the storage in the left lanes from controlling the movement of the through traffic. The following chart compares the through traffic volumes for the existing conditions, the signal installation only, and the signal installation with median removal: COMPARISON OF THROUGH L~NE TRAFFIC VOLUMES Existing Eastbound Westbound 820 cars per hour 825 cars per hour Signals On1¥ Eastbound Westbound 1,165 cars per hour 1,335 cars per hour Signals and Bridge RestriDing Eastbound Westbound 1,700 cars per hour 1,940 cars per hour Bedford Properties, the developer, is conditioned to perform these improvements under Specific Plan No. 199, Margarita Village, Amendment No. 1. The Conditions of Approval are attached. -2- The restriping project is being coordinated with the intersection signals to be built at the off-ramp locations in conjunction with widening and restriping the off-ramps. The intersection signal at Front Street has been designed and is currently in plan check review at the County of Riverside, Traffic Engineering Department. The traffic signals at both off-ramps are currently under design by Herman Kimmel Associates for the County of Riverside and are being paid for with County Signal Mitigation Funds. The traffic signal light at Ynez Road will also be retrofitted by Bedford Properties to match the restriped lanes. No other improvements for the intersection at Front Street have been placed upon development. All of the above-mentioned improvements are anticipated to be installed as a single project. STAFF CONCERNS: Removal of the landscaped median, including the trees and antique street lights, may provide for the loss of an "entry statement" on Rancho California Road. It is possible that the lack of traffic congestion on Rancho California Road at the overcrossing may provide an alternative entry statement with a better effect. FISCAL IMPACT: Not determined. S UMI~RY: The subject striping plan is part of a larger list of improvements necessary to alleviate traffic congestion on Rancho California Road. The developer, Bedford Properties, is conditioned under Specific Plan 199, Margarita Village, Amendment 1 to provide the improvements. The developer has put forth a plan which requires removal of the existing landscaped median on Rancho California Road in order to maximize the carrying capacity of the roadway. STRIPING DMSad :~/'26x1990 16:22 teKo¥ D. Smom llOM) COkJ~SSlON~! & CO~N~ R~NCHO CA DEU C0-400 :~ 714 676 884? P.02 OFFICE OF ROAD COMMISSIONER · 'COUNTY SURYEYOR ROAD P~NNIN~ DIVISION TR~t, iSPClRTATXON P~ING S;CTI~ 91iaINikO ItidJ lig. lild RE: Specific ~lan ~Uo, 1~9 Margarita Village, Amendment ~o. 1 1Me Road Department has revte~ed the above rezerence~ proposal) an~ has ~ad several meetings with t~e applicant and his traffic consultant. As indicated in our prior letter dated ~prll 1~ I~8e the~e are ~once~ns with re~ard to the ~ancho California Road lntercPange at %-15 aS well as with future traffic o~erattons on t~e freeway itself. However) it does appear t~at with the improvements indicate~ ~y thl traffic consultant that the interchange may operate a level of service "O", In addition. we are working with the applicant to prepare a corridor study as recommenOe~ by Coltrans in order to satisfy their concerns. We now believe that the ewtent of traffic imbacts associateo with the project have ~een reasonaeI¥ identifle~ and are a~equatel¥ addressed. ~epirtmenC recommends the following conditions of approval. COND% TXON8 OF' AI! POOd improvements ~tthtn the project bounaaries snell ~e constructed tc] ultimate Count( Standards in accordance N~th O~dtnance NO. ~60 and kbl as a requirement o¢ the implementing subdivisions for the Specific Plan~ al approve~ by t~e Road Commissioner. The ~roject proponent shall participate in the Traffic ~ignai Mitigation Program a~ approved by the BoarO of ~upeevisors. RgNCHO CA ~V C0-400 ~ ~n¥ landscaping ~thin continuing maintenance landscape maintenance approvecl O~ one ~oa~ Commissioner. through the establishment O( a district or simila~ tnst?ume~t as limits of the RanChO Vtilaqe$ Assessment Dts~?lct ~hich an integral comuonent of the planning fo~ ~hts area, to t~e recordation Of any tract maps within that port~O~ of the specific Dian Or any other project located ~ithin assessmen~ ~istric~, the final actiOnS necessary formation of t~e ~istrlc~ must be comgle~eO. S~ould the district fa~l, the prO,OCt proponent shall, prior the recordation ~f any tract maps ~lthtn ~hat ~ortion Of the specific plan provide for re~ton&l road improvements in accordance with their ~rouortionate share as determined by traffic impacts. Prior ~o the recordation of any su~divtsion for &~¥ portion ~f the suecleat plan~ the project p?oponent~shall make Oro¥isions for ~ne following road lmprovements~ which shall ~e ¢onstructe~ ~rior tO the issuancl of Oul'lding permits ?o? any d~elltng units in excess of Provide for the wiOenin~ Of ~anc~o California the Margarita minimum, an interim four-lane section as approved the ~oa~ ~mmissloner. Provide for the wiOentnq/restrlpin~/reconstruction Nanthe California 8oa~ t~ provide si~ approach iones at 1-15 with auxiliary lanes as may be deemed necessary from Yne~ Road to Front Street, carryinQ four through Commissioner and CeltpanS. C. Pr~vlOe for the widentn~ of the on an~ off ramps at the 1-15/~ancho California ~oad Interchange as approved the RoaO Commissioner and Caltra~! .... ._ We generally ~oncur with the ~n-site master :irculatlon plan aS sho~n on Figure II-5 of the specific plan. The ~o delete South General Kearney ~oad is acceptable thaC ~ ColleCtOr road ~e p?o¥ided ~ene?a]ly along the same aliqnment linkin~ Kaiser Parkway ~ith Butterfield ~ta~e per ~nese GonOl~l~ns ~ ~pgroYal snail be deman~ m~na~ement s~ra~e~tes one/or pro¥tOe ~o¢ the ~d~ln 5~uOort ?ransporqa~ion Planne~ TOTAL P, 04 CITY OF TEMECULA AGENDA REPORT AB#: ~o TITLE: DEPT HD MTG: y.~-lo Tentative parcel Map No. 24762 CITY ATTY DEPT:~P~,~:k. CITY MGR RECOMMENDATION: It is recommended that the City Council RECEIVE AND FILE Tentative Parcel Map No. 24762, based on the findings contained in the County Staff Report and subject to the attached Conditions of approval. BACKGROUND: CASE INFORMATION Applicant: Representative: Proposal: Related Project: Fees: California Urban Investments, Inc. Ranpac Engineering Subdivide .78 acre parcel in MSC zone into two (2) lots (.33 and .45 acre lots). Plot Plan No. 10922. Two new industrial buildings have previously been constructed on the site. Parking and driveway facilities not yet constructed. Impact fees for traffic and the Stephen's Kangaroo Rat paid through the overlying parcel map and the plot plan. The submittal fee has been allocated by the County. ANALYSIS This two-lot subdivision proposes that each of the two existing buildings on this property be located on individual lots. City Staff has reviewed the project and concurs with the County Staff recommendation for APPROVAL. No negative impacts should result from this project. DATE: 3-28-90 CASE TYPE & NO. Pg ),!.762 FROM: CITY OF TEMECULA COUNTY PLANNING DEPARTMENT This item shoul~ be: Set and noticed for public hearing Placed on agenda as a receive and file item Action taken at your discretion I SUBMII'FAL TO TNE CITY COUNCIL CITY OF TEMECULA COUNTY OF RIVERSIDE, STATE OF CALIFORNIA FRO~: PLANNING DEPARTMENT SUBMITTAL DATE: 3/28/90 SUBJECT: Tentative Parcel Map No. 24762 RECO~ENDED MOTION: ADOPTION of the Negative Declaration for Environmental Assessment No. 33868 based on the findings that the proposed project will not have a significant effect on the environment; and APPROVAL of TENTATIVE PARCEL I~AP NO. 24762 based on the findings and conclusions incorporated in the staff report and subject to the attached conditions of approval. PROJECT LOCATION: The site is located northeast of Enterprise Circle West, and northwest of Rider Way. BACKGROUND: 1. The applicant proposes to divide .78 acres into two conmercial lots, .45 acres and .33 acres in the Temecula area. e The site supports two buildings currently under construction. Surrounding land uses are primarily commercial/industrial with some retail. Surrounding zoning is also Light Industrial. The site is within the Southwest Area Community Plan and is designated as Light Industrial. This site is also within the newly incorporated City of Temecula. Environmental concerns include impacts to the Stephens Kangaroo Rat. The site is also impacted by the 100-year floodplain, the Alquist-Priolo Special Studies Zone, and the zone for potential liquefaction. JR:jg RIVERSIDE COUNTY PLANNING COMMISSION MINUTES FEBRUARY 28, 1990 February 14th meeting as there were concerns about the Fire Department and Health Department letters, which are now in place. This item is a proposal to divide 0.7B acre into two commercial lots located northeast of Enterprise Circle West and northwest of Rider Way in the City of Temecula. Existing and surrounding zoning is M-SC. The site currently supports two commercial buildings in an urbanized area. Surrounding land uses are a rapidly developing commercial and industrial area. Environmental concerns have been mitigated. The following findings were added: 5. There is a reasonable probability that the project will be consistent with the General Plan proposal being considered or studied by the City of Temecula or which will be studied within a reasonable time by the City of Temecula. 6. There is little or no probability of substantial detriment to or interference with the City of Temecula's future adopted General Plan if the project is ultimately inconsistent with the plan. 7. The project complies with all other applicable requirements of State law and local ordinances. The conditions of approval were amended to reflect the change in the Health Department letter which was incorrectly identified, and a new letter was inserted in its place; also, the original Fire Department letter omitted the duration required for the fire flow and a new letter was inserted in its place. There was no one present who wished to speak for or against the subject proposal. Staff advised that the applicant was aware of this hearing. The hearing was closed at 9:28 a.m. FINDINGS AND CONCLUSIONS: The applicant proposes to divide .78 acres into two conmmrcial lots, .45 acres and .33 acres, in the Temecula area; the site supports two buildings currently under construction; surrounding land uses are primarily commercial/industrial with some retail; surrounding zoning is also Light Industrial; the site is within the Southwest Area Community Plan and is designated as Light Industrial; this site is also within the newly incorporated City of Temecula; environmental concerns include impacts to the Stephens Kangaro~ Rat; the site is also impacted by the 100 Sear floodplain, the Alquist Priolo Special Studies Zone, and the zone for potential liquefaction; there is a reasonable probability that the project will be consistent with the General Plan proposal being considered or studied by the City of Temecula or ~d~ich will be studied within a reasonable time by the City of Temecula; there is little or no probability of substantial detriment to or interference with the City of Temecula's future adopted General Plan if the project is ultimately inconsistent with the plan; and, the project complies with all other applicable requirements of State law and local ordinances. The project is consistent with the Southwest Community Plan, and is therefore 4 RIVERSIDE COUNTY PLANNING COMMISSION MINUTES FEBRUARY 28, 1990 The hearing was closed at 9:23 a.m. FINDINGS AND CONCLUSIONS: Change of Zone No. 5435 proposes to change the zone on a one acre site from R-R to C-l/C-P; the project site is located south of Florida Avenue between 5th Street and 7th Street in the Valle Vista Area; the project site is located within the Hemet/San Jacinto Land Use Planning Area of the Comprehensive General Plan; the surrounding land uses are single family residential development and small scale commercial land uses; the surrounding zoning includes R-R, R-3, C-P-S, and C-l/C-P; the environmental assessment identified six issues of concern: highway noise, project generated noise, water quality impacts, wildlife impacts, energy resources and scenic highway; the Land Use Element of the Comprehensive General Plan requires that proposed land uses be compatible with existing and approved land uses in the area; and, Florida Avenue is an eligible scenic highway. All significant environmental impacts can be adequately mitigated at the development stage; the proposed change of zone would be compatible with area development and zoning; the ~roposed change of zone would be consistent with the policies for the omprehensive General Plan; and, given that Florida Avenue is an eligible county scenic highway, the most appropriate zone for the project site would be C-P-S. MOTION: Upon motion by Commissioner Donahoe, seconded by Commissioner Turner, and unanimously carried, the Commission recommended to the Board adoption of the Negative Declaration for EA 33701, denial of Change of Zone 5435 from R-R to C-l/C-P, but approval of Change of Zone 5435 from R-R to C-P-S in accordance with Exhibit 4, and based on the above listed findings and conclusions. ROLL CALL VOTE RESULTED AS FOLLOWS: AYES: Commissioners Turner, Smith, Donahoe and Beadling NOES: None ABSENT: Commissioner Wolf .(Tape 1A) PARCEL. MAP NO, 24762~.ej~EA 33868 - California Urban Investments. Inc. - Temecula -Area - First Supervisorial District - northeast of Enterprise Circle West, northwest of Rider Way - 2 lots - 0.7~ acre - Schedule E (Cont. from 2/14/90) Hearing was opened at 9:24 a.m. and was' closed at 9:28 a.m. STAFF RECOMMENDATION: Adoption of the Negative Declaration for EA 33868 and approval of Tentative Parcel Map No. 24762 based on the findings and conclusions listed in the staff report. This item was continued from the Zoning Area: Temecula First Supervisorial District E.A. Number: 33868 PARCEL MAP NO. 24762 Planning Commission: 02-28-90 Continued from: 02-14-90 Agenda item No. 1-2 RIVERSIDE COUNTY PLANNING DEPARTMENT STAFF REPORT 1. Applicant: 2. Engineer/Rep.: 3. Type of Request: 4. Location: o Existing Zoning: Surrounding Zoning: Site Characteristics: 8. Area Characteristics: 9. Comprehensive General Plan Designation: 10. Land Division Data: 11. Agency Recommendations: 12. 13. Letters: Sphere of Influence: California Urban Inv., inc. RANPAC Engineering Corp. Subdivision of .78 acres into two commercial lots with a minimum of .33 acres each. Northeast of Enterprise Circle West, and Northwest of Rider Way. M-SC M-SC The site currently supports two (2) commercial buildings (Plot Plan 10922) in an urbanized area. Rapidly developing commercial and industrial area. Southwest Area Community Plan Land Use: LI (Light Industrial) Category II Open Space/Cons: Areas not Designated as Open Space. Total Acreage: .78 Total Lots: 2 See letters dated: Road: 7-21-89 Health: 10-30-89 Flood: 6-06-89 Fire: 6-07-89 Bldg. & Safety- Land Use: 7-21-89 Grading: 7-20-89 Opposing/Supporting: None Within the City of Temecula. ANALYSIS: Project Description Tentative Parcel Map No.24762 is an application to divide .78 acres into two commercial lots, .45 acres and .33 acres in the Temecula area. The site is located northeast of Enterprise Circle West, and northwest of Rider Way. TENTATIVE PARCEL MAP NO. 24762 Staff Report La.dusea~d Zoning The site supports two buildings currently under construction. Surrounding land uses are primarily commercial/industrial with some retail. The site is within the Southwest Area Community Plan and is designated as Light Industrial. This site is also within the newly incorporated City of Temecula. Surrounding zoning is also Light Industrial. R{ve~s{de County Com~vehens{ve Geneva] The site is located within the Southwest Area Community Plan and is designated as Light Industrial. The proposed use is approved per the Southwest Area Community Plan and is therefore consistent with the Comprehensive General Plan. Environmental Assessment: The initial study conducted for Environmental Assessment No. 33868 has indicated impacts to the Stephens Kangaroo Rat habitat. The site is located within the approximate limits of the 100-year floodplain, the Alquist-Priolo Special Studies Zone, and a potential Liquefaction Zone. All environmental concerns can be mitigated through the conditions of approval. FINDINGS: 1. The applicant proposes to divide .78 acres into two commercial lots, .45 acres and .33 acres in the Temecula area. 2. The site supports two buildings currently under construction. Surrounding land uses are primarily commercial/industrial with some retail. Surrounding zoning is also Light Industrial. 3. The site is within the Southwest Area Communit'y Plan and is designated as Light Industrial. This site is also within the newly incorporated City of Temecula. 4. Environmental concerns include impacts to the Stephens Kangaroo Rat. The site is also impacted by the 100-year floodplain, the Alquist-Priolo Special Studies Zone, and the zone for potential liquefaction. 2 TENTATIVE PARCEL MAP NO. 24762 Staff Report CONCr.US TONS · 1. The project is consistent with the Southwest Area Community Plan, and is therefore consistent with the Comprehensive General Plan. 2. All environmental concerns have been mitigated. BRCOMMENDATTONS: ADOPTION of the Negative Declaration for Environmental Assessment. No. 33868 based on the findings that the proposed project will not have a significant effect on the environment; and APPROVAT. of TENTATIVE PARCEL MAP NO.24762 based on the findings and conclusions incorporated in the staff report and subject to the attached conditions of approval. JSA:ja 1/30/90 I PM 24762 I LANDUSE ,! II BUSINESS CZ4597 )/ 4 // ~'CZ 4566 VAC App.: CALIF. URBAN INVESTMENTS, INC. Use: PARCEL 0.78 AC. INTO 2 LOTS Area: TEMECULA Sec.;55 T.7S.R. 3W. A~sessor's Bk. gZI · · VAC Circulation: WINCHESTER RD. URBAN ART. , Eternent: JEFFERSON AVE MAJOR-----100' Rd. Bk. F_.$5c DateOI/29/90 Drawn ByTEK,/~4'./ AC/ ~' LOCATIONAL AP Sup. Dist. 1st. F'g. 48 ~,~. · .110' ~. ' 40~)' RIVERSIDE COUNTY PLANNING DEPARTMENT NO SCALE EXISTING ZONING C-P-S 3 R-.R II II ...C-l/C-P Z~, ,~M_S~; ' -'~*.o., t ~.: ~ALIF. ~BAN ~ES~NTS. ~. ' .......,0c ~A~'~ .' Urn: PARCEL 0.78 AC. ~TO 2 LOTS 1" ~ ~1~ ~~ P~NNING ~~~ ! PM24762 I S.W.~ C(3VlVtPLAN 5 I ' _//"~LI / ~' C ~l,,... ':,~; ~ , \ . ,,' ~ ~', /',.'_,~,'..,~,~~1,. ,' ,', -- ;i" '/.. /~'"'" '"'-~ ' "--f. '-.-',-i~,z"~-~ C .,4'~,/~,-~,~:,,~'.~o .....-..-_..,~, "j A,op.: CALIF. URBAN INVESTMENTS, INC. ~,~L ~,,~,' & Use: PARCEL 0.78 AC. INTO 2 LOTS ~' ) Area: TEMECULA Sup. Dist. 1st. , i I~il Circulation: WINCHESTER RD.---URBAN ART. 110' 1'= 400' RIVERSIDE COUNTY PLANNING DEPARTMENT ~o SC~L~ RIVERSIDE COUNTY PLANNING DEPARTMENT NEGATIVE DECLARATION AND NOTICE OF DETERMINATION Case No. (Mod) ~'~ ~(~ (((q) .... EA No. ~,~ NEGATIVE DECLARATION Based on the Initial Study, it has been determined that the proposed project will not have a significant environmental effect. PROJECT DESCRIP, TION AND LOCATION: Roger S. Streeter, Planning Director COMPLETED By __J~~-'lm~'f ~, ~b~4~~ See attached Initial Study Title Case No.(Nod) m~ M~'/~'Z. ~ lift] Appl/Rep ~_.~mo~.~/~ ~,~ _~,~¢. Date Submitted Existing Zones Changes of Proposed Zones Only Zoning Acreage Land Div Sch ~--- Developable Lots Open Space Lots Oev. Ac 0-7~ O.Sp. Ac -- Person verifying adoption -.~r~.~F--~ ~ (Other) ADOPTED O Board of Supervisors .-~ Plannin9 Commission Area Planning Council I.] P--T~ning Director HEARING BODY OR OFFICER NOTICE OF DETERMINATION 0 Board of Supervisors 0 Planning Commission 0 Area Planning Council ~P--T~-~ning Director C3 (Other) ACTION ON PROJECT 0 Approval ~ Disapproval Date Developable Lots Dev.Ac Open Space Lots O.Sp. Ac Changes of ~pproved Zones Only Jones Acreage The project will not have a significant effect on the environment and a Negative Declaration has been adopted and may be examined at the Planning Department at the address below. Person verifying action Title RIVERSIDE COUNTY PLANNING DEPARTMENT ~q80 LEMON STREET, 9TH FLOOR /ERSIDE, CA 92501 1st White Original - County Clerk 2nd Canary - Case File 3rd Pink - Scheduling ~s-~ (,,v. xo/~)) COUNTY STAMP PLANNING COMMISSION HEARING DATE: RIVERSIDE COUNTY PLANNING DEPARTMENT CONDITIONS OF APPROVAL TENTATIVE PARCEL MAP NO. 24762 The following conditions of approval are for Parcel Map No. 24762 - A two lot subdivision of .78 acres. The subdivider shall defend, indemnify, and hold harmless the County of Riverside, its agents, officers, and employees from any claim, action, or proceeding against the County of Riverside or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the County of Riverside, its advisory agencies, appeal boards, or legislative body concerning Tentative Parcel Map No. 24762, which action is brought within the time period provided for in California Government Code Section 66499.37. The County of Riverside will promptly notify the subdivider of any such claim, action, or proceeding against the County of Riverside and will cooperate fully in the defense. If the County fails to promptly notify the subdivider of any such claim, action, or proceeding or fails to cooperate fully in the defense, the subdivider shall not, thereafter, be responsible to defend, indemnify, or hold harmless the County of Riverside. The tentative parcel map shall conform to the requirements of Ordinance No. 460, Schedule E, unless modified by the conditions listed below. This approved tentative parcel map will expire two years after the Board of Supervisors approval date unless extended as provided by Ordinance No. 460. The final map shall be prepared by a registered civil engineer or licensed land surveyor subject to all the requirements of the State of California Subdivision Map Act, Riverside County Subdivision Ordinance No. 460. All road easements shall be offered for dedication to the public and shall continue in force until the governing body accepts or abandons such offers. All dedications shall be free from all encumbrances as approved by the County Road Commissioner. Street names shall be subject to approval of the Road Commissioner. TENTATIVE PARCEL MAP NO. 24762 Conditions of Approval Page 2 e 10. 11. 12. 13. 14. 15. Easements, when required for roadway slopes, drainage facilities, utilities, etc., shall be shown on the final map if within the land division boundary. All offers of dedication shall provide for nonexclusive public road and utility access. All easements, offers of dedication, and conveyances shall be submitted and recorded as directed by the Riverside County Surveyor. Legal access as required by Ordinance 460 shall be provided from the parcel map boundary to a County maintained road. All delinquent property taxes recordation of the final map. shall be paid prior to Prior to any grading, a grading plan in compliance with the Uniform Building Code, Chapter 70, as amended by Ordinance No. 457, shall be submitted to the County Department of Building and Safety. The subdivider shall comply with the street improvement recommendations outlined in the County Road Department's letter dated July 21, 1989, a copy of which is attached. The subdivider shall comply with the environmental health recommendations outlined in the County Health Department's transmittal dated October 30, 1989, a copy of which is attached. The subdivider shall comply with the flood control recommendations outlined in the Riverside County Flood Control District's letter dated June 6, 1989, a copy of which is attached. If the land division lies within an adopted flood control drainage area pursuant to Section 10.25 of Riverside County Land Division Ordinance No. 460, appropriate fees for the construction of area drainage facilities shall be collected by the Road Commissioner prior to recordation of the final map or waiver of parcel map. The subdivider shall comply with the fire improvement recommendations outlined in the County Fire Department's letter dated June 7, 1989, a copy of which is attached. The subdivider shall comply with the recommendations outlined in the Building and Safety Department - Land Use Section's transmittal dated July 21, 1989, a copy of which is attached. The subdivider shall comply with the recommendations outlined in the Building and Safety Department - Grading Section's transmittal dated July 20, 1989, a copy of which is attached. TENTATIVE PARCEL MAP NO. 24762 Conditions of Approval Page 3 16. The subdivider shall comply with the recommendations outlined in the County Geologist transmittal dated February 5, 1981, a copy of which is attached. GRADING: 17. Prior to the issuance of grading permits, the applicant shall comply with Ordinance No. 663 by paying the fee required by that ordinance. Should Ordinance No. 663 be superceded by the provisions of a Habitat Conservation Plan prior to the payment of the fees required by Ordinance No. 663, the applicant shall pay the fee required under the Habitat Conservation Plan as implemented by County Ordinance or resolution. DEVELOPMENT STANDARDS: 18. Lots created by this subdivision shall be in conformance with the development standards of the M-SC zone. 19. All lots created by this land division shall have a minimum area of 10,000 square feet net. 20. When lots are crossed by major public utility easements, each lot shall have a net usable area of not less than 3600 square feet, exclusive of the utility easement. 21. All lot length to width ratios shall be in conformance with Section 3.8C of Ordinance No. 460. 22. Corner lots shall be provided with additional area pursuant to Section 3.8B of Ordinance No. 460. ENVIRONMENTAL CONSTRAINT SHEET CONDITIONS: 23. An Environmental Constraints Sheet (ECS) shall be prepared with the final map to delineate identified environmental concerns and shall be permanently filed with the office of the County Surveyor. Prior to the recordation of the final map, a copy of the ECS shall be transmitted to the Planning Department for review and approval. The approved ECS shall be forwarded with copies of the recorded final map to the Planning Department and the Department of Building and Safety. The following note(s) shall be placed on the Environmental Constraints Sheet: ao "Structures for human occupancy shall not be allowed in the delineated constraint area. This constraint affects parcels ." TENTATIVE PARCEL MAP NO. 24762 Conditions of Approval Page 4 be "County Geological Report No. 216 was prepared for this property on February 5, 1981, by Ertec, Inc., and is on file at the Riverside County Planning Department. Specific items of concern in the report are as follows: Fault Hazards." "County Geological Report No. 167 was prepared for this property on February 5, 1981, by Ertec, Inc., and is on file at the Riverside County Planning Department. Specific items of concern in the report are as follows: Liquefaction." de "This property is located within thirty (30) miles of Mount Palomar Observatory. Light and glare may adversely impact operations at the Observatory. Outdoor lighting shall be from low pressure sodium lamps that are oriented and shielded to prevent direct illumination above the horizontal plane passing through the luminaire." JJ:aea 6-14-88 OFFICE OF ROAD COMMISSIONER & COUNTY SURVEYOR LeRoy D. Smoot ROAD COMMISSIONER & COUNTY SURVEYOR Riverside County Planning Commission 4080 Lemon Street Riverside, CA 92501 Ladies and Gentlemen: RE: July 21, 1989 COUNTY AD~ISTP, ATIV~ CI~qTER HAILIN~ ADDRESS: P.O. BOX 1090 RFvT..RSID£, CAUFORNIA 92502 (714) 787-6554 PM 24762 Schedule E - Team 5 - SMD #9 AP# 111-111-111-9 With respect to the conditions of approval for the referenced tentative land division map, the Road Department recommends that the landdivider provide the following street improvement plans and/or road dedications in accordance with Ordinance 460 and Riverside County Road Improvement Standards (Ordinance 461). It is understood that the tentative map correctly shows acceptable centerline profiles, all existing easements, traveled ways, and drainage courses with appropriate Q's, and that their omission or unacceptability may require the map to be resubmitted for further consideration. These Ordinances and the following conditions are essential parts and a requirement occurring in ONE is as binding as though occurring in all. They are intended to be complementary and to describe the conditions for a complete design of the improvement. All questions regarding the true meaning of the conditions shall be referred to the Road Commissioner.'s Office. The landdivider shall protect downstream properties from damages caused by alteration of the drainage patterns, i,e., concentration of diversion of flow. Protection shall be provided by constructing adequate drainage facilities including enlarging existing facilities and/ or by securing a drainage easement. All drainage easements shall be shown on the final map and noted as follows: "Drainage Easement - no building, obstructions, or encroachments by land fills are allowed". The protection shall be as approved by the Road Department. e The landdivider shall accept and properly dispose of all offsite drainage flowing onto or through the site. In the event the Road Commissioner permits the use of streets for drainage purposes, the provisions of Article XI of Ordinance No. 460 will apply. Should the quantities exceed the street capacity or the use of streets be prohibited for drainage purposes, the subdivider shall provide adequate drainage facilities as approved by the Road Department. COUNTY ADMINISTRATIVE CENTER · 4080 LEMON STREET · RIVERSIDE, CALIl:ORNIA 92501 PM 24762 July 21, 1989 Page 2 ® ® 0 o 10. 11. 12. 13. 14. Major drainage is involved on this project and its resolution shall be as approved by the Road Commissioner. Enterprise Circle West and Rider Way shall be improved with 34 feet of asphalt concrete pavement within a 45 foot part width dedicated right of way in accordance with County Standard No. 103, Section A. (22'/33') Corner cutbacks in conformance with County Standard No. 805 shall be shown on the final map and offered for dedication. Improvement plans shall be based upon a centerline profile extending a minimum of 300 feet beyond the project boundaries at a grade and alignment as approved by the Riverside County Road Commissioner. Completion of road improvements does not imply acceptance for main- tenance by County. The developer/owner shall submit a detailed soils investi- gation report addressing the construction requirements within the road right of way. Asphaltic emulsion (fog seal) shall be applied not less than fourteen days following placement of the asphalt su=facing and shall be applied at a rate of 0.05 gallon per square yard. Asphalt emulsion shall conform to Section 37, 39 and 94 of the State Standard Specifications. The landdivider shall provide utility clearance from Rancho California Water District prior to the recordation of the final map. The maximum centerline gradient and the minimum centerline radii shall be in conformance with County Standard #114 of Ordinance 461. All centerline intersections shall be at 90 with a minimum 50' tangent measured from flow line or as approved by the Road Commissioner. Concrete sidewalks shall be constructed throughout the landdivision in accordance with County Standard No. 400 and 401 ( curb sidewalks ) or as approved by the Road Commissioner. Electrical and communications trenches shall be provided in accordance with Ordinance 461, Standard 817. Traffic signal mitigation has been met on this project by TR 16178. - PM 24762 July 21, 1989 Page 3 15. 16. 17. The ~treet design and improvement concept of this project shall be coordinated with tentative TR 16178 and PP 10922. Street lights shall be' installed in accordance with Ordinance 460 and 461 at all intersections of roads constructed or improved within the subdivision. The County Service Area (CSA) Administrator determines whether the subdivision is within an existing assessment district. If not, the land owner shall file, after receiving tentative approval, for an application with LAFCO for annexation into or creation of a County Service Area in accordance with Governmental Code Section 25210.1. Should this project lie -within any assessment/benefit district, the applicant shall prior to recordation make application for and pay for their reapportionment of the assessments or pay the unit fees in the benefit district unless said fees are deferred to building permit. EB:jw Very truly yours, Elmer Baumgarten Subdivision Engineer COUNTY E. & GALL AGtl ER, M.D., U.P.H. CIRD~A ROWELL, B.$.N.,N.B.A. J.M. FANNING,B. S.,N.RA. tl.C. HOCK, O.V.M., M.RII. [.R. COTNE, M.S. OF RIVERSIDE ,, October 30. 1909 RIVERSIDE COUNTY PLANNING DEPT. 4080 Lemon Street Riverslde. CA 92502 ATTN: Michael Bacon N8ALT# GE#Tlll I~,111lIO 3055 RAMSEY STREET BANNING. CA 92220 ILt?#! 263 NORTH BROADWAY 8LYTNE, CA 92225 GAlA ILA#CA 7240 MARGUERITA RIVERSIDE, CA 92504 GOROMA 505 SOUTH BUENA VISTA CORONA. CA giT20 NBMET 890 NORTH STATE ST. HEMET. CA g2343 INDIO 4'6-209 OASIS STREET INDIO. CA 9220! LAKE ELSINORE 30195 FRASER DR. LAKE ELSINORE. CA. 92330 PALM 1PNINGI 3255 T AHOUI TZ.4,4cC ALL~M PALM SPRINGS. CA 92262 PERNIl 237 NORTH 'O' STREET PERRIS. CA 92370 RIVERIlDB 1520 LINDEN STREET RIVERSIDE. CA. 92507 BUIlDDUg 5888 MISSION BLVD. RIVERSIDE, CA 92509 FU~: PARCEL MAP 24762: Lot 6 of Tract 16178 in the County of Riverside State of Cal~fornxa as Der mad recorded ~n Book 160, Paoes 102, 103 and 104 of Maps in the Office of the County Recorder of sald County. (2 Lots) Gentlemen: The Department of Public Health has reviewed Tentative Map No. 24762 and recommends that: A water system shall be ~nstalled according to plans and specification as approved by the water company and the Health Department. Permanent prints of the plans of the water s~stem shall be submitted in triplicate. with a minimum scale not less than one ~nch eauals 200 feet, along with the or~o~nal draw~nu to the County Surveyor. The prints shall show the internal plpe diameter, locatlon of valves and fire hydrants; plpe and .1olnt specifications, and the size of the main at the .lunct~on of the new s~stem to the existing system. The plans shall comply in all respects w~th Div. 5, Part 1. Chapter 7 of the California Health and Safety Code, California Administrative Code, Title 22, Chapter 16, and General Order No. 103 of the Publlc Utilities Commlss~on of the State of California, when applicable. Reply to: Riverside County Flannlnu Deot. Paae Two ATTN: Michael Bacon October 30. 1989 The Plans shall be signed by a re~stered enolneer and water tommanY with the following cert~ficatlon: "I certify that the design of the water system in Parcel MaD 247~2 ~s accordance with the water ~¥stem expansion plans of the Rancho California Water District and that the water service, storage and dlstrlbutlon sVstem will be adeuuate to provide water service to such Darcei maD. Th~s certification does not constitute a quarantee that it w~11 SUDDIV water to such parcel mad at any sDeclf~c quantities. flows or pressures for flre protection or any other DurDose".Thls certification shall be slqned bv a responsible official of the water companY. T~_e plans ~Nst be ~ubmltted t~ th~.,~.D~3.D~! $urve¥o.£'$ Offlce to review at least twQ weeks prior to t~9 rg_~uest for the recordation of the f.~_~L.~ap, Thls Department has a statement from Rancho Cal~fornla Water District aGreeinG to serve domestic water to each and every lot in the subdivision on demand providing satisfactory financial arrangements are completed with the subdivider. It will be necessary for financial arrangements to be made prior to the recordation of the final maD. Thls Department has a statement from the Eastern Municipal Water District a~reelnG to allow the subdivision sewage system to be connected to the sewers of the Distr~ct. The sewer system shall be installed accordinc to plans and ~Declficatlons as approved by the Distr~ct. the County Surveyor and the Health Department. Permanent prints of the plans of the sewer system shall be submitted in triplicate, alon~ wlth the or~lnal drawln~, to the County Surveyor. The prints shall show the ~nternal OlDe diameter. location of manholes. complete Drolllee. olde and .jolnt specifications and the s~ze of the sewers at the .~unction of the new system to the existing system. A s~n~le plat indicating location of sewer lines and water l~nes shall be a Dortlon of the sewage plans and oroflles. Riverside County Plannlnm Dept. Pame Three ATTN: Michael Bacon October 30, 1989 The olans shall be sluned by a registered engineer and the sewer distr~ct wlth the followlna certification: "I certify that the design of the sewer system in Parcel MaD 24762 is in accordance wxth the sewer system exDanslon Diane of the Eastern Municipal Water District and that the waste disDosal system is adequate at this time to treat the anticipated wastes from the DroDosed Darcel maD." .The plans must be submitted to the County $q£~.9_y_qr's Office to review at least t.~_o..we.9~ D~gr to the request for the recordation Of the ~..inal maD. It wlll be necessary for financial arrangements to be comDletelv finalized Dr~or to recordation of the final maD, S~cerely, Sam Martine ~tal Health Specialist IV Envxronmental Health Services SM:tac K[NNErrH L.. ;DWARD$ C~14 IE:Ir IENGINEE'R ! ell MARKL~' ITREL'T P.O. BOX 10~3 TE~-I'PHONE (714) 787.Z015 RIVERSIDE COUNTY FLOOD CONTROl- AND WATER CONSERVATION DISTRICT Riverside County Planning Department County Administrative Center Riverside, California RIV[RIID~', CAI. IIrORNIA I~'B01 Attention: Regional Team No. ~ P1 anner/v/,¥~,e ( R~..t Re: We have reviewed this case and have the following comments: Except for nuisance nature local runoff which may traverse portions of the property the project is considered free from ordinary storm flood hazard. However, a storm of unusual magnitude could cause some damage. New construc- tion should comply with all applicable ordinances. The topography of the area consists of well defined ridges and natural water- courses which traverse the property. There is adequate area outside of the natural watercourses for building sites. The natural watercourses should be kept free of buildings and obstructions in order to maintain the natural drainage patterns of the area and to prevent flood damage to new buildings. A note should be placed on an environmental constraint sheet stating, "All new buildings shall be floodproofed by elevating the finished floors a minimum of 18 inches above adjacent ground surface. Erosion protection shall be provided for mobile home supports." This project is in the l~rr;,+~ ~rO~/~'~.~ V~l[¢e A~I:> Area drainage plan fees shall be paid in accordance with the ~pplicable r~les and regulations. The proposed zoning is consistent with existing flood hazards. Some flood control facilities or floodproofing may be required to fully develop to the implied density. The Distrtct's report dated is still current for this project. The District does not object to the proposed minor change. This project is a part of p/v[ I~l?~ The project will be free of ordinary storm flood hazard when improvements ~ave been constructed in accordance with approved plans. The attached comments apply. cc: C ,/ry .truly yours, /~.~Hb H. CASHUBA enior Civil Engineer RIVERSIDE COUNTY FIRE DEPARTMENT IN COOPERATION WITH THF CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION FIRE CHIEF Planning & Engineering Office 46-209 Oasis Street, Suite 405 lndio, CA 92201 (619) 342-8886 TO: PLANNING DEPARTMENT 6-07-89 FEB 3 1990 Planning & Engineering Office 4080 Lemon Street, Suite 11L Riverside, CA 92501 (7t4) 787-6606 ATTN: RE: MICHAEL BACON PARCEL MAP 24762 RIVERSIDE COUNTY PLANNING DEPARTMENT With respect to the conditions of approval for the above referenced land division, the Fire Department recommends the following fire protection measures be provided in accordance with Riverside County Ordinances and/or recognized fire protection standards: FIRE PROTECTION The water mains shall be capable of providing a potential fire flow of 5000 GPM and an actual fire flow available from any one hydrant shall be 2500 GPM for 2 hours duration at 20 PSI residual operating pressure. Approved super fire hydrants, (6"x4"x2-2½") shall be located at each street intersection and spaced not more than 350 feet apart in any direction, with no portion of any lot frontage more than 165 feet from a fire hydrant. Applicant/developer shall furnish one copy of the water system plans to the Fire Department for review. Plans shall conform to fire hydrant types, location and spacing, and, the system shall meet the fire flow requirements. Plans shall be signed/approved by a registered civil engineer and the local water company with the following certification: "I certify that the design of the water system is in accordance with the requirements prescribed by the Riverside County Fire Dept." The required water system including fire hydrants shall be installed and accepted by the appropriate water agency prior to any combustible building material being placed on an individual lot. All questions regarding the meaning of the conditions shall be referred to the Fire Department Planning and Engineering staff. RAYMOND H. REGIS Chief Fire Department Planner By Kurt Mantwell, Fire Safety Specialist ml Administrative Center · 1777 Atlanta Avenue Riverside, CA 92507 July 21, 1989 Riverside County Planning Department Attention: Patti Nahitl County Administrative Center 4080 Lemon Street Riverside, CA 92501 RE: Parcel Map 24762 Ladies and Gentlemen: The Land Use Division of the Department of Building and Safety has the following comments and conditions: Site development of Plot Plan 10922 to remain in conformance with Parcel Map 24762. The developer shall obtain Planning Department approval for all on-site and off-site signage advertising the sale of the parcel map pursuant to Section 19.5 of Ordinance 348. The site is located in a special studies zone. Very truly yours, . ~_~ /sn Administration (714) 682-8840 · (714) 787-2020 ~OUNTY O~ RIV£R~ID~ Department of 8uildin~ and Safety FROM: ]:N:]: T]:/~L: ?'~~W _~__Please make the following · condition of approval: ~a. Prior to commencing any grading exceeding 5~ cubic yards, the owner o~ that property shall obtain a grading permit from the Department of Building and Safety Prior to approval of this use/subdivision a Grading permit and approval of the rough grading shall be obtained from the Building and Safety Department. Prior to issuance of any buildinG permit~ the property owner shall obtain a grading permit and approval to construct from the Building and Safety Department. Constructing a road, where greater than ~0 cubic yards of material is placed or moved, requires · Grading permit. Prior to occupancy and/or beginning actual use of this permit, a grading permit and approval o~ the grading shall be o~tained from the Building and Safety Department. Provide verification that the existing gra~ing permitted and a~proval to construct' kas obtained from Buildin~ and Safety. The ~rading Section has no comment on this site. the NOTE For the (inal grading plan - Please provide the applicable information from County ~rading Forms ~B~-8~ '' 2B~-120 ' Rev. 3/8~ ABB:db '1081 February 5, 1981 RIVERSIDE COUNTY PL NNING DEPARTMENT PLANNING COMMISSION . ELMER M. KA'I'ZENSTEIN, ~ ~ RONALD W. SULLIVAN, ~ RUSSELL E. CAMPBELL, ~,~ JF..~ E. ULLIBRIDGE, c,~m~ MARLON V. ASHLEY, ~ KAY H. OLESEN, ~.,, r).~ PATRICIA N EME'TH - A.I.C.P. - F~i. ANNING DIRECTOR Ertec, ]nc. 3777 Long Beach Boulevard Long Beach, California 90807 4C~0 k[140~ STREET. 9TH FLOOR. RIV~.RSIDE~. Attention: Robert Lynn, Senior Geologist SUBJECT: Fault Hazard Report Project No. 79-233-01 Tract 16178 .d~a.n~c ho~- County Geologic Rep ; ~'~ K.A. Nicholas & Co. alifornia Dear Mr. Lynn: We have reviewed your report entitled "Fault Hazard Investigation Approximately 100- acres parcel, a portion of Tentative Parcel Map 23542, Riverside County California". We have also reviewed your Revised Figure 2 transmitted on October 31, 1980. Your report determined that: 1. The Wildomar fault crosses the property and should be considered active and capable of causing ground-surface displacement across its trace. 2. A previous liquefaction report by Pioneer Consultants, designated as County Geologic Report No. 167, determined that there was the possibility that soils liquefaction could occur at the site during a future earthquake along the Elsinore Fault Zone. This same report assigned a Richter Magnitude 7.5 earth- quake to the Elsinore Fault, and established a maximum bedrock acceleration of 0.36g to the site. Your report recommended that: 1. No human occupancy structuresshould be built within the Building Restriction Zone as shown on Figure 2 in the report. 2. The Building Restriction Zone should be suitable for non-habitable structures, access roads, green belts, and utility lines as long as provisions are made to account for several feet of displacement. 3. The aforementioned liquefaction report, GR i167, recon~nended that in order to mitigate the liquefaction hazard, the bottom of any building foundation should be constructed at least 10 feet above the highest groundwater encountered in the area. This would mean putting the base of the footings no lower than elevation 1010. It is our opinion that the report was performed in a competent manner consistent with the present "state-of-the-art" and satisfies the requi)'emcnt~ of the Alquist-Priolo Ertec, Znc. Fault Hazard Report Page -2- 21518! ...,~~-' Special Studies Zones Act and the associated Riverside County Ordinance No. 547. Final approval of the report is hereby given. We recon~end that the following conditions be satisfied before issuance of any County permits associated with this project: ]. The Building Restriction Zone, as shown on Figure 2 of the report, shall be delineated on the Environmental Constraints Sheet {E.C.S.) and labelled "Fault Hazard Area". 2. A note shall be placed on the E.C.S. stating: "This property is affected by earthquake faulting. Structures for human occu- pancy shall not be allowed in the Fault Hazard Area..' This constraint affects parcels ." 3. Notes shall be placed on the final tract map stating: (a) "County Geologic Report No. 216 was prepared for this property in July, 1979, by Fugro, Inc., and is on file at the Riverside County Planning Department. The specific item of concern in this report is earthquake faulting. (b) "This property is affected by earthquake faulting. Structures for human occupancy shall not be allowed in the Fault Hazard Area. This constraint affects parcels , as shown on the accompanying Environmental Constraints Sheet the original of which is on file at the office of the Riverside County Surveyor." 4. A copy of the final map and Environmental Constraints Sheet shall be submitted to the Planning Department Engineering Geologist for review and approval. Zt should be noted that the exploratory trenches backfill was not tested for compaction as a part of this investigation. This should be considered prior to the issuance of any grading or building permits on the property, or the construction of any utility lines or roads. The developer, M. A. Nicholas & Company (Nicholas Comnerce Park}, has deposited $Z600 in the Rancho California Branch of the Bank of America, who will hold these funds until the County Road Department is satisfied thmt the trench backfill has been properly compacted. The Bank of America has issued an Instrument of Credit dated January 30, Zg8], which outlines the terms and conditions which must be met by the permitee in this matter. Very truly yours, RIVERSIDE COUNTY PLANNING DEPARTMENT Patricia Neme~h, AICP, Planning Director A~thony B. Brot~V, Engineering G g' CEG - 901 N)B:db cc: M.A. Nicholas & Co. Earl Hart Building & SafuLy ~vtd i~. Turner, Clvt] Englnee~ Ptonee~ Consultants 251 Tennessee Street Redl&nds, California 92373 Re: ~ob No. 3O62-OO2 Tentative Parcel Hip No. 13542 County Geolo61c Report No. 167 #. A. Htchol&s - Rancho Cillfornla Dear #~. Turner: bfe hive revteved your liquefaction report for the $ub~Ject tlntittve Parcel Hap. Your report deter~lne~ that there ts a possibility that sotls 11quef&ctton could occur at the stte durtng a furze ell't~ake &lon(j the Elstno~e f&ult zone. Your report ,tccm_.~nded that tn order to mtttgate the 11qu~f&cttofi hazard, the bottom of any butldlng foundations shoulcl be constructed at least 10 feet above the htghest ground ~eter encountered tn the are4. Tht$ vould mean putttn9 the blse of the foottrigs no 1over thin elev&tlon 1010. it 1S our opinion that the report vas performed tn a competent runner and satisfies the iddttton~l tnforwatto~ requested b~ Mr Envtrenmntel Qualtty S4ctten under the California EnYtrommntel Q~11t~ Act rfflM. ~l rec~ tMt the folioring note b4 pllced M the Pirctl Hip prtor to 1rs recorMtton: 'C4unt~ Geologtc Report No. 167 Ms been prepared for thts propert~ on Hitch ~2, 1979 b.y Plonee~ Consultents, end ts on ftle it the Riverside Count7 Plinnt~g Department. The spectftc 1tern of concern t4 this ripoft t$ posstble sotls liquefaction'. RIVERSIDE CI)UNTT PL)JINZNG DDARTI4[NT P&trlct& kewth, .kiP, Pl&nntng Director.' ABS:bms co: N.A. IIIcho1&so c/o II~t. C. TkM1 Mtho~ i. Brain, Engineering Geologist - EG-901 "im =-i3mu.. courI u. PI. Annir G DEPA-summEnC APPLICATION FOR LAND USE AND DEVELOPMENT ~ CHANGE OF ZONE NO. ~ CONDITIONAL USE PERMIT NO. [~ PARCEL MAP NO. [] PLOT PLAN NO. DATE: [3 PUBLIC USE PERMIT NO. [3 TRACT MAP NO. ~.4o~b~. [] ~M~RARY USE PERM~~ ~,~ .~ , · , ~ ..,,,. ~; · ~ VARIANCE NO. ?;q¥1 u 1989 INCOMPLETE APPLIGATION~ ~1~ NOT BE RIVERSlOE COUNTY ~ APPUOANT INFOHMA~ON PLANNH~G 1. Apphcant'sName: ~alifornia Urban ~nvestment~_, Inc. Mailing Address: 1202 Kettner Blvd., Ste. 4500, San Diego, CA ~f~--- ciiY sf4~ Telcphone No.: Owner's Name: Maihng Address: 92101 2. International Development and Construction, ...... 1202 Kettner Blvd. Ste. 4500, San Diego, CA 92101 Telepl~oneNo.: ( 619 ) 236-1771 (8~m.-5~m.) ~. Rep~esentahve: Ranpac Engineering Corporation ~ MailingA~Oress' 27447 Enterprise Circle West, Temecula, CA 92390 ~ ~ .~ Telephone No.: (7Z4 ) ~76-7000 (8~m.-5~m.) / ~.~ NOTE :if more than one ~mon ~ involved in the ~nemhip of the pro~ny ~ing developed a serrate page must /. ~ ' ~ allacheO Io this appli~lion which lists the names and addresses of all ~rsons having an interest in Ihe ~nership 8, PROJECT INFORMATION 1. Pur~seofRequest~e~ri~ PmiecI): Parcel Nap applicatio~ to divide lot 6 tract no. lots. 2. Relatedcasestiledinconju~t~nwiththisr~uest: Plot Plan No. 10922 16178 into two separat~ C. PROPERTY INFORMATION 1. Assessors Parcel No(s). 921-480-006-2 2. General location (street address, etc.) Northwesterly corner of the intersection of Rider Way 3. Section 35 __ Township 7 south 4. Approximate Gross Acreage: 0.78 ac m/1 5. Leg91 d.esc. r,ptio~. (give exact legal description as recorded in the Office of the County Recordsfl. May be attached. ~ 8fO~al'~,ac~.US~sl~A7~o~StDere~A~srecorded in book 160, pages 102 to SIGNATURE OF APPLICAk~ _~Jee '~'~uthor~zl;t~fo(n Letter") ..... DATE .......... Enterprise Circle West and Range 3 west Aulhority tot tl~,s apphcation is hereby given: SIGNATURE OF PROPERTY OWNERIS) _._!.S_es_ _"Authoriza~±__o_n_..~etter" ) 4080 LEMON STREET, 9TM FLOOR RIVERSIDE, CALIFORNIA 92501 '3657 (714) 787'G181 46-209 OASIS STREET, ROOM 304 INDIO, CALIFORNIA 92201 (619) 342-8277 REQUIRED PROPERTY OWNERI NOTIFICATION INFORMATION APPLICATIONS FOR' PARCEL MAPS TRACTS ZONE CHANGES CONDITIONAL USE PERMITS PUBLIC USE PERMITS WIND ENERGY CONVERSION SYSTEM 1B.30 PI. OT PLANS Requlr,n; E nvlro,,mer:~ AMll&mem~ Null~lam.y .Comme¢¢,&. VARIANCES TEMPORARY USE PERMITS The followm.o items will be required al the time Od filing (M the lb(We i~Oled Glle ipphclllOnS ~entc81 pickAges tO 134 inlened ;n lipariSe g~" X 12~" m~ IMPs T~le envious shall ~na~ite the ca~ numar I~ Ihe ~ ~l,'ina sMII ~tlin ~e IM~: One ly~ NI ~ gummed i~ls indiMti~ III I~ ~GfiY ~ri 'MMS Ind the mik~ IdOlizes that a~e ~ ~d~ M ~ e~ ~ the~ ~ ~ ~ MS ~ M i~i~ Irom the ~St equai,ze i~M~nl mll3 c. Ofie Ii1~11M the Ippliclnl/engineer. d. O.4 IIl~l IM ~ ~;. e. FOR ~ND DIVIBION ~ES ONLY :An 8h" X 1 I' W M ~ ~1~ 2 F~r I~d ~ts of gumMO i~ls ~ Ihe I~nL ~r,~iwr,lnO teFe~nlll~ with IheK mllhng i00resses D iK~ OurSe MrS ~m I~nl aM w~r,e~.W N MM.T~M ~ staWed to the OUfS~Oe M ~e M tM irge NniM In~ Not~ m Rim 1 3 Ce~i~nby~heti~mMn~e~m~e~u~r~h~t~~t~~ccur~te~TheT~xA~e~r~f~c will nol p;e~re ~ ce~ify the ~ny ~r Iill W M~MI~ IMm 4. On I COpy ot y~r exh~l ~ ten~h~ mp ih~ ~11M~W w~hin ~iNt. On I~ Mp,~,nl Ihe nimes ~ ~11 pro~ny ~ner within 3~feel ~ tMy im kll~ ~ Ihe g~ M~M. The ll)OVl n~ted informiliOn rely be Obtll~ld by Gontlctmg · litle Jhlurlnce cornpiny in the Rwer$,de Coufily area PROPER TY OWNERS CER TIFIGA TION I, Kevin T. Hughes .cl;l~tythlton May 9, 1989 ~ ~j Im4)nlh.Clly,,/ei, i theattachecl~opinyowner&liitw&$prepiredby Ranpac Engineering Corporation pursuinl to appi~ation reqmrements furnishe~ by the Ri~mi~ C~nly P~nn,ng Deparlmenl c;plllllOn ol ~ner M Ihl lull ~o~rly I.~ III olhl~ ~Mrly I furlhe; clrlily I~1 lhl inlMNlio. I~d li lrue I~ ~e~ to Ihl ~il M my k~leOge: I un0erillnd Ihll ~nco. ect o~ e-oneou~ inlMmt~ ~y ~ grounds fM minion Or Oenml M Ihe ~l~n. Kevin NAME: TITLE I REGISTRATION: ADDRESS: PHONE: SIGNATURE: DATE: T. Hughes Assistant Planner 27447 Enterprise Circle West Temecula, ~ 92390 ~ 676-7000. / ! /May 9, 1989 CASE; CASE NO. E.A. F* ~TAF~ uSE ONLY ENVIRONMENTAL INFORMATION FORM PieiN complete Parts IInd II of this form Ind provide III ot the idditionll miterMss requelted in Pitt III. Fsllure to do K) may del~y the review Ind procel~ of your proMOt. If you ere unable to provide the infornmtion, or you need I~isllnce. please feel free to contact the Plenning Department it (714) 787-6418. PART I: General Informltion 1. Wh~t il the Totll Acreage invofved? 0.78 2. Is there I Ixevioul ep011cetlon/lied for the lime lite? YES O NO~ if"Yes,' provide Clli Number. Allo Draylbs the EnWonmentll Aleelmltent Number, if known, Ind Environmentsl Impact Reporl Number, if ippliceble. CASE NO. P · P · 10922 (Pitgel MIp, Zone Chenge, Itc.) E.A. NO. 33362 If Known), EIR NO. (If IDMiclble) 3. Additional commen~ you mey wiih to luppty reglrdlng your prMect (Attlch In idditiocel Iheet # neceermry.) PART Ih EnvironmentM Oue.tionnllm 1. le the Ixojeot witNn en AlqulabPdok) 8pacMI Studlet Zone? YE$O NO~ To detem~ine if your I~Oteot la Iocetdd in I 8paclel Studies Zone, ~t~ct the Public Inferno·ion Section, or refer to the Special Study Zones Mips ivlliebll I! the Public Infonet·ion Counter of the Planning Department. If the project is within ZOne, ruler to Ordinance 547.1, or dlacuu the situation with the County Geologist. If · Iluit hezlr~ report tl nice·airy, complete the invl~tigltion prior to lubmitling your ~ol~icltion end I~OVlde 6 copies o! the report with this fom~. If I w~ivlr of the rKluirements la grlnt~l, lubmit · copy of the v/liver with this form. 2. le the projeot ioceted within · hlzlrd minigem·st zone or ligu. it, lCtion Iral I9 ~lhown on mepa of the 'Seismic Safety Eie- mentTechnicelReport"? YESiI~ NOn (see exn~.D~.t no. To determine if your I~'Ojeot la lublect to the geologic hlzlrdl noted shove you ·hould con.us· the"Seismic Slfity & Safety Element Technicel Relx)d" which il ivlilabll ·t the Public Infertuition Counter of the Pienning Department. If the In~ver to question #2 is "Ye&' contact the ·Pl~Opd~l· Geographic Planning Team Section to discuu appropriate me··u~e to minimize the hez·KL Incorporate Iny mitlg~tion me·~uree isle the I~oject design prior to submitting the ipplice- lion or indicate in the I~oace pmvld~l below the reeuitl of your dlacu.lion~ with the Planning Team. 3. If your IxoJeot is in the delirt Ira~, M it within I blowlind h~zlrd Irll? YES [3 NO The Planning Offices in Indio ind Riverlids will provide you with Infertuition concerning blowland hezIKIs. You mey wiIh to contic· the U.S. Soil Conllwltion Service. If your I~oject la ·ubjeot to blowlind h~ze~l& lubmit · blowlind coo·K4 Win with the iI~licetior~ (ALto refer to Section 14.1 of O~tnlnce 460, if your I~oject la · parcel mid or ~ubdivlaion). 4. II wirer liwlce Ivllleble it the I:WOject lite? YES · NO [3 If 'No,' how fir mu~t the water linM·) be extended to ~ lewice? Number of feet or miles Further e~olenation: II lewer letvice avila·bit it the lite? YES ;g NO [3 # 'No." how ler mu~t the Wlter line(a) be extended to provide lelyiCe? Number of feet or miles & Add#ion~ Commentl: PART II1: &ddWor~l Mltldlll The Ioflowing If·me mu~t be oubmlltdd with ~ I. At seam thM (3) I)lnorlmic I)hot~ (cX)kN' Ixtntl) of the I)rC)M~t lite, Or In leVI photo of the site. If ccdor I:)~)togmphs Im utilized, include · map k~nt~ng: I~ The ·re· of coverage of eech photogrlph 2. A cteir photocM)y (Xerox or lira·lit copy) of the lpproprlete portion of the U.S. Oeofogicll Sur~ey quldrangle meP, delin- Ilting the boundlrlel of the pro~ litl. Alao note the Ulle of the I cell·f,/that I hive inveltiglted thl queBtionl in PirIl I and II and the inlwerB are true end correct to the best of my Kevin T. Hughes, Assistant Planner IDC INTERNATIONAL DEVELOPMENT & CONSTRUCTION May 9, 1989 Honorable Board of S~pervi~ore and Planning Commission Co~ntyAdministratlve Center 4080 Lemon Street, 14th Floor ~lv~~ California 92501 We hereby authorize RANPAC ENGIN~ING to represent us in all matters coming before the County regarding the following property: ASSESSOR PARCEL NUMBER: 921-480-006 Very Truly Yours, By: IDC (International Construction & Development) Reinhold C. Wessely General Partner 1202 Kettner Boulevard, Suite 4500 · Son Diego, California 9210q Fax: (6~9) 236-0283 · Tel: (6~9) 236-~771 EXHIBIT 1 Although the site is located within a flooding, liquefaction and Alquist-Priolo Study area, as designated by the County's General Plan, the 0.78 acre lot in situated on alapproved Tract No. 16178. Recent tract improvements were approved by the County has mitigate potential liquefaction and flooding hazards. RIVERSIDE COUNTY PLANNING DEPARTMENT COUNTY ADMINISTRATIVE CENTER, NINTH FLOOR 4080 LEMON STREET RIVERSIDE, CALIFORNIA g2501-3657 Roger S. Streeter, Planning Director A PUBLIC HEARING has been scheduled before the PLANNING COi~qISSION to consider the application(s) described below. The Planning Department has tentatively found that the proposed project(s) will have no significant environmental effect and has tentatively completed negative declaration(s). The Planning Commission will consider whether or not to adopt the negative declaration along with the proposed project at this hearing. Place of Hearing: Board Room, 14th Floor, 4080 Lemon Street, Riverside, CA Date of Hearing: WEONESDAY, FEBRUARY 14, lggO The time of hearing is indicated with each application listed below. Any person. may submit written comments to the Planning Department before the hearing or may appear and be heard in support of or opposition to the adoption of the negative declaration and/or approval of this project 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 described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. The environmental finding along with the proposed project application may be viewed at the public information counter Monday through Friday from g:00 a.m. until 4:00 p.m. PARCEL MAP NO. 24762, EA 33868 is an application submitted by California Urban Investments, Inc. for property located in the Temecula Area and First Supervisorial District and generally described as northeast of Enterprise Circle West, northwest of Rider Way which proposes to divide 0.78~ acre into 2 lots TIME OF HEARING: 1:30 p.m. 921-480-023 RTS Group 11835 W. Olympic Blvd. Ste. 1100 Los Angeles, CA 90064 921-480-053 Charles & Marilyn Heers PO Box 1143 Encinitas, CA 92024 921-480-006 IDC Int'l Devel. and Construction 360 9ti ~ve. San Diego, CA 92101 921-480-005 Robert Roden 225 E. 3rd Ave. Escondido, CA 92025 921-480-007 Romet Speech Aid Inc. C/O Robert Grina 27630 Commerce Center Ste. D Temecula, CA 92390 921-480-008 County of Riverside 3133 7th ST. Riverside, CA 92501 921-480-010 Ranpac Engineering Corporation 27447 Enterprise Circle West Temecula, CA 92390 921-480-028 Donald W. Coop PO Box 9234 Temecula, CA 92390 909-270-009 Ronald L. Robertson Po Box 1269 Temecula, CA 92390 909-120-016 Riverside County Flood Control PO Box 1033 Riverside, CA 92502 909-270-030 Donald W. Coop PO Box 1234 Temecula, CA 92390 909-270-034 Petrolane Gas Service PO Box 1410 Long Beach, CA 90801 909-270-007 Woodview Devel. Co, Inc. 200 E. Sandpointe Ave. Santa Ana, CA 92707 #102 RiVERSiDE counc.u PLAnni11 DEPARQTIEnC ENVIRONMENTAL ASSESSMENT FORM: ENVIRONMENTAL ASSESSMENT (E.A.) NUMBER: PROJECT CASE TYPE(s) AND NUMBERS(s): F:>M ,~/--/-- NAME OF PERSON(s) PREPARING E.A.: L Be STANDARD EVALUATION MODULE NUMBER(s): [I PROJECT INFORMATION DESCRIPTION (include proposed minimum lot size and uses as applicable): TOTAL PROJECT AREA: ACRES 'r7~::) ; or SQUARE FEET ASSESSOR'S PARCEL NO.(s): D. EXISTING ZONING: E. PROPOSED ZC;)NING: F. STREET REFERENCES: IS THE PROPOSAL IN CONFORMANCE? IS THE PROPOSAL IN CONFORMANCE? G. SECTION, TOWNSHIP, RANGE DESCRIPTION OR A'I'i'ACH A LEGAL DESCRIPTION: H. BRIEF DESCRIFTION OF THE EXISTING ENVIRONMENTAL SETtING OF THE PROJECT SITE AND ITS SURROUNDINGS: Ii. COMPREHENSIVE GENERAL PLAN OPEN SPACE AND CONSERVATION DESIGNATION Check the aPl~o~riate c~tl~(s) below and proceed accordingly. !"1 All or i:)art of the project 8ire is in "Adopted Specific Plans," "REMAP" or "Rancho Villages Community Poli~ Areas". Complete Sections III, IV (B and C only), V and Vl. I~or ~ of the project site is in "Areas Not Designated as Open Space". Complete Sections III, IV (A, B and D only), V and VI. [] All or part of the project Nte h~ an Open Space and Conservation designation other than those mentioned above. Complete Sections III, IV (A, B, and E only), V and Vl. 2~-70 (New IlL ENVIRONMENTAL HAZARDS AND RESOURCES ASSESSMENT A. Indicate ~e nature of the propcead land use as datermined from ~ clesoriptions as found In Comprehensive General Plan Figure Vi.3 (Circle One). This Information is neceesa~ to determine the appropriate land use suitability ratings in Section III.B. NA - Not Appliceblo Critical E~ential Normal-High Risk ~ormal- Risk B. Indicate with a yes (Y) or no (N) whether any environmental I't~'~'ard enCl/or resource issues may significanUy affect or be affected by the proposal. NI referenced figures are contained in the Comprehensive General Plan. For any issue marked yes (Y} write additional data sources, agencies consulted, findings of fact and any mitigation measures under Section V. Also, where indicated, circle the appropriate land use suitability or noise anceptebility rating(s). (See delh~ons at bettom of this page). HAZARDS 1. ~1/ Aiquist-Prioio Special Studies or County Fault 12. ~'~," Airport Noise (Fig. 11.18.5, 11.18.11 Hazard Zones (Fig. Vl.1) G ~ '2..1~2 &VI.12& 1984 AICUZ Report, M.A.F.B.) ~ PS U R (Fig. Vl.3) ~ A S C D (Fig, VI.11) 2. ~ Uquefaction Potential ~3l~Fig. VI.1) C~.c, .p_~..o." .?? 13. ~ Railroad Noise (Fig. V1.13 - V1.16) NA. S PS ~ R (Fig. Vl.4) Groundshaking Zone (Fig V!.I NA ~ PS U )R~ (Fig. Vi.5) Slopes (Riv. Co. 800 Scale Slope Maps) Landslide Risk Zone (Riv. Co. 800 Scale Seismic Maps or On-site Inspection) NA S PS U R (Fig. Vl.6) 6-..~ Rockfall Hazard (On-site Inspection) 17. '.~..~ 7. ~ Expansive Soils (U.S.D.A. Soil G,~-.~ 18. Conservation Service Soil Surveys) 19. I,,I s_J:L Ero~o, (U.S.=)-', so, co~rv,~en · 20. Service soi~ surveys) 21. ' Ord. 460, Sec. 14.2 & Ord. 484) 23. 10. ~ Dam Inundation Area (Fig. Vl.7) 5t;~a~-- ; 24. ~ R (Fig. Vl.8) . N~ A B C D (Fig, Vl.11) 14...~ Highway Noise (Fig. V1.17 - Vl.29) (~A B C D (Fig, VI.11) 15. Other Noise NA A B C D (fig, V1.11) Project Generated Noise Affecting Noise Sensitive I:Jses (Fig. VI.11) Noise Sensitive Project (Fig. VI.11) Air Quality Impacts From Project Project Sensitive to Air Quality Water Quality Impacts From Project F-"'/ Project Sensitive to Water Quality ppL~ Hazardous Materials and Wastes Hazardous Fire Area (Fig. Vl.30 - Vl.31) Other 28. ~ 27- RESOURCES Agricuitum (Fig. VI.34 - VI.35) In or Near an kgdcullumJ Preserve (Riv. Co. ADdcultural land Conversation Contract Maps) 28 ¥ · wiu~e (n;. w.~. w~?) 29- ~1 vegetation ~g. vc3~- v].40) · 30 ~l · Mineral'Resouroes (Fig. VI.41 - VL42) 31- '1,~: Energy Resources (nO. VI.43- VL44) .~<::~ : 32~..L Scenic Hig~wayl (Fig. V1.45) 33. ~ I Historic Resources (Fig. Vl.32 - VI.33) 34. I~ · Ar~.hea~ogical Resources 35._~_~ (Fig. VI.32 - VI.33 & Vl.46 - Vl.48) Paleontological Re__,,,~rces (Paleentological Resources 36, Other 37. Other Definitions for Land Use Suitability and Noise Acceptability Ratings NA - Not Applicable S - Generally suitable PS - Provisionally Suitable U - Generally Un~uitable R - Restricted A - Generally Acceptable B - Conditionally Acceptable C - Generally Unacceptable D - Land Use Discouraged LAND U~E DETERMINATION Gomplete this part unises the project is located in "Adopted Specific Plans", "REMAP" or "Rancho Villages Community Policy Areas." 1. OPEN SPACE AND CONSERVATION MAP DESIGNATION(s): 2. LAND USE PLANNING AREA: 3.' SUBAREA, IF ANY: 4. COMMUNITY POUCY AREA, IF ANY: 5. COMMUNITY PLAN, IF ANY: i ~ 6. COMMUNITY PLAN DESIGNATION(s), IF ANY: 7. SUMMARY OF POUCIES AFFECTING PROPOSAl.: Be Ce For all projects, inidcate with a yes (Y) or no (N) whether any public facilff~es and/or services issues may signif'~,.antly affect or be affected by the proposal. All referenced figures are contained in the Comprehensive General Plan. For any issue marked yes (Y), write data sources, agencies consulted, findings of fact, and mitigation measures under Section V. PUBLIC FACILITIES AND SERVICES Circulation (Fig. N.1-N.11. Discuss in Sec. V Existing, Ptarmed & Required Roads) Bike Trails (Fig. IV.12 - IV.13) water (Agency Sewer (AgenW letters) Fire SenSes (Fig. N.18 - IV.18)/~.~ Sheriff ~ (Fig N.I?- rv.18) Smoc~ (Fig. N.I? - n/.18) Sead Wame (Fig. N.~ 7 - N.~ 8) Parks and Recreation (Fig. iV.19 - IV:0) 10- ~"1 11. 12. 13 14. /~ Equestrian Trails (Fig. IV.19 - IV.24/ Riv. Co. 800 Scale EquestYmn Trail Maps) Util'~ies (Fig. N.25 - IV.26) Libraries (Fig. IV.17 - IV.18) HesJth Sewices (Fig. IVA7 - IV.18) Airports (Fig. IL18.2 - 11.18.4, C~,.x-,~ ~ IL18.8 - IL18.10 & IV.27 - IV.36) 17. Other !f all or part of,the I~roject is located in "Adopted Specific Plans", "REMAP" or "Rancho ~11ages Community Policy Areas", review in detail 'the specific policies applying to the proposal, and complete the following: 1. State the relevant land use designation(s): Based on thle initial study, is the propoeal consistent with the policies and designations of the appropriate document. and therefore consistent with the Comprehensive General Plan? If not, explain: LAND USE DETERMINATION (continued) If all or part of the project site is in "Areas not Designated es Open Space", and is not In s Community Plan, complete questions 1, 2, 3, 6 and 7. Complete questions 4, 5, 6 and 7 if it is in a Community Plan. 1. Land use c, ategory(les) necessary to support the proposed project. Also indicate Isnc[ use type (L~. resiclential, commercial, etc.) ~___.-,~'~~ Current land use category(les) for the site based on existing conditions. Also indicate land use type (i.e. residential, commercial, etc.) 3. If D.1 differs from D.2, will the difference be resolvecl at the development stage? Explain: 4. Community Plan designation(s): 5. !s the proposed project consistent with the policies and designations of the Community Plan? If not, explain: "T"~----~ e Is the proposal compatible with existing and proposed surrounding land uses? If hot, exp~n: y~--"~"~ 7. Based on ~is initial study, is the proposal consistent with the Comprel~-tsive General Plan? If not, reference by Section and Issue Number those issues identifying inconsistencies: y~ E. If all or part of the project site is in an Open Space and Conservation designation, complete the~lowing: 1. State the designation(s): 2. Is"the proposal c(~sistent'with the designation(s)? ff not, explain: 3. Based on this initial study, is the proposal consisent with the Comprehensive General Plan? If not, reference by Section and Issue Number those issues identifying inoonsistencies~ V. INFORMATION SOURCES, FINDINGS OF FACT AND MITIGATION MEASURES SECTION/ ISSUE NO. ADDrrlONAL INFORMATION REQUIRED BEFORE ENVIRONMENTAL ASSESSMENT CAN BE COMPLETED: DATE DATE ADEQUACY INFORMATION iNFORMATION INFORMATION OE~RMI~gION REQUIRED REQUESTED RECEIVED (YESa~J:)ATE) For e~ch i,~ue marked ,/es (Y) under Sections III. B and IViB, identily the Section and L~ue number ~nd do the following, in the format n ahown below: 1. List ~11 additional relevant da~ ~ources, including agencies consulted. 2. State ~11 findings of fact regarding environmenMI concerns. 3. $t~te specific mifigation measures, If identifiable without requiring an environmen~l impact reporl (E.I.R.) 4. If edditional inforrn~tion i~ required before the environmenial ~e,~ment ~ be completed, refer to Sub~"tion A. 5. If additional sheets are needed to complete this section, check the box at the end of the section and attach SECTION/ ISSUE NO. SOURCES, AGENCIES CONSULTED, FINDINGS OF FACT, MmGATION MEASURES: I V. INFORMATION SOURCES, FINDINGS OF FACT AND MITIGATION MEASURES (continued) SECTION/ ISSUE NO. SOURCES, AGENCIES CONSULTED, FINDINGS OF FACT, MITIGATION MEASURES: 0 ~ee al~._cha~ pa~s. VI. ENVIRONMENTAL IMPACT DETERMINATION: ~ ~""The project will not have a Ngnificant effect on the environment end a Negative Declaration may be prepared. I'1 The project c~uld have a significant effect on the environment; however, there will not be a significant effect in this case because the mitigation measures deecribed in Section V have been applied to the' project and a Negative Declaration may be prepared. (or) r'l The proj~t may have a signif~.,ant effect on the environment and an Environmental Impact Report ....,; t ,- 1. r'"' . / ¥- ~ by CITY OF TEMECULA AGENDA REPORT AB#: u TITLE: Policy Statement O£PT HD MTG: ~-~-~ Change of gone Application CITY ATTY DEPT f'21~,.,.'~\ CITY HGR RECOMMENDATION Adopt a policy of not accepting and acting on Zone Change Applications without associated development proposals. BACKGROUND: The City currently is accepting and taking action on a wide spectrum of applications. The appropriateness of Change of Zone Applications is particularly difficult to analyze without accompanying development applications, such as subdivisions or commercial centers. While not hiding on the property or the property owner, development applications enable the City to fully consider future impacts and infrastructure needs arising from land use policy decisions. It can be expected that passage of the City's new General Plan will be followed by logical rezoning compatible with the designations, goals and objectives of that new General Plan. It is the staff's suggestion that requiring development projects, in conjunction with Change of Zone Requests, presents a City with a mechanism to fairly consider zoning applications prior to General Plan adoption. This policy avoids each extreme of either prohibiting zone changes altogether until general Plan adoption, or considering too many rezoning requests without needed base data and analysis. CITY OF TEMECULA CITY MANAGER'S REPORT AB# TITLE: DEPT HD. MTG 5/1/90 D~t Advisory Committee CITY ATTY DEPT CM CITY MGR RECOMMENDED ACTION It is recommended that the City Council authorize the City Manager to retain the service of Fieldman, Rolapp and Associates to prepare a report on forming a Debt Advisory Committee for the City of Temecula. BACKGROUND Mayor Pro Tem Lindemans has requested a report on a City Debt Advisory Committee. I have checked with the League of California Cities and have found that cities do not have such committees. Normally the City Council acts on municipal finance matters after receiving input from city staff and financial consultants. I do not recommend forming such a committee at this time because the City does not have a permanent Finance Director or City Manager to advise the Council. If you do wish to study the matter, I recommend hiring Fieldman, Rolapp and Associates because they are currently the consultant to the Riverside County Debt Advisory Committee and they serve as consultants to many cities. FISCAL IMPACT Cost of the study will not exceed $2500. Funds are available ($133,353 as of 3/31/90) in "Consulting" budget. ATTACHMENTS Letter dated April 23, 1990 (McNamara) Proposal to Provide Finance Advisory Services to Temecula (Fieldman, Rolapp and Associates) Letter dated April 9, 1990 (County of Riverside) Policy for Use of Public Financing for Provision of Public Facilities in Proposed Development Projects ALTERNATE Appoint a five-member committee and let them recommend a mission statement for the committee. Fieldman, Rolapp & Associates INDFPENDENT FINANCIAL ADVISORS TO LOCAL GOVERNMFNT City Manager City of Temeeula 43172 Business Park Drive Temeeula, CA 92390 Re: Scope of Work for Debt Advisory Commission Report Dear Mr. Aleshire: W'fili&m L. Fieldman R. Michael McNamara Lawrence O. Rol~pp Principals Tasks HQurs 1. Research other jurisdictions 4 2. Meet with City Manager, staff & others as appropriate 4 3. Prepare draft report 4 4. Review draft with City Manager & finalize report 2 5. Presentation to City Council 2 2100 S.E. MAIN STREET Total 16 Hrs. SECOND FLOOR IRVINE, CA 92714 (714) 660-8500 FAX (714) 474-8773 What are some other jurisdictions which have formed a Debt Advisory Committee? What is the composition of those committees? (citizens, council members, staff or some combination.) What issues have other Debt Advisory Committees dealt with? Should the City establish a Debt Advisory Committee? What issues are recommended to be addressed by the committee.'? What should be the structure of the committee? Scope of Work as follows: This letter is to confirm our conversation regarding the draft Scope of Work for the preparation of a report to the City Council on a proposed Debt Advisory Committee. This should be considered an addendum to our proposal dated April 20, 1990. The product will be a report to the City Council on the establishment of a Debt Advisory Committee. The report will address the following issues: Mr. Frank Aleshire April 23, 1990 Page Two We estimate our fees to be between $2,000 and $2,500 based upon the scope of work outlined above. We propose to bill you on a time and expense basis for actual time and out-of-pocket costs for expenditures such as federal express, telephone, special exhibits, and the like. We estimate time of completion as 30 days from a signed authorization to proceed. Any change of scope would require the approval of the City Manager. If our proposal and the scope of work is acceptable, please let us know. We will be pleased to provide a letter contract for your approval. Sincerely, FIELDMAN, ROLAPP & ASSOCIATES Mike McNamara Principal MM~sr INDEPENDENT FINANCIAL ADVISORS TO LOCAL GOVERNMENT PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES TO THE CITY OF TEMECULA Prepared by FIELDMAN, ROLAPP & ASSOCIATES April 1990 Fieldman, Rolapp & Associates INDEPENDENT FINANCIAL ADVISORS TO LOCAL GOVERNMi:NT Willi~.m L. Fieldma~ R. Michael MoN~m,u'a Lawrenoe G. Rolapp Principals April 20, 1990 Mr. Frank Aleshire City Manager City of Temecula 43172 Business Park Drive Tcmccula, CA 92390 Dear Mr. Aleshire: Fieldman, Rolapp & Associates is pleased to have this opportunity to present our experience and qualifications to the City of Temecula. We have worked with numerous jurisdictions throughout California and with new cities to assist them in financial planning. We understand that your current needs for financial advisory services involve the creation of a finance committee or debt review committee. We have worked with several cities and several counties to develop policies and procedures for the issuance of debt. We currently provide financial advisory services to three jurisdictions which have debt review committees. We feel well qualified to assist you in this endeavor and we would like to present our qualifications to act as a financial advisor in other areas which you may need. Fieldman, Rolapp & Associates is an independent financial advisory firm serving only local governments since 1966. Independent means that we never participate in the underwriting of securities but, rather, offer the client an independent analysis of their needs and how to best fund those needs. We appreciate the opportunity to present our credentials. We look forward to working with you on your project. Sincerely, FIELDMAN, ROLAPP & ASSOCIATES Michael McNamara Principal 2100 S.E. MAIN STREET SECOND FLOOR IRVINE, CA 92714 (714) 660-8500 FAX (714) 474-8773 Fieldman, Rolapp, & Associates CITY OF TEMECULA Proposal of Financial Advisory Services TABLE OF CONTENTS Pa~e BRIEF HISTORY AND DESCRIPTION OF FIRM ......................................................................1 Services ..................................................................................................................................................1 Financial Planning ..........................................................................................................................1 Financial Advisor/Project Financing ....................................................................................2 Policy Development ........................................................................................................................3 Our Approach to Your Project .................................................................................................4 SUMMARY OF QUALIFICATIONS .....................................................................................................5 Staff Assigned To The Project .................................................................................................5 FEES ...................................................................................................................................................................8 CLIENT REFERENCES ..............................................................................................................................9 EXHIBIT A List of Financial Plans EXHIBIT B List of Financings I. BRIEF HISTORY AND DESCRIPTION OF FIRM Fieldman, Rolapp & Associates has been assisting local governments in meeting their financial goals since 1966. Our staff has experience in all methods of public finance used in California, including General Obligation Bonds, Special Assessment Bonds, Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Community Facilities District (Mello-Roos) and other forms of indebtedness. Our staff is also experienced in the analysis of our clients financial conditions and in determining the feasibility of infrastructure projects. Services Fieldman, Rolapp & Associates has built a reputation for providing the best financial advisory services available. Our services have become more comprehensive as the needs of our clients have expanded. The firm's services are primarily focused in four areas: financial plans, financing advice, policy development, and administration of debt. Financing Plans. Fieldman, Rolapp & Associates has completed numerous financial plans for client agencies. These plans address a wide number of topics but generally recommend to a client a course of action, selected from a number of alternatives, that best matches the client's goals to financial capabilities. Financing Advice. Fieldman, Rolapp & Associates has experience as a financial advisor in all the various methods of public finance. During a financing the first action is to determine project feasibility and how best to pay for it. If the issuance of debt is required, the next step is to determine which method of financing is most appropriate. Following these actions, we assist in structuring the financing, producing disclosure documents and obtaining ratings or bond insurance. We also assist in selecting the underwriter in the case of a negotiated financing or receive bids from qualified underwriters in the case of a competitive sale. In considering a client's alternatives, Fieldman, Rolapp & Associates utilizes computer modeling to evaluate the alternatives under different conditions and circumstances. Policy Development and Monitoring. Fieldman, Rolapp & Associates has assisted numerous clients with the development of policies related to the issuance of debt. Members of our staff work with client staff to determine criteria for evaluating proposed projects, the criteria or objectives projects should meet, and whether or not to issue debt. We assist several jurisdictions with debt committee reviews of actual issues. Administration of Debt. After the debt has been issued, Fieldman, Rolapp & Associates can assist the client in the administration of the debt. Written procedure manuals are produced to aid client staff in efficiently and correctly servicing the debt over the lifetime of the issue. Financial Plannine Fieldman, Rolapp & Associates provides financial advisory services to governmental entities desiring assistance in the development of financial policies and guidelines, the preparation of financial master plans, bond capacity studies, capital improvement plans, and other finance based needs. A brief description of some of our financial planning experience follows. A listing of our firms financial planning work may be found in Appendix "A". We assisted the new City of West Hollywood with the development of a capital improvement program, a long range financial plan and the issuance of debt. We have a continuing relationship with the City. We recently completed a study for the City of Fremont in the preparation of the Major Facilities Financing Plan for the construction of a police facility, a gymnasium/swimming pool complex, a cultural arts center and a new corporation yard. Our firm recently completed a financial master plan for the Leucadia County Water District for the financing of the Encina Water Pollution Control Facility and other capital improvements. Fieldman, Rolapp & Associates serves as financial advisor to the County of Riverside's Debt Advisory Committee. Our assignment is to assist the County in reviewing all of the County's financing requirements and priorities, identifying funding sources, analyzing its ability to repay long-term debt, and reviewing all applications for financing that come before the Committee. Fieldman, Rolapp & Associates has continued to act as the financial advisor to the City of Irvine on its infrastructure financing program. Currently valued at $225 million, this is an ongoing program to finance infrastructure for the City's industrial parks, residential infrastructure, and other uses. Fieldman, Rolapp & Associates prepared a comprehensive financing plan for the City of Chino's East Side Specific Plan. The City's plan received "Best Plan" designation by both the local and state chapters of the American Planning Association. Currently, our firm is assisting the County of Orange with the Foothill Corridor Phasing Plan (FCPP). The largest infrastructure projects undertaken by Orange County, the FCPP involves the formation of nine community facilities districts to fund major backbone and auxiliary roadway improvements. When combined with the other regional improvements that the County will finance in this program, it is estimated that up to $300,000,000 of financing may be required. Our participation in this project includes working with various developers in the spreading of infrastructure costs. Financial Advisor/Project Financing Fieldman, Rolapp & Associates has had extensive experience in various types of debt financing as listed below: St~ecial Tax Bonds (Mello-Roos) - Fieldman, Rolapp & Associates is California's most experienced financial advisory firm in Mello-Roos financings. Since 1985 the firm has been involved in 46 Mcllo-Roos financings totaling over $675 million. In 1989 alone, FRA acted as financial advisor on 16 Mello-Roos financings totaling over $217 million. To date FRA has been financial advisor on approximately 37 percent of all community facilities district bonds ever issued in California. Assessment Districts: 1911 and 1915 Act From 1980 to present our firm has completed 89 Assessment District financings totalling $872,734,461. Certificates of Particivation From 1980 to present our firm has completed 41 Certificates of Participation issues totalling $415,229,151. Tax Allocation Bonds Fieldman, Rolapp & Associates has been involved in numerous tax allocation bond issues. In the last month our firm has closed three tax allocation financings with the City of Rancho Cucamonga RDA, the City of Ridgecrest RDA, and the City of Coronado CDA: Rancho Cucamonga issued $107,000,000 through a negotiated sale. Ridgecrest issued $5,835,000 of tax allocation bonds to complete their civic center. Coronado issued $12,000,000 in Tax Allocation Bonds in order for the School District to build new facilities. The tax increment available to the school district was provided through a negotiated agreement between the two parties. Attached as Exhibit "B" is a listing of clients and project financings we have participated in since 1985. We believe this is a good representation of our experience and knowledge. Policy Develonment Fieldman, Rolapp & Associates has assisted numerous cities in the development of policies and procedures relating to the issuance of debt. A brief description of some of our policy planning experience follows: Fieldman, Rolapp & Associates has acted as financial advisor to the Riverside Debt Advisory Committee and assisted them in developing comprehensive policies for the financing of county infrastructure. 2. We have assisted the City of Oxnard in the development of comprehensive policies for the issuance of debt. We are currently working on a financing for the City. 3. Our firm is working with the County of Sonoma to develop policies and procedures for their newly established debt review committee. 4. Fieldman, Rolapp & Associates acts as financial advisor to the City of Santa Clarita and has completed comprehensive debt issuance policies now utilized to review debt. Fieldman, Rolapp & Associates has worked with the County of E1 Dorado and we are in the process of developing a set of comprehensive procedures. The County of El Dorado is in the process of establishing a debt review committee. 6. Fieldman, Rolapp & Associates is working with the City of Fontana and is in the final stages of adopting comprehensive financing procedures. Our Approach to Your Proiect We have listed below the types of services that we provide relating to debt financing. In the case of the City of Temecula, we view our role of being able to provide you with examples of policy guidelines utilized in other jurisdictions. Many of the issues surrounding debt depend upon the structure of the debt review committee. Will it be composed of staff, citizens, council members or some combination of the above? Depending upon the makeup of the committee, the initial activities will involve defining their role, authority and scope of activity. A certain amount of time will need to be devoted to reviewing the various types of financing issues and potential policy issues. We would assume that the council would review and approve their policies and procedures. With regard to the issuance of debt, some of the policy issues that you will need to review are: 1. Which course of action is in the best interest of the citizens of Temecula. 2. The responsibility, if any, of the City for monitoring the full compliance reporting requirements, etc. of various financing programs. 3. The liability of the City for various t~inancing options. 4. Impact of various financing techniques on the ultimate property owner. 5. The monitoring of delinquent payments and the foreclosure requirements for delinquent properties. 6. The administration of ongoing debt. 7. The analysis of pay-as-you-go vs. debt financing option. 8. The lien to value requirements on certain types of land based financing. SUMMARY OF QUALIFICATIONS Staff Assigned to the Project Mr. Michael McNamara will be the Partner and responsible for providing services to the City of Temecula. Mr. McNamara will be assisted by Mr. Thomas G. Johnsen, Project Manager, and Ms. Jennifer Twogood, both Assistant Vice Presidents with Fieldman, Rolapp & Associates. Also assisting in the Project will be Ms. Karyn Keese, a Senior Associate with Fieldman, Rolapp & Associates, and Mr. Thomas DeMars, Managing Director of FRA Services, Inc., a subsidiary of Fieldman, Rolapp & Associates. In the unlikely event of Mr. McNamara's absence, Mr. Thomas Johnsen will act as Project Manager for the Project. Mr. Michael McNamara, Chief Exccutive Officer and a principal of Fieldman, Rolapp & Associates, is an experienced municipal finance practitioner having spent over thirteen years in county and city government. He spent over seven years with the County of San Diego, five of which were as Assistant to the Chief Administrative Officer. He was Finance Director in the City of San Clemente. For four years, he was Finance Director and Treasurer for the City of Irvine, where he was responsible for their extensive infrastructure financing program. He was extensively involved in capital facilities planning, budgeting and financing. He was responsible for the issuance and servicing of over $200 million in various types of municipal debt such as multifamily mortgage revenue bonds, assessment bonds, lease revenue bonds, certificates of participation, Mello-Roos and tax allocation bonds. He worked for a "big eight" accounting firm responsible for their infrastructure financing program in Southern California. Mr. McNamara has assisted many municipalities plan and finance their capital projects. He has assisted clients finance projects with general obligation bonds, assessment district bonds, certificates of participation, Mello-Roos, and other tax exempt securities. He is the principal in charge of the City of West Hollywood C.I.P. Financial Master Plan and their General Obligation Bond effort. Other clients include the City of Ridgecrest and the City of San Diego, Eastern Municipal Water District and the Ramona Municipal Water District. Recently, Mr. McNamara acted as financial advisor to the Cities of Carlsbad and Vista, both of whom were participating in a Joint Powers Authority that was expanding a sewage plant. Mr. McNamara holds a Bachelor of Science degree from Eastern Michigan University and an M.B.A. from Pepperdine University. Ms. Jennifer Twoeood, Assistant Vice President for Fieldman, Rolapp & Associates (FRA), has over four years of experience with FRA in structuring all types of public financing, including Certificates of Participation, General Obligation Bonds, 1911 and 1915 Act Special Assessment Bonds, Community Facilities District Bonds, Tax Allocation Bonds, Refundings and other tax- exempt securities. She has participated in projects involving redevelopment agencies, joint powers authorities, tax increment financing, lease and installment sales, series issues and special assessment financing resulting in the issuance of Certificates of Participation, Tax Allocation, Mello-Roos Special Tax, General Obligation and Special Assessment Bonds for municipal and special district capital improvement programs. Currently Ms. Twogood is involved in the structuring of two major issues: (1) a Mello-Roos District which encompasses 10,000 acres and includes public infrastructure costs of $261,060,000 and (2) a Certificates of Participation issue to be sold in the aggregate amount of $200,000,000, for the purpose of constructing sewer improvements. Ms. Twogood has assisted several public agencies with policy-making decisions and in the development of Policy Guidelines for land- secured financings. Ms. Twogood has also been involved in the analysis, research and preparation of Financial Feasibility Studies and planning. She was involved in the project coordination of a financial study of major infrastructure (the Industrial Corridor) for the Agua Mansa Industrial Growth Association (AMIGA), a joint powers authority which consists of San Bernardino County, Riverside County, City of Rialto and City of Colton. She is the Project Manager for the Murrieta School District financing. Ms. Twogood holds a Bachelor of Arts degree from California State University, Fullerton, and is presently working on an MBA from Pepperdine University. Mr. Thomas G. Johnsen, Assistant Vice President with Fieldman, Rolapp & Associates, has extensive experience in public finance and community planning. He is involved with developing financial plans and financing for capital improvement projects. He provides knowledge in recommending financing alternatives and offers experience with special assessment, Mello-Roos, certificates of participation, and general obligation bond financings. Prior to joining Fieldman, Rolapp & Associates, Mr. Johnsen initiated the public finance group at a regional California-based securities firm; prior to that he was an investment banking associate in public finance at another securities firm. In those positions, Mr. Johnsen was responsible for planning and financing over $50 million in capital improvement projects in California. Mr. Johnsen has also been a government manager having responsibility for regional and community planning activities. In addition, as a graduate student, Mr. Johnson was a teaching assistant in various park and recreation planning courses. Since joining Fieldman, Rolapp & Associates, he has completed financings for the Camrosa Water District, the Ramona Municipal Water District, and the City of Ridgecrest. Recently, Mr. Johnsen has worked with the Costa Real Municipal Water District and the City of Fremont to complete financing plans. Mr. Johnsen assisted a San Diego area Joint Powers Authority that is issuing $40 million in bonds to finance improvements. He worked on the City of San Juan Capistrano's General Obligation. Mr. Johnsen holds a Bachelor of Science degree in Economics and a Master of Science in Regional Planning, both from Colorado State University. Ms. Karvn Keese, a Senior Associate, brings over fifteen years of expertise in finance and management in both the public and private sectors. She has extensive experience in contract and grants management systems, community/government relations, operating and capital budget systems, and water and wastewater cost of service/rate studies. Ms. Keese also has extensive experience with the management of several multi-million dollar grant programs with large regional wastewater facilities. For over five years she held the position of Treasurer/Finance Manager for the fourth largest regional sewer authority in California. She was responsible for all aspects of accounting, finance, personnel, and EDP functions including the development and management of a yearly operations budget of $13 million and a three year capital projects budget of $60 million. She applied for and managed over $100 million of EPA/State Clean Water Grants and developed and negotiated both capital and operations contracts with the military. As a staff member of the City of Monterey, Ms. Keese developed and implemented Monterey's entire financing plan for a regional sewage treatment plant. Ms. Keese' background includes representing public agencies at public hearings and meetings with local, state and federal officials. She has addressed local service clubs and national and state conferences on issues ranging from water conservation to creative financing techniques. Ms. Keese has been responsible for utility cost-of-service analyses, rate design and implementation, and preparation of testimony for public hearings to provide revenue requirements for public agencies. Karyn Keese has a Bachelor's degree in Business Management and Accounting from the University of Virginia. She was one of the founding members of the California Risk Management Authority (CSRMA), their Treasurer, and was responsible for marketing this insurance program to public agencies. Mr. Thomas DeMars is responsible for the continuing development of special district administration and management. He is the Managing Director of Fieldman, Rolapp and Associates' subsidiary, FRA Services, Inc. Mr. DeMars was responsible for development of the financing policies for the City of Oxnard. He has worked with numerous jurisdictions on the administration of their debt. Prior to his association with Fieldman, Rolapp & Associates he worked for a regional investment banking firm specializing in municipal finance. In that capacity, Mr. DeMars was a financial consultant on a wide variety of engagements with specialization in assessment district financing. He has conducted financings for numerous public agencies in California including the City of Walnut Creek, the City of Fresno, the County of Madera, Fresno Metropolitan Flood Control District, and numerous others. Mr. DeMars has developed a comprehensive knowledge of computer skills including data base management. He has also assisted in developing policies and guidelines for cities regarding the utilization of special district financing for development. Mr. DeMars holds a Bachelor of Science degree and an MBA from California State University. FEES For financial advisory services rendered in connection with the development of policies and procedures we would be paid on a time and expenses basis on our then current hourly rates based upon a scope of work to be mutually agreed upon. Our fees are shown on the schedule below. SCHEDULE OF FEES EFFECTIVE JULY 1~ 1989 Principals of the Firm Officers of the Firm Senior Associates Associates Administrative Assistants Secretarial Staff $135.00 $115.00 $95.00 $75.00 $45.00 $25.00 Per Hour Per Hour Per Hour Per Hour Per Hour Per Hour CLIENT REFERENCES Fieldman, Rolat>o & Associates Mr. Paul Brotzman City Manager City of West Hollywood 8611 Santa Monica Boulevard West Hollywood, California 90069 Telephone: (213) 854-7483 Mr. Wayne Watts Treasurer/Tax Collector County o£ Riverside 4080 Lemon Street 4th Floor Riverside, CA 92501 Telephone: (714) 275-3999 Mr. Rudy Muravez Finance Director City ot' Oxnard 300 West Third Street Oxnard, CA 93030 Telephone: (805) 984-4607 Mr. Homer Bludau City Manager Ms. Pain Willis Assistant City Manager 1825 Strand Way City Hall Coronado, CA 92118 (619) 522-7300 Mr. Ray Silver City Manager City o£ Upland 460 North Euclid Avenue Upland, CA 91786 EXHIBIT A List of Financial Plans RECENT FINANCIAL PLANS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ALAMEDA COUNTY WATER DISTRICT CITY OF WEST HOLLYWOOD CITY OF SAN JUAN CAPISTRANO CITY OF SOUTHGATE CITY OF CHINO CITY OF COSTA MESA RAMONA MUNICIPAL WATER DISTRICT CAPISTRANO BEACH SANITARY DISTRICT DEL MAR FAIR GROUNDS CITY OF LA VERNE VENTURA COUNTY LEUCADIA COUNTY WATER DISTRICT CITY OF RIDGECREST CITY OF RANCHO CUCAMONGA COSTA REAL WATER DISTRICT CITY OF FREMONT EXHIBIT B List of Financings with Fieldman, Rolapp & Associates as Financial Advisor ud J Z z LU z 0 0 0 C 0 <2, <:2 C~ 0 CD ~ ~ 0 --I 0 (U 0 4.1 C~ z z :z C) r- M 0 m ~ 0 '~o ,4" "~ -t ~ 0 0 0 0 'E 0 0 0 ~ 0 0 nJ ('~ nJ z z z z z C 0 ,m ~ 0 .J ~0 ~J L. 0 N ~ 0 ¢0 0 o o~ ,.? N '0 (:3 0 ~ E E ' p,,.,. ~ N m ~ i~ .43 z 0 0 ~' X e- OC o ~ o Z '~ -z Z m Z Z Z Z Z Z ~.) b 0 0 C 0 C C 0 ~o 0 0 m ~ County Administrative Office April 9, 1990 Gary N. Cottrell Chief Administrative Officer Mischelle Zimmerman Assistant CAO Frank Aleshire 27403 Ynez Road Temecula, California 92390 Dear Mr. Aleshire: Pursuant to your request are documents and an article describing the operations of the County of Riverside and St. Paul Minnesota - Debt Advisory Committee. If I can be of additional assistance please phone (714) 275-1113. Sincerely yours, CHRIS PAPESH Finance Director Enclosures Robert T. Andersen Administrative Center 4080 LEMON STREET ,, 12TH FLOOR · RIVERSIDE, CALIFORNIA 92501 · (714) 275-1100 · FAX (714) 275.1105 FROM: ADMINISTRATIVE OFFICE SUBMITTAL DATE: SUBJECT: Mortgage Revenue Bond Program BMITTAL TO THE BOARD OF SUPERV C~UNTY OF RIVERSIDE, STATE OF CALIFL~RNIA NovemberS, 1983 RECOMMENDED MOTION: 1. That the Inducement Resolution for Cook Street be approved. That County Counsel is directed to prepare inducement resolutions for the remaining projects, to be returned for approval on November 15, 1983. e That the Bond Team be directed to work with "ready" developers to complete bond financing prior to December 31st, where possible, and to work with the remaining developers to complete their projects when practicable. e That the Inducement Resolutions from Motions 1 and 2 above be referred to the Bond and Debt Advisory Committee for review and comment as appropriate. 5. That, as a matter of policy, the County Administrative Officer be appointed Chairman of the Bond and Debt Advisory Committee. That, as a matter of policy, Inducement Resolutions may be directed to the Board prior to review by the Bond and Debt Advisory Committee with respect to l} costs to County, 2) legal liability to the County, and'3) credit riskto the County prior to Board action on any induce- ment resolutions. JUSTIFICATION: see attached C.A.O. RECOMMENDATION: FINANCIAL IMPACT: Administrative Officer Signature MINUTES OF THE BOARD OF SUPERVISORS On motion of Supervisor Younglove, seconded by Supervisor Cenicer and duly carried by unanimous vote, IT WAS ORDERED that the above matter is approved as recommended and that Resolution No. 83-351 is adopted. Ayes: Noes: None Absent: None Date: November 8, 1983 xc: A.O., Co. Counsel, Aud. Prey. Agn. ref. WITH THE CLI~i(, OF THE eOA,RO Abraham, Dunlap, Larson, Younglove and Ceniceros Gerald A. Maloney Clerk of the Board By: Deputy Depts. Comment~ Dist. AGENDA NO kl.6 Form ll Subject: Page 2 Mortgage Revenue Bond Program JUSTI FI CATI ON: By Board action on October 4, 1983, the Bond Team was directed to prepare a proposal for a Multi-Family Rental Revenue Program. Proceeding under this direction, meetings have been held, resulting in expressions of interest in fourteen projects totaling approximately $55,000,000. Normal progress on this program has been interrupted by news from Congress that continuation may be jeopardized by proposed amendments to the Industrial Development Bond Program which is the legislation that provides for bond financing for multi-family rental units. An "educated guess" by our consultants is that multi-family rental bonds have a 90/10 chance of continuing in some form, and a 50/50 chance of continuing in substantially the same form allowed under current law. During this same period of time, the County received a request for a Resolution of Intent for the Cook Street Project in Palm Desert. This request was referred to the Bond and Debt Advisory Committee for review and comment. Deferring th~ matter of review for the moment, this project faces the same potential difficulties due to legislative change as the others. Because of the potential legislative difficulty, and because the Board did exhibit strong interest in increasing the supply of multi-family housing through this program, we propose a course of action that gives those projects that are ready the opportunity to complete their financing prior to January l, 1984. A meeting with the developers, consultants and County staff was held Monday afternoon, November 7th, to assess the status of legislation and the readiness of the program. In this meeting, we discussed the possibility of phasing the County program, allowing "ready" developers to proceed ahead of the others. This approach was viewed by all as a practical and fair way to meet the needs of the community. At the same time, the general feeling among the developers was that all should receive inducement resolutions as soon as possible to give fair treatment to all and to enable all to achieve the full benefits of the program if continued, which allows financing of costs incurred'after adoption of the inducement resolutions. The Bond and Debt Advisory Committee held its first meeting Friday, November 4th, to review and comment on the Cook Street Project. This was a very productive meeting, particularly from an organizational standpoint. The scope of the committee review was discussed. It was generally agreed that the financial integrity of the issue and the potential County involvement and risk are the major concerns of this committee. Considerable discussion revolved around the timing of the Committee review. While the financial component would prefer up-front review prior to an inducement resolution, this office feels that it is more practical to review a program that has reached the proposal stage. In addition, projects that involve significant costs prior to finalization of the proposal, such as major marketing and feasibility studies, may be substantially hampered if these costs are not eligible for funding. While recommending discretion as to the timing of referral to the committee, we share in Form ll Subject: Page 3 Morgage Revenue Bond Program the concern that approval of an inducement resolution imp)ies approval of the project, even though the resolution obligates the County in no way to proceed. While no formal report is yet available on the Cook Street Project, the general concensus is that there is some measure of risk in any issue carrying the County name. The decision to be made is whether that risk is out-weighed by the public benefit to be derived from the program. While it is felt that the determination of public benefit should not be a mission of the committee, criteria such as the number of families benefitted were discussed. It appears that the multi-family program, as a whole, is of substantial benefit, while one project alone may be more difficult to justify. For this reason, it is recommended that all of the projects obtain inducement resolutions. As a practical matter, the Cook Street resolution may be approved today, with the others referred to Counsel for drafting of the necessary paperwork. All of the projects will require final approval of the Board. The formal recommen- dation of the Bond and Debt Advisory Committee may be presented at that time, or sooner if the Board so desires. Members of the Bond Team and staff are available for questions. COUNTY OF RIVERSIDE FUNCTIONS AND RESPONSIBILITIES OF THE DEBT ADVISORY COMMITTEE The Debt Advisory Committee (DAC) shall review all issues of long term debt in which the County of Riverside is a party. Examples of types of debt are: 1. Industrial Development Bonds (IDB) 2. Mortgage Revenue Bonds (MRB) 3. Community Facilities Districts (CFD) The DAC will review and advise the Board of Supervisors regarding but not necessarily limited to the following: 1. Legal liability of the County, if any. 2. Impact on ability of the County to borrow short term or long term (rating impact). 3. Financial stability of the parties involved. 4. Impact on time and effort required by county staff, i.e., County Counsel, Administrative Officer, Treasurer, etc. 5. Adequacy of coverage and payment procedures in case of default, i.e., guarantees, insurance, etc. 6. Provision for accurate and timely redemption procedures, i.e., trustee, sinking funds, notification in case of early calls, registry of bond, etc. 7. Responsibility, if any, of the county for monitoring the full compliance reporting requirements, etc. of the various programs. COUNTY OF RIVERSIDE FUNCTIONS AND RESPONSIBILITIES OF THE DEBT ADVISORY COMMITTEE Review for financial stability of parties involved. Following are guidelines to be followed when reviewing financial statements of involved parties: Make sure that financial statements of all companies and individuals involved are made available for review. It is important that the financial statements be audited by an independent certified public accountant. Read "Notes to Financial Statements." They contain important information that is helpful in review of financial statements. 4. Analyze balance sheet: Compute "net working capital" (excess of current assets over current liabilities). be Compute "working capital ratio" of current assets to current liabilities ("rule of thumb" should be 2 to 1). Note type of current assets and try to determine liquidity by computing turnover of inventories, accounts receivable, etc. Note type of current liabilities, i.e., bank loans, accounts payable, loans from officers or owners, etc. Determine carrying value of fixed assets, i.e., at cost or fair market value. It could be very important to determine fair market value. Analyze long term liabilities for future commitments and compnay's ability to meet them. g. Note any pledging of either current or fixed assets. h. Review equity of owners (who, how much, stability, etc.) 5. Analysis of income statement: a. What's the "bottom line?" b. Note types of income and expenses. Co Account for variations in ihcome and expenses from year to year or from some other period of time. 5. (cont'd.) d. When applicable, may use certain ratios, i.e., turnover of inventories, .turnover of accounts receivable, etc. 6. Review other financial statements and/or supporting statistical data as made available and as appropriate. April 30, 1985 TREASURER AND TAX COLLECTOR COUNTY ADMINISTRATIVE C~ 4080 LEMON STREET. RIVERSIDE, CALIFORNIA 92501-~40 .MA!UNG ADDRESS: P.O. BOX 946, RIVERSIDE, CALIFORNIA 92502-0946 TFI I:*I~HONE: (714) 787-~8,21 R. WAYNE WA'ri's TREASURER.TAX COLLECTO~ To: Building Services Department of Development Flood Control and Water Conservation District Road Department Treasurer-Tax Collector From: Linda Thomason, Chairman of the Debt Advisory Committee The Board of Supervisors, at its meeting on April 23rd, expressed its desire that all future financings (i.e. capital facility, )ease-back, joint-power, Mello-Roos Benefit Assessment, single/multi-family mortgage revenue, industrial development, 1911/1915 Act Special Assessment District, and the County's short-term finance issues) be reviewed by the County's Debt Advisory Committee. The composition of the Debt Advisory Committee is the County Administrative Office, Auditor-Controller, County Counsel, County Flood Control, and Treasurer-Tax Collector. The purpose of the Committee is to serve in an advisory role to the members of the Board by reviewing various financings prior to their intended sale; to evaluate the County's overall financial and credit-rating risks in assessing the probability of bond default; and to determine whether reasonable measures exist in minimizing Investor risks. In making its analysis and recon~endations to the Board, the Committee will review where applicable: (a) The description, purpose and objectives of the financing; Type and structure of the financing; (b) Principal parties involved in the financing; (c) How the bond proceeds will be utilized, expended, and controlled; (d) The underlying sources of income (cash receipts) that will provide the means to repay the bonds; (e) The adequacy and probability that this income or revenue stream will be realized over the life of the issue; (f) The proposed debt retirement schedule; (g) The adequacy of capitalized interest, debt reserve funds set-aside from the note proceeds; (h) County Covenants required in the transaction; (i) Adequacy of credit enhancement {foreclosure proceedings, special deposits, bond reserve funds, insurance) used to lessen bondholder risks; Debt Advisory Committe April 30, 1985 P6 2 (j) Whether or not the finance issue is being rated by Moody's and/or Standard & Poor's Corporation. (k) Whether or not adequate credit enhancements exist to lessen the risk of default during the construction (build-out) period. (1) Who will provide administrative oversight once the bonds have been sold or delivered; (m) Who will be responsible for servicing the bonds, initiating foreclosure proceedings once the bonds have been issued; (n) The extent to which overlapping debt exists; (o) Whether or not the property proposed for improvement carries an adequate lien/value ratio; a qualified written appraisal exists on the property; (p) What financial protection exists to assure that the bonded improvements will be constructed as specified; (q) Whether unpaid tax liens, assessments, etc. presently exist against the property. In conducting these proceedings, the Committee will not address ~he merits of any financing objective or any political, social or cultural issues which may be involved. Nor is it the intent of the Committee to initiate, become involved in, or to serve in any capacity other than in its advisory role to the Board. This memorandum is therefore, intended to inform you of the Debt Advisory Committee's limited role and to request your cooperation and assistance in enabling the Committee to carry-out its function. To this end, please complete the attached survey form and return it to the County Administrative Office, attention Dave McElroy, prior to May 8, 1985. Your cooperation is appreciated in completing the survey. LT/rj ~--~~..~.,~ I~.~TE R - O E PA RTM E NTAI. LETTER COUNTY OF RIVERSIDE To: From: Re: Proposed Bond Issue Debt Advisory Committee, County Administrative Office Type of Financing: Please complete this survey form for each proposed Bond Issue Proposed Date of Sale: Date of Bond Issuance: Bond Maturity Date: Proposed Bond Amount: Type of Sale (Public/Negotiated Sale): Ratings (Moody's/Standard & Poor's/Fitch's): Insured By: Property Appraisal Conducted By: Feasibility Study Conducted By: Principal Parties Involved in Transaction: (a) Underwriter: (b) Financial Consultant: (c) Bond Counsel: (d) Engineer of Works: (e) Paying Agent/Registrar/Transfer Agent: (f) Letter of Credit/Bank Credit Facility: (g) Bank Trustee: Purpose of Financing: Time period necessary for Construction of Improvements (if applicable): Intergovernmental Cooperation Produces a Comprehensive Debt Management Program in Saint Paul, Minnesota As overlapping debt issued by various governmental entities in the-Saint Paul area began to stress the tax base, a coordinated debt management program was adopted by the'ci~ the county, the port authority and the independent school district. The city's financial managers describe the cooperative strategy for meeting the area's capital needs. During the late 1960s and early 1970s, general obligation debt was being issued by the City of Saint Paul, Minne- sota, (population 264,782) and its various overlapping governmental units at an extremely rapid pace. As a result, by year end 1976 the total outstanding overlap- ping general obligation (GO) debt was S286,$22,000, or $983.46 per capita. This situation placed Saint Paul among the cities having the highest per capita debt in the nation. As the debt grew, the rating agencies looked more closely at Saint Paul and eventually the city's bond rating dropped from AAA to AA. These activities were not going un- noticed by city staff or the elected officials. The elected officials, aware of the neces- sity to maintain and upgrade the infra- structure, were deeply concerned that the financing means to do so be addressed. In March 1975, the city council passed a resolution which pledged communictaion with other political subdivisions within the city so that mutual capital financing needs could be discussed, priorities established, and the citizens advised of the combined taxing impact of such political sub- divisions. Early in 1976, the Budget Office circulated a work program for a city bond consultant and a request for a proposal for a comprehensive study of its debt and bonding policies. By Gary Norstrem, The newly elected mayor, George Latimer, upon taking office in June 1976, requested three actions of city council: · Approval of the $6.0 million in 1976 capital improvement bonds, instead of the previously approved $6.$ million; approval of $1.0 million instead of the requested $1.3 million in Housing Rehabilitation Program Bonds; and approval of $660,000 in water revenue bonds. · Approval of tile funds necessary to formulate a GO debt policy for the city tax base. · Approval of a unified capital improve- ment program and budget process for the City of Saint Paul. it was at this time also that the Minne- sota Taxpayers Association released a report analyzing Saint Paul's overlapping GO debt, stating that it was excessive and had a stranglehold on the city. Joint Debt Advisory Committee The concerns for the total amount of general obligation debt pledged against the Saint Paul property tax basetboth directly and indirectly--prompted the mayor and council to pursue a debt policy which would continue to maintain and develop the city's infrastructure while, at the same Greg Blees and Eugene Schiller time, reducing the general obligation tax burden. The council provided funding for a consultant to study all bonding activities contemplated by all governmental sub- divisions that issue bonds against the Saint Paul property tax base. And upon the recommendation of the mayor, officials of the major governmental units relying on the city tax base agreed to meet to address bonding needs and the overlapping debt situation. On April 15, 1977, a Joint Debt Advis- ory Committee was formed consisting of the: · mayor, council president and two council members of Saint Paul; · school board chair, vice chair and clerk of Independent School District 1625; · board president and two commissioners of the Port Authority of Saint Paul; and · board chairman and two commissioners of the County of Ramsey. A technical advisory staff was appointed to assist the Joint Debt Advisory Committee. Led by Saint Paul's budget director, it included staff from each of the participating governmental entities along with their fiscal consultants. It was mutually agreed at the first meet- ing that elected officials, staff and the citi- zens all needed a better understanding of GO debt. The first meeting also resulted in decisions to review ioint-use policies, to ArRn. 1959 * GOVERNMEN? F~N,~C~. Rzv~tw 17 <i*"~ ~'4:':~-.4~ :~?J~~. SAINT PAUl.* OVER~P~NG GO DEBT ~~:~..C~ PORT AUTHORI~, SCHOOL, COUN~ ': $' ;"~T"~':~"" ,' ~::' O ~ .240 - · ~.'~o ::~, '.. ~_, .4 ~'.:~.: 210 - ;.~., -,-., .,~..... attempt to determine annual bonding priorities and to identify opportunities for joint planning, joint funding and joint legislation. in the months that followed, the fiscal consultants, the advisory committee tech- nicians and the committee studied the above issues and developed an estimate of general needs for GO bonding during the 10 years ending 198.5. Bonding priorities were identified by each entity and there was discussion relating to priorities within entities, but at no point during the development of the first plan was it neces- sary to recommend any reductions from what was presented as needs. All were accommodated. Reducing Overlapping Debt The following goals for reducing GO debt by 198.$ were adopted by Saint Paul city council in January 1978: · the reduction of Saint Paul's general obligation debt per capita for all local government units from $983 to $900 or less per person and · the reduction of Saint Paul's general obligation debt as a percentage of market value for all local government units from 8.5 percent to 6 percent or less. The above goals had been formally endorsed by the Joint Debt Advisory Committee in December. As there was some reluctance by other governing bodies to formally adopt these goals, similar reso- lutions were not brought before them. During the following 10 years, Saint Paul's city treasurer and budget director closely monitored general obligation per capita debt and debt as ape. rcentage of market value. Progress on the adopted goals was tracked and reported to the citi- zens, elected officials and rating agencies annually, in conjunction with the city's sale of general obligation debt, but the goals were not updated. By 1985, results were more pleasing than had been expected. Overlapping general obligation debt outstanding had declined from $286,522,000 in 1976 to $223,908,000 in 1985, as shown in Exhibit 1, and the per capita debt, at $836.07, was substantially lower than the $900 target figure. General obligation debt as a percentage of market value, expected to drop from 9.4 percent to 6 percent during the 10 years, had actually dropped to 3.5 percent by year end 1985. A good share of this decline was brought about by substantial reductions in school district debt. Sparked by this success and the need for new long-term overlapping debt goals, the mayor in May 1986 invited the same governing bodies to reconvene and develop a new GO bonding policy for financing the communities' capital needs under the 18 AfltlL 1989 · GOVERNMENT FINANCE REvitw direction of Saint Paul's new director of finance and management services. Of special concern at this time was the significant reduction in federal grants available for financing capital improvements and economic development. The mayor also invited the chairs of the local delegations of the state legislative delegation, who are responsible for gaining approval of the respective capital improve- ment bonding authorization at the state legislature. This is an alternative to referendum in Minnesota. The reconvened Joint Debt Advisory Committee consisted of fewer members from each local govern- ment entity than did the original committee. A New Debt Reduction Plan Preliminary discussions of the committee determined that a 10-year plan, such as the original, entailed too long a time frame for realistic assumptions and proiections. A five-year plan, updated annually, was viewed as more realistic due to the variety of rapidly changing federal, state and local funding mechanisms and mandated changes that drastically impact local government financing programs. The committee first developed and set forth a mission statement and specific goals and objectives (see Exhibit 2), which were considered necessary to successfully imple- ment an effective five-year debt strategy. Each government unit was then requested to develop a plan for its individual capital needs for the next five years. This was difficult for the county, which traditionally had issued very few general obligation bonds but now faced substantial needs for facilities for expanded county services and road repair as well as a decision whether to remodel or build a new county administrative building which also housed the court system. Staff representatives from the various units of government worked together in the development of these plans and, with considerable effort, molded all the component plans into a master plan for the committee's review. The committee, evaluating the data on existing and projected general obligation bonding, grouped the general obligation bond issues into the following major categories for each unit of government: · property tax financed debt; · general obligation debt financed with dedicated revenue sources; and · tax increment financed general obliga- tion debt. To develop and update on an .annual basis · five-year general debt polioy for the Saint Paul tax: base which recognizes range capital program needs of. the City o! Saint Paul, School District ~$25, Saint Paul Authority, Ramsey Coumy govern*' ment; · To establish reasonable ~Yo~ level.: targets which recognize · Inflation and planned capital needs . for each Unit of · To seek · capital prelects with revenues ' other than · To seek opportunlUea to finance debt service for . bonds with revenues other · To structure debt retirement t¢ relate more closely to those who · To produce a debt policy which will. help maintain and Im rove .. p credit ratings.;- ~. '~' · To coordinate the ~:hedulthg programs Ior leglslallve approval. refinancing, resUucturtng Odgina#y adopted: September 3, Reviewed and revised: Januap/ . ~: :v "~ ~' .;. ' ~ ¢ ~.. ,,.~' I his classification highlighted the important distinction between general obligation bond issues, which are financed by citywide propcity taxes, and those ~-~.es that have revenue sources other than tywide tax levy. (he committee also reviewed an inven- tory of capital projects to be considered for financing during the five years of the plan. Projects were sorted by the following broad categories: new facilities, facility expansion, facility replacement, facility rehabilitation, consolidation/joint use, energy retrofitting, handicap accessibility, streets/sewers and private development inducement. During this data-gathering process, committee members met with representa- tives of the two major rating agencies~ Standard &: Poor's and Moody's Investors Service~in an attempt to improve bond ratings. 'The feedback from both agencies was that they were impressed with the joint cooperation and communication exhibited by the City of Saint Paul, the County of Ram~y, the Port Authority and the Saint Paul School District. The fiscal consultant prepared a new debt study, and presented it to the committee. This 1986 report, Debt Compar~on of the City of Saint Paul with Comparable Cities, compared credit data used by Moody's Investors Service in the ranking of Saint Paul and 20 similar cities and documented the change from 1977 to 1986 in a number of key debt measures and ratios. The report found Saint Paul ranking far below the 20-city average in total overlapping GO debt in 1986, whereas in 1977 it was more than 50 percent above the average. The report stated, "The city's most marked improve- meat is a 40.5 percent reduction of over- lapping debt compared to an average 40.0 percent increase for the 20 cities analyzed." This positive achievement was Exhibit 3 1986 JOINT DEBT ADVISORY COMMIl'rEE REPRESENTING THE SAINT PAUL TAX BASE RECOMMENDATIONS January 20, 1987 · 1. The elected officials representing lhe citizens o! Saint Paul adopt as their malor debl goal: By 1992, the maximum amount of overlap- ping general obligation debt for the Saint Paul tax base should not exceed 3.5 percent of Ihe estimated market value of taxable propetites. -.' In order to meet the 1992 debt goal, Ihe lollowing largets for general obligation debt as a percent ot estimated market value should be strived for by each unit of govern- men!: Clly of Saint Paul Pod Authorily Independent School District Ramsey County 2.5% o! city lax base 0.1% of city tax base 0.25% of city tax base .0% of county tax base The Ramsey County legislative delegation should supped the loftowing requests for general obligalion bonding authority: City of Saint Paul: CIB and Urban Renewal Bonding: 1988 $12,100.000 5. 1989 $12,900,000 1990 $13,700,000 1991 $14,500,000 1992 $15,400,000 Saint Paul School District: Construction and Remodeling Bonding: 1987 $15,000,000 to $17,000,000 Ramsey County:. General Puq)ose Bonding 1987 $8,500,000 1988 S8,500,000 1989 $8,500,000 1990 $8,500,000 1991 $8,500,000 1992 $6,500,000 Cityhall and Coudhouse Infrastructure Repair Bonding: 1987 $20,000,000 Building Space Needs: 1988 $30,000,000' Port Authority:. No GO Bonding Authority Is Being Requesled *Preliminary figure used by the Joint Debt Advisory Committee prior to actual deter- mination of need by Ramsey County Board of Commissionms. The Joint Debt Advtsory Committee should reconvene each November to review and update the five-year stralegy for controlling overlapping general obligation debt for the Saint Paul tax base. Beginning In February of 1988 an annual Status Report Of Overlapping General Obligation Debt should be prepared by the mayor's office In order to measure progress towards the Joint Debt Advisory Commlttee's 1992 goal. The status report should be distributed to the Saint Paul City Council, the Pod Authorlb/, the Ramsey County Board of Commissioners, the Saint Paul School Board and the Ramsey County legislative dalega- llon. APRIL 19~9 · GOVERNMENT FINANCE REVIEW 19 St. Paul's innovative debt management viewed as testimony to the fact that a commitment by elected officials to a joint debt/general obligation planned bonding policy can produce desirable results. It should be noted that this report found that the GO direct and overlapping debt ratio as a percent of full market value averaged 3.3 percent for the 20 cities ana- lyzed, and was 4.1 percent for Saint Paul. This finding became the basis for the major goal statement of the Joint Debt Advisory Committee recommendations. After reviewing existing debt schedules as well as the consultant's report and rating considerations with representatives from the rating agencies, the committee examined the projected bonding proposals identified by each unit of government. These proposals were considered against the trend of reduced federal financing for local improvements and tax base develop- meat, and against the projected impact on property tax levies for Saint Paul taxpayers. From this multifaceted review, the Joint Debt Advisory Committee's findings and recommendations were set forth on January 1987. The recommenda- tions are displayed in Exhibit 3. The Findings and Recommendations were packaged with a substantial amount of relevant infi)rmation and documeuta- tion and finwarded by Mayor Latimer to tile legislative body of each unit of government with a request that they be formally endorsed. Within 60 days, formal resolutions were adopted by all units: the City of Saiut Paul, Ramsey County, the Port Authority of Saint Paul and independ- ent School District t625. These resolu- tions are meaningful in Minnesota because capital improvement bonding authority is granted by the legislature. It has been helpful for the state policy makers to have assurance that officials of all the govern- mental entities were working together in the best interest of Saint Paul citizens. Exhibit 1, which shows the GO debt reduction progress made between 1975 and 1987, also illustrates the projected targets for each year through 1993. StarErs Report Tile process works well today and is. helpful to all units of government. The "Five-year Debt Management Strategy," as this program now is referred to, was updated in late 1987 with projections for 1989 through 1993. At that time there was a slight change in the wording of the mission statement, but no change in the goals or objectives. Saint Paul's debt rating has been upgraded by Standard & Poor's from AA to AA + and this joint debt management program was highlighted in S &: P's Creditweek magazine on February 22, 1988, as shown in Exhibit 4. The process of cooperatively developing and monitoring a debt management strategy has led to reinforcing a positive working climate and intergovernmental perspective among elected officials and staff. This, in turn, has led to successful joint ventures on other issues. For example, an agreement was reached between the city and the county on financing a $48 million rehabilitation of the 60-year-old joint city hall and court- house building. As part of this action, the county will manage the building and assume all of the debt in exchange for the city granting clear title to five other build- ings to the county. Another outcome was a joint lobbying effort during the 1988 legislative session resulting in new special capital improvement tax levy authority for Ramsey County which may be used to support either general obligation debt or pay-as-you-go financing for capital projects. The Minnesota legislature was impressed by these joint efforts and made the capital improvement legislation applicable to all counties in Minnesota. Most recently, the city and the county have begun discussions on consolidation of their health department services. A limited number of copies of the latest "Five-year Debt Management Strategy" are available and may be obtained by writing to the Department of Finance and Management Services Treasury Division, Room 219 City Hall, Saint Paul, MN 55102.[3 GREGORY BI ££$ has been the budget director/or the City of Saint Paul since GFOA and has been ,~itb the city/or 22 )x. ars. EUGENE SCHILLER bas been tbe director o/finance and o,anal~ernent sen,ices of the City of Saint Paul since 1986. He is a ntember n/GFOA and International City Management Ass~iation and has held a variety state and m.nicipal management positions on the East coast during the previo.s 16 ¥ean. G^RY treasurer o/the City o/~int Paul and a member of the GFOA Execu.~ ~, has been w.b the city /or 29 20 APKIL 1989 · GOVERNMENT FINAN~ REVIEW C~11TY 011 IIVIISIH NIT ~DVI~IIT CDIMITTEE FINAliCING FACT SNEIT A. HKII/Tlal I~ TYPE 01 ISILI (fl. GO, CI:I), ID& IINI,! FilLY): AGrAKATE PRINCIPAL N(]UlIT:S TYPf OF SALE (CIRCLE 0111): N~tlmt~d S~te ESTIIMTIO ISSIJI DATE: ESTINATEO PRICING DATE: FtRAI. NATUIITY 0ATE: Date of PrMmrettan: __/._/_-- ~/__./~ PIO,IECTED RATING OF TN! SECIJIITIES: MaxIy'l C ) Stmdlrd & Poor's Firm C ) I. IDENTIFY TNI PROJECT(S) TO I~ FIRANCIO (111CU~ING Lor, ATION)8 C. 11dOEIITIIrY PAIIT!CIPATING DMLQPEES: D. PRIKIPAL PAllTIES TO TNE TRAMSACT10N (IrI~N/,dlIfSBITATIW/U%ATIONIPICNG): Io~d C~m~eL: Trultee Or FIKIL Aeli~ end/or legti%rlr/TremfM'/Pey~ne Aelntz Unde¥.t tar: F fnlfictii Aavt lot: Pr~ty Al~l)rl t I~?: C.dit i~h~Im~t P~ovii~/fom of credit m~.,-ac ~t: INITlATIN CQIITY DIPMTIIIIT & .4/4~IJT OF PRQCI#ING Ills IEClIVEI): I. 4~111111TIMTIII CIIJlTY DEPAMTNIIIT & SOJICI OF NNIINISTRATIVl FIJIdOS: G. AMTIClPATB ~TIUCTIJI~ M DEBT: DEBT CChict if AppLIGIbie): VmriNole Rmtm Inter#c Fixed Rate Inter:it MITISATION M PRINCIPAL/DEBT SEIVI~ STIKICTUIE: LeYet De~t Service eyes)enD) Seriat BoncIs Term 8oncIs Capital AK~orec i at i off Other EscaLating Debt Service (yes)(no) OL~remai~ DeOt Service (yes)(no) Average Anr~L Oat SexYice S ..... H. ~MIITALIZ~ COSTS: (# clays) Clplllir ! led Interest C~ttng~nci# Other CapttlLized Accountl I. CREDIT ENNANCF./~E#T: TYPE OF CREDIT ENNA#CEI4ElIT (check one) Direct Ore~d LOC Stlndl~ M~icipai land !r~urJ~e l~tlJnt $ec~i t I es CoL LitegeL lKkup LOt GT OF CREDIT ENNANCE/4ENT: PROVIDER: Principal Interfit (ll cllys) AClltniltrlttve Colts Insurines Pglmt~ Other TERN OF IllEDIT ENNANCtJ4ENT: InitilL Terri of LOC C# yesrl) RmL Pgovilin REQUIREHENTS Ul~ CONVEISIQN: Litter of Cgedt t Redui red? land Riling RlClUiged? yN no yes no If yes, ~hlt riling? NInimuJ cienaJirJt iord of Securities? n/s J. SOUliCeS OF IEPAYI41llT (excLusive of credit CapitaLized Interest Prcqperty Taxes Spaniel TuN IOl/pvt party Other (specify ) Oescrit=e any revenue coverage K. ATTACHMENTS= 1. Attach Escim&cec~ Sources L Uses SCaCwnc 2. AtCac~ Escimacec~ OeOc Service ScheduLe for Fixed Race ?re,sections [F HORE SPACE IS NEEDED TO CLARIFY AN AHSUER PLEASE ATTACH A SEPARATE PAPER ~!I~CIN I~CT SNIIT CTo Im mJiltted te D~C berate herd o~ le~4&utt~n ff 18~ce) A. DESC~iPTIC]I M TYPE 04~ ISSUE (ie. S~ClAL Alsllllifr, SffCIAL TAX lalOl): AGGREGATE P~ZHCIPAL AN~LMT:S TYPE Mr SALE CClICLE Oil): #fiDtilted ~4te ISTINATID ISSUE DATE: ESTZNATIO PEICIilG OATIt FINAL NATUIITY DATE: PEO~ECTEO IATIIIG Mr T!~ SECLIITZEE: Noody' ~ ( ) FitCh C ) I. MTZCZPATIO STSCTUll Of OEIT: DtIT (Check if VerleMe Rate inter~t Fixed lite lnter~t Prfv~t® PL~'a~mt $tlndlrd i Pcer'l ( ) IMJ-ltltld ( ) MOlITIZATICI Mr PlIllCIPALJOiIY SEIWICl STRUCTIJll I Zst yr of Lev~& D4M Servtce Terl kmdl Capita& Jl~igrec i at ial Othe~ C. F..AP!TALiZ~D COLTS: EICeLKInl W le'v~ce DelrMitnl Od)t SM'vice Cyei)(no) AverpEe Mr&it Debt Service l CX iemJe) (# d.ryl) Ciilitiitzed lnt~rmt Other C~itlliild Acca~tl O. ClBIT TYPE Of C~101T EIIHNICINIHT (chid cne) Imnd~ LOC NLMi¢IpSL Send IMurm AHOUHT OF ClEDIT ENHANCelENT: Interest (# days) ~cluinistroti~e Costs Other Dete of let GAC levi Oltl of ~ DAC levi Lette~- &f Cfedtt le4~i red? y~ no land Ilittne IlecNirsd? yel no n/e If yes, khlt rltJne? -- #inlu of SecurJ c J e~? E. SIXICES OF IIEPAYIqIliT (exciuelYe of credit Inhlmesmtl): C~IM tit ! zed interest Tu I r~rsmen~ ProMir7 Tues Genere~ Fuld Other (wKtfY F. OTHER ) Oeecrlbe~nV revenue coversge alEOIT CONSIOEEATICHIS ViLue to Lien/Loch RltJo __:1 ForecLosure Cowmnt G. ATTACRNLqlT$1 for Fl~edlete Trimactions 3. Provfde At~raJlaL ~cIAbecq)tlon Study to Ken Ecl~ercll &. Provide Oeve(aMr FlnancJiL StirMintS to Tony liLtarms ZF ~ SPAC~ IS NEEDEl) TO CLARIFY AN ANSWJ PLEASE ATTACH A SEPAJ~TE PAP~ A. DISCI!~ICm OF TYJq O~ ISSW (Io. SiqClAL ASlISI~!IT, SPECIAL TAX MUDS): l. IDENTIFY THE PUSL!C FACILITIES TO M F!JUmC~O: Dote of Pre~nffott~n: ¢. [0LrNTIFY G FACILITIES TO U PINAIIC~ V!LL M IMIITAINEOI (#ece/Locotlon) Term Grm Act# SingLe F~ty (# mite) Camm~iot (#j. ft./ecru) Inddtr~oi (sq. ft./ecrec) (ecru) , , Othff (ecrus) Cyu)(rd) (y~)(fiO) 4. ~ ~ my IM'arioiom in ~e tu for Jnftotionil"y Cy~)(no) $. #o~ hie ecluity erin I~reservecI in the sloecOot tax formula anti metheel of iI~orttenmfit? LId'd SMmred*ZJ'd 0AC levdev/P~ 2 G. OV~III.API) I lie 1. A~ 8um~ ~ t~ tM'~ ire 18~ (y~)(~) ~i~ vtLi ie the c~m the ~ ore ii~ 3. ~ot to the hi.fit for ~LM ~r~ S N. PRINCEPAL P~TIES TO T~ Tm~l~ ?rustle or FItelL Agent IrllL/or I~titrlr/Tr~fer/Peyi~ Mrv~J tit: Finingill Advisor: Proper~y Apefelon: (:ridit tr~hencilMt Provider/form of creelit If~--.'Y nt: I. IMITIATIMG CI:X,MTT DEPAI!'r'N~MT & A/40UIT OF PtQC~SSIM4 FEEl I~IrcEIVIO: J, ~NIMISTbTIMG ~ Of P~ & ~ OF ~IMI~TI~ ~l; IC. ATTACNI4E#TS: 1. Attach SpicIlL TIx lite & Nethad of AM)ortfalll~r Z, Provide ~Oviftllq)tnl Tix" AMIylti SPACE IS MIIDIO TO CLJUIIIry AS ASMJI PLEASf ATTACJl A iF. PAlATE PAPER POLICY FOR USE OF PUBLIC FINANCING FOR pROVISION OF PUBLIC FACILITIES IN PROPOSED DEVELOPM£NT PROJECTS 1. The County encourages the development of commercial or industrial property. The Board of Sup~rvis_o~s will consider the use of community facilities districts ~ (hereinafter CFDs ) or special benefit assessments districts (hereinafter f~'- N%%% ~clopmcnt represents a significant public benefit, this type o vv ~ ~ ~ "~e~ of public financing will also be considered. -,'~ "' need and must benefit properties within the proposed development project, vuu ~ . .-" benefit implies that a significant benefit will also result to the community at large. ~ ~/ An example of significant public benefit is a public facility having regional /" imoact such as an all-weather bridge, a freeway overpass, a regional water or w~stew~ter treatment plant, etc. Significant public benefit can also take the form of affordable housing through reduced housing costs, etc. Public financing will be permitted for real property public improvements that will benefit the ultimate property owner and whose useful life will be e~ual to or greater than the term of the bonds. Except for maintenance and operation of facilities being financed, the use of CFD's or Assessment Districts for funding of services shall not be permitted. The proposed development project must be consistent with the County's Comprehensive General Plan and have secured appropriate land use approvals from the County to allow for the implementation of the ultimate development of the argo. Facilities which are, upon completion, owned, operated or maintained by public agencies shall be considered public facilities. Limited exceptions will be made for certain facilities to be owned, operated or maintained by private utilities. An appraisal of the property subject to any lien required to secure any public financing sh~11 be required. A minimum property value to lien/debt ratio of 4:1 (~fter installation of the public facilities being financed and including any overlapping ~s~ssment or community facilities districts) must be present pursuant to Premise 3 entitled "Bulk Land Value" as set forth in Attachment A as determined by ~n ~A.L appraisal. Exceptions may be granted for commercial, industrial and mixed use development projects. The appraisal shall be reviewed by the County and shall be prepared as set forth in Attachment A, hereto. Unless waived by the Debt Advisory Committee, an absorption study of the proposed development project shall be required for land secured financings. The absorption study shall be used as a basis for verification that sufficient revenues can be produced and to determine if the financing of the public facilities is appropriate given the timing of development. Additionally, the projected absorption rates will be provided to the appraiser for use in the appraisal recluired in Section 4 above. :" With regard to CFDs, the proposed rate and method of apportionment of the special tax shal)comply with the following criteria: The rate; a._nd..met.~h_o~._ of apportionment shall not provide for an annually incteas, n[ maximum special tax for any classification.'~ However, under limited circumstances an increase in the maximum special tax will be permitted, not to exceed two percent (2%) annually. The total projected annual special tax revenues, less estimated annual administrative expenses, must exceed the projected annual gross debt service on the bonds by ten percent (10%). In structuring the special tax, projected annual interest earnings at current passbook savings rates on bond reserve funds may also be included as revenue for the purpose of this calculation. Reserve fund interest earnings credit in excess of the foregoing will only be permitted if an investment agreement, satisfactory to the County, is secured at the time any bonds are sold and delivered. Co The projected annual special tax revenues shall include reasonable annual administrative expenses and other direct costs to the CFD. All property not otherwise statutorily exempted or owned (or to be owned) by a public entity shall bear its appropriate share of the special tax liability. The special tax shall be and apportioned on the basis of benefit to all categories and classes of property within the CFD. f. A formula to prepay the special tax may be permitted. he The projected ad valorem property tax and other direct and overlapping debt for the proposed development project (including estimated CSA charges, projected benefit assessments, levies for authorized but unissued debt and any other anticipated municipal charges which may be included on a property owner's annual tax bill), including the proposed maximum special tax, should not exceed two percent (2%) of the anticipated assessed value of each improved parcel upon completion of the private improvements. A backup special tax to protect against changes in densities resulting in insufficient annual special tax revenues to pay annual debt service and administrative expenses shall be required. 2 10. Each bond issue shall be structured to adequately protect bondowners and to not negatively impact the bonding capacity or credit rating of the County through some combination of credit enhancement, foreclosure covenant, special reserve fund or deposits and/or a contractual commitments by the proponents and successors to pay the special taxes or assessments during at least the first four years of the bonds. Specifically: A credit enhancement may be required. If the required credit enhancement takes the form of a letter of credit, credit enhancement shall be provided as set forth in Attachment B, hereto. b. A foreclosure covenant may be required. The County will require that capitalized interest on the initial series of bonds be funded from the proceeds of the bonds. Capitalized interest shall not exceed eighteen (lg) months, or a shorter period if further restricted by statute. Interest earnings may, at the County's discretion be applied to extend the initial term of capitalized interest but in no event beyond the term statutorily authorized. The inclusion of capitalized interest in subsequent series of bonds will be at the County's discretion and will only be permitted if a direct benefit inures to the ultimate property owner. de A reserve fund equal to the lesser of ten percent (10%) of the original principal amount of the bonds, maximum annual debt service or one hundred twenty five percent (125%) of average annual debt service (the 'Reserve Requirement") shall be funded from the proceeds of each series of bonds. The County shall require bond issues to be structured with approximately level debt service. To the extent that bonds are issued in series, individual series of bonds may have uneven debt service if the intent is to create level debt service at such time as all series of bonds are issued and to minimize the potential of a fluctuating annual special tax or assessment. Deviations from the foregoing policy will only be permitted under limited circumstances. If a single series of bonds is contemplated, the term of the bonds shall not exceed twenty five (25) years unless extended to more closely relate average annual debt service to the Reserve Requirement. If multiple series of bonds are contemplated, the term of each series will be appropriately determined to meet the County's objectives. With respect to CFDs and other land secured financing districts, full disclosure of the special tax or assessment lien shall be in compliance with applicable statutory authority. The County, in its sole judgement, may require additional property owner notification if it deems such disclosure will assist subsequent property owners to be made aware of the lien obligation. 11. 12.' 13. 14. 15. 16. 17. 18. 19. 20. The County's Debt Advisory Committee will perform an independent review of the proposed public financing and may make recommendations to the Board of Supervisors regarding the financial risk, impact on County's bonding capacity, economic feasibility and related issues. The proponents shall be required to provide current and two prior years financial statements, preferably audited, and other materials to assist the Committee in its fiscal review. The County shall select the bond counsel, underwriter, financial advisor and other professionals and consultants it deems appropriate in accordance with County policy. No petition to initiate the formation of a land secured financing will be considered valid without the payment of a fee to compensate the County for all costs incurred to perform its analysis of the proposal and to pay for the costs of conducting the proceedings. An application to form a land secured financing must be completed in full before any action will be taken by the County to process a land secured financing. All appropriate County departments will cooperate with the initiating department, the Administrative Office and the Debt Advisory Committee in conducting the necessary reviews and proceedings. All statements and materials related to the sale of special tax bonds (CFD) and improvement bonds (Assessment District) shall emphasize and state that neither the faith, credit nor the taxing power of the County of Riverside is pledged to the repayment of the bonds, nor is there an obligation of the County to replenish the reserve fund from revenue sources other than special taxes, annual assessments or proceeds from foreclosure proceedings. All contracts for public improvements to be owned, operated, or maintained by the County (including the Flood Control District) shall be solicited, let and administered as set forth in Attachment C, hereto. However, the CFD may only finance the purchase of facilities whose construction has been completed, as determined by the legislative body, before the resolution of formation to establish the CFD is adopted. The Debt Advisory Committee may, at its sole discretion, employ a financial consultant to assist the Committee in its fiscal review and all costs for consulting services will be born by the proponent. The proponents will covenant that bond proceeds will be used and dispersed at times and in the manner as specified in the resolutions forming the financing districts and other such agreements entered into with the County. For outstanding bond issues, all County departments and agencies with administrative responsibilities, will notify the Debt Advisory Committee and file a written report of the circumstances if an event of technical default has occurred or is likely to occur. All proposed refunding or refinancing issues will be submitted to the Debt Advisory Committee for review with complete disclosure of the benefits and costs of the proposed refinancing. A preliminary and final official statement or disclosure statement shall be filed with the Chairman of the Debt Advisory Committee. 21. Policy on Joint Financing Districts The County and its related Districts will not enter into a Joint Financing Agreement with regard to a community facilities district or a Utility Agreement (pursuant to Section 10110 of the Streets & Highways Code) with regard to a non-County initiated special assessment district unless the following minimum requirements are satisfied by the proposed financing: 2. 3. 4. 5. 6. Section 6a of the County's Policy. Section 6b of the County's Policy. Section 6g of the County's Policy. Section 7d of the County's Policy. Section 10 of the County's Policy. Bond proceeds may not be used to pay for County fees. An administrative review will be made by the County's Administrative Office of all non-County initiated community facilities districts or special assessment districts subject to minimum requirements. Only those requests not satisfying the minimum requirements would be brought before the Debt Advisory Committee. If the 1. County and its related Districts are to: own, operate, or maintain a majority of the facilities to be financed, or be the single largest recipients of the facilities to be financed, or own, operate, or maintain facilities having a combined construction costs of $10,000,000 (including design, engineering, construction contingencies and related costs of the construction project). with regard to a non-County initiated community facilities district or a special assessment district, then the County will require that all of the County's Policies deemed appropriate shall be adhered to before entering into a Joint Financing Agreement or a Utility Agreement. All such requests shall be brought before the Debt Advisory Committee and will be reviewed in a similar manner as arc County initiated community facilities districts and special assessment districts. The Debt Advisory Committee's forms shall be used. 22. The County's Department of Economic and Community Development works with interested agencies to develop CFDs and manage the issuance of bonds using the CFD financing mechanism. The County Road Department, Flood Control District and Treasurer-Tax Collector manage the assessment district process (depending on the type of County facilities) including formation, bond issuance and administration of bond issues. For CFD bonds, the County Administrative Office has the responsibility for administering the bond issue including authorizing and controlling all disbursements of bond proceeds. 23. The Debt Advisory Committee has the right to waive or modify any of the policies included herein if, in the Committee's judgment, benefit inures to the ultimate property owners, the CFD or Assessment District or to the County. ATTACHMENT A (A) (B) (c) CRITERIA FOR APPRAISALS Definition of Appraisal. An appraisal is a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. Standards of Appraisal. The format and level of documentation for an appraisal depend on the complexity of the appraisal problem. A detailed appraisal shall be prepared for complex appraisal problems. A detailed appraisal shall reflect nationally recognized appraisal standards, including, to the extent appropriate, the Uniform Appraisal Standards for Federal Land Acquisition. An appraisal must contain sufficient documentation, including valuation data and the appraiser's analysis of the data, to support his or her opinion of value. At a minimum, the appraisal shall contain the following items: (i) The purpose and/or the function of the appraisal, a definition of the estate being appraised, and a statement of the assumptions and limiting conditions affecting the appraisal. (2) An adequate description of the physical characteristics of the property being appraised, location, zoning, present use, an analysis of highest and best use. (3) All relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices. If a discounted cash flow analysis is used, it should be supported with at least one other valuation method such as a market approach using sales that are at the same stage of land development. If more than one approach is utilized, there shall be an analysis and reconciliation of approaches to value ~hat are sufficient to support the appraiser's opinion of value. (4) A description of comparable sales, including a description of all relevant physical, legal and economic factors such as parties to the transaction, source and method of financing, and verification by a party involved in the transaction. (5) A statement of the value of the real property. (6) The effective date of valuation, date of appraisal, signature and certification of the appraiser. Conflict of Interest. No appraiser or review appraiser shall have any interest direct or indirect in the real property being appraised for the Agency that would in any way conflict with the preparation or review of the appraisal. Compensation for making an appraisal shall not be based on the amount of the valuation. (D) Special Assessment or Community Facilities District Appraisal Premises. The valuation of proposed special assessment districts should be based on three premises: (l) Raw Land Value. (Premise #1). The total land within the project is valued "as is" (a) (b) (c) (d) With any existing infrastructure. Without proPOsed infrastructure being financed. With existing parcel configuration. Considering planned densities allowed by the specific plan of the project. This is a typical type of land valuation. (2) Project Buildout Value. (Premise #2). The total land within the project is valued under projected conditions. (a) (b) (c) With proposed infrastructure being financed completed. At the planned densities allowed by the specific plan. Land development is at the stage of being marketed builders or tentative tract maps ready to be filed. to merchant This is a projected value based on project plans predicated on market conditions continuing as projected. (3) Bulk Land Value. (Premise #3). The total land within the project is valued under projected conditions: (a) (b) (c) With proposed infrastructure being financed completed. With existing parcel configuration. Considering planned densities allowed by the specific plan project. of the This premise should consider a discounted or "quick sale" valuation considering time, costs and the possibility of a per unit value based on the total size of the project. A-2 ATTACHMENT B POLICY ON CREDIT ENHANCEMENT With regard to the formation of either a Community Facilities District pursuant to the Mello-Roos Community Facilities Act of 1982, as amend, or a Special Assessment District pursuant to the Municipal Improvement Act of 1913, as amended, if a person or persons owning property within the proposed boundaries of a District will be responsible for payment of 33% or more of the total annual special tax or special assessment to be levied, then said property owner or owners will be required to provide a Letter of Credit naming the County as beneficiary. The Letter of Credit is to have a term of one year, to be subject to annual renewals and to be in an amount equivalent to the gross debt service on the bonds silocable to the person's property for the current fiscal year and the succeeding fiscal year. The amount of the Letter of Credit will be proportionately reduced as the property owner sells portions of his or her property and will terminate when his or her property holding has an annual special tax or special assessment liability below 33%. New property owners responsible for 33% of more of the total annual special tax or special assessment will be required to provide a substitute Letter of Credit under the same terms and conditions as described herein. When a letter of credit is required, the Letter of Credit must be provided on or before the date of the delivery of the bonds and an irrevocable credit commitment, commitment letter or in-lieu Letter of Credit guarantee will not be accepted irrespective of whether capitalized interest is funded from bond proceeds. ATTACHMENT C · ,; j SL1BJE('T: Con~:tr%~cT£o~ Con~_.-ac~.~ for Corecur. it]' ¥~ci!i:ie~ .-,_,:,.-' Thau =he ~oard aaop: Uh~ following policy ~rou~h ~1!o-Roo$ Di~=ric:~, bu~ owne~ =n~ by =he Counuy of ~=w~rsiOe. With regard ~e %he cons:ruc:ion of public ~33i! e: seq. of nhe Gove.--nmen% Code) =he f~llo~ing po!i:ie~ are %0 be applle~: The approprla:e CounTy depar~m. en: will be specified the construe%ion of each of :he fac£11=ie~ =o The fac£1i%ies =o b~ owne~ an~ ma£n=alned by =h~ pu~$uan~ %0 $ec%ion 53~2S.5~=) of ~he Ac:, i~ ~ill no% se--'~e :he pu~!i: in:ere~= :o allow of ~he faci!i:£em af:cr %he pu~!£ca:ion of (Con=Inue~ on .Second Paqe) -' ~ · · J k'=e.s: ~brah~ ~nnia~., Canlcero~, ~o'~glove ~l~ Larson / RY'~," :/~C'.~..' ' ~' ' "'"' '/.'. Dts~. AGi'Ji;& con~rucl:on o£ ¢ou~y-o~ne~ puDlfc ~¢£I£~es ~£c~ ~re :o be fin~nce~ ~rougl: bon~ sales under C-2 CI'I'Y OF TEMECULA AGENDA REPORT AB#: I5 TITLE: DEPT HD MTG: j.e.~o Interim Parks and Recreation CITY ATTY DEPT: -P~,-~ Master Plan CITY MGR RECOMMENDATION: That the city Council approve and adopt the interim Park and Recreation Plan for the City of Temecula as attached in Exhibit "A". BACKGROUND: State law found within the Subdivision Map Act, Government Code 66477, provides that jurisdictions with adopted park and recreation plans, may require as a condition of approval for residential projects involving the subdivision of land or airspace involving five or more parcels, the dedication of land, the payment of fees in lieu of dedication, or a combination of both, for park and recreation purposes. This is commonly known as the "Quimby Act". The city does not at this time have an adopted park and recreation plan. Therefore, in order to require dedications for park and recreation purposes, of fees in lieu of dedication, or a combination of both, the City must adopt a park and recreation plan. The attached plan is the CSA 143 Master Plan for Parks and Recreation modified to serve only as an interim plan for the City until such time as a more comprehensive Master Plan can be developed by the City. With this in place, the City will have the ability to implement a Quimby dedication ordinance. FISCAL IMPACT: Adoption of the interim Park and Recreation Master Plan will, in itself, have no fiscal impact. ALTERNATIVES: Not adopt an interim plan and wait until a comprehensive plan is developed as a free standing project or as a portion of the City's General Plan process. ATTACHMENTS: Interim Master Plan, Exhibit "A". RESOLUTION NO. 90- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, APPROVING AND ADOPTING THE INTERIM MASTER PLAN FOR PARKS AND RECREATION FOR THE CITY OF TEMECULA AS A~rACHED IN EXHIBIT "A". WHEREAS, the City of Temecula is a municipal corporation with the authority to provide park and recreation services within the City of Temecula; and WHEREAS, the City Council of the City of Temecula is desirous of providing a quality program of parks and recreation within the City as a benefit to the health and general well being of the City's residents; and, WHEREAS, Riverside County Service Area 143, which provided park and recreation services to the residents of the City prior to its incorporation, had prepared a comprehensive Master Plan for Parks and Recreation services, which included what is now the City of Temecula, and that plan had been approved by the Riverside County Board of Supervisors; now, therefore, BE IT RESOLVED, that the Riverside County Service Area 143 Master Plan for Parks and Recreation shall be adopted as the City's Interim Master Plan of Parks and Recreation, with appropriate changes within the text of the plan to identify it as such, the addition of supplemental standards to augment those within the County Service Area 143 Master Plan; and appropriate changes within the text to delete areas not within the City of Temecula. APPROVED AND ADOPTED this 8th day of May, 1990. Ronald J. Parks, Mayor ATTEST: June S. Greek, Deputy City Clerk [SEAL] 4\re~osk53 05104190 CITY OF TEMECULA AGENDA REPORT AB#: MTG: s/8/9o DEPT: DIS TITLE: CTTY H~LL PURCHASE, LF~SE, ~ TEN~NT TMPROVEHENTS CITY T CITY MGR RECOMMENDATIONS That the City Council: - Accept the purchase offer of WestMar Commercial Brokerage, acting on behalf of Windsor Projects, for the two buildings located in Windsor Park I. - Authorize the City Manager to direct the City Attorney's Real Property Staff or contract services to negotiate the final purchase offer. - Approve tenant improvements in an amount not to exceed $85,000 to be immediately constructed by Windsor Construction company in the new building located behind the existing City Hall building. BACKGROUND: On April 3, 1990 the City Council approved a City Hall lease concept and Staff's recommendation of Transition Plan II. Staff was instructed to present a lease versus purchase analysis when the lease was returned for final approval. On April 17, 1990, the final lease was returned for Council's approval and an analysis of leasing versus purchasing a City Hall was presented. At the end of Staff's presentation, the City Council directed Staff to disseminate a Request For Proposal soliciting offers for the purchase of a city Hall. Staff was further directed to analyze the offers received, compare them to the original lease offer, and present Staff's findings to the City Council within 30 days. On April 25, 1990 a Request For Proposal was approved and signed by the City Manager, faxed to seven commercial brokerage firms in Temecula, distributed to each Councilmember, and faxed to the local Press to serve as a Press release. The Request For Proposal solicited offers to be delivered to City Hall no later than 4:00 P.M., May 1, 1990. Three offers were received in response to the Request For Proposal. Also during the period from April 18-25, 1990, Staff was tasked to coordinate the extension of the lease on the existing City Hall. This action was taken in anticipation that the one of the selections for a new City Hall could not yield occupancy until after the current City Hall lease expired. Finally during the period from April 18-25, 1990, Staff was also tasked to solicit an offer from Windsor Construction Company to construct the tenant improvements in the rear of the existing City Hall to make room for approximately 32 additional employees. Staff was also tasked to find a way to recoup the costs of the tenant improvements that would be forfeited upon the expiration of the lease. DISCUSSION: Before the City Hall purchase offers are presented, information concerning the tenant improvements and the lease extension need to be addressed first, since they are significant factors which must be taken into consideration prior to evaluating a City Hall selection. Over the next two-three months, approximately 37 additional personnel will begin work at City Hall, five in the front half of the building and 32 in the back half of the building. The front half of City Hall has been converted into office spaces; however, the back half is essentially still industrial space (4,465 square feet). Prior to the 32 additional personnel slated to occupy the back half of City Hall, tenant improvements must be completed at a total cost of $82,855, which equates to $18.55 a square foot. The big ticket items are the two rest rooms, heating, and air conditioning that must be built to support the personnel increases. The enclosed letter and map (Attachments A and B, respectively) are provided for your review. The 32 additional personnel that are scheduled to occupy the back half of City Hall include (8) - Building and Safety, (15) - Willdan & Associates, (3) - Chief of Police and Staff, and (6) - Community Services Department personnel. Our landlord, Windsor Projects, has their own construction company, Windsor Construction Company. The-company performed the very minor tenant improvements recently completed in the back half of city Hall. They did a superb job at a reasonable price with very short notice. The attached list of work to be performed is also considered reasonable and could be completed by July 1, 1990. Since the improvements are being provided by our landlord, there is no requirement to bid the project. If you recall in the Background Section of this report, Staff was tasked to find a way to recoup the costs associated with the tenant improvements that would be forfeited upon the expiration of the lease. WestMar Commercial Brokerage, acting on behalf of Windsor Projects, has agreed, that in the event that the City must extend the current City Hall lease and knowing that we must also build the tenant improvements, to permit the City of Temecula to take additional space in Building A, an office bui14ing, for the same period as the lease extension (See Attachment C). The space consists of 3,252 square feet of office space. The City of Temecula would be required to pay no lease payments for this additional space, only $715.44 in NNN charges per month. Additionally, the City would agree to perform the tenant improvements on that space versus the rear of the current City Hall with a cost to be no less than $48,000. The City would also not be responsible to remove the tenant improvements upon expiration of the lease. The arrangement, initiated by Staff, essentially will offset the tenant improvement costs by $15,609 and the City will receive the use of an additional 3,252 square feet of office space free of lease payments for four months. Enclosed at Attachment D is the original lease agreement that was before the City Council on April 17, 1990. It is included in this report for final consideration and statistical comparison to the purchase offers also included in this report. At Attachment C is a lease extension offer from WestMar Commercial Brokerage, acting on behalf of Windsor Projects, for the existing City Hall. They will gladly extend the lease for a period of four months until December 31, 1990. The lease payments ($3,314.80 per month) are exactly the same as we currently pay with the addition of five percent for inflation. Total lease payments for the four month extension is $13,259.20. The availability of the new building(s) selected by the City Council will determine if the lease proposal will be necessary and the location to construct the tenant improvements to ensure City Hall continuity of operations during the transition. PURe.ABE A~TEP~NATIVES: Enclosed at Attachment E is the purchase analysis compared to the lease reviewed by the City Council on April 17, 1990. At Attachments F, G, and H are the three proposals received from WestMar Commercial Brokerage, Wine Country Real Estate, and INCO Commercial Brokerage, respectively. Finally, at Attachment I is a copy of the Request For Proposal that was distributed on April 25, 1990. Staff's goal was to solicit properties within the City of Temecula to be evaluated on a even statistical basis. Therefore, Attachment E was prepared using equal tenant improvement costs and NNN charges. The tenant improvement costs were tabulated using $15.00 a square foot multiplied by the net square footage of the not improved area of the building(s). NNN charges were estimated at $.055 a square foot of the total net square footage of the building(s). All three submitting firms agreed to this standardization to ensure apples were compared to apples not oranges. All three proposals are industrial buildings which would not limit City Hall operations due to zoning of M-SC. They are all located on Business Park Drive. RIO N~DO V: With $65.00 per square foot costs, this is the most expensive property of the three. The project consists of one building with a first floor 29,887 square feet and a second mezzanine floor of 11,856 square feet for a total of 41,743 square feet. The second floor mezzanine level can be expanded to provide an additional 18,031 square feet. Tenant improvements in this building will cost more than the other two offers, in that, there is no second floor access for the handicapped, i.e., an elevator. It does have the advantage of having a City Hall all under one roof; however, the building ownership will be on a proportionate pro-rata basis with an existing owner already located in the same building. Parking is considered adequate during business hours and satisfies the Request For Proposal. Parking in the evening hours appears to be adequate in the near term. At complete occupancy, problems may arise due to over 100,430 square feet of industrial space on one parcel supported by only 229 parking spaces. Rio Nedo V is not recommended as the desired alternative. The building is available now, which would save the City additional lease payments ($13,259) and the tenant improvements ($82,855) that are needed in the near term. Staff thanks Pia Oliver of INCO Commercial Brokerage for her offer, patience with Staff, and her time devoted to this subject. Annual costs to the City would be $360,250, which is $81,275 more than the lease proposal, $11,131 more than Business Park Center, and $145,710 more than the Windsor Park I project. BUSINESS PARK CENTER: With$61.74 per square foot costs, this is the second most expensive property of the three. The project consists of three buildings all on one level for a total of 42,035 square feet. Wine Country Real Estate is recommending that Building "K" (16,989 square feet) be used for minor build-out and the remainder for an indoor parking garage for 56-67 vehicles. Your staff cannot support the recommended use of this building as a parking garage. First of all, our Planning Department cannot support an industrial facility with four walls to be used as a parking garage. Environmental concerns, e.g., exhaust and fuel fumes in a building that is neither designed nor built as a parking garage cannot and would not allow this usage. This building is recommended as a parking garage because the project cannot satisfy the parking requirements for a City Hall and the Request For Proposal. The Request For Proposal clearly established that a minimum of 3.5 dedicated parking spaces per 1,000 net square footage of building(s) during business hours is required. Dedicated parking spaces were defined as the "number of off-street spaces that will be for exclusive use of the City." The use of Building "K" should be a option of the new owner not the agent. Without using Building "K" as a parking garage, the complex can only support a parking ratio of 2.3 parking spaces per 1,000 square feet. This is considered totally inadequate and will not meet the needs of the City. No one can predict when we would need Building "K" for additional office space or other uses. If we did need the space for other purposes other than a parking garage, the parking allocation would not and could not support City employee and City Hall customer parking during business hours and would be totally inadequate for council meetings during the evening hours. The $50,000 offered as a leasing offset has been subtracted from the proposed purchase price to ensure equal comparison of projects. The buildings are not under construction at this time and the proposal states that all three buildings will be completed by October 15, 1990, to include all tenant improvements if the city decides to use the services of the owner for interior build-out. First of all, I seriously doubt and numerous other people and professional planners also doubt that three buildings totalling 42,035 square feet with over $630,000 worth of tenant improvements can be constructed by October 15, 1990, when construction has yet to take place. Notwithstanding, if it can be done, the City would require additional time beyond October 15, 1990 to install systems furniture, a telephone system, and a computer network. Since the buildings are not available prior to our current lease expiration, the City will incur over $96,114 in additional lease payments and tenant improvements that must be constructed before the proposed buildings are available. Business Park Center is not recommended as the desired alternative; and, considering only the parking issue, it is not even an alternative. Staff thanks Bill Bopf of Wine Country Real Estate for his offer, patience with Staff, his time devoted to this subject, and his recommendation to purchase a City Hall versus the lease. Annual costs to the City would be $349,119, which is $70,144 more than the lease proposal, $11,131 less than Rio Nedo V, and $134,579 more than the Windsor Park I project. WINDSOR PARK I: With $59.77 per square foot costs, this is the least expensive property of the three. The project consists of two buildings all on one level for a total of 27,028 square feet. The one building is currently our City Hall and the other is located directly behind our City Hall. These are the same two buildings that were presented for lease at the April 3 and April 17, 1990 Council meetings. Tenant improvements in this building will be less than the other two properties due to the buildings having approximately 15,000 square feet of less space than the other offerings; but also, 3,100 square feet of the buildings have already been improved. Parking is considered adequate during business hours and satisfies the Request For Proposal. Parking in the evening hours is also considered adequate providing a 7.1 parking spaces per 1,000 net square feet. The property configuration would also allow the City to install a fenced gated storage area on the premises which would create additional parking or storage facilities. Since the alleys within the project are not specifically designated as fire lanes, according to our Sergeant of Sheriffs, parking is permitted in the alleys as along as rights of way are not blocked. The Request For Proposal required that any proposals offered that were less than 40,000 square feet contain a first right of refusal for the adjacent properties, 44,615 square feet, located on the parcel. This offer satisfied that requirement with a 30 day first right of refusal to lease additional space. The agent for the project indicated that the owner would be willing to allow the first right of refusal to be a lease with an option to purchase the adjacent properties. The two buildings are available for immediate occupancy and thereby would allow us to initiate, design, and construct tenant improvements immediately while the buildings are in escrow. The City would also save the additional lease payments and the tenant improvements ($96,114) that are needed in the near term. Additional monies would be saved and downtime minimized as a.result of relocation. Administrative costs will be eliminated since our address on our letterhead paper, business cards, etc., will not require changing. The public and other agencies would not need to be informed of our new location since it will essentially remain unchanged. This project gives the City the most flexibility. We do not know how much space we will need and when. These buildings will satisfy our known requirements, to date, and will allow us to expand, as necessary, without incurring a large debt service in our beginning years. Staff thanks Don Goldberg, Mike Pappas, and Steve Scannel of WestMar Commercial Brokerage for their offer, patience with Staff, their time devoted to this subject, and their assistance during the lease and purchase phases of this project. Annual costs to the City would be $214,540, which is $64,435 less than the lease proposal, $145,710 less than Rio Nedo V, and $134,579 less than the Business Park Center project. Windsor Park I is recommended as the desired alternative. FISCAL IMPACT: All City Hall proposals are for monies from FY91's budget, which have not been approved. Monies are available in the Capital Outlay - Office Furnishings budget for the tenant improvements. ATTACHMENTS: (A) Windsor Construction Company letter of May 1, 1990 - tenant improvements (B) Windsor Construction Company Maps of April 27, 1990 - tenant improvements (c) WestMar Commercial Brokerage letter of May 2, 1990 - City Hall lease extension and additional space (D) Five year lease agreement presented at theApril 10, 1990 Council meeting (E) City Hall Lease/Purchase Analysis (F) WestMar Commercial Brokerage letter of April 30, 1990 - Windsor Park I purchase proposal (G) Wine Country Real Estate letter of April 27, 1990 - Business Park Center purchase proposal (H) INCO Commercial Brokerage letter of May 1, 1990 - Rio Nedo V purchase proposal City of Temecula letter of April 25, 1990 - Request For Proposal - purchase of a building · , ,,, ~WINDSOR CONSTRUCTION COMPANY May 1 , 1990 Mr. Joe Hreha City of Temecula 43172 Business Park Drive P.O. Box 3000 Temecula, CA 92390 Re: Proposal for Warehouse Improvement Dear Mr. Hreha: Proposal to the City of Temecula to improve the warehouse space of Building D as per the preliminary architectural plans by Forms & Images, dated 4/27/90 (with the exception of items on the plans discussed with Joe Hreha, as those are not approved plans). The cost to install these improvements is $~9,85-5.00 (~cvcnty Nine Thousand Eight Hundr~ Fifty-fivc Dollart). Very truly yours, WINDSOR CONSTRUCTION COMPANY JSW/vt 29377 Rancho California Road, Suite 700 Rancho California, CA 92.390, (714) 676-8400 fre. d dana~l. architect GiT ~'~' 40321 oakland ..... ·heme,. call,ornii 02344 ~ 714 658-6299 (hemel) ~ T~u~, COMMERCIAL BROKERAGE May 2, 1990 Mr. Joseph P. Hreha City of Temecula P.O. Box 3000 Temecula, CA 92390 Dear Mr. Hreha, This letter is in response to the City of Temecula's proposal to extend their current lease in Building D in Windsor Park I. Windsor Partners will gladly extend the lease for a period of four months till midnight December 31, 1990. Rent shall be $3,314.80 on a NNN basis per month. Windsor partners will in addition permit the City of Temecula to take additional space in Building A for the same period. The space consists of approximately 3252 square feet. In consideration for use of said space in Building A, the City of Temecula will be responsible for $715.44 in NNN charges per month and be required to improve the space with a cost to be no less than $48,000. The tenant improvements shall be abandoned by the City and considered the property of Windsor Partners. All tenant improvements shall be approved and installed by Lessor. I hope this will accommodate the City of Temecula's needs. Please do not hesitate to contact me with any questions that may come up. Hreha.2 41530 ENTERPRISE CIRCLE SOUTH, SUITE 206 / TEMECULA, CA 97.390 (714) 676-7177 FAX (714) 699-0048 NET INDUSTRIAL LEASE IND, NNN 11/86 TABLE OF CONTENTS 1. LEASE OF PREMISES ....................................................... 1 2. EXHIBITS AND ADDENDA .................................................... 1 3. DEFINITIONS .............................................................. 1 4. DELIVERY OF POSSESSION ................................................. 2 5. ACCEPTANCE .............................................................. 2 & USE; LIMITATIONS ON USE .................................................. 2 7. RENT; OPERATING EXPENSES ................................................ 3 8. TAXES; ASSESSMENTS ...................................................... 3 9. MAINTENANCE ............................................................. 4 10, UTILITIES AND SERVICES .................................................... 4 11. INDEMNITY AND EXCULPATION; INSURANCE ................................... 5 12. ALTERATIONS, ADDITIONS, IMPROVEMENTS .................................. 5 13. MECHANICS' LIENS ......................................................... 5 14. DESTRUCTION ............................................................. 6 15. CONDEMNATION ......................................................... 6 16. ASSIGNMENT ........................................................... 7 17. DEFAULT ................................................................... 7 18. ADVERTISING ........................................................... 8 19. LANDLORD'S ENTRY ON PREMISES ....................................... 8 20. OFFSET STATEMENT, A3-rORNMENT, SUBORDINATION ...................... 9 21. NOTICE .................................................................. 9 22. WAIVER .................................................................. 9 23. SALE OR TRANSFER OF PREMISES ........................................... 9 24. ATTORNEYS' FEES .......................................................... 9 25. SURRENDER OF PREMISES; HOLDING OVER ............................. 9 2S ABANDONMENT ............................................................ 10 27, QUIET ENJOYMENT ....................................................... 10 28. FORCE MAJEURE ........................................................... 10 29. RELATIONSHIP OF PARTIES .................................................. 10 30. GENERAL PROVISIONS ...................................................... 10 This Lease Decween ("Landlor0"L and f"Tenan! ). ~s Doled NET INDUSTRIAL LEASE ,,,'indsor Partners - Rancho InDustrial Genera I Partnersnlo The City of Temecuia California Corporation A~ril 12 , 19 90 1. LEASE OF PREMISES. 1.1. In consideration of the Rent (as clehned m Sect;on 7.1) and the provisions ot tl~=s Lease. Landlord leases to Tenant an(3 Tenant leases from Landlord the Premises shown Oy diagonal lines on tr~e floor plan aCtacheO hereto as Exhibit "A." and further described m Section 3.13. The Premises are located w~thm the Budding and Park clescr~Ded m Section 3.14. Tenant shall have the non-exclusive nght (unless otherw;se provided hereml m common w~th Landlord, other tenants. suPtenants and ovate.s, to use of the Common Areas (as dehned at Section 3.5). 1.2. Tenant has exammad the Premises and ;s fully informed of their concht~on. 1.3. This Lease confers no nghts e;ther w~th regard to the subsurface of the land below the ground level of the Premmses or with regard to airspace above the too of the roof of the building that is a part of the Premises. EXHIBITS AND ADDENDA. The exh;bits and adrienale I~sted below (unless hned out) are ~ncorporated Oy reference ~n this Lease: 2.1. Exhibit "A" -- Floor Plan showrang the Premises. 2.2. Exhibit "B"-- Site Plan of the Park. 2.3. Exhibit "C"-- Building Standard Work Letter. 2.4. Exhibit "D"-- Rules and Regulations. 2.5. Addenda: See Addenc~um DEFINITIONS. .As used m this Lease. lhe ~ollow~ng terms shall have the following meamngs: 3.1. Base Rent: $ See Addendum 3.2. Base Year: The calendar year of ' See Addendum 3.3. Broker(s) and Sales/Kjent(s): WestMar Commercial Brokerage per yeaK 3.4. Commencement Data: See Addendum 3.5. Common Areas: All areas within the exterior boundaries of the Park that are provided and designatod by Landlord. from time to 1~me, for the general use and convenerice of the tenants of the Park and which are not lease(:l or held for the exclusive use of Tenant or other tenants of the Park. Common Areas mclude, but are not limited 1o. pedestrian walkways, patios. landscapecl and planted areas. s~dewalks. service corridors. restrooms, stairways, througl~ways. loading areas. parking areas. driveways and roads. 3.6. Cost of Living Adjustment Range: (Fill in. if applicable.) Minimum five percent (5[) oxo Maximum five percent (5[) %. 3.7. Expenae Stop: (Fill in. ~f applicable.): $ N/A 3.8. Expiration Date: See Addendum, unless otherwas. sooner terminated in accordance w~th the provisions of this Lease. 3.9. Index (Section ?.2): Urnted States Department of Labor, Bureau of Labor Statistics Consumer Price Index for All Urban Consumers. Los Angelas/Long OeachlAnahe~m Average. Subgroup "All Items" (1967 = 100). 3.10. Lanellord's Mailing Address: 29377 Rancho California Road, Suite 200 Temecul a, CA 92390 Tenant's Mailing Address: P.O. Box 3000 Temecula, CA 92390 ($19,464.00) 3.11. Monthly Installments of Base Rent: $ nineteen thousan(~ four hundred sixty-four & 00/100 per month. 3.12, Parking: Tenant shall be permitted to park See Addendum cars on a non-exclusive basra. mn the area(s) designated Oy Landlord for park,rig. 3.13. Premisea: of Buildings C and D of the Park contaming approximately 27,028 square feet of Rentable Area, shown by diagonal lines on Exhibit "A." 3.14. Park: A multi-tenant mdustrlallcommerc~al real property developmen1 of Landlord located at 43172 and 43174 Business Park Drive and described in Exhibit "B." The Park includes the land. the Buildings and all other improvements located thereon, including the Common Areas. The Park is Known as Windsor Park I 3.15. Rentable Ares: As to the Premmses. the measurements of floor area as may. from time to time, be subject to lease by Tenant and all tenants of the Park. respectively, as determined by Landlord and apphecl on a consistent basis throughout the Park. 3.16. Security Deposit (Section 7.4): $ See Addendum 3.17. Tenant's Firet Adjustment Date (Section 7.2): The first day of the calendar month following the Commencement Date plus twelve (12) months. 3.18. Tenant'a Pro Rata Share: 37.73 %. Such share is a fraction. the numerator of which is the Rentable Area of the Premises. and the denDonator of which is the Rentable Area of the Park. as determined by Landlord from time to t:me. 3.19. Tensnt's Use Clause (Article 6): Genera) Office 3.20. Term: The period commencmng on the Commencement Date and expiring at madnight on the Expiration Date. 3.21. Trade Name: The City of Temecula 3.22. MIIcellaneous Definitions: Alteration: Any addition or change to, or modification of, the Premises made by Tenant after the fixturing period, including. without limitation. fixtures, but excluding trade fixtures, and Tenanl's improvements. Authorized Representative: Any officer, agent, employee, or independent contractor retained or em~Dloyed by either Party, acting within authority g~ven him by that Party. Oamage: Injury, detenoration, or loss to a person or I:)roperty caused by another person's acts or omissions. Damage includes death. Damages: A monetary compensation or indemn11y that can be recovered in the courts by any person who has suffere~ damage to his person, property, or rights through another's act or omission. Destruction: Any damage to or disfigurement of the Premises. Encumbrance: Any dsecl of truSt, mortgage, or other wntlen security dewce or agreement affectir. g the Premises, and the note or other obligation secured by ~t, that constitutes security for the payment of a debt or performance of an obligation. Exoiretlon: The com~ncJ to an end of a time perK)cl soeo~fieq in the Lease, including, w~tt~out limltaaon, any extans~on of fire term resultant= from the examlss of an option to extend. Goo~ Condition.' The good physical condition Of the Premises and each portion of the Premises. ~ncludmg. without llmffat~on. s~gns, w~ndows. shoo w~ndOwS. appurtenances, and Tanant S personal proDer~y. "In good condition" means hrst-cfass. neat. clean. and broom-clean, and is equivafant to slmifar phrases refarnng to physical adequacy ~n appearance and for use. Hold Harmlee. s: To defend ariel indemnify from aJl liability, losses, penair,as, damages. costs. ex~ I~ncluding, without Itm~ltton. attorneys' fees), causes of action, claJms, or judgments ans~ng out of or retateq to any damage, as defineq herelnapove. to any person or propen'y. Law: Any judicial decision, statute, constitution, ordinance, resolution. regulation, rule, admlnistratwe order, or other requirement of any mumc~0al. county, state. federal, or other government agency or authority hawng jurisdiction over the Parfids or the Prem~sas. or Ix~h, in effect either at the hme of execution of the L~as~ or at any time during the term. ~ncluding, w~tl~out limitation. any regulation or order of a cluasi-official entity or body (e.g., beard of fire examiners or public utilities). Lender: The peneficiary, mortgagee, secured Party, or other holder of an encumbrance, as defined hereinabove. Lien: A charge imposed on the Premises by someone other than Landlord, by which the Premises are made secunty for the performance of an act. Most of the liens referred to in th~s Lease are mechamcs' liens. Maintenance: Repairs. repiacemeot. repa~nting and cleaning. Party: Shall mean Landlord or Tenant; and if more than one person or entity is Landlord or Tenant, the obligations imposed on that Party shall be joint anO several. Parson: One or more human beings, or legal entitles or other artificial persons. including, without limitation. partnerships, corporations. trusts. estates. associations, and any combination of human beings and legal entitles. Prowsion: Any term, agreement, covenant, condition. clause. gualification, restnction, reservation. or other st~pulabon ~n the Lease that defines or otherwise controls, esta131ishes or limits the performance requ~req or permitted by either Party. Restoration: The reconstruction, rebuilding, rehabilitation, and repairs that are necessary to return destroyed portions ef the Premises and other properly to substantially the same physical condition in which they were immeqlately pefore the destruction. Successor: Assignee, transfaree. personal representative, heir, or other person or ent{ty succeeding lawfully, and pursuant to the prowstons of this Lease, to the rights or obligations of e~ther Party. Tenant: A person or ent;ty (or their successor in interest) who has signeq a valid existing lease for a space m the Park. Tenant's Improvement: Any addition to or modification of the Premises made by Tenant before, at, or near the commencement of the term. including, without limitation, fixtures (not including Tenant's trade fixtures). Tenant's Personal Properly: Tenant's equipment. furniture. merchandise. and moveDie property placed in the Premises by Tenant, includ;ng Tenant's trade fixtures. Tenant's Trade Fixtures: Any property, installed in or on the Premises by Tenant for purposes of trade. manufacture. ornament. or related use. Termination: The ending of the term before expiration for any reason. 4. DELIVERY OF POSSESSION. 4.1. If for any reason Landlord does not deliver possession of the Premises to Tenant on the Commencement Date. Landlord shall not De subiect to any liability for such failure, the Expiration Date shall not change and the validity of this Lease shall not be ;mpalred. but Rent shall pe abated until delivery of possass~on. "Delivery of possession" shall be deemeq to occur on the date Landlord completes Landlord's Work as defined in Exhibit "C." If Landlord permits Tenant to enter tnto possession of the Premises before the Commencement Date, such possession shall be SUbleot to the prowsions of this Lease, ~ncluding, w~tnout limitation, the payment of Rent. 5. ACCEPTANCE. 5.1. Tenant's taking possession of the Premises on commencement of the term shall constitute Tenaot's acknowleqgement thai the Premises are in good condition. 6. USE; LIMITATIONS ON USE. 6.1. Tenant shall use the Premises solely for the purposes set forth in the Tenant's Use Clause and for no other use w~thout Landlord's written consent. Tenant shall conduct its business at the Premises under the trade name set forth in the Tenant's Trade Name Clause and under nO other trade name unless first obtaining the written consent of Landlord. 6.2. Tenant's use of the Premises as provided in this Lease shall be in accordance with the foildoing: 6.2.1. Tenant shall not do. bring, or keep anything in or about the Premises that will cause a cancellation of any insurance covering the Premises. If the rate of any insurance carriecl by Landlord is increased as a result of Tenaot's use. Tenant shall pay to Landlord within ten (10) days Perore the date Landlord is oPligateq to pay a premium on the ~nsurance, or w~thin ten (10) days after Landlord dehvers to Tenant a certified statement from Landlord's insurance carrier stating that the rate increase was causeq solely by an act~wty of Tenant on the Premises, as permitted in this Lease. whichever date ~s later, a sum equal to the difference t)e~veen the original premium and the increasecl premium. 6.2.2. Tenant shall comply with any master Covenants, Conditions and Restrictions which encumber the real property on which the Premises are located. 6.2.3 Tenant shall comply with all laws concerning the Premises or Tenaot's use of the Premises, ~ncluding, w~thout limitation, the obligation at Tenant's cost to alter, maintain, or restore the Premises ~n comphance and conformity w~th all laws relating to the condition, use, or occupancy of the Premises dunng the term. 6.2.4. Tenant shall not use the Premises in any manner that will constitute waste. nuisance or an unreasonable annoyance to the clu~et enloymenl of the tenants of the Park in which the Premises are located (including, w~thout limitation, the use of loudspeakers or soun0 or light apparatus that can be heard or seen outside the Premises). Tenant shall not use the Premises for sleeping. washing clothes, cooking or the preparation, manufacture, or m~xing of anything that might emit any oclor or obleotionaple no~sas or lights. 6.2.5. Tenant shall not do anything on the Premises that will cause damage to the Premises. Any overloading of electrical circuits shall be the responsibility of Tenant. No machinery, apparatus. or other appliance shall be used or operated m or on the Premises that will in any manner injure, vibrate, or shake the Premises. 6.2.6. Tenant shall not display or sell merchandise or allow carts, portable signs, devices or other obiects to be stored or remain outside the defined extanor and permanent doorways of the Premises. 6.2.7. Tenant shall not conduct or permit any sale by auction on the Premises. 6.2.8. Tenant shall have for its use and benefit the non-exclusive right in common w~th Landlord and future owners, other tenants and their agents. employees, customers, licenseees, subtenants and all others to whom Landlord has granted or may grant such nghts, to use the Common Areas during the entire term of this Lease, or any extension thereof, for ingress and egress, roaclway, automobile parking and s~dewalks. Tenant snail have the non-exclusive right to use the humper of parking spaces des~gnateq in the Parking Clause. However, Landlord shall. at all times, have the right and privilege of determining the nature and extent of the Common Areas and of making such changes which ~n its oplmon are deemeq to be desirable. Such changes may include. Put shall not be Iim~teq to. converting the Common Areas into leasable areas, constructing additional parking facihhes ~n the Common Areas, increasing or Oecreaslng Common Area lano and/or facilities. the tocat~on and relocatlon of driveways. entrances. ex~{s. automobile parking spaces. the d~rect~on and flow of traffic, installation of prohibited areas. landscapecl areas. and all other facilities thereof. Tenant acknowledges that such activehas may result In occasional ~nconvemence to Tenant. Nothing containact harem shall tie deeme<] to create any liability upon Landlord as a result of se~d changes or for any clamage to motor vehicfas of customers or employees or for loss of property from within such motor vehicles. unless caused by the negligence of Landlord. its agents, servants or employees. within Such motor vehicles. unless caused DV the negligence of I analor(3. tts agents. servants or emmoyeas. LanaiOr(3 shall. at all braes during the term of th~s Lease. nave me sole ancl exclusive control of the Common Areas. and may, at any t~me during the term hereof, exctucle and restrain any betson from use or occul3ancy thereof. excepting, nowever. done fide customers. patrons and serv~ce-supol~ers of Tenant. and other tenants of Lanalor(] who make use of sa~d areas ~n accordance wdn the rules and regulations estanhsrted Dy Landlord from t~me to t~me w~th reaDact tl~ereto. The rigtits of Tenant hereunder. in anO Io the Common Areas. shall. at all hines, De suDlect to the rights of Landlord, other tenants of the Park and all others to whom LandlorO has granted such r~gt3tS. tO use the same ~n common w~th Tenant. Tenant shall not. at any time, ~nterfere w~th the nghts of LanWord. other tenants. or any other person entitled to use t~e Common Areas. It shall be tl~e duty of Tenant to ~<eeD all Common Areas free and clear of any obstructions created or Derm~tte(~ Dy Tenant or resulting from Tenants operation ano to permit the use of any of the barking and roadway access areas only for normal Dan<rag and ~ngress and egress Dy ~he sa~d customers. patrons anO service-suppliers to and from the building occupied by Tenant and the other tenants of the Park. If, in the ob~mon of Landlord, unauthonzed persons are using any Common Areas by reason of the presence of Tenant in the Premises. Tenant. upon demand ot landlord. shall enforce SUCh rights against all such unauthor~zecl persons by aDDroDnate 13roceeOm§s. Nothing herein shall affect the r~ghts of Landlord. at any time. to remove any such unautnorizecl Dersons from the Common Areas or to restrain the use of any of the Common Areas Dy unauthorized Dersons. 6.2.9. Tenant agrees to comply w~th such reasonable rules an0 regulations ~n the use of the Premises and the Common Areas as Landlord may adopt from t~me to t~me for the orderly and proper operation of the Park. Tenant shall use ds best efforts to cause others who use the Common Areas w~th Tenant's express or ~mpiied Dermission to abide by landlord's rules and reputations. Such rules may include, Put are not limited to. the following: (i) Normal business hours; (ii) The hours dunng which the Common Areas shall De open for use; (Jii) The restricting of emoioyee parl<mg to a limited, designated area or areas and the im13osttion of finus for v~olatJons of such restriCtlens or cles,gnatlons: and (iv) The regulation of removal, storage and disposal of Tenant's refuse and other rubbish. 6.2.10. Tenant shall not use, store, handle or dispose of any hazardous wastes or substances on the Premises or any part of the Park. The term "hazarOous wastes or substances," is used ~n this section in ~ts very broadest sense and includes. but ~s not limited to. petroleum base products. paints and solvents, leads, cyanide, DOT, printing inks, acids, pesticides, ammonium compounds. asbestos. PCBs and other chemical products. 7. RENT; OPERATING EXPENSES. 7.1. All costs and expenses which Tenant assumes or agrees to Day to landlord under this Lease shall be deemed additional rent (which together w~th Base Rent is sometimes referred to herein as me "Rent"). Tenant shall ;~ay to lanalorcl. w~thout decluchon, set of/, prior not~ce, or demand, the Rent. ,n advance, on the first day of each month, commencing on the Commencement Date and continuing dunng the Term. Base Rent for the first month or a port,on ot ~t shall be pa~d upon execution of this Lease. Base Rent for any partial month shall be orbrated at the rate of 1130lb of the Base Rent der clay. Thereafter rent shall De Dayable in accorclanca with the tel'ms of th~s Section. The total conslclerat~on for the term of this Lease shall be ~ncrsased by the amount of any suctt prorated installment hereby reclulred. All rent shall be paid to landlorcl at the aclclress prowcled at the beginning of this Lease. 7.2. The amount of Base Rent (and the corresponding Monthly Installments of Base Rent) Dayable hereunder shall be adjusted annually (the "Adjustment Date"), commencing on Tenant's First Adiustment Date. Adjustments, if any, shall be based upon increases (if any) in the Index. The Index in publication three (3) months before the Commencement Date shall be the "Base Index." On each Adjustment Date, the Base Rent shall be ~ncreased by a percentage equal to the percentage ,ncrease. if any, in the Index in publication three (3) months before the Adjustment Data (the "Comparison Index") over the Base Inclax ("adjusted Base Rent"). In the event the Comparison Index m any year ~s less than the Comparison inclax (or Rase Index. as the case may be) for the Dreceqing year, the Base Rent shall remain the amount of Base Rent Dayable during that Drece<:ilng year. When the ad)ustsd Base Rent Dayahle as of each Adjustment Date is determ~necl. Landlord shall give Tenant wrdten not~ce of such adjusted Base Rent and the manner m which it was computed. The adiusted Base Rent shall Wereattar pe the "Base Rent" for all purposes under this Lease. If at any Adjustment Date the Index no longer exists in the form clescribed in this Lease, landlord may substitute any substantially equivalent official inclax published Dy the Bureau of Labor Statistics or its successor. Landlord shall use any appropriate conversion factors tO accomplish such substitution. The substitute index shall then become the "Index" herauncler. In no event shall the Base Rent De actlusted to reflect an increase greater or lesser than the percentages (if any) descnDed in the Cost of Living Adjustment Range Clause. 7.3. If this Lease terminates before the exb~rahon (:late for reasons other than Tenant's default. Rase Rents shall be prorated to the clare ot termmahon, ancl landlorcl shall immediately repay to Tenant all Base Rent then prepaid and unearned. 7.4. On execution of this Lease, Tenant shall deposit wdh Lancllorcl the Security DeDos~t for the I:)ertormance by Tenant of the prows~ons of this Lease. If Tenant ~s ~n default, Landlord can use the Security Deposit, or any port,on of it, to cure the default or to compensate Landlord for any Oamege sustained by Landlorcl resulhng from Tenant's default. Tenant shall immediately on demancl pay to Landlorcl a sum equal to the portion of the Security Pepdad expencleq or aDDIieq by Landlord as provided ~n this Section so as to maintain the Security Deposit ~n the sum ~nd~ally deposited wdh Landlord. If Tenant is not in clefsuit at the expiration or termination of this Lease. Lancllorcl shall return the Secunty De13osit to Tenant. less any amounts required to restore the Premises to good conclition and repair, including clamage resulting from tl~e removal by Tenant of its tracle fixtures or eclu~Dment. Lancllorcl's obligations with respect to the Security De13oslt are those of a clebtor and not a trustee. Landlord can maintain the Secunty DaDdad sebarate ancl apart from Landlord's general funds or can commingle the Security Pepdad with landlord's general ancl other funds. Landlord shall not be redu~req to pay Tenant interest on the Security Depos,t. 7.5. For purposes of this Anicte, Operating Expenses shall mean all direct costs of operation and maintenance, as determined by stanclard accounting practices. including, but not limited to, Common Area expenses, real property taxes. maintenance, repa,rs. utilities. ser-~ces and insurance. Tenant shall pay to landlord, as additional rent, Tenant's Pro Rata Share of such Operating Expenses in the following manner: 7.5.1. Tenant shall pay to Lancliord, as additional rent, on the first clay of each calendar month of the term of this Lease, an amount equal to Landlord's best estimate (based on Landlord's budgeteq figures) of Tenant's monthly Pro Rata Share of the Operating Expenses. 7.5.2. Within thirty (30) days following the end of each calendar year, Landlorcl shall furnish Tenant with a statement covering the calendar year lust exD~reO (certified as correct by an authorized representative of Landlorcl, or if requestact by a malority of the tenants in the Park, 13y a certified public accountant) showing (i) the total Operating Expenses; (ii) the amount of Tenant's Pro Rata Share of such Operating Expenses for such calendar year; and (iii) the Daymerits made by Tenant with reaDact to such period as set forth in Section 7.5.1. If Tenant's payments exceed Tenam's Pro Rata Share of such Operating Expenses, Tenant shall be entitled to offset the excess against the next payments clue Landlord as set forth in Section 7.5.1. However, if Tenant's Pro Rata Share of such Operating Expenses exceeqs Tenant's payments, Tenant shall pay Landlord the deficiency within ten (10) days after receipt of such statement. In addition. Tenant's Pro Rata Share of the total Operating Expenses for the previous calendar year shall be used as an estimate for the current year ancl paid to Landlord bursuant to the Drovlsiona of Section 7.5.1. 7.5.3. Lancllorcl may, at its option. by service of writlen notice on Tenant. choose to alter any payment periods browdad for by this Lease uncler the Articles titled "Rent; Operating Expenses," "Taxes; Assessments," "Maintenance" and "lndemndy an(] Exculpation; Insurance." 8. TAXES: ASSESSMENTS. 8.1. Tenant shall pay, before clelincluency, all taxes. assessments. license tees and other charges (' 'taxes") that are levied and asseese~ against Tenant's personal oropeny installed or located in or on the Premises. and that become I~ayable during the term. On demand by Landlord, Tenant shall furrash Lencllorcl with satisfactory evidence of these 13ayments. Whenever possible. Tenant shall cause said trade fixtures. furnishings. eduiDment and bernoriel Orbparty to be separately assessed. If, however, any taxes on Tenant's personal property are levied against Landlord or Landlord's 13ropeny, or ;f the assessed value of the Premfses ts increased by the inclusion of a value placed on Tenant's I~ersonst oreDeny. and if Landlord Days the taxes of, a, ty o! the'..e items or the taxes Dase~ on the increased assessment of these ~tems. Tenant. on Damanti. shall immediately re,mourse La,qdlord for the sum of the taxes ~ev~ed against Landlord. or the Droootl~)n of the taxes resulting from the ~ncrsese tn Landlord's assessment. Landlord snail have me right to Day mesa taxes regarctlass of the validity of the levy. 8.2. Tenant sr~all Day to Landlord, in the manner provided in Section 7.5, Tenant's Pro Rata Share. of all reat Drapefly taxes and general and special assessments ("real property taxes") lavied and assesseO against the land, Pullcling. and other improvements of which the Promises are a Daft. 8.3. If any general or special assessment ts levied and assessact against the Premises which under the laws thsn in force may be ewOenced by improvement or other Donds and may De paid tn annual ~nstafiments, only the amount of such annual installment. w~th appropriate proration for any partial year. and interest trtereon, shall he included wttrtJn a computation of taxes and assessments levied against the Premises. 8.4. Tenant shall pay to Landlord any and all excise, privilagas and other taxes (other than net income and estate taxes) levied or assesseO Dy any federal, state or local authority ("taxing authority") upon the rent received by Landlord hereunder Tenant shall also pay to Landlord any business tax imposed uoon Landlord by any taxing authority whether or not such tax Js based or measureO. tn whOle or tn pan, Dy amounts charged to Tenant or racewed Py Landlord from Tenant under this Lease. 8.5. If at any time during the term of this Lease, any taxing authority shall alter the methods and/or standards of taxation and/or assessment ("tax plan"), in whole or tn Dart. so as to impose a tax Dian ~n lieu of or in acidilion to the tax Dian ill extsfence as pt the date pt this Lease, such taxes or assessments Dased upon such altered tax Dian including: (i) any tax. assessment. exc,se. surcharge, fee, penalty, bond or similar ~mposttlon ("impositions") whether or not in lieu. partially or totally, of any tinpositions assessed agamst the land. building, and other improvements of which the Premises are a part prior to any alterations tn the tax Dian; (ii) any imbositlons on Landlord's right to rent or other income from trte Premises or against Landlord's business of leasing the Premises; (iii) any impositions allocable to or measured by the area of the Premises or the rent payable hereunder. including wsthout limitaDen any impositions levied by any taxing authority with resbert to such rental or with respect to the possession, leasing, operation. management. maintenance. alteration, repair, use or occupancy Oy Tenant of the Premises or any peltion thereof; (iv) any impositions upon this Lease transectJon or any Oocument to whoch Tenant is a party which creates or transfers any interest Or estate tn or to the Premises: and (v) any special, unforeseen or extraordinary tmpesgttons however Oescrtbed, shall also De cons~clered taxes for the ourDoses of this Lease. 8.6. Tenant's liability to pay real property taxes shall be orerated on the basis of a 365 day year to account for any fractional portion of a fiscal year inciuciecl Jn the term at its commencement and expiration. 9. MAINTENANCE. 9.1. ExcefX as prowded tn Section 9.4. and the Articles titled "Oestroct~on" and "Condemnarson." Tenant snail. at its sole exoense. maintain the entire Premises on good renanlaDle condition and reDaft. ~ncluding without limitation all additions and imorovemenrs marie by the Tenant as well as all fieres of maintenance, alteration. or reconstruction that may De reclutred by a governmental agency hawng jurisdiction thereof. it Tenant rafts to keep the Premises ~n sa~d condition. Landlord shaft have tr~e right, at Landlord's ODtfon. 1o enter the Premises tn order to place same sn the required condition and repair Tenant shall immediately pay to Landlord the cost thereof. together wfth interest at the maximum rate allowecl Dy law. 9.2. Landlord shall not have any respensibility to marntain the Premises. Tenant, as a material per~ of the considerarson rendered to Landlord. in entering rate this Lease, hereby waives the orevisions of Civil Code Section 1941 and 1942 with respect to Landiorc]'s obligation tot tenantability of the Premises and Tenant's right to make repairs and deduct the expense of such repairs from rent. 9.3 Landlord shall, at Tenant's cost, keep and maintain all window and door glass, utilities. fixtures and mechamcal equipment. including any heating and/or air conditioning units servtcsng the Premises and usecl by Tenant (excluding Tenant's personal property and trade fixtures), fn good order. condition and reDair Tenant shall pay to Landlord, in the manner provided ~n Section 7.5, Tenant's Pro Rata Share of all such maintenance and redair costs. 9.4. Landlord shall keep in good condition and repair the roof and structural compenents of the Premises, except when such maintenance and reDasr is necessitated by reason of Tenants neghgence. alteration of or addition to the Premises, or breach of any term or condition of this Lease. Landlord shall have no obligation to make any such repairs until Landlord has received written not~ce from Tenant with respect to the need for such repairs, and Landlord shall not be deemed to be m default with respect to its obligation to repair unless and until Landlord has (i) receivecl said written notice and (it) failed to make such repairs within a reasonable period following the receipt of said notice. Landlord shall. after receiving writfen notice, exerclse due diligence ~n making such repairs. Tenant hereby wasves any provisions of law permitting Tenant to make repairs at Landlord's expense. Landlord shall enforce any construction warranties for the benefit of Tenant to the extent that they are avafiable. 9.5. Landlord shall, at Tenant's cost. maintain the Common Areas m a neat, clean and orderly condition and reDa~r, properly lighted and landscaped, and shall operate the Park, in Landlord's sole d;scretion. as a first class industr~allcommerc~al teat oreberry devetooment. All expenses of maintenance m connection with the Common Areas shall be charged and orerated in the manner set forth in Section 7.5. It is understood and agreeel that the phrase "exbenses ~n connection with said common Areas*' shall include. but shall not De limited to. all sums expended ;n connechon with said Common Areas for all general maintenance and repairs. resurtac~ng. painting, restriDing, cleamng, sweeping and janitorial serv~css. maintenance and repair pt s;dewalks. curds. and Park signs (other than Tenant's sign), sprinkler systems. Dianting and landscaping; lighting and other utfiities: Darnting of all exterior sur/aces of the build;rig or buildings ~n the Park; directional s~gns and other markers ano I~umbers; maintenance and repair of any fire protection systems, automatic spnnkler systems, iightiog systems, storm drainage systems and any other ut;lity systems; bersonnel to implement such service. including, if Landlord deems necessary, the cost of security guards and/or all costs and expenses Dertanning to a security alarm system for the tenants; police and fire protection serwces; personal property taxes levied on or attributable to personal property ownecl by Landlord which ;s consumed in the operation or maintenance of the Common Areas; depreciation and maintenance on operating machinery and equipment (if owned) and rental paid for such machinery and equipment (if rented); any parking charges, surcharges or any other costs levied or asseased by local. state or federal governmental agencies in connection with the use of parking facilities: fees for required licenses and permits; adecluate public liability and properW damage ~nsurance on the Common Areas; reserves for exterior Daunting and other appropriate reserves: and a reasonable allowance to Landlord for Landlord's supervision of the sa~d Common Areas. which cost shall not exceeO three Dement (3%) of the total of the aforementioned expenses for sa~d calendar year. Landlord may, however, cause any or all of the said servcies to be provided Dy an independent contractor or contractors. 9.6. Landlord's exercise of any right or obligation to maintain or reDa~r the Premises, Common Areas and/or other areas of the Park shall not entitle Tenant to any abatement of rent, compensation or damages for injury. loss or mconvemence orcastoned therapy. 10. UTILITIES AND SERVICES. 10.1. Except as prowdad ~n Section 10.2, Tenant shall make all arrangements for and Day for all utilities and services furnished to or use(] by it, including, w~thout limitation, gas, electricity, water, telephone service, and trash collection, and for all connection charges. 10.2. In the event that any utlities are furnished by Landlord, Landlord shall only be required to Drewdad heating, a~r conditioning and ventilation during normal business hours. Normal business hours shall be defined from time to time by Landlord in the rules doverrang the use of the Common Areas. Tenant shall Day/or such utilities and any amount pa~d by Landlord shall thereupon become Oue to Landlord from Tenant, as additional rent. Tenant shall pay a reasonable propellion of all charges which are jointly metered. the determ;nat~on to be made by Landlord basecl upon Tenant's proportionate share of the occuo~ecl square footage of the building or I~ufid~ngs serviced by such meter and any extraordinary uses which may De made by Tenant. 10.3. Landlord shall. during all normal business hours, maintain and keep lighted the common stairs, common entr;es and toilet rooms in the Duilding of which the Premises are a baR. Landlord shall not be fiaDla for. and Tenant shall not be entitled to. any reduction of rental Dy reason of Landlord's failure to furrash any utfitties when such failure ~s caused by accident. breakage. repairs, strikes, lockouts or other labor d;sturbances or labor disputes of any character. or Dy any other cause. s~mitar or dissimilar. Deyoncl the reasonable control of Landlord. No such tafiure or ~nterruDt~On shall entitle Tenant to terminate this Lease. Landlord siqall not De liable. under any c~rcumsrances for a loss ol or ~nlur~ to Droper~y. however occurring. through or ~n connection w~til or Incidental to failure to turn~sh any of the foregoing. Wherever treat generating machines or eclutDment are useO ~n the Premises which affect the temperature othet~wse maintained Dy the a~r condttiomng system. Landlord reserves the r~ght to ~nstall supplementary a~r conditiomng units tn the Premises and the cost thereof. including the cost of installat;on. and the cost of operation and maintenance thereof snarl lee Da~d Dy Tenant to Lancllord uPOn demancl O¥ Landlord. 10.4. Tenant may. at ~ts expense. elect to matall ~ts own meter for any utilities which are loinfly metereel OY written notice ~et~vereo to Landlord thirty (30) days Drear to the ~mt~al~on Dy Tenant at any work to effectuate such cr~ange. 11. INDEMNITY AND EXCULPATION: INSURANCE. 111 Tenant does hereby roderotaN, ~s liable for. and holds [.annlord harmless from any loss by reason of iniury to am/' person or Dro0ertv. from whatever cause, all or ~n part connecteo w~th the condition or use of the Premises or the ~morovements or damanal property locate<3 there~n. ~ncludmg w~tnout I~mltat~on. any ~aD~lity for ~nlury to the person or property of Tenant. ~ts agents. officers. emD~cyees. rowfees. or trespassers. Tenant snail, at Tenant's exoense. resist anti defend any such action. suit. or proceeo~ng or cause the same to be resisted or Oatenale(3 Dy counsel cles~gnale~3 by Tenant and aoprove(~ 0¥ Lancllord. Tenant's obligation hereunder shall survive the termination of th~s Lease. it the incident reau~nng such defense occurred dunng the Lease term. 11.2. Tenant. as a material Dart of 1he consideration rendered to Landlord. ~n entering ~nto th~s Cease. I~ereDy waives all claims against Landlord for damages to goods, wares anO merchandise m. uoon and about the Premises and for inlury to Tenant. ~ts agents. emOloyees. rowtees, or any third person m or about the Premises from any cause at any t~me. 11.3. Public L~ab~lity and Property Damage Insurance. 11.3.1. Landlord shall maintain, at Tenant's expense. a policy or oolicies of insurance protechng against the following: (i) Fire and other penis normally ~ncluded in the extended coverage ~nsurance with special form. to the extent of at least one nunbred 13arcant (100%) of the insurable value of the building and other ~mprovements on the Premises exclusive of trade fixtures and equ~oment belonging to Tenant; (it) Rent loss insurance to the extent of at least one hundred percent (100%) of the annual gross rentals from the Park of which the Premises const~tutss a part; and (iii) Public liability and droparty damage insurance and oroducts liability insurance with respecl Io Common Areas for the lomt benefit of Landlord and Tenant ~n amounts li) not less than $1,000,000 for injury or death to any one person. {ii) not less than $1,000,000 per occurrence, and (iii) not less than $250,000 per occurrence for damage to 0robarty. Said amount shall be SubleCt to adjustment every three (3) years to the tl~en 0revailing limits normally required for operations of the type conducte(l by Tenant on the Premises. 11.3.2. Tenant shall 0ay to Lancllord, as additional rent, and in the manner prowdad in Section 7.5. Tenant's Pro Rata Share of the cost of insurance re(~ulred ~n Sections 11.3.1 and 11.3.6. 11.3.3. Tenant shall ma~ota~n in force a policy or policies of fire and extended coverage insurance with respect to its fixtures and equ~Dment located ~n the Premises w~th vandalism and malicious m~scnief endorsements to the extent of at least one hundred Dercent (100%) of the,r ~nsurable value. During the term of this Lease, tl~e proceeds of any such DOriC1/or policies of fire insurance sl~alt be used soley for the repair or replacement oi the hxtures or eclu~oment so insured. Landlord shall have no claim or ~nterest tn sa~d insurance and w~11 sign all documents necessary to effectuate the settlement of any claim or loss by Tenant. 11.3.4. Tenant shall maintain during the term of this Lease. w~th an insurance company acceptable to Landlord. a comorehens~ve general liability insurance policy, endorsed w~th a "broad form" endorsement, with respect to the Premises, for the joint beneht of Landlord and Tenant for personal ~niury in amounts of not less than $500,000 for injury or death to any one person, and ~n an amount not less than $1,000,000 Der occurrence. and for property damage in an amount of not less than $250,000 Der occurrence. The amounts of such public liability insurance shall be increased from time to time as Landlord may reasonably detsrm~ne. Tenant shall name Landlord as additional insurecl on such policy. Tenant shall furnish Landlord w~th a certiticata of insurance with respect to such pohcy or policies prior to entry of the Premises. 11.3.5. Landlord and Tenant hereby mutually release eacl~ other from liability and waive all dght to recover against each other from any loss from Denis resurea against under their respective fire insurance policies, including any extended coverage and endorsements to sa~d policies. It ~s 0rovideci, however, that this subparagrapl't shall be inapplicable if it would have the effect. but only to the extent that it would have the effect. of ~nvalidating any ~nsurance coverage of Landlord or Tenant. The Parties snail obtain, if available. from their respective ~nsurance campames, a waiver of any right of subrogation which said insurance company may have against the Landlord or the Tenant, as the case may be. in the event that the insurance comoany of Tenant does not waive the right of subrogation against Landlord and its insurance company. Tenant shall (i) maintain during the term of this Lease fire legal liability coverage w~th respect to the Premises and {it) shall pay to Landlord upon demand, Landlord's cost recurred in securing fire legal liability protecting Landlord m the event of the destruction of Tenant's property. 11.3.6. Landlord may maintain. at the Tenant's expense (pro rated in the manner described in Section 7.5), boiler and machinery insurance on all boilers. heating equipment, air conditioning ecluipment, and other oressure vessels and systems that may be locate(] ~n. on, or about the Premises. Tenant snail relmPurse Landlord for the insurance prowdad by Landlord under this suboaragrabh in accordance w~lh the terms set forth in Section 11.3.2. 11.3.7. All the insurance required under th,s Lease shall: (i) Be issued Dy insurance comoames authorized to do business ~n the State of Callfarina, w~th a financial rating of at least superior status as rated in the most recent edition of Rest's Insurance Reports; (it) Be issuecl as a primary policy; (iii) Contain an endorsement redulring thirty (30) days written notice from the insurance com0any to both Landlord and Landlord's lender before cancellation or change in the coverage, scope. or amount of any policy. Each pot~cy, or a certificate of the policy, together w~th evidence of payment of premiums, shall be deposited with the other Party at the commencement of the terms. and as to renewal of the policy not less than twenty (20) days before expiration of the term of the policy. ALTERATIONS, ADDITIONS, IMPROVEMENTS. 12.1 Tenant shall not make any alterations, additions or improvements to the Premises. Any altorations, additions or improvements desired by Tenant shall be made by Landlord only after Tenant submits detailed final plans and drawings to Landlord and oblmns Landlord's approval ot such plans. Any such alterations, additions or ~mprovements shall be in conformity with the laws of all abplloable government autl'~orities and eXCel)ting movaOle furrefute. trade fixtures. machinery and other trade equipment shall become part of the realty and belong to Landlord. However, Landlord can elect, within thirty (30) days before exbiratldn of the term, or within ~ (5) days afler termination of the term, to require Tenant to remove any alterations, additions or imorovements Tenant has made to the Premises. If Landlord so elects. Tenant at its cost shall restore the Premises to the condition designated by Landlord in its election, before the last day of the term, or within ten (10) days after termination of the Lease, whichever is first. 12.2. Tenant may install trade fixtures, machinery or other trade equi0ment in conformance with the laws of all applicable gOvernment authorities. Tenant may remove any of such trade fixtures or machinery upon the expiration or termination of this Lease; provided that. Tenant is not in default under the terms and conditions of this Lease. 12.3. In the event that Tenant installs trade fixtures, machinery or other trade equipment, Tenant shall return the Premises on expiration or termination of this Lease to the same condition as existed at the date of entry, reasonable wear and tear excepted. In any event. Tenant shall repair any damage resulting from the removal of trade fixtures, machinery or other trade equipment of Tenant. 13. MECHANICS' LIENS. 13.1. Tenant shall pay, when due, all costs for construction done by it or caused to be done by it on the Premises as permitte~l by this Lease. Tenant shall keep the building, other improvements, and land free and clear of all macbaroca' liens resulting from construction done by or/or Tenant. Tenant hereby indemnifies and holds Landlord harmless agranat loss, damage, attorney's fees and all other expenses on account of claims of lien of laborers or materialman o~ others for wo~ performe~ or materials or supplies furnisheel for Tenant or parsons claiming under it. Tenant snail have the right to contest the correctness or the validity of any sucri lien if, immediately on demand Oy Landlord. Tenant procures and records a lien release pond issum3 I~y a corporation authorized tO issue surety Dom:IS in California in an amount equal to one and one-half times the amount of the claim of lien. The Don(] shall mes~ the requirements of Civil Cude Section 3143 and shall provide for the payment of any sum t~at the claimant may recover on t~e claim (togetl~er with costs of suit, if it recovers in the ectlonl. D£STRUCTION. 14.1. If, dunng the term, the Premises are totaliv or partially destroyeO by a rrsK coverecl Oy the insurance bescnbeO in Section 11.3, rendering the Premises totally or partially inaccessible or unusable, Lanaioral shall restore the Premises to substanllally the same condition in which they were immediately before cieslruct~on. The process of such restoration snail begin wtmm ranely days after the date of destruction. Such destruction shall not terminate this Lease. If the existing laws do not barrett the restoration. either Party can farmmate this Lease Jmmechately by g~ving not~ce to the other Party. If the cost of the restororton exceecls the amount of proceecls receweO from the insurance required under Sechon 11.3.3, Landlord can elect to terminate this Lease 0y giving notice to Tenant w~thin fifteen (15) days after determining that the restoropen cost wi# exceecI the insurance proceed:Is. in the case of destruction of the Premises, if Landlord elects to terminate {his Lease, Tenam. w~thin fifteen (15) days after receiving Landlorq's notice to terminate can elect to pay to Landlord, at the time Tenant notifies Landlord of its elect~on. the difference belween the amount of insurance proceecls and the cost of restoration; in which case, Landlord shall restore the Premises. Landlord shall give Tenant satisfactory evidence that all sums contributed by Tenant as provided in this Section have been expencled by Landlord in paying the cost of restoration. If Landlord elects to terminate this Lease and Tenant does not elect to contribute toward the cost of restoration as prov~ed in this Section, this Lease shall terminate. 14.2. If, during the term, the Premises are totally or partially destroyed from a risk not covered by the insurance described in Section 11.3. rendering the Premises totally or partially inaccessible or unusable. Landlord shall restore the Premises to substantially the same condition in which they were immediately before destruction. The process of Such restoration shall begin within ninety (90) days after the date of destruction. Such destruction shall not terminate this Lease. However, if the cost of restoration excescls five peruant (5%) of the then replacement value of the portion of the Premfees that are destroyed, Landlord can elect to lerminate this Lease icy giving not~ce to Tenant wdnin fifteen (15) days alter determining the restoration cost ancl replacement value. In the case of destruction to the Premises, if Landlord elects to terminate this Lease. Tenant, w~thin fifteen 115) days after receiving Landlord's not~ce to terminate. can elect to pay to Landlord, at the time Tenant nobflee LanOIord of its elect~on. the difference between five percent (5O,.b) of the then replacement value of the Premises and the actual cost of restoration: ~n which case. Landlord snail restore the Premises. Landlord shall gwe Tenant satisfactory ev~clence that all sums conlnbuteO by Tenant as proveleO fn this Section nave been expended by Landlord in paying the cost of restoration. If Landlord elects to terminate this Lease and Tenant does not elect to perform the restoration or contnbute toward the cost of restoration as provided fn this Section, this Lease shall terminate. if the existing laws ao not permit any restoration as described m th~s Section. either Party can terminate th~s Lease tmmeo~ateiy by glwng not~ce to the other party. 14.3. If Landford ~s required or elects to restore the Premises as prowdad in this Article, Landlord shall not be reclu~red to restore alterations made by Tenant, Tenaot's improvements, Tenant's trace fixtures. and Tenant's personal property. such excluded ,terns being the sole responsJbdity of Tenant tO restore. Without interfering w,th Landlord's restoration process, Tenant snail commence and diligently prosecute the restoration of such alterations and fmprovements and shall replace all trade fixtures, equipment anti personal property promptly upon delivery of the Premises to Tenant. 14.4. If Landlord is required or elects to restore the Premises as prowdad m this Article. Tenant shall continue the operation of its bus~ness on the Premises, during the restoration penpal, to the extent reasonably practicable frOm the standpoint of pruoent bus~ness management, and to the extent that it will not interfere w~th the restoration process. 14.5. Tenant shall not be entitled to any compensation or damages from Landlord as a result of any partial or total destruction of the Prem~sas or for any ~nconvemence, loss. or damage that Tenant may incur as a result of the restoration process. 14.6. In the event that either Party elects to terminate this Lease under the enabling provisions of this ArbcJe. Tenant shall surrender to the Landlord all proceeds from the ~nsurance policies clescrBbed in Section 11.3, excluding proceeds for Tenant's trade fixtures and equipment. 14.7. In case of destruction caused from a risk covered by the ~nsurance provided in Section 14.1. there shall be no abatement or reduction of rent. In case of destruction caused from a r~sk not covered by the ~nsurance provided ~n Sachob 14.2. there shall be an abatement or reduction of rent, except any percentage rent, between the date of destruction and the date of completion of restoration. based on the extent to which the destruction interferes w~th Tenant's use of the Premises. 14.8. Tenant waives the prowsions pt Civil Code Section 1932(2) and Civil Code Section 1933(4) with respect to any destruchon of the Premises. CONDEMNATION. 15.1. "Condemnation" means (a) the exercise of any governmental power. whether by legal proceedings or otherwise. 0y a condemnor. and (b) a voluntary sale or transfer by Landlord to any con0emnor, e~ther under threat of conclemnat~on or wnde legal proceedings for conpemnat~on are pending. 15.2. "Date of taking" means the date the condemnor has the right to take possession of the property I~eing con0emned. 15.3. "Award" means all compensation, sums. or anything of value awareled, paid or received on a total or partial conclemnat~on. 15.4. "Condemnor" means any public or quasi-public authority, or private corporation or ~ndividuaL having the power of condemnation. 15.5. If, during the term or during the penod of time between the execution of this Lease and the date the term commences, there ~s any taking by condemnation of alt or any part of the land, building, or other improvements, of which are a part of the Premises. or any interest ~n this Lease. the rights and obligations of the Parties shall be determined pursuant to th~s Article. 15.6. If the Premises are totally taken by condemnation, this Lease shall terminate on the date of taking. 15.7. If any portion of the Premises is taken by condemnation, this Lease shall remain ~n effect, except that Tenant can elect to terminate this Lease if the remaining portion of the Premises ~s renderecl unsuitable for Tenaot's contrnuecl use of the Premises. If Tenant elects to terminate this Lease, Tenant must exercise its right to terminate pursuant to th~s Section by giwng notice to Landlord within thirty (30) days after the nature and the extent of the taking have been finally determined. If Tenant elects to terminate this Lease as prowdad rn this Section, Tenant also shall notify Landlord of the date of termination, which date shall not be earher than thirty (30) days nor later than ninety (901 days after Tenant has notdied Landlord of its election 1o terminate. Provided. however, that this Lease shall terminate on the date of taking ~t the date of taking falls on a date before the date of termination as designated by Tenant. If Tenant does not terminate this Lease w~thin the thirty (30) day period, this Lease snail continue ~n full force and effect, except tha~ Base Rent shall be rectucecl pursuant to Section 15.8. 15.6. If the parking area of the Premises ~s taken by condemnation. this Lease shall remain in full force ancl effect. Prowdad, however. that if fifty percent (50%) or more of the parking area ~s taken by condemnation, e~ther Party shall have the elect~on to terminate this Lease pursuant to this Section. If either Party elects to terminate this Lease. it must terminate pursuant to this Section by gwing notice to the other Party w~thin thirty (30) days after the nature and extent of the taking have been finally determined. The Party termmahng th~s Lease also shall notify the other Party of the date of termination, which date shall not be earlier than thirty (30) days or later than mnety (90) days after the terminating Party has notified the other Party of its election to terminate. Prowdad. however, that this Lease shall terminate on the (:late of taking ff the date of taking falls on a c~ale before the date of termination cles~gnatecl in the nohce from the terminating Party. If this Lease ~s not terminated within the tmrty (30) day pened, ~t shall continue ,n full force and effect. If any portion of the Premises iS taken Dy condemnation and thrS Lease remains ~n full force and effect. on me date of taking the Base Rent shall be reduced Oy an amount that ~s in the same ratio to Base Rent as the value of the area pt the port~on pt the Premrses taken bears to the total value of the Premises immediately before the data of taking. 15.9. If, within thirty (30) days after the date that the nature and extent of the taking are hnally determmecl, Landlord not~fies Tenant that Lan01ord at ~ts cost will add on to the reintuning Premises' Darkrag area so t~at the area ancl the approximate layout ot the Premises dno oarKing area will be substantially the same arter the crate of tal<~ng as they were eelore tr~e c~ate ot taking. and Lan,qlor~ commences the restoration ~mmecl~ately am3 completes tlqe restoration w~lllln npnety 190) days after Landlord not,has Tenam. th~s Lease shall continue ~n full force and efteel without any reduction ~n Base Rent. exceot the abatement or recluct~on made oursuant to Section 15.12. 15.10. Each Party wawes the Drows~ons of Code of Ciwl Proceclure Section 1265.120 allowing rather Parly to petition the suloer,or court to terminate th~s Lease ~n trte event of a partial taking pt the Premises. 15.11. If there ~s a partial taking of the Premises anti th~s Lease remains m full force ancl effect 0ursuant to Section 15.7. Landlord at ~ts cost sr~all accomplish all necessary restoration. 15.12. Rent. except for any percentage rent. shall be abated or reclucec~ clur~ng the per~oo from the date of taking until the completion of restoration, but all other oDhgatlorls ot Tenant unc~er th~s Lease shall remain ~n full force ancl effect. The abatement or recluct~on of rent shall be based on the extent to which the restoration interferes w~th Tenant's use of the Premises. 15.13, The awarcl shall belong to ancl be pa~cl to Lancllord. except that Tenant shall receive from the award the following: A sum aftr~butable to Tenant's imbrovements or alterations made to the Premises by Tenant ~n accordance with this Lease. wmcn Tenant's ~m0rovements or alterations Tenant has the nght [o remove from the Premises pursuant to the provisions of th~s Lease but elects not to remove: or, [f Tenant elects to remove any such Tenant's ~mprovements or alterations. a sum for reasonable removal and reidcation costs not to exceecl the market value of such ~mprovements or alterations. A sum attributable to any excess of the market value of the Premises qexclusive ot Tenant's improvements or alterations for which Tenant ~s compensated under this Section) for the remainclef of the term, over the present value at the clare of taking of the Base Rent payable for the remainder of the term. A sum attributable to that porl~on of the awarcl constituting severance damages for the restoration of the Premises. 15.14. The taking of the Premises or any part of the Premises by m~litary or other oublic authority shall constitute a taking of the Premises by condemnation only when the use and occupancy by the taking authority has continued for longer than 180 consecutive days, During the 180 day pendO, all the prowsions of this Lease shall remain in full force and effect. Providecl. however, that rent, except for any percentage rent, slyall be abated or rec]uced during such penocl of taking based on the extent to which the taking interferes with Tenant's use ot the Premises. Landlord shall be entitled to whatever award may be paicl for the use and occupation of the Premises for the 0enocl involved. 16. ASSIGNMENT. 16.1. Tenant shall not voluntarily assign or encumber its interest ~n this Lease or in the Premises, or sublease all or any parf of the Premises. or allow any other person or entity (except Tenant's authonzed repressntat~ves) to occupy or use all or any part of the Premises. w~thout first obtalmng Lan01ord's consent tl~rougn strict accordance w~th the following proceclure: 16.1.1. Tenant must first give to Landlord a written not~ce of ~nten! to sublease or assign (referrecl to herein as "Tenant's Notice") at least one hundred ancl twenty (120) days prior to the effective c~ete of any proposecl subletting or assignment. Tenant's Notice must contain the following: (i) whether Tenant 0reposes to assign or sublet; (ii) the iclentity and trade of the proposed assignee or suelessee (each of which is referrecl to harem as the "Transfared") with accompanying financial statements for Doth the mdiwdual Transfared and its business entitles; (iii) a signet3 statement from both the Tenant and the propose<~ Transfared stating all the terms and conditions of all their transactions concermng the Premises; and (iv) in the case of a subletting, a copy of the proposed sublease. 16.1.2. Tenant must at all times promptly notify Landlord of any change and/or alteration of the items reclu~recl to be ~n Tenant's Notice. Tenant's failure to c~o so, or any misrepresentation or untruth containecl ~n Tenant's Notice, by e~ther the Tenant or the proposed Transfered, snail constitute a cidfault by Tenant, and Landlord shall have the right to elect to terminate this Lease Agreement. 16.1.3. After receipt of Tenant's Notice, Landlord may, at any time within ninety (90) days of said receipt, cancel this Lease by mailing a wntten cancellation not~ce to Tenant. Such cancellation w~11 become effective thirty (30) days after receipt of said notice by Tenant. 16.1.4. If Landlord falls to exercise ~ts right to cancel this Lease w~thin the before-mentioned ninety (90) day periocl. said cancellation nght on the part of the Landlord shall be deemed waived. Put only w~th respect to the assignment or subletting specified in Tenant's Notice. Tenant may Ihereafter sss~gn this Lease or sublet the Premises in accordance w~th the terms of Tenant's Notice and the restrictions of this Article. Any mortgage, pledge or assignment of this Lease. or ~f Tenant ~s a corporation, any transfer of this Lease from Tenant by merger, consolidation. reorgamzatlon or I~clu~dst~on or any change ~n the ownership of or power to vote the malonty of the outstanding voting stock of Tenant, shall constitute an assignment for the purposes of this section. Any assignment, encumbrance, or sublease made w~thout obtaining Landlord's consent. according to the procedure described above, shall be voidable and, at Landlord's elect~on. shall constitute a default. Landlord's consent to any assignment, encumPrence. or sublease shall not constitute a further wmver of the prows~ons of this Section. Lanefloral shall not unraasonaloly w~tnhold consent, but reserves the nght to reclu~re Transterse to be as financially staiole as Tenant and for Transferee's Pus~nass to De of the same character and cluahty as Tenant's bus~ness and as the entire Park ~n general. Tenant agrees to reimburse Landlord for Landlord's attorneys' fees incurrecl m conlunct~on w~th the processing and clocumentat~on of any reguestecl assignment of this Lease or subletting of the Premises. Consent by Landlord to an assignment or a subletting shall neither release Tenant from ~ts primary liability under this Lease nor from its obligations as stated in this Article. 16.2. Without in any way limiting any other rights available to Landlord at the time of any proposed assignment, Landlord expressly reserves the right to adiust the Base Rent according to any change ,n the Consumer Price Index as specified in Section 7.2, whether or not such an adjustment would otherwise be due at that time. 16.3. One half (1/2) of any consideration received by Tenant for rather assigning this Lease or from entering into a sublease contract, as well as one half (1/2) of any continuing rent paid to Tenant from a Translated in excess of the rent Tenant was obligated to pay to Landlord at the time of the assignment or sublease, shall be paid to the Landlord in consideration for Lancllord's consent to any consignment or subletting. Tenant's failure to pay to Landlord said recluired consideration shall constitute a default by Tenant and Landlord shall have the right to immediately terminate this Lease Agreement in addition to all other remedies. 16.4. Tenant immediately and irrevocably assigns to Landlord. as secunty for Tenanl's obligations uriclet this Lease. all rent from any subletting of all or a part of the Premises as permitted by this Lease, and Lanefiord, as assignee ancl as attorney.in-fact for Tenant, or a receiver for Tenant appointed on Lancllord's abplication, may collect such rent ancl apply it toward Tenant's obligations under this Lease. Provided, however, until the occurrence of default by Tenant, Tenant shall have the right to collect such rent. 16.5. No interest of Tenant in this Lease shall be assignable by operation of law (including, without limitation. the transfer of this Lease by teeracy or intestacy). Each of the following acts shall be cons~derecl an involuntary assignment. 16.5.1. If Tenant is or becomes bankrupt or msptvent, makes an assignment for the benefit of creditors. or institutes a proceeding under the Bankruptcy Act in which Tenant is the bankrupt; or. if Tenant is a partnership or consists of more than one person or entity. if any partner of the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors; 16.5.2. If a wnt of attachment or execution is levied on this Lease; 18.5.3. If, in any proceeding or action to which Tenant is a Party, a receiver is appointed with authority to take Dossession of the Premises. An involuntary assignment shall constitute a default by Tenant and Landlord shall have the right to elec~ to terminate this Lease; in which case, this Lease shall not De treated as an assel of Tenant. If a writ of attachment or execution is levied on this Lease, Tenant srtall have 10 days in which to initiate removal of the attachment or execution anti six (6) morons to remove the same. If any involuntary proceeclincj in bankruptcy is brought against Tenant. or if a recenmr is appointed. Tenant shall Ilave sixty (60) clays ~n which tO have the involuntary proceecling elismissed or lite recenmr removeel. Lancllord shall have the optton to extenGI said time limitations. 17. DEFAULT. 17.1. The occurrence of any of the following shall constitute a default by Tenant: 17.1.1. The failure of Tenant to pay Or cause to be paso when due any rent. monies. or charges re¢lulrm:l by this Lease to be ne~d by Tenant; 17.1.2. The abandonment of the Premises by Tenant as such term ~s defined m the Article tltleq "Abanclonment:" 1%1.3, Tenant causing or permitting, w~thout pr~or written consent of lan01ord, any act when this Lease redulres lanotord's prior written consent or prohibits sucJl act; 17.1.4. Failure 1o Derform any other prowagon of this Lease, if the failure to perform is not cured wffhin 30 days after not~ce has been given to Tenant. If the default cannot reasona131y be cured within 30 days, Tenant shall not be in default Of this Lease it Tenant commences to cure the default within the 30 day penocl and diligently and ~n good faith continuas to cure ~ default. Notices given under this Section snail specify the alleged default and the applicable Lease I~rov~s~ons. and shall demand that Tenant perform the !browsions of this Lease or pay the rent that is ~n arrears. as the case may be. w~th~n the abPllcable ber~oO of time. or quit the Premises. No such notice shall be deemed a forfeiture or a termination of this Lease unless landlord so efacts ~n the not,ca. 17.2. Landlord shall have tile following remedies if Tenant commits a default. These remedies are no~ all inclusive; they are cumulative in addition to any remedies nOw or later allowed by law. 1Z2.1. landlord can continue this Lease in full tome and effect and shall have the right to collect rent when clue. The Lease will continue in effect as long as Landlord does not terminate Tenanl's ngr~t to Dossession. During the penod Tenant ~s ~n default. Lancllord can enter the Premises and relet them, or any part of them. to third Parties for Tenaot's account. Tenant snail De liable immecl~ately to Landlord for all costs Landlord incurs ~n reletting the Premises, including, w~thout limitation, brokers' commlss.~o~s, expenses of remodeling the Premises re~3uired by the refarting, and like costs. Reletting can be for a Denpal shorter or longer than the remaining term of this Lease. Tenant shall [Day 1o landlord the rent due under this Lease on the dates the rent is clue. less the rent Lan(31ord receives from any teloffing. No act by landlord allowed by this subparagraph shall terminate this Lease unless landlord not~fies Tenant that Landlord elects to terminate this Lease. After Tenant's default, and for as long as landlord does not terminate Tenant's right to Dossession of the Prom:sos, d Tenant obtains lam;llord's consent, Tenant shall have the right to assign or sublet its interes~ in th~s Lease pursuant to Section 16.1 of this Lease. 1%2.2. Landtord can terminate Tenant's right to possession of the Premises at any time. No act by Landlord other than giving notice to Tenant shall tsrmlante this Lease. Acts of maintenance, efforts to relet the Premises, or the aloDolntment of a receiver on Landlord's initiative to protect landlord's interest under this Lease shall not constitute a termination of Tenant's right to possession. On termination, Landlord has the right to recclver from Tenant: (i) The worth, at the time of the award. of the unpaid rent that had been earned at the t~me pt termination of this Lease; (ii) The worth, at the time of the award. of the amount by which the unpaid rent that would have been earned after the date of termination pt this Lease until the t~me of award exceeds the amount of the loss of rent that Tenant proves coulcl have been reasonably avo~deq; (iii) The worth. at the time of the award. of the amount by which the unpa~cl rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and (iv) Any other amount, and court costs, necessary to compensate Landlord for all aleInmont proximately caused by Tenant's default. "The worth. at the time of the award," as used in (i) and (ii) of this subparagraph ~s to be computed by allowing interest at the rate of 10% per annum. "The worth, at the t~me of the award," as referred to ~n (iii) of this subparagraph ~s to be computed 0y discounting the amount at the d~scount rate of the Federal Reserve Bank of San Francisco at the l~me of the award, plus lO~b 1Z2.3. If Tenant ~s in default of this Lease, landlord shall have the right to have a receiver appointe~ to collect rent and conduct Tenant's bus~ness. Neither the filing of a petition for the appointment of a receiver nor the appo~ntmant ~tself shall constitute an election by landlord to terminate this Lease. 17.2.4. landlord. at any time after Tenant commits a default, can cure the default at Tenant's costs. If at any t~me. by reason of Tenant's default. Landlord pays any sum or does any act that requires the payment of any sum. the sum pa~d by Landlord shall be due immediately from Tenant 1o Landlord at the t~me the sum ~s pa~d, and if Tenant pays such sum at a later date, ~t shall bear interest at the rate of 10% per annum from the date the sum ~s paid by landlord until landlord is reimbursed by Tenant. The sum, together with accrued interest. shall be additional rent. 17.3. Rent not paid when due shall bear interest at the rate of 10o./o per annum from the date due until paicl. 17.4. In the event any payment of rent requ~reg hereby shall not be pa~d within five (5) days after the same shall be due and payable. a late charge by way of damages shall be immediately due and payable. Tenant recognizes and acknowledges that default in making, when due. payments of rent required hereby w~11 result ~n landlord incurring additional costs ancl expenses. Such costs and expenses ~nclude, but are not i~mlted to, I~rocesslng and accounting charges, legal costs. late charges that may be ~moosed on Landlord by the terms of any encumbrance and note secured by any encumbrance covering the Premises. and loss to Landlord of the use of the money clue. Tenant hereoy agrees that. in the event of any such late payment, lancllord snail be entitled to damages for the detriment caused thereby, but that it is extremely difficult and impracticable to ascertain the extent of such damages. Tenant therefore agrees (i) that a late charge equal to five Dercent (5%) of each payment of rent that becomes delinquent ~s a reasonable estimate of sa~d damages to Lancllord and (ii) to pay sa~cl sum on demand. Acceptance of any late charge, or any part thereof, shall not constitute a waiver of Tenant's default w~th respect to the overdue amount. or prevent landlord from exercis~ng any of the other r~ghts and remodies available to Landlord. If rent ~s not received by the due date. Landlord shall notify Tenant and Tenant shall, on demand of Landlord. ~mmed~ately cure the default by presentment of rent and late charge to Landlord. 17.5. Landlord shall be in default of this Lease if it fails or refuses to perform any provision of th~s Lease that ~t is obligated to perform if the failure to perform is not cured within 30 days after written notice of the default has been g~ven by Tenant to Landlord, If the default cannot reasonably be cured w~thin 30 days, Landlord shall not be ~n default of th~s Lease ~f Landlord commences to cure the default within the 30 day period and diligently and in good faith continues to cure the default. 17.6. If Landlord is in default of tlqls Lease, anti as a consequence Tenant recovers a money judgment against Landlord. the judgment shall be satisfied only out of the proceeds of sale received on execution of the juclgment and levy against tlqe r~ght, title. and interest of Landlord in the Premises, and out of rent or other income from such real property receivable by Landlord or out of the consideration recewed by landlord from the sale or other disposition of all or any part of landlord's nght, title, and ~nterest ~n the Premises. The obligations of Landlord under this Lease do not constitute personal obligations of Landlord or tlqe ~ndividual partners. shareholders, directors, officers. employees or agents of Landlord. Tenant shall look solely to Landlord's interest m the Leased Premises. and to no other assets of landlord. for satisfaction of any liability in respect of this Lease. ancl shall not see~< recourse against the ~nd~wdual partners. shareholders. directors. officers, employees, or agents of Landlord or any of their personal assets for such satisfaction. 18. ADVERTISING. 18.1. Tenant shall not affix any signs, advertising placards. names. insignias, trademarks or other descriptive materrole on any window or upon the exterior of any Building. unless Tenant has racewed the prior written approval of Lanefiord as to s~ze. type. color. location, copy, nature an0 display qualities of any such proposeO materials. Tenant shall not d~splay. store or sell any merchandise outs~cle the defined exterior walls and permanent OdOrways of the Premises. Tenant shall not metall any exterior hghhng, amplehers or s~m~lar devices. or use in or about the Premises any adverZ~sing mecl~a which may be heard or seen outside the Premises. such as flashing lights. searchlights, loudspeakers. phonographs or radio broadcasts. LANDLORD'S ENTRY ON PREMISES. 19.1. Landlord and ~ts authorized representatives snail have the right to enter the Premises at all reasonable t~mes for any of the following purposes: 19.1.1. To Oeterm~ne whether the Premises are ;n goocl condition and widethor Tenant ~s complying wfth ~ts obhgahons unc~er this Lease; 19.1.2. To make alterations, additions and to do any necessary maintenance and repairs. and to make any restoration to the Premises, or the building ancl Other ~mprovemants ~n which the Premises are Iocate(~. that landlord has the r~ht or Ocll~gat~on to pertorm: 19.1.3. To serve. DOSt. or keep oostea anv notices reClu~reo or allowe~ under the prows~ons of th,s Lease. =9.1.4. To Oost 'for sale ' s~gns at any t~me during the term. to 0oat "for rent' or "for lease ' s~gns dunng the la~ 3 months o1 the term. or clur~ng any per~ocl wh~le Tenant ~s ~n (~efault. 19.1.5. To show the Premises to orosDectlve t)t'o)~ers, agents. buyers. Tenants. or Dersons ~ntereste~ ~n an exchange. at any t~me ~ur~ng the term: 19.1.6. To shore the foundations, foofmqs. ancl walls of the Premises and to erect scaffolding an~l protective barncacles around anti at)out the Premises. Out not so as to prevent entry to the Premises. and to do any other act ot thing n~c~ry for the safety or preservation of the Premises ~f there ~s any excavation on any acllacent property or nearby street. With Landlord's consent. Landlord's r~ght unc~er th~s sut~paragraph extends to the owner of the adjacent prooerty on which excavation or constroCt~on ts to take place and the acllacent property owner s autr~orlzed representatives. Lane]lord shall not be liable in any manner for any inconvenience. chsturbance, loss of bus~ness. nuisance. or ofher dam~:je arising out of Landlord's entry on the Premises as prowdeal ~n th~s suPparagraph except damage resulting from the acts m omissions of Landlo~ or its authonzecl representatives. Tenant shall be entitled to an at)atement or reduction of rent. if Landlord exercises any r~ghts resewer] in this sul:)OaregreOh. to the extent that Landlord's entry and act~wt~es interfere w~th Tenant's DuelheSS on the Premises. Prov~deci, howe~'. ~f Landlorcl's entry an0 actw~t~es on the Premises result from Tenants default, Tenant shall not De entitled to any aOatement or reduction of rent. Landlord shall conduct its act[wiles on the Premises. as alloweel ~n this subparagraph, in a manner that will cause the least Oosslble rnconvemence, annoyance, or disturbance to Tenant. 20. OFFSET STATEMENT, ATTORNMENT, SUBORDINATION. 20.1. Within ten (10) days after recluest therefor by Landlord, or in the event that uOon any safe. assignme~ or hy1:xXhecano~ of the Premises by Landlord. an offset statement shall be required from Tenant. Tenant agrees to deliver a certificate. in reco~aDte form. to any pro0oseq lender or ourchaser, or to Landlord, certifying that this Lease ~s in full force and effect and is unmo~ifie~ or, if modJfiecl. stating the nature of such mcx:lificalion, and that there are no defenses or offsets therelo, or stating those claimed by Tenant. Tenant's fa~lura to deliver such statements within such time shall be conclusive u0on the Tenant that this Lea~ is in full force and effect. except as and to the extent any modificat;on has been represented by Landlord, and that there are no uncured defaults in Landlord's pertormance and that not more than one momh's rent has been paid in advance. 20.2. Tenant shall. in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the Ix~ver of sale under any OeeO of trust made Py Lan~;llord covenng the Premises, altorn to the purchaser u0on any such foreclosure or sale am] recognize such purchaser as Landlord under this Lease. 20.3. Upon the re~uest of Landlord, Tenant w;ll subordinate its nghts hereunOer to the lien of any dee~'s) of trust or the lien resulting from any other mettrod of financ;ng or rehnanc~ng, now or hereafter ~n force against the Premises or uOon any builtlingo hereafter piacerl u0on the Premises, and to all advances made or hereafter to De made upon the security thereof. This section shall be setl- operat;ve ,f no further ~nstrument of sui0ord;nalion ~s required by any lender. 20.4. Tenant. upon reduest of any Party ;n ~nterast, shall execute prom~ly such instruments or certificates to carry o~t the iment of Sections 20,2 and 20.3 above as shall be requested Py Landlord. Tenant hereby irrevocably aplx~nts Landlord as attorney~n-fect for Tenant w~th full power and authority to execute and deliver ~n the name of Tenant any such instruments or certificates. If fifteen (15) days after the date of a written recluest by Landlord to execute such instruments, Tenant shall not have executed the same, Landlord may, at its option, cancel this Lease w~thout incurnng any liability on account thereof; and the term hereby granted is expressly limited accorctingly. 21. NOTICE. 21.1. Any notice, demand, request, consent, approval, or communication that either Party desires or is required to gwe the other Party or any other person shall be ~n wr;ting and either served personally or sent by prepaid. first-class mall. reg,stered or certifier, return receipt requested. Any notice, demand, recluest, consent approval or communication that e~ther Patty desires or ~s re~lulre~l to g~ve to the other Party shall be addressed to the other Party at the acldress OesK)nate<l at the Degthning of thi~ ~.~e~. Either Perty may change vts address by not~fying the other Party of the change of address. Notice shall be deemed commumcateq within 48 hours from the t~me pt marling if ma~led as provided ~n this section. 22. WAIVER. 22.1. A delay or omission in the exercise of any r~ght or remedy of Landlord on any default by Tenant shall neither ~mpa~r such right or remecly nor be construed as a wawe[ 22.2. The receipt and acce0tance by Lan01orO of delincluent rent shall not constrtute a waiver of any ofher derdull; it shall constffuts only a waiver of timely payments lot the particular rent payment involved. No payment by Tenant. or recei0t by Landlord, of a lesser amount than the rent payment herein stiOulsted shall be deemed to be other than on account of the rent, nor shall any endorsemere or statement on any check or any letter accompanying any checi( or payment as rent by deemed an accord and satisfaction, (unless Landlord ex0ressly agrees to an accorcl and satisfaction ~n a separate writing duly executed by Landlord). Landiord may accept any check or payment w~thout preluclice to Landlord's r~ght to recover the balance of such rent or pursue any other rerne~ty ~ ~n th~s Leese. 22.3. No act or conOuct of Landlord. including, w~thOut limitation. the acceptance of the keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Tenant before the expiration of the term. Only a nofice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a term~nalion of the Lease. 22.4. Landlor0's consent to or approval of any act by Tenant requiring Landlord's consent or approval shall not be deeme(l to waive or render unnecessary Landlord's consent to or approval of any subsecluent act by Tenant. 22.5. Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provisions of the Lease. 23. SALE OR TRANSFER OF PREMISES. 23.1 U~on consummation of a sale, exchange, assignment or other transfer of all or any portion of the Premises, Landlord shall be releasecl from any liability thereafter accruing under this Lease. If any Security Delcosit or prepaid rent has I~en paid by Tenant, Landlord can transfer the Security Deposit or prepaid rent to Landlord's successor. Upon sucft transfer, Landlord shall be discharged from any further liability in reference to the Security Deposit or prepaid rent. 24. ATTORNEYS' FEES. 24.1. In the event Landlord or Tenant retains an attorney to enforce any provision of this Lease against the other, the Party which establishes a breach of this Lease shall be entitled to recover from the other all ex0enses incidental to such enforcement incurred in any legal proceeding whatsoever (including Put not limiteq to insolvency, bankruptcy, arbitration, declaratory relief, unlawful detainer or other litigation), regardless of whether or not suit is brought. Such expenses include, but are not limited to, attorneys' fees, sarwce of process, filing fees. court and court re0orter costs, invest~jative costs, expert witneas fees, and the cost of any Ix~:ls, whether tsxat~le or not. Such reimbursement shall be included in any judgment or final order Jssue~ in any procee~iing. Any expenses to which Landlord is entitled shall be consi¢lered as rent and are payable within ten (10) days of notice to Tenant of the amount due. 25. SURRENDER OF PREMISES; HOLDING OVER. 25.1. Upon expiration of the term or within ten (10) days after termination of the Lease, Tenant shall surrender to Lancllord the Premises and all Tenant's improvements and alterations in gooO condition, exce0t for: (i) ordinary wear and tear occurring after the last necessary maintenance made by Tenant: (ii) destruction to the Premises covered by the Article titled "Destruot;on;" o~ (iiO siterations that Tenant has the right to remove or is obligated to remove under the provisions of Section 12.1. Tenant shall remove all its pereortel property, an~l betform all restoration made necessary t)y such removal, prior to surrem:lering the Premi~ to Landlord. Landlord can etect to retain or disrx~e of (in any manner) any alterations or Tenant's peruoriel proper~ that Tenant Odes tK~ remove from the Premises on exp~ratK)n or termination of the Lease by gMng at least 10 days' notice to Tenant. Title tO any such altorelKX~l~ or Tenants' personal properly that Lancllord elects to retain or disfx~4~ of after expiration of the ten (10) day peno~l shall vest in Landlord. Tenant wa~,~ all claims against Landloml for any damage to Tenant resulting from Landk:~l's re, etlon or dislX~ti~ of any ~ch alteral~ or Tenant s oersonai oroDerW Tenant shall be bodie to Landlorn for Landlords costs for stonng. removing. and disDoing o/any alterations or Tenant s o~rsonal OroDerw. If Tenant tails to surrender the Premises to Landlorcl upon expiration or 10 da~s after termination of the Lease as reclu~red by ~n[s Art~cte. Tenant shall hold Landlord harmless from all damages resulting therefrom, including. w~in hm~tatlon, claims made by a succeeding Tenant resulting from Tenants failure to surrender the Premises. 25.2. If Tenant. w~th Landlord's consent, remains m Dossession of the Premises after expiration or termination of the Lease. or after the date m any notice g~ven Dy Landlord to Tenant terminating tn~s Lease. SuCh Dossession by Tenant shall be deemed to be a monln-to- month tenancy termtodDle on 30 days notice g~ven at any t~me Dy e~lner Party. during such month-to-month tenancy, Tenant snail pay all rent reduxred by this Lease. if percentage rent ~s required ~y the Lease. ~t shall be paK~ monthly on or before the 101h day of each month. All Provisions Of th~s Lease except those pena~mng to term shall apply to the month-to-month tenancy. 25.3. The voluntary or other surrender by Tenant or a mutual cancetlal~on of this Lease shall not worl( a merger. and shall. at elect~on of Landlord, e~ther terminate all or any existing suPleases or subtenancies or may operate as an assignment to ~t of any or all of Such subleases or subtenancies. Landlord shall exercise ~ts etect~on w~tnm thirty 130) days of the event so requiring. ABANDONMENT. 26.1. Tenant snail not vacate nor abandon the Premises at any t~me during the term of th~s Lease. nor perraft the Premises to remain unoccupied for a per~oa of longer than ten (10) consecutive days ourrag the term pt th~s Lease. Jf Tenanl snail abandon the Premises, any personal properly belonging tO Tenant and left on the Premises snail be dealt w~th or d~s13osed of as prowtied m Seelion 25.1. 27. QUIET ENJOYMENT. 27.1. Notwithstanding any subordination as Drowoed ~n the Arhcle t~tled "Offset Statement, Attornment. Subordination." ~f Tenant ~s not ~n breach under the covenants made m tins Lease. Landlord covenants that Tenant snail have peaceful and Clu~e~ enloyment of the Premises w~thout hinderance on the part of Landlord. and Landlord w~11 defend Tenant ~n the peaceful and Clu~et enloyment of the Premises against claims of all persons claiming through or under the Landlord. 28. FORCE MAJEURE. 28.1. Any prevem~on, delay or stoppage due to strikes. lockouts, labor d~sputes. acts of God, inability to obtain labor or materials or reasonable substitutes therefor, governmental restrictions. regulations. or controls. enemy or nostile governmental action. c~wl commotion. fire or diner casualty, and other causes beyond the reasonable control of the Party obhgated to pedorm, snail excuse me performance by such Party for a period equal to that result,ng from such prevention. delay or stoppage. except those dongallons of Tenant to make payment for rental and other charges pursuant to the terms of th~s Lease. 29. RELATIONSHIP OF PARTIES, 29.1. The relationsroD pt the Pomes nereid ~s that of Landlord and Tenant. and ~t ~s expressly understood and agreed that Landlord ~s not ~n any way or for any purpose a partner pt Tenant. or a Io~n! venturer w,m Tenant in the conduct of Tenanl s business or omerw~se 30. GENERAL PROVISIONS. 30.1. Time ~s of the essence of each provision of th~S Lease. 30.2. Whenever consent or approval of e~ther Party ~s required. that Par~ shall not unreasonably w~thhold such consent or approval. 30.3. If e~ther Party ~s a corporation. that Party shall deliver to the other Party, on execubon of tins Lease a cer1~hed copy of a resolution pt rts boar0 pt d~rectors authorizing the execution oF tins Lease and naming the officers that are authorized to execute th*s Lease on behalf of the corporation. 30.4. This Lease snail be binding on and ~nure to the beneht of the Parties and their successors, except as prowded ~n Section 14.1. and all of the Parties hereto shall be io*ntly and severally hable for the covenants contained hereto. 30.5. Rent and all other sums payable under th~s Lease must be pa~d ~n lawful money of the Urnted States of America. 30.6. Except as prowdeal m the Amcle t~tled "Default." if a Party elects to terminate th~s Lease as prowtied herein. the Parties shall be released from further nobilities and obligations on I'ne date the Lease terminates. Landlord shall return tO Tenant any unearned rent, as long as Tenant *s not m default on the date the Lease terminates. 30.7. All exhibits referred to are attached to th~s Lease and mcorporated by reference herein. 30.8. Th~s Lease shall be construed and interpreted m accordance w~tn the Daws of the State of Cahforma and all amendments thereto winch occur subsequent to the execution of th~s Lease. 30.9. This Lease contrans all the agreements of the Pames. and cannot be amended or modified except by a written agreement signed by all of the parhes to tn~s Lease. 30.10. All prows~ons, whether covenants or conditions, on the part of Tenant snail be deemed to be both covenants and condmons. 30.11. The definitions contained m th,s Lease shall be used to ~nterpret tins Lease, 30.12. The use of the mascuhne, feminine or neuter gender and the singular or plural number snail be deemed to ~nclude the others whenever the context so requires. 30.13. The uneforceabili~/, ~nvahd~ty, or ~11egahty of any prows~on shall not tenclef the other provisions unenforceable. mvahd. or ~11egal. 30.14. The head,ngs or niles to the Articles of th~s Lease and the Lease Prows~ons Summary are for convemence only and do not m any way define. limit or construe the contents of such Articles. 30.15. Except as may otherwise be expressly stated. each payment required to be made by Tenant snail be ~n aOO~t~on to and not ~n suPst~tuhon for other payments to be made by Tenant. 30.16. Tenant's execution of th~s Lease ~s conditioned upon Landlord's execution on or before the thirtieth (30th) day following the date of ires Lease. EXECUTED as of the day and year hrst above written. at County. Califorma LANDLORD W[NDSOR PARTNERS - RANCHO INDUSTRIAL TENANT THE CITY OF TEHECULA By: Mathew Pollack - General Partner By: By: Frank Aleshire - City Manager Landlord's Initials RXIIIRIT 'B' Tenant's Initials Tenant: Address: Space #: The City of Temecula ~3172, J3174 Bus~ness Par~ Or~ve Suildine C. ~ EXHIDIT "C" WORK i,ETTER AGREEMENT In consideration of the terms and conditions of the Lease and the terms and conditions hereinafter contained, Landlord and Tenant agree as follows: SECTION I - LANDLORD'S STANDARD WORK 1.01 Landlord has selected certain building standard materials and building standard designs for the improved portion of Premises (hereinafter "Landlord's Standard Work"). Except as provided in Section 2 of this Work Letter Agreement, Landlord shall furnish and install Landlord's Standard Work in the Premises. Landlord's Standard Work shall include the following: 1.01-1 Heating. Ventilation and Air Conditionin~ A complete year round air conditioning system will be provided in- cluding ducted supply distribution and return air in im- proved space only. 1.01-2 Ceilings - Suspended 2' x 4' accousticai ceiling in- stalled in accordance with the building standard ceiling design. Ceiling height 8'-6". 1.01-3 Li~htin~ Fixtures - Recessed 2' x 4' fluorescent lighting fixtures installed in accordance with the build- ing standard lighting design with four (4) fluorescent tubes per fixture. 1.01-4 Partitions - Building standard 5/8" drywall partitions erected to tile underside of suspended ceiling. 1.01-5 Painting - One (1) coat coverall on walls throughout the Premises, in colors selected by Tenant from Landlord's standard paint colors. i.,)l-6 Doors Interior Building standard 3'-0" x 6'-8" doors with building standard irames, hinges, latch sets and stops; exterior building standard doors with Building standard hardware including lockset and closers. 1.01-7 Electrical and Telephone Outlets Regular 120 voit duplex electrical outlets required by the local building code and one telephone outlet per office, not Including wiring, equipment or fixture customarily furnished by telephone suppliers. 1.01-8 Carpeting - Duilding standard carpeting and base ti~roughout the Premises of a type and color selected by Tenanl from Landlord's standard types and colors. i.01-9 Toilet Shall consist of water closet, lavatory with paper towel dispenser, toilet paper holder, one light, and exhaust fan i! required, building standard door and frame with building standard hardware including privacy lock, accoustic ceiling, V.C. tile floor and base and painted walls with 4 foot wainscott on two sides. SECTION 2 - TENANT'S NON-STANDARD WORK 2.01 Tenant may request work in addition to or different from Landlord's Standard Work (hereafter "Tenant's Non-Standard Work"). 2.02 Landlord shall, upon T~nant's request in accordance with Sec- tions 3 and 4 of this Work Letter Agreement, install the fol- lowing Tenant's Non-Standard Work: 2.02-1 Qualities of Landlord's Standard Work in excess of those provided by Landlord; 2.02-2 Additional improvements beyond Landlord's standard installat io,~; 2.02-3 Additional lighting fixtures and/or any mechanical equipment in other than building standard design or 1 oca t ions. 2.02-4 Additional mecl~anicai and electrical equipment and controls required by Tenant's design or use of the Premises generating loads in excess of those described in subparagrapi~ 1.0i-1 of this Work Letter Agreement. 2.03 Tenant may request Landlord to install any other Tenant's Non- Standard Work in accordance with Section 3 and 4 of this Work Letter Agreement including but not limited to substitution of materials or change in design from Landlord's Standard Work. Any such request shall be subject to written approval ot Landlord, which Landlord may withhold in its sole discretion. 2.04 Landlord shall, upon Tenant's request and at Tenant's expense, alter, remove and/or replace accoustical ceiling tiles or ex- posed mechanical suspension system after initial installation due to installation of Tenant's telepi~one or intercommunica- tion system. 2.05 All Tenant's Non-Standard Work shall be located within the Premises. SECTION 3 - RESPONSIBILITIES OF LANDLORD AND TENANT 3.0i From the information t)rovided by Tenant, Landlord and/or Landlord's Architect shall prepare a fully-dimensioned floor plan and a reflected ceiling plan which Landlord shall submit to Tenant. Expense of the above shall be paid according to Section 4 of this Exhibit. 3.02 Tenant shall have ten (10) calendar days to review and approve such plans. Tenant shall also, at or prior to the time of approval, select paint color(s) and carpet type(s) and color(s) from Landlord's standard types and colors, and provide Landlord with any additional information Landlord needs in order to prepare working drawings and specifications. 3.0~ Foilowln& Tenant's approval o! the floor plan and reflected ceiling plan, selection of paint colors, selection of carpet type and color, and Landlord's receipt of necessary information, Landlord and/or Landlord's Architect and Engineer sh;~11 prepare working drawings and specifications. If Tenant ha:{ not requested Tenant's Non-Standard Work, Landlord shall, upon completion of the working drawings and specifications, an,{ receipt of a building permit, authorize Landlord's Con- tractor to commence construction. 3.04 If Tenant has requested and Landlord has granted necessary ap- provals for Tenant's Non-Standard Work, Landlord shall then submit working drawings and specifications to Tenant for ap- proval and to Landlord's Contractor to obtain a firm price for any Tenant's Non-Standard Work. Tenant shall review and ap- prove the working drawings and specifications within five (5) calendar days. Upon receipt, Landlord sliall submit to Tenant La,~dlord's Contractor's firm price £or Tenant's Non-Standard Wo~'k. Tenant shall review and approve Landlord's Contractor's price within five (5) calendar days. Upon Tenant's written ~pl~roval of Landlord's Contractor's price, Landlord shall sub- rni{. architectural and engineering plans to the local building del,artment for approval and the issuance of a building permit. Up,,n the receipt of same, Landlord shall authorize Landlord's Co~tractor to commence construction. In the absence of such written approval, Landlord si{all not be required to authorize commencement of construction. 3.05 Tenant shall be responsible for delays in completion of the Premises and additional costs in completing Landlord's Stand- ard Work and Tenant's Non-Standard Work caused by: 3.05-1 Tenant's failure to timely furnish information or approvals. 3.05-2 Requests for materials, finishes, or installations other than Landlord's Standard Work; 3.05-3 Tenant's changes in any plans, drawings or specifications; 3.05-4 Inaccuracies, omissions, or changes in any information provided by Tenant; and 3.05-5 Delays in delivery of special materials requiring long lead time. 3.06 No Landlord's Standard Work or Tenant's Non-Standard Work shall be performed by Tenant or Tenant's contractor. SECTION 4 - FINANCIAL 4.01 If Tenant does not request any Tenant's Non-Standard Work, Landlord shall install and furnish Landlord's Standard Work at Landlord's expense, including expense related to preparation of the fully-dimensioned floor plan, reflected ceiling plan, and the working drawings and specifications. 4.02 If Tenant requests Non-Standard Work, Tenant shall pay Landlord all costs related to Tenant's Non-Standard Work, in- cluding but not limited to: 4.02-1 The cost of professional services (including services of architects, engineers and consultants) required to in- corporate Tenant's Non-Standard Work into the working drawings and specifications; 4.02-2 The cost of materials other than Landlord's Standard Work materials and the cost of installing such materials; and 4.02.3 The cost of any structural changes in the Building. 4.03 Prior to the commencement of any work performed under Sections 3.or and 4.01 of this letter, Tenant shall pay to the Landlord a n~n-refundable fee of $ N/~ This is applicable to the cost of Tenant's Non-Standard Work[ In the event Tenant accepts Landlord's Standard installation, this fee shall be returned to Tenant upon their taking possession of premises. 4.04 Prior to the commencement of Tenant's Non-Standard Work, Tenant shall pay to the Landlord fifty (50) percent of the es- timated cost to improve Tenant's space. 4.05 Following commencement of construction, Landlord shall propor- tionately bill Tenant monthly for the remaining balance of the cost o~ Tenant's Hon-Standard Work. Tenant shall pay Landlord the entire amount of each statement within ten (10) days aiter receipt. 4.06 Notwithstanding Section 7.5.3 of the Lease, any sums payable by Tenant to Landlord under tills Work Letter Agreement wliici~ shall not be paid upon the due date si~all bear interest at a rate equal to the Prime Rate of Bank of America plus three (3) percentage points, as that rate may vary from time to time. Whether or not Tenant requests Tonant's Non-Standard Work, Tenant shall not be entitled to any credits ~hatso~ver for Landlord's Standard Work not utilized by Tenant. Date Tenant Tenant Frank Aleshire City Manager City of Temecula Date I,a nd 1 o r d Matnew Po{lack Genera} Partner Windsor Partners Rancho Industrial EXHIBIT "D" RULES AND REGULATIONS amofOymenl agency Tenant snail not advertise for common labor giving an addrest at me of La~:llord. Lanolor~ Shall have the r~ht to remove any SUCh s~n placard. picture. aoverllsement, All aOfNoveo signs or I~erlng on OdOrs shall De Dnn~. D~n(~:l. afflx~:l Or InscnD~:l at the expense Of Tenant by a DemOn aDproveo by Lahoford. Tenant shall not place, or allow to Oe DlaC~:l, anything near t~ gl~ Of a~y d~R Oa~ltlO~ or wall which may ao~ar uns,gfit~ from pumice t~ P~i~. H~r, ~ ~rnls~ a~ restall a BUll~l~ S~Oar~ Wl~ ~l~ ~t ~1 ~to~ Wl~. Tena~ s~etl n~ apply any malaria/Isunscreen or ctne~lse) io any wl~ wildout prior Wrl~len consent of ~. In l~e e~nt Of a Vl~al~ of the ~ln~ ~ TartaN. ~ may rem~ se~ wrist any Ii~lh~. a~ may c~a~ to any Ten~ vl~all~ l~lS rule the ~ i~u;~ Oy such an~r any ;amage caus~ mereS. corffJane~ tierran shall De con,~R,m~ to preys't! such access (o persons wtto whom Ten~M northerly dials in the orOinary course of Tenants Ousmess. unless such hersphi are em:jegeO in dleQat NO awnmq~ or Other Drownions snail be ar[acne~ io the outside walls ot the ~Ul~dl/~ 6. Tenlot shall not alter any lack or ~nstatl any new or addlhonal lOCICS Or doffs on any doors Or windows Of the Premises. renan! shall. upon the tarm~naPon Of Tenant's lanancy reslo~'8 to I snotot'~ all I~ys pt offices and rest rooms ellher turmsne~ to or dinerwise PrOcured t:,¥ Tenant. Tenam shall Day to Landlord the COS~ of any says so turmsne~ winch are not return~ to Landloci. 7 The todar room, urinals, w~shDOwfS and olher ~DDaralus snail not he used ~ a~y pur~ ~t t~ln real for wn<h I~ey ~re ~nsl~ed NO ~wgn suDsllnc~ ~ any rand wh~ snail ~ ola~ Incan. The ~n~ ~ any bma~. st~l~ ~ Oam~ msum~ f~ ~e V~ar~ ~ this rule shall ~e ~rne ~ Ihe Tenant w~ ~u~ sucfi dama~ (or wn~ em~ or ~nwl~ ~a~ caus~ such ~amageJ 8. Tenlot shall not overload drill into or ~n any way deface any Dan pt t~e exter~r Of t~e P~m~. or t~e ~u~l~l~ t~ Prem~s is a pa~. No ~, CUEl~ Of ~nnglng ot ~ ~ ~ e~ With t~ D~ wrl~ CO~ ~ ag~ mat such ~ and eQuWmem, construct;on PeOns. etc.. snail De reinoreO from the Budchn~ aria the Real P~ny Tenant Snail not use, keep or Defmrt to Oe used of ,eof any rout or noxious gas or sudemnca in the Premises. Tenam shall r,~ pefm~ or suffer the Premises tO De Occupied or uSeO fn I manner offensive or Odleotlonaofe lo Landlord or other Occupants ot Ihe Building by reason 11. NO cOOklnQ Shall De Oona or permdled I~f on Ihe Premmas, nor shall the Premises by useel for (i) the manutacTunng Or storage Of merchandise. (.) washrag clothes, (ill) Ionind. or try) any ~mprooer, O~leCt~onaDie o~ ~mmorsi DurDoses, Ter~lM snail not use Or ~ m [he Prem~ o~ the ;;lUllO.l~ Iny ~, gasohn~. ~nftlmmaDl~ Or comouIhDle fluid Or marefill. The IocaPon Of islephones. call Poxes. and Other Oft~:e edu~omem ath~ ~ the as ~o where Ind n~ te~ a~ ~ ~ ~ m ~ ,m~ ~ ~ ~ ~ for Wlrel wdl M al~ Wright me Dr~ C~W M the ~. by closing the dOOr~ or Other. Io~ the satMy Of me farlents anG Dfotsct~on Gt the ~u~NIlg Itssit and all prooarly within ffla ~Jlkhr~. 15. Landlord reserves me rKJht to excJ~e or exDet trom me 8ul~ln~ any pe,'~on who. ~n the ludgment of LandlorO, is intoalCared at' U~ t~ infl~e M I~u~ ~ Or~ M w~ ~n any manner Oo any a~ ~n vrol~ M any M [~ ~les ~ ~u~l M ~e ~. NO vending machine Of' machines at any deSCrlD~lotl snail De installed, or OOeratecl uOOn the Premises wW10~( the prior writer con~ O~ the Landtord. 17 Landlord snail have the rrgf~, exercisable wdhout nonce and without liability to Tenant. to change the name aria strw address pt the Building of which the Premises are a Dan. Tenel~ Shall nor 015~uI1). S~iCi~, Or Ca~ any ~cuoam ~ the BUl~l~ or Gwldin~ and Shall c~rale Io OrMnt se~. Tenant S~all ~ snstall or o~rele any Dn~reDn. musical wtrel or ~er ~u~pmem ~ tfie Buildl~ or ~ t~ real Dro~y on wn~n the ~ulld~ w.~t the p.or wr~en appr~al of ~1~. 19. Without the wrmen consera Of LanOIor~. Tenant shaft nor use the name of the I~uddlng in CorlheCtlon with Or rn ptomo~ln~ Or aol~nls~Kj the Pusmast Of TeneM exc~x as T~ninl's addreSs. All anlrance and servK:e doore to the Premfses snail he Iocl~4 when the Premised 21. Tenant snail close all wlndow~ artd turn off all lights and Othe¢ electrical equipment upOn leaving the Premises at the close Of business. LanOlord 24. Tenant Shall not employ any DemOn Or Derso~s for the pulIX]ae Of cleaning Or wlnOow washing the leased premises WlthOU~ the consenl of Landlo~. Landlord Shall have no haDdl~f tO Tenant for any ;oss of property from the premises. nowever OCcumng. or for any damage done to the effects Of Tenant any Derson, including. but not limited tO, lamlors. agents. or employs of Landlord. Tenant snail not cause unnecessary lador by reason of Tenant's carelessness and m~lfference m the preservation Of good order and claanhnest. The requirements Ot Tendril will he attended to only upon application at Ihe off~ce Of Lahdlor~ Lanoford's employees shall not (i) perform any work (.) dO anlqh~ng outside of thmr Tenant Shalt not allow an~hmg to De Diecad On the OutslOe window ~ ot the Premises or to De thrown out ot the wln~ow~ of the Ruddmg. No animal or nlrd Shaft De Orought ,nip the offices. halls. carrYors. elevators or any other pan of the 8ulk:lir~ by Tenam or the aQems. employees or ~nvdees Of Tenant. Tenant snarl not place or Darnlit to De Diecad any poetruction or refuse m any pubhc pan of the Builchng. Tenaot Shall g~ LandlOrd oromDt nonce of any accidents to or Detects in the wlter gas lines. electric lights and fixtures, heating apoararus. or any Other servw, e eqwo~nent. 28. Normal busmast hours snail Do 7:00 A.M. - 6:00 PM. Mortpay o Friday. ADDENDUM TO NET INDUSTRIAL LF~%SE BT AND BETWEEN T~ CITX OF TEH~CULA, TENANT, AND WINDSOR PARTNERS - RANCHO INDUSTHIAL, LANDLORD, DATED APRIL 12, 1990 2.5 Addenda: a. Tenant Imgrovement Allowance (T.I.A.): Total T.I.A. credited towards construction of offices, restrooms, etc. is $405,420. b. First Right of Refusal: Tenant shall have a thirty (30) day first right of refusal upon written notification by Landlord for other Windsor Park I neighboring properties, excluding Building B Suite 102, to be vacated by existing tenants (three buildings that total 44,615 square feet). c. Transition Plan For the purpose of outlining in broad and general terms the City adopted Transition Plan II, the following should serve as an approx~m-te time table envisioned by both Tenant and Landlord~ - Tenant improvements on the noz"chern half of the new Building C completed by Auqust 15, 1990. - City Hall moves into half of Building C (10,223 square feet) by August 31, 1990. - Tenant improvements to old City Hall- Building D (6,805 square feet) completed by November 1, 1990. - City Council meetings begin in Old City Hall Building D on November 6, 1990. - First Annual City Hall Open House Dec-mher 1, 1990 celebrating our first year as a City. - Tenant improvements on the southern half of the new Building C (10,000 square feet) completed by January 1, 1991. d. Scheduled Payments: 1991 AMOUNT (MONTHLY) 911/90 - 1131/91 2/1191 - 3131/91 411191 - 5/31/91 6/1/91 - 6/30/91 - 0 - $ 7,156.10 NNN $12,464.00 NNN $19,464.00 NNN 1992 AMOUNT (~ONTHL¥) 7/1/91 - 1/31/92 2/1/92 - 3/31/92 4/1/92 - 5/31/92 6/1/92 - 6/30/92 $19,464.00 NNN $19,821.81 NNN $20,087.21 NNN $20,437.21 NNN 1993 AMOUNT (MONTHLY) 7/1/92 - 1/31/93 2/1/93 - 3/31/93 4/1/93 - 5/31/93 6/1/93 - 6/30/93 $20,437.21 NNN $20,812.91 NNN $21,091.58 NNN $21,459.08 NNN 1994 AMOUNT ~ MONTHL¥~ 7/1/93 - 1/31/94 2/1/94 - 3/31/94 4/1/94 - 5/31/94 6/1/94 - 6/30/94 $21,459.08 NNN $21,853.56 NNN $22,1%6.16 NNN $22,532.03 NNN FY 1995 AMOUNT ~ MONTHLY) 7/1/94 - 1/31/95 2/1/95 - 3/31/95 4/1/95 - 5/31/95 6/1/95 - 6/30/95 $22,532.03 NNN $22,946.24 NNN $23,253.47 NNN $23,658.63 NNN FY 1996 AMOUNT ~MONTHL¥) 7/1/95 - 1/31/96 2/1/96 - 3/31/96 4/1/96 - 5/31/96 $23,658.63 NNN $14,960.34 NNN $ 8,508.55 NNN 3.1 Base Rent: Building C Building D 20,223 S.F. 6,805 $.F. $14,156.10 NNN per month. $ 5,307.90 NNN per month. 3.2 Base Year: Building C - 1990 Building D - 1990 3.4 Commencement Date: Lease term shall commence in three (3) stages as set forth below~ 10,223 S.F. (Building C: North) 6,805 S.F. (Building D) 10,000 S.F. (Building C: South) February 1, 1991 April 1, 1991 June 1, 1991 3.8 Expiration Date: Lease shall expire in three (3) stages as set forth below~ 10,223 S.F. (Building C: North) 6,805 S.F. (Building D) 10,000 S.F. (Building C: South) January 31, 1996 March 31, 1996 May 31, 1996 Tenant shall have the option to renew any portion of the aforementioned lease for one (1), five (5) year period at market rate. 3.12 Parking= Tenant shall be permitted to park ninety-five (95) cars on a non-exclusive basis from 8~00 a.m. to 5~00 p.m. in the areas designated by Landlord for parking. Before 8~00 a.m. and after 5~00 p.m. Tenant shall be permitted to park in any of the available one hundred ninety-one (191) parking spaces provided within Windsor Park I. 3.16 i:~u~DepOan= s~a~lS~::y s rl~y/~de~y deument calculated as follows~p°sit upon execution of lease CITY HALL LEASE/PURCHASE ANALYSIS NET SQUARE FOOTAGE NET SQFT IMPROVED NET SQFT NOT IMPROVED DEDICATED PARKING SPACES (BUSINESS HOURS) PARKING RATIO (BUSINESS HOURS) DEDICATED PARKING SPACES (EVENING HOURS) PARKING RATIO _~(EVENING HOURS) ~UILDING TYPE LIMITATIONS AVAILABILITY PURCHASE PRICE COSTS PER SQFT (LEASE/PURCHASE) OPERATING EXPENSES (NNN,CAM, ETC)PER SQFT TOTAL ANNUAL COSTS TENANT IMPROVEMENTS ON NET SQFT NOT IMPROVED AT $15.00 A SQUARE FOOT TOTAL ANNUAL CITY COSTS (LEASE/PURCHASE) * WINDSOR RIO WINDSOR BUSINESS PARK PARK I NEDO V PARK I CENTER LEAS E PURCHASE PURCHASE PURCHASE 27028 41743 27028 42035 3100 0 3100 0 23928 41743 23928 42035 95 142 95 96 3.5 3.4 3.5 2.3 191 229 191 96 7.1 5.5 7.1 2.3 INDUSTRIAL INDUSTRIAL INDUSTRIAL INDUSTRIAL NONE NONE NONE NONE NOW NOW NOW OCT 15, 1990 N/A $2,713,295 $1,615,451 $2,595,262 $0.86 $65.00 $59.77 $61.74 $0.055 $o.o55 $o.055 N/A $27,550 $17,838 $27,743 N/A $626,145 $358,920 $630,525 $278,975 $360,250 $214,540 $349,119 PURCHASE PRICE PLUS TENANT IMPROVEMENTS WITH A BAA BOND AS OF 5/3/90 NET INTEREST COST OF 7.9% AMORTIZED OVER THE AVERAGE BOND TERM OF 20 YEARS MULTIPLIED BY TWELVE MONTHS THEN ADDED ANNUAL NNN CHARGES. COMMERCIAL BROKERAGE TO: Mr. Frank Aleshire, City Manager FROM: Westmar Commercial Brokerage DATE: April 30, 1990 SUBJECT: Windsor Park I Proposal - Purchase of Buildings C & D Dear Mr. Aleshire, On behalf of Windsor Partners, owners of Windsor Park I, Westmar Commercial Brokerage respectfully submits for your review the following proposal under the guidelines set forth in your letter dated April 25, 1990. A) NET SOUARE FOOTAGE OF BUILDING(S): The net square footage we are proposing for the City is 27,028 square feet allocated as follows: Bldg-C Bldg-D Total 20,223 S.F. 6,805 S.F. 27,028 S.F. The City shall have a thirty (30) day first right of refusal to lease space in any of the adjacent Windsor Park I neighboring properties, excluding Building B, Suite 102. The three (3) buildings total 44,615 square feet and are divisible to approximately 1000 square feet. B) TENANT IMPROVEMENTS: Improved Unimproved Total Bldg-C 1100 S.F. 19,123 S.F. 20,223 S.F. Bldg-D *2000 S.F. 4,805 S.F. 6,805 S.F. Total 3100 S.F. 23,928 S.F. 27,028 S.F. This figure may increase should the City decide to allocate an additional $45,000 for immediate tenant improvements within their existing facilities. 41530 ENTERPRISE CIRCLE SOUTH, SUITE Z06 (714) 676-7177 /- T£MECULA, CA 92390 FAX (714) 699-0048 C) DEDICATED PARKING SPACES: The City shall have ninety-five (95) parking spaces allocated to them on an exclusive basis during the business hours of 8:00 a.m. to 5:00 p.m. This figure represents 3.5 parking spaces per 1000 net square feet of the said premises. In addition, the City shall be permitted to park on a non-exclusive basis in any of the available one hundred ninety-one (191) parking spaces provided within Windsor Park I from the hours of 6:00 p.m. to 7:00 a.m. This figure represents 7.1 parking spaces per 1000 net square feet of the said premises. D) TYPE OF BUILDING(S): Windsor Park I is a five building master-planned business park consisting of four industrial buildings and one two-story office building. We are proposing that the City purchase their existing facilities, a 6805 square foot heavily improved free-standing industrial building, along with a 20,223 square foot free- standing industrial building adjacent to their current facilities. Both buildings are designed with handicapped facilities including parking, restrooms, and double-door entryways. E) OPERATIONAL LIMITATIONS: Windsor Park I is located within an MSC zoned business park. This enables the City to install a fenced storage area within the premises and thereby create a motor pool for City vehicles. Given the parking capabilities explained in paragraph C, both daytime and evening activities can be sufficiently coordinated within the premises. F) AVAILABILITY: The two buildings are available for immediate occupancy and thereby allow the City to initiate, design and construct their tenant improvements for the said premises while the buildings are in escrow. The immediate benefits of this proposal are that moving costs and the downtime associated with relocating are minimized. G) OPERATING EXPENSES: The NNN and co~on area maintenance expenses are broken down on a per square foot basis below as follows: Estimates based upon historical data. Park Association Fee .010 Insurance .015 Electricity .005 Landscaping .010 Water .005 Maintenance .010 * Taxes Total .055 * The City may be exempt from paying this amount. Given the fact that the City will be purchasing rather than leasing facilities, the NNN and common area maintenance expenses would only apply on the property owned in common with the other members of the association created under the Planned Unit Development (P.U.D.). H) PURCHASE PRICE/TERMS: Windsor Partners is offering the City of Temecula the two (2) aforementioned buildings totalling 27,028 square feet at a purchase price of $1,615,451. Upon approval of this proposal, an escrow shall be created, terms of which shall be mutually acceptable to both parties. The City shall have an opportunity to initiate, design, and construct tenant improvements for both buildings while they are in escrow at no cost to the City. If the above proposal is accepted, rent for the existing City facilities will continue as scheduled through September 1, 1990. Windsor Partners will agree to allow the City to remain in the leased premises for a four (4) month period through December 31, 1990 under the same terms and conditions currently in effect. erely, /~i Wine '- ountry I EAL ESTATE*, ,' April 27, 1990 "Diversified Real Estate Sales and Consulting" Mr. Joseph P. Hreha Manager of Information Systems CITY OF TEMECULA 43172 Business Park Drive P.O. Box 3000 Temecula, CA 92390 Dear Mr. Hreha: On behalf of the owner, Hawthorne Development Company, Wine Country Real Estate in conjunction withGrubb & Ellis is pleased to submit an Offer to Sell three buildings in Business Park Center to the City of Temecula, involving the total square footage of 4~.035 sq. ft. for the total price of $2.645.262. At this price, the cost of the buildings is equal to $62.92 per square foot. TENANT IMPROVEMENTS The buildings being offered will be provided as bare shells and will contain no tenant improvements. They will contain a ceiling clearance height of 16 feet, be fully sprinkleredand have 400 amp power available to each of the three buildings. DEDICATED PARKING SPACES The buildings being offered are included in a planned-unit development. Approximately half of the 350 total parking spaces are "common use" spaces available to all of the buildings in this development. Notwithstanding the parking area in common, the City enjoys the following parking arrangement: Daytime Parkina - Over 5 Spaces Per 1000 Feet of OccuDied Building We are suggesting that you buy allthree buildings. The third building, Building K, will have interior space to accommodate between 56 and 67 vehicles. By using Building K as a parking structure, you will have 56 to 67 spaces specifically designated and available for the City's use. No other offer can provide this type of dedicated parking. Taking the 56 to 67 interior spaces and the allowance for the occupied space available to the 42,000 square feet, you will have a parking availability to you of 163 spaces. This would provide you more than a 5 to 1 ratio of parking during the daytime. If you build out 32,000 square feet, 7,000 more for community uses, you still have 4.4 to 1 ratio. This still exceeds the RFP minimum. 28924 Front Street, Suite 106, Temecula, California 92390 · Teleohone (714] 694-1628 · Fax (Tla~ &oa_~ava Mr. Joseph Hreha CITY OF TEMECULA May 1, 1990 Page 2. Evening Use During the evening, the allocated parking spaces. are as follows: City will continue to have 163 Your evening public assemblage uses 5,000 Sq. Ft. - Council Chambers 7,000 Sq. Ft. - Other Public Uses (Theater, Youth, etc.) 12,000 Sq. Ft. - Total Maximum Evening Use 13.58:1 Ratio For Evening Usage Parkina Advantaae As we have mentioned in an earlier communication, there are real advantages to using Building K as a parking structure. It provides you security and weather protection 24 hours per day. This is particularly important for the City's expensive law enforcement vehicles. There is also an opportunity for you to use up to 7,000 square feet of space in Building K for other purposes, such as a community theater, meeting rooms, youth rooms, or other community events, and still have sufficient parking during the daytime to maintain a 4.4 to 1 parking ratio. The flexibility of being able to accommodate community groups with additional space by building out a 5,000 square foot meeting room and a 2,000 square foot meeting area could certainly work to the City's advantage. The cost for these build-outs would be very inexpensive and could even be assisted by donations and volunteer work effort. TYPE OF BUILDING The buildings proposed are of contemporarytilt-up concrete design. They will involve the extensive use of glass, aesthetically pleasing architecture, will involve 16 foot clearance, be fully sprinklered, have 400 amppower to each building and provide ground level truck access as you may designate. With respect to handicap requirements, these buildings will be at grade level and will not present a problem for access by the handicapped. Mr. Joseph P. Hreha CITY OF TEMECULA May 1, 1990 Page 3. OPERATIONAL LIMITATIONS The uses that you indicate~ motor pool, law enforcement functions, city park and maintenance operations, evening activities and other similar community events would not be in violation of any association or Covenants, Codes, and Restrictions (CC&R's) on this property. There are reasonable limitations on parking (no on- street parking allowed), reasonable restrictions on signage, and other things that protect the value and aesthetics of the property and the park. A copy of the Bedford Properties' CC&R's is attached for your review, which should confirm these statements. AVAILABILITY The owner, Hawthorne Development Company, will use its reasonable best efforts to deliver all three buildings, involving a total square footage of 42,035 square feet for the City's acceptance on October 15, 1990. If the City chooses to utilize HDCto build out the interior, the delivery date for the tenant improvements would also be October 15, 1990, contingent only on the expediency of space planning decisions by the City. OPERATING EXPENSES The estimated triple-net expenses for these three buildings involve the following: Utilities, Taxes, and Common Area Maintenance (landscaping, parking lot maintenance and lighting). This represents an average estimated amount of $.12 per square foot for the three buildings. Janitorial costs have been omitted, since the cost depends on the City's personal requirements. However, typical $.12 per foot per month. The City will be the owner the buildings, and the land specifically associated with the buildings themselves. There should be no tax component on this portion of the triple-net charges. Consult with your City Attorney in this regard, but if this is confirmed, you will be able to subtract most of the property tax element from the triple-net components. This is purely an advantage to the City as an owner rather than a lessee. Mr. Joseph P. Hreha CITY OF TEMECULA May 1, 1990 Page 4. NET SQUARE FOOTAGE The net square footage is as shown, 42,035. DEDICATED PARKING SPACES With the purchase of the three buildings, the City has the ability to have between 56 and 67 specifically dedicated interior spaces for their sole use. It is unlikely that other buildings can offer that guarantee unless they are a stand-alone office building with a 5 to i parking ratio for the building itself. In addition to the specifically dedicated spaces, the owner will construct covered parking spaces for the City Council Members and 5 additional spaces for key members of the staff. This will provide a total of 10 spaces designated in the parking lot for the City's use as they may direct. As indicated in the earlier statement, there will be as many as 163 spaces immediately available to the City, provided they use Building K as a parking facility. We anticipate that no one else will be able to designate a greater n~mher of spaces without using the interior parking arrangement we have recommended. It is probably not our role to challenge other parking ratios represented, but we fully encourage the City to verify any statements in regard to parking that may be made. An office building user cannot ignore the other tenants they have in the same complex. ADDITIONAL CONSIDERATIONS The above headings represent a complete response to the Request for Proposals. In addition to responding specifically to the Request for Proposals, the owners have authorized the following additions that will be to the City's advantage. These additions are an integral part of this proposal and should be considered as part of the total offer that has been made. The owner will provide a leasing offset to assist the City of Temecula to find additional space in the amount of $50,000 payable at the rate of $8,333 per month for a period not to exceed 6 months. This leasing offset will be reimbursed beginning on the close of escrow and continuing on a monthly basis until the amount of $50,000 has been paid by the City. It may be the desire of the City to discount the price of the building and deduct $50,000 from the sale price. Mr. Joseph P. Hreha CITY OF TEMECULA May 1, 1990 Page 5. 0 HDC will provide signage for the City as allowed by the CC&R,s and will construct, at HDC's expense, a monument sign consistent with the CC&R's, which will contain the name and identification of the City of Temecula. Wine CountryReal Estate agrees that it will provide, at no additional cost, leasing services fort he City, during the period from the date the Sales Agreement is executed until delivery of the buildings. This will include the efforts of Wine Country Real Estate and its agents to secure and negotiate leases for the City, no commissions to be paid to Wine Country Real Estate· Leasing commissions that are applicable will be paid only to the agent representing the owner's property and, of course, the lease payments themselves. William Bopf, owner of Wine Country Real Estate will, if requested and at no c~st to the City, act as a coordinating agent to assist the City with respect tot he financing that is associated with the purchase of these buildings. If the method involves the use of Certificates of Participation, or some other type of public financing, Mr. Bopf will coordinate this effort, at no cost for the City, through the consultants that have been selected by the City. Of course, consulting fees charged by other consultants will be charged directly to the City as a part of the financing package. In conclusion, the attached proposal and this cover letter are integral parts of our offer. A Summary of the offer is restated as an attachment to this letter. The attachment and this letter constitute our total offer. SUMMARY In s-mmary, I would like to point out that we have responded to every item in the City's Request for Proposals. In addition, we have offered several other items that are supplemental to and improve upon that proposal. All those items have value and have a positive effect on the total price in favor of the City. In addition, we would like to just summarize by saying that there are a number of advantages to our proposal that go beyond strictly financial considerations. They are as follows: Mr. Joseph P. Hreha CITY OF TENECULA May 1, 1990 Page 6. The buildings offered for sale are in an excellent location within one of the City's leading business parks. The properties are protected by CC&R's that will enhance the value of those properties for years to come. The purchase of the three buildings that have been offered allows the City to have up to 67 secured and protected parking spaces within Building K, and another 10 spaces dedicated for the City Council and staff immediately adjacent to the building they may select. In addition, by using this space, you can have as many as 4.4 to i parking spaces per thousand for up to 32,000 square feet of office build-out. The additional 7,000 feet (+/-), provides you with the ability to house a community theater, youth activities or other community meeting rooms at any hour of the day. NO DEBT REPAYMENTFOR_T~FIRSTYEAR: Using Certificates of Participation, the City's first year's annual payment for the three buildings would be deferred. Mr. Bopf will work with the City to demonstrate that it is possible to DEFER A~.~ DEBT SERVICE PA _Y~]~TS FOR A PERIOD OF UPTOON~ YEAR, should the City elect to fund capitalized interest in their bonding proposal· In this event, the first year payment would be ZERO and the second and subsequent years' payments would be approximately 7.5% higher. Through this device, the City would not have a payment to retire the bonds until the following fiscal year· In other words, you could pay for the building with the proceeds of your bonds and not have to make any actual payments to repay those bonds until fiscal year 1991-92, which could be a significant relief from budget concerns for the coming fiscal year. Hawthorne Development Company and Wine Country Real Estate, in conjunction with Grubb & Ellis, are pleased to submit this offer to sell three buildings to the City of Temecula, as outlined in this entire proposal· SincerelY. Wiiliam L. Bopf ~ WLB:aw CC: The Honorable Ron Parks, Mayor Karel Lindemans, Mayor Pro-Tem Sal Mu~oz, City Council Peg Moore, City Council Pat Birdsall, City Council Frank Aleshire, City Mgr. PURCHASE PROPOSAL TO TH~ CITY OF TEMECULA CIT~ ~AT.T. FACILITIES Business Pa~k Center SITE mminess Park Drive at Rancho Way. City of Temecula. BUILDING DESIGNATION Build/ngs "II", #~l and "I~", per the enclosed site plan. SQUARE FOOTAGE PURCHASE PRICE 11,882 square feet (Building "I 13,164 square feet (Building "~') 16.989 square feet (Building 42,035 s~uare feet (Total) $2,645,262 ($62.92/foot) The three (3) building are net of any tenant improvements. DEDICATED PARKING SPACES: Daytime 96 spaces (on site) 56-67 spaces (L-_side Building ""K~") 152-163 spaces (Note: At 163 spaces, the City could build out and occupy approximately 7,000 square feet of Bu/lding ""1~t, for a total o~cupancyof 32,000square feet, and still have in excess of the RFP m~nimu~.) Niahttime With the City's 163 spaces and using a total evening occupancy of 12,000 feet (5,000 for Council Chamber and 7,000 for public meeting rooms), the ratio of parking is 13.58 to 1. CITY OF TB~BCULA Purchase Proposal May 1, 1990 Page 2. TYPE OF BUILDING OPI~ATIONAL LIMITATIONS AVAILABILITY OPERATING EXPENSES Utilities Taxes Landscaping & Parking Lot (CAN) *Taxes may not be applicable Counsel. Industrial/Office, with handicap facilities and which includes dedicated parking stalls for thehandicapped. No restrictionsastothe City'susasfor (1) motor pool, (2) law enforceBent functions, (3) City and Park maintenance operationsand/or (4) evening activities. CC&R's regulate signage, which protect the site's value. HDC will use its best reasonable effort to havethe space completely available by October 15, 1990, including tenant ~nprovements if the City decides to utilize the services of HDC for the interior buildout. Based on the industry standards and specific experience of siu41ar Teuecula office/industrial projects, the City should anticipate the following operating expenses: For 17,000 Ft. Unoccupied (Buildina w~t) For 25,000 Ft. Occupied (Blda. "I" & "~w) $.02 $.07 $.o5 * $.o5 * $.o2 $,0~ $.09 $.14 x 17,000 ft. X 25.000 ft. $ 1,530/mo. $ 3,500/mo. to the City. Please refer to your own Notwithstanding the above, since the City itself will be the owner/user and since there are so many variables astousage, the project developor neither warrantsnor guarantees the above estimated operating expenses. CITY OFTKMECULA Purchase Proposal Hay 1, 1990 Page 3. NET SQUARE FOOTAGE DEDICATED PARKING SPACES: 42,035 square feet for three (3) building shells. In addition to the 96 on-site parking spaces and the 56-67 covered spaces in Building -l~e, BDC will provide the City ten (10) covered and specifically- dedicated parking spaces for the City Council members and key me~abers of the staff. ADDITIONAL CONSIDERATIONS T.R~SZNG OFFSET REIMBURSEN~NT ~ONUMENT SIGNAGE HDC will reimburse the City $50,000, payable at $8,333 per month for six (6) months com~encing at theclose of escrow. (Nay be taken as a discount to the purchase price of the building). HDC will Construct, at its expense, a monument sign at the entrance to City Hall with the City's name and logo. ~SING SERVICES In the event that the City must relocate during the construction period, Wine Country Real Estate will provide re- location leasing services at no charge to the City for its services. FINANCING CONSULTING #illia~ L. Bopf offers to consult with the City at no charge relative to Certificates of Participation. CLOSE OF ESCROW Prices are based on a close of escrow not to exceed 60 days after the Notice of Completion. CITY OF TBHBCULA Purchase Proposal Nay ! · 1990 Page 4. FIRST RIG'~T OF REFUSAL · n the event that Building *'L" is leased rather than sold· HDC will extend to the city the l~ight of First Nafusal to purchase or lease Building ttL~ (8,753 squaz'e £eet:); accepV. ance V.o be given :In vz'it::J.ng 72 hours a~V. ex' cez"c~1£ied delivez'y of the option. PHASE. 1' 0 0 0 :.:ii;i .i.;ii;i I l ,:iiiii ill llll II I II.I JIII COMMERCIAL BROKERAGE Mr. Joe Hreha PO Box 3000 43172 Business Park Drive Temec,,l~. CA 92390 Pia Oliver Principal Dear Mr. Hreha, May 1, 1990 On behalf of the owners of the property at 43300 Business Park Drive, I am responding to the city's request for a proposal to purchase a building to be used as City Hall. NET SQUARE FOOTAGE: The entire project consists of two buildings, and the owners are offering up to 41,743 SF in building A, as per enclosed site plan. Consisting of 29,887SF on 1st floor and 11,856SF on second floor with additional 2nd floor expension up to 18,031SF. Construction cost of second floor is approx. $13.00/SF. The entire building is approx. 50,000SF in size, and if the City wanted the entire building at some point, the additional 9,300SF could be made awil~ble. The space can be made available incrementally, the initial space to be not less than 20,238SF. The space offered is a net square footage with no exclusions for stairwells, mechanical shafts, corridors, etc. b) TENANT INPROVEMENTS: The building consists of ground floor and mezzanine level, and is presently in a shell state. No tenant improvements are included in the price(s) quoted. c) DEDICATED PARKING SPACES: Parking will be at 3.5 per 1,000SF as indicated on the enclosed. The number of dedicated parking spaces is 142. The owners will make an agreement with the City for additional evening-time parking spaces. This will come from agreement with building 'B'. TYPE OF BUILDING: Industrial shell building, mezzanine level. Cosntructed according to Riverside approved handicapped requirements. concrete tilt-up, with raw County standards with e) OPERATIONAL LIMITATIONS: None. The offered project is within the same Property Owners' Association as the space the City is presently occupying. There are no operational limits, nor neigbour or otherwise agreements to the best knowledge of the owners, which would limit the City in any way of the use of the facility. AVAII~,BLITY: The facility is available immediately. OPERATING EXPENSES: The present operating expenses are: property taxes: $2§,681.02; Property insurance: $625.00/mo; Property owners' association: $667.00/mo; landscaping maintenance: $600.00/mo; water and sewer cost: $375.00/mo; electricity for house meter: $386.00/mo; janitorial, misc: $350.00/mo; telephone/Alarm: $189.00/mo. 27919 Front Street · Rancho California, California 92390 · (714) 676-0123 ~.~ .. Individual Memb®r~hip SOCIETY OF INDUSTRIAL AND OFFICE REALTORS® h) The purctmse price is $65.00 per square foot. If the City would like to lease the space, and then purchase, they may do so; the lease rate would be 37.5¢ per square foot plus triple net costs. If the City wanted to purchase in increments, it could do so on a proportionate pro-rata basis with the present owners. If the City wanted to purchase both building, the entire 100,430SF the owners would consider selling the entire project. The advantage to the City would be: one building for owne use, the other for a leased income property. The 'B' building consists of approxlmstely 50,000SF and is leased at a rate of 37.5¢ triple net, providin~ an income of $225,000 per year. In view of the extremely short period of time to provide this proposal, forgive the lack of detail. I received the RFP April~-5, 1990, an-~t~ not able to discuss this with the owners until today. Please give me~a call at (714) 676-~stions. Pia Oliver ~ ~ INCO Commercial Brokerage ¥ PO:bmw Encl. c.c. Rio Nedo Partners From ; ~rqCID'F146*?F::~12~ Flau. O1.2EL::~ 04:1~ PI'I I:~ / , trafegically ~et at /~, 43300 Business Park Drive in Rancho California, with fast and eas~/ access to M5 and 215 freeways, in a modem user~friend~y and people oriented Business Park. central to diverse residential communities. Don't Settle For Less RIO NEDO V INDUgI'RIAL COMPLEX MEANS; I'~ )' Unique architecture, I~ From 3,000 ~1. fL i: designed [or multi-purpor. e ~pace '~ maxlmtttn natural high tech buildings ~', light in offlcc and titat easily adapt to il: production areas ynur fJrm's operation !, I~- Generous tr. nanl ~' Ample on-~ite ~t improvement parking 3:1 ~,: allowances I,. Extensive lush ~, Ground level landscaping ]o~din8 door~ ~. An abundant ;killed ~i w gq' clear edllng and unskilled labor ~I! ~.- Fully sprinklered units forc~ :lia Road 92300 THE K~KI:IZ"tY or Mayor Ron Parks Mayor Pro Tern Karel F. Lindemans CITY OF TEMECULA P.O. Box 3000 Temecula, California 92390 (714) 694-1989 FAX (714) 694-1999 Counciimembers Patricia H. Birdsall Peg Moore J. Sal MuBoz TO: City of Temecula Building Owners and Agents FROM: Mr. Frank Aleshire, City Manager DATE: April 25, 1990 SUBJECT: Request For Proposal 1. The City of Temecula desires to purchase a building within the City limits to be used as our City Hall. Any interested owner/agent can submit building proposals to the City of Temecula (Mr. Joe Hreha), P.O. Box 3000, 43172 Business Park Drive, Temecula, California 92390. The following building specifications must be satisfied: - NET SQUARE FOOTAGE OF BUILDING(S): 40,000 (Projects less than the net square footage may be proposed only if other buildings within the project, not included in this sale, will be offered to the City with a 30-day first right of refusal for lease, lease with an option to purchase, or purchase). - TENANT IMPROVEMENTS: All tenant improvements will be provided by the City. Proposals will contain the net square footage that is improved and the net square footage that is not improved. - DEDICATED PARKING SPACES: A minimum of 3.5 parking spaces per 1,000 net square footage of building(s) during the business hours of 8:00 A.M. to 5:00 P.M. is required. Additional parking spaces/arrangements are needed for evening activities. - TYPE OF BUILDING(S): Office building, industrial building, and any combination thereof with handicap facilities. - OPERATIONAL LIMITATIONS: Project associations, neighbor agreements, and the building design must not restrict the operations that the City Hall must accomplish, e.g., motor pool, law enforcement functions, City and park maintenance operations, evening activities, etc. - AVAILABILITY: Building(s) must be ready for occupancy either immediately or no later than October 15, 1990. - OPERATING EXPENSES: NNN and common area maintenance expenses will be clearly and completely itemized in the proposal. 2. The following terms used above are hereby defined: - NET SQUARE FOOTAGE: Usable space offered (excludes corridors, stairways, vestibules, mechanical spaces, etc.). - DEDICATED PARKING SPACES: Number of off-street spaces that will be for exclusive use of the City. 3. Request for Proposals that are received will be held strictly confidential. Information contained in the proposals will not be released until the agenda is prepared. Counter offers or changes to the proposals will not be accepted after the Request for Proposal deadline established below. Proposals should include a site plan showing location, size, roads, utilities, dedicated parking spaces, etc.. All proposals will be considered. Any or all proposals may be rejected by the City. Proposals must be submitted no later than 4:00 P.M., May 1, 1990. Please refer any questions to Mr. Joe Hreha, Manager of Information Systems, at 694-1989. Sincerely, F. D. Aleshire City Manager 2 CITY OF TEMECULA AGENDA REPORT AB#: TITLE: DEPT HD 5/8/90 MTG: Information Item Regarding OIlY A1TY DEPT: CM Development Impact Fees OilY MGR ~ RECOMMENDED ACTION: Receive a report regarding development impact fees and provide input to staff. PURPOSE The purpose of this item is to provide an overview of the process to be followed in order to establish development impact fees. It is also to receive input from the City Council concerning the types facilities necessary to be provided as the community grows. BACKGROUND The City Council has shown an interest in establishing development impact fees in order to ensure that new developments in the City of Temecula pay for and provide public facilities necessary to maintain the quality of life in the City. Presently, the City does not have a development impact fee system in place to guarantee that developments will pay for necessary public facility improvements needed to support the demands placed on the community from this growth. The City will not be in a position to adopt permanent development fees until such time as the General Plan has been prepared and adopted. The completion of the General Plan is a complicated process which will take several months to complete. Therefore, a need exists now to establish interim development impact fees which can satis~ the requirements of state law and be imposed on developments which will take place prior to the adoption of the City's first General Plan. Attached is a letter to the City Manager which describes the process which could be followed to establish interim development impact fees for the City of Temecula. FISCAL IMPACT \ The cost to prepare the interim development fees will be dependent on the type and number of facilities to be included in the study. The total cost of this study will be recouped through the collection of these fees as development takes place. EXHIBITS 1. Letter to the City Manager dated April 24, 2. Proposal to provide consulting 3. City Attorney letter dated April 17, 1990 4. Proposed Interim Ordinance 1990 WILLDAN ASSOCIATES I-I ENGINEERS & PLANNERS April 24, 1990 Mr. Frank Aleshire City Manager City of Temecula 43172 Business Park Drive Temecula, California 92390 Dear Mr. Aleshire: The purpose of this letter is to follow-up from our meeting and to address your request to have Willdan Associates describe a process and present a proposal for the preparation of development impact fees for the City of Temecula. As we discussed, the City of Temecula is a long way away from preparing and adopting its' General Plan and, therefore the establishment of permanent development impact fees is not possible at this time. However, the City does have the ability to begin working on permanent development impact fees and should move as quickly as possible to establish and adopt interim development impact fees. The City Attorney has indicated that the City of Temecula must comply with the provisions of Government Code Section 66000 in order to establish development impact fees. This section of the code requires the City to articulate the purpose and use of the proposed development fees as well as the relationship between new development and the need for these fees. The City must demonstrate that the amount of the fee imposed upon the individual development is reasonably related to the impacts caused by that development. The City Attorney also summarized the requirements for establishing, increasing or imposing a fee as a condition of approval of a development project to be: 1. Identify the purpose of the fee. 2. Identify how the fee will be used. 3. Determine the nexus between the fee being imposed and the development being required to pay the fee. 6363 GREENWICH DRIVE · SUITE 250 · SAN DIEGO, CALIFORNIA 92122-3939 - (619) 457-1199 · FAX (619) 452-6680 April 24, 1990 Page - 2 Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or a portion of the facility attributable to the development on which the fee is being imposed. Willdan Associates has extensive experience in the preparation development impact fee programs and has completed similar programs in communities throughout California including Chula Vista, San Marcos, Escondido and Apple Valley. The following briefly summarizes the process for creating development impact fee programs: 1. 2. 3. o 10. Determine the facilities required to accommodate development. Establish service level or capacity requirements for each facility. Determine land use information, including the existing and build out land uses. Calculate the existing facility demand and ultimate demands based upon the facility service level or capacity requirements. Prepare cost estimates for each facility. Determine what types of development will impact each facility. Establish development impact fees based upon the information obtained above. Prepare the necessary documents, Development Impact Fee Report and specific resolutions and ordinances for the City Council's consideration. Meet with the effected property owners to review this information and to discuss the process which will be followed by the City to adopt development impact fees. Establish finance policies for the Cit?s use when considering development proposals. April 24, 1990 Page - 3 The specific preparation of development impact fees for the City of Temecula is somewhat more complicated than for most cities. As a new city, the General Plan has not been established. Consequently, much of the information generally used to prepare and adopt development impact fee programs is not available. As a result, permanent development impact fees can not be established at this time. However, before the General Plan and specific facility master plans are prepared and adopted, Willdan Associates would propose to undertake the work necessary to establish interim development impact fees to be charged any development which occurs prior to the adoption of the City's General Plan. Attached is a proposal and time frame necessary to prepare these interim development impact fees for the City of Temecula. After the General Plan has been completed there will be a need for the City to prepare detailed Master Plans for each of the facilities identified in the development impact fee report. From these Master Plans more specific cost estimates will be made, timing of improvements identified, and then the permanent development impact fees can be established that reflect this information. The work undertaken to prepare the interim fees could also be used when the permanent fees are established. We would be happy to discuss the proposed process with you and to present the City Council with an information item on their next agenda to clarify. the actions which need to be taken in order to prepare development impact fees. If you have any questions, please do not hesitate to call me. Sincerely, WILLDAN ASSOCIATES Philip O. Carter Manager Growth Management Services General Plan Elements Public Facilities ELement Master Plans Quality of Life Element Define those which make a Quality Community Civic Facilities Parks Create a system to guarantee a quality Community as it develops Libraries Police Stations Fire Stations Circulation Systems Maintenance Facilities Geographical Information Systems PROPOSAL TO PROVIDE CONSULTING SERVICES FOR THE PREPARATION OF A DEVELOPMENT IMPACT FEE STUDY FOR CITY OF TEMECULA April 24, 1990 -- A. Introduction This proposal addresses the request to prepare interim development impact fees for the City of Temecula. The results of this undertaking will be the creation of a list of proposed facilities necessary to maintain the quality of life in the City of Temec- ula as growth occurs, including the preliminary cost estimates for these facilities, a methodology to be used to create the interim development impact fees and the documents necessary for the City to adopt the fees. ao Proposed Approach and Methodology Based on the meeting held with the City Manager requesting that this work be undertaken and our own understanding of the scope of work, we offer the following outline of the tasks required to successfully complete the project. Task 1. Meet with City to determine what facilities will be required to maintain the quality of life in the City as development takes place. Task 2. Collect existing development information and project the ultimate residential and non-residential build out of the City. Task 3. Collect data necessary to establish the level of service or capacity required for each facility Task 4. Evaluate facility impact fee information for other cities for comparison purposes. Task 5. Develop the specific methodology to assess the impact fees for each type of future development. Task 6. Determine historical and projected future increases in service and facilities costs in order to arrive at a proposed annual adjustment factor for each impact fee. Task 7. Identify and apply applicable local, State and Federal statutes including Government Code Section 66000 (AB1600) to the fee methodologies where appropriate. Task 8. Prepare a Interim Development Fee Report from the information developed in Tasks 1-7 above, for staff and City Council review. Present the Report to the City Council. Task 9. Along with the Interim Development Fee Report, present the neces- sary ordinances for City Council consideration. This task will be completed with assistance from the City Attorney. Task 10. Together with a final report and fee ordinances, make at up to two presentations before the City Council. Task 11. Prepare a documentation manual that provides criteria and methodology for use by City staff and/or consultants for the preparation of the final development impact fees. C. Time Schedule and Fee It is proposed that the Interim Development Impact Fee Report be presented for City Council consideration within sixty (60) days following the execution of this agreement. The fee for this project will be a fixed amount of $ D. Project Team Resumes The project team resumes are attached. VENTURA COUNTY 0FFfCE 2310 PONDEROSA DRIVE SUITE 1 CAMARILL0, CALIFORNIA 93010 (805) 987-3468 TELECOP)ER: (805) 482-9834 LAW OFFICES 3200 BRISTOL STREET SUITE ~O COSTA MESA. CALIFORNIA ~6~6 April 17, 1990 LOS ANGELES OFFICE ONE WILSHIRE BUILDING 6:~4 SOUTH GRAND AVENUE. IITM FLOOR LOS ANGELES, CALIFORNIA 90017 (:~ 13) 236-O6OO TELECOPIER: (213; Mr. F. D. Aleshire City Manager CITY OF TEMECULA 43172 Business Park Drive Temecula, California 92390 Re: Public Facilities Fee Ordinance Dear Frank: This letter is intended to be both an introduction and guide to Assembly Bill 1600 (#AB 1600#) and Government Code Section 66484 regarding the establishment and imposition of development fees for construction of public facilities, and an explanation of the enclosed ordinance conditioning all future development on payment of public facility fees. We will supplement and expand upon this information as particular conditions arise, of course, but we hope that this correspondence proves to be a helpful introduction to the law as it applies to the City of Temecula. I. AB 1600 (Government Code Section 66000 E_~t Seq.) Following the United States Supreme Court decision in Nollan vs California Coastal Commission, (1987) 483 U.S. 825, the California Legislature enacted AB 1600 which is codified at Government Code Section 66000, et seq.. In essence, Section 66001 requires cities to make certain determinations before establishing, imposing or increasing development fees. These required determinations compel a city to articulate the purpose and use of putposed development fees as well as the relationship between new development and the need of the fees. More importantly, a city is required to demonstrate that the amount of a fee Mr. F. D. Aleshire April 17, 1990 Page 2 imposed upon an individual development is reasonably related to the impacts caused by that development. A. APPLICATION OF AB 1600. Government Code Section 66001 states that #[i]n any action establishing, increasing, or imposing a fee as a condition of approval of a development project by local agency on or after January 1, 1989, a local agency must do all of the following: 1. Identify the purpose of the fee. 2. Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified. That identification may be made in a capital improvement or circulation plan, or other public documents that identify the public facilities for which the fee is charged. 3. Determine how there is a reasonable relation- ship between the fee's use and the type of development project on which the fee is imposed. 4. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed. 5. Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed. 1. #Fee.# For the purposes of Government Code Section 66001, "fee# means a monetary exaction, other than a tax or special assessment, which is charged to a development for the purpose of defraying all or a portion of the cost of public facilities. (Government Code Section 66000(b)) A fee does not include: (1) fees charged in lieu of parkland dedication pursuant to Government Code Section 66477 ("Quimby Act Fees#); (2) fees for processing applications; (3) fees collected pursuant to development agreement; or (4) fees collected pursuant to a reimbursement agreement to the Mr. F. D. Aleshire April 17, 1990 Page 3 extent that those fees exceed the need for the public facility attributable to the development. 2. #Public Facility." Development fees are generally limited to financing the construction, expansion, and upgrade of public facilities. (Government Code Section 66000(d)) Development fees cannot generally be charged to offset the cost of maintenance of public facilities. (Government Code Section 65913.8) 3. If a city makes the findinqs required by Government Code Section 66001 when it establishes or increases a fee, is it required to make the same findings for imposition of a fee on an individual project? The Legislative Counsel has issued an opinion stating that Government Code Section 66001 requires local governments to make the findings required by Government Code Section 66001(1) not only at the time that a fee is established, but also at the time that a fee is imposed. (Legislative Counsel of California Opinion No. 18851, July 20, 1988) As a general rule, it should not be difficult for the City to make Section 66001 findings at the time that the City imposes a fee that has previously been "established." The City should be able to simply readopt the Section 66001(a) determinations made at the time that the fee was established. However, sometimes, there may be a project which warrants a fee greater or lesser than that contemplated upon establish of the fee. In that case, new and specific determinations should be considered. II. BRIDGE AND MAJOR THOROUGHFARE FEES In addition to the public facilities fees available to the City under AB 1600, any new road fee that can be imposed during the subdivision process should comply with the bridge and major thoroughfare provisions of the Subdivision Map Act. Under Government Code Section 66484, a city may require by ordinance the payment of a fee to defray the actual or estimated costs of constructing bridges over Mr. F. D. Aleshire April 17, 1990 Page 4 waterways, railways, freeways, and canyons, or of constructing major thoroughfares, as a condition to subdivision map approval or issuance of a building permit. The ordinance must refer to the circulation element of the general plan (Govt C § 66484(a)(1)), and provide for determining in a public hearing a fair method of allocating costs and apportioning fees within the area to be benefited (Govt C § 66484(a) (3)). Provision for filing protests by the owners of a majority of the property in the area to be benefited must also be included in the ordinance. Govt C § 66484(a) (6). Fees collected under the ordinance must be deposited in a planned bridge facility or major thoroughfare fund and may be expended only for construction of the improvements. Govt C § 66484(e). In addition, the local agency may impose a reasonable charge on property within the area benefited by a bridge or major thoroughfare to reimburse either the subdivider or the local agency for construction of the bridge or thoroughfare. Govt C § 66489. Conceivably, this Section could be the basis for assessing existing developments, but I have never heard of it being used in this manner. III. PROCEDURAL REOUIREMENTS FOR ESTABLISHING PUBLIC FACILITIES IMPACT FEE PROGRAM Enclosed is a detailed outline of the steps that should be taken in order to establish a public facilities fee. In brief, the steps are as follows: Prepare a Capital Facilities Plan establishing a master plan of needed facilities at build- out. Prepare a "nexus" analysis establishing the demand for new facilities created by new developments, while deducting existing demand. Reduce the new facilities to a dollar total, deduct existing demand, and then divide the total by the total number of units, square feet or another appropriate measure of new development. Mr. F. D. Aleshire April 17, 1990 Page 5 4. Example: (a) 100 miles of arterials needed = $100M (b) Existing deficiency = 50 miles; that is, new developments create demand for 50 miles = $50M. That figure can be further apportioned to 60% commercial = 30 miles = $30M, and 40% residential = 20 miles = $20M. (c) At build-out, there will be 3,000,000 additional square feet of commercial M = $10/sq ft. impact fee ($30M ~ 3,000,000). There will also be 4,000,000 square feet of residential = $5 sq. ft impact fee ($20M · 4,000,000). IV. INTERIM PUBLIC FACILITIES ORDINANCE. Developing the above of analysis is likely to take considerable time, particularly in terms of allocating the deficiencies between future and existing development. In the meanwhile, a substantial number of building entitlements will have been granted, and those projects will avoid paying any fees. Consequently, I recommend adopting an interim ordinance requiring that all persons presently pulling building permits agree to pay any future public facilities fees that the City ultimately establishes. Enclosed in draft interim ordinances providing for bridge and major thoroughfare, police station, civic center fees, and non-residential park fees. Please note that all persons pulling building permits will be required to post security for the maximum amount of the future fees. This will insure that the City will be able to collect the fee once it is established. It will also insure the developer that whatever fee ultimately paid will be fair. The major provisions of the interim ordinance are as follows: The interim ordinance includes a maximum fee that can be charged. Although this limit is not legally required, it is very helpful in determining what the security to be posted should be. I understand Mr. F. D. Aleshire April 17, 1990 Page 6 Willdan is already working on developing what the fee should be. Fees are levied to offset the cost of road improvements, a police station, and a civic center. Also, to complement the existing Quimby (parkland) fee on residential development, a parkland fee is levied on nonresidential development. Findings are included regarding the impact on health and safety resulting from the various public facility deficiencies. This finding is necessary to impose the fees on vesting maps. This is likely to be a highly controversial issue, involving a significant risk of litigation. However, it should also be noted that although vesting maps are not subject to new regulations, the County did include in its development agreements exemptions to permit the imposition of new regulations, including the following: "Regulations imposing Development Exaction; provided, however, that no such subsequently adopted Development Exaction shall be applicable to the Property unless such Development Exaction is applied uniformly to the development either throughout the COUNTY or within a defined area of benefit that includes the Property." Because this contractual provision overrides the protection of vesting maps, it makes it possible to impose new fees on properties subject to development agreements. Lastly, one complication in adopting an impact fee ordinance is taking into account the impact fees already being collected. Obviously, any new fee program should only be for public facilities not provided for in the existing programs. At this time, there are actually two fee programs in place. First, pursuant to Riverside County Ordinance Mr. F. D. Aleshire April 17, 1990 Page 7 No. 659 (enclosed), all residential development in RSA 49 (Temecula) pays the following mitigation fees: RSA 49 - $1,157.00 Public Facilities Fee $ 350.00 Regional Parkland and Recreational Trails Fee $ 260.00 Habitat Conservation and Open Space Lank Bank Fee Second, the development agreements provide for higher fees, and further, that the County is to retain a portion of such fees, even those collected after incorporation. Apart from whether County retention of fees is legal (and I find it very suspect), we must determine just what the fees are for so that we can determine the actual level of the City's deficiencies. The fact that additional time must be taken to determine how the existing impact fees are to be used further supports adopting an interim ordinance to bridge the time until the final ordinance is ready. CONCLUSION I hope the foregoing information provides a helpful guide to the general requirements for the establishment and imposition of public facilities and traffic fees. Should you have any questions regarding any issues discussed in this letter, please do not hesitate to contact me. Sincerely, Scott F. Field city Attorney CITY OF TEMECULA sff/LTR15410 sff/LTR15410 Be PROCEDURAL REOUIREMENTS FOR ESTABLISHING PUBLIC FACILITIES FEES. Preliminary Analysis Identify the reasons why the city wants to establish, increase or impose the fee. Identify the use to which the fee is to be put. (a) To construct certain new facilities. (b) To rehabilitate certain types of public facilities. (c) To defray the cost of certain public services. (d) To defray the cost of specific community amenities· Is there a general or specific plan provisions that specifies a required size, level or prevalence of public facilities, services or community or rehabilitation of the improvements? Is there an already adopted capital facilities plan which indicates the need for the improvements or contains a timetable for construction ore rehabilitation of the improvements? Prepare a Capital Facilities Plan, refer to one already created, or prepare a staff report that identifies the purpose and use of the fee, and includes the following elements: A master plan of public facilities needed to accommodate trend growth and build-out of master plan. Determinations and definitions of the level of service or capacity required for each facility. -8- sff/LTR15410 A needs analysis comparing the anticipated required capacity of facilities with the currently required capacity of facilities. A deficiencies analysis comparing the existing facilities with the currently required capacity of facilities. Development fees cannot be charged to mitigate existing deficiencies not attributable to future development. A determination of the types of development to which the fee will be applied. A determination of the cost of the needed facilities including administration and financing costs. The amount of the fee based on the need for the public facility created by each type of development. C. Determine whether environmental review of the proposed plan is necessary. De Prepare a Developer Fee Ordinance and Resolution. If a fee is to established and imposed regularly upon a variety of different developments, then an ordinance and resolution containing the elements specified below should be adopted. Developer Fee Ordinance 1. Preliminary Elements. (a) Purpose of the fee (b) Findings as to need and use nexus 2. Definitions (a) Identify the capital improvement plan or other plan for the facilities. (b) Define development project. -9- sff/LTR15410 3. Establish the developer fee. 4. Indicate when the fee is to be paid. Thus for, example, payment at the building permit stage for all development projects except residential developments. (Government Code Section 66007) 5. Provide a procedure to give fee credits for required improvements. 6. Establish an appellate process. 7. Establish which projects "in the pipeline" will be subject to the fee. Developer Fee Resolution. 1. Title 2. Purpose 3. Section 66001(a) findings 4. Adoption of the capital improvement plan 5. Method of calculating the developer fee and Section 66001(b) finding 6. Establish the amount of the developer fee for each type of development 7. Provide for cost indexing. The City should set a date that fees can first be imposed after a #final action" on the fees. (Sixty days minimum unless findings are made regarding the current and immediate threat to the public health, safety and welfare. (Government Code Section 65962)) -10- sff/LTR15410 Ee Notice and Hearing Government Code Section 65962 requires compliance with the following conditions of Government Code Section 54992 before establishing a development fee: At least one public meeting at which oral or written presentations can be made. Fourteen (14) day mailed notice to parties which have requested such notice. The notice shall contain the time and place of the meeting, a general explanation of the matter to be considered, and a statement of the availability of the date described below in subsection (3). Data Indicating the estimated cost of the facility and the revenue sources anticipated to fund the facility must be available to the public ten (10) days before the hearing. For a bridge and major thoroughfare fee, additional steps must be taken, including allowing for a majority protest. F. Post collection procedures. Deposit fees collected for a particular public facility into a separate account which shall not be commingled with other monies except for the purposes of temporary investment. (Government Code Section 66006(a)) Commit money to a particular project upon collection or during the budgeting process. Make findings regarding the need for the fees if the fees have not been expended or committed within five years. (Government Code Section 66001(d)) Refund the unexpended or uncommitted portion of the fee if findings cannot be made regarding the continuing need for the fees. (Government Code Section 66001(e)) -11- sff/LTR15410 Within 60 days of the close of each fiscal year, for each separate account or fund established, make available to the public the following information: (a) the beginning and ending balance for the fiscal year; (b) the fee, interest, and other income collected during the fiscal year; (c) the amount of expenditures from the account, categorized by public facility; and (d) the amount of refunds made during the fiscal year pursuant to step 4. (Government Code Section 66006(b) The City must review the information complied pursuant tot step 5 at the next regularly scheduled public meeting not less than 15 days after the information is made available to the public. (Government Code Section 66006(b)) -12- jec/ORD12300(041790-2) ORDINANCE NO. 90- AN URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA PROHIBITING ISSUANCE OF BUILDING PERMITS OR, IN THE ALTERNATIVE, REQUIRING AGREEMENTS TO PAY FEES TO DEFRAY COST OF CONSTRUCTION OF MAJOR THOROUGHFARES AND BRIDGES AND PUBLIC FACILITIES. THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This is an interim measure adopted pursuant to Government Code Section 65858. SECTION 2. The purpose of the Ordinance is to provide a mechanism for preserving the opportunity for imposition of fees pursuant to a fee program to be considered in the near future in order to insure that future development shall pay its fair share of the costs of constructing public facilities and transportation systems adequate to serve that development. SECTION 3. This Council finds that: (a) The Circulation Element of the Southwest Area Community Plan of the County of Riverside shows that major thoroughfares and bridges need to be built. (b) The n~wly incorporated City of Temecula requires a civic ceenter in order to provide municipal services to the residents and businesses of the city. City intends to develop a plan in the immediate furute esstablishing the level 9of municipal services to be at build-out. At this time, it is estimated the City will require the following: The Civic Center site of 100,000 square feet 50,000 square feet square feet square feet square feet acres. City Hall; Police Station; Community Center; Performing Arts Center; Maintenance Yard. The estimated cost of these facilities is $ (c) Ordinance No. 659 of the County of Riverside, as the same was incorporated into the Temecula Municipal -1- jec/ORD12300(041790-2) Code by Ordinance No. 90- , does not adequately address the need for public facilities and major thoroughfares and bridges as caused by new development within the City of Temecula. (d) Government Code Section 66484 authorizes the City to require by ordinance the payment of a fee as a condition of approval of a final subdivision map or as a condition of issuing building permit for the purpose of defraying the cost of constructing major thoroughfare and bridges. (e) Article , Section of the California Constitution and Government Code Section 66001 et. seq. authorize the City to require the payment of a fee on new development to defray the cost of public facilities. (f) The Circulation Element of SWAP identifies many intersections and thoroughfares of the City as providing traffic levels of service ("LOS") as Level "D# or lower. According to , at LOS D and lower, the risk of traffic accidents increases substantially. Consequently, any development contributing traffic to thoroughfares and intersections at LOS D or lower, either now or at ultimate build-out, poses a substantial danger to the health and safety of residents of the development and the immediate community. Accordingly, this Ordinance shall be applied to all otherwise vested developments unless the owner can demonstrate that the development does not contribute to intersections and thoroughfares at LOS D or less. (g) Ordinance No. of the County of Riverside, as the same was incorporated into the Temecula Municipal Code by Ordinance No. 90- , does not address the demand placed on City recreational facilities by nonresidential development. At this time, it is estimated that every square feet of nonresidential development demands acres of local or community parkland. The estimated cost of parkland is $ per acre. (h) Without the City Hall, maintenance yard, police station and additional parkland described above, the City will be unable to provide adequate basic municipal services, including police protection, road maintenance, fire protection, solid waste collection and park services. Consequently, any development contributing additional demand for such municipal services poses an immediate danger to the health and safety of the future residents of the community. Accordingly, the fees to construct the -2- jec/ORD12300(041790-2) facilities should be imposed on all building permits, including those for vested maps. SECTION 4. No building permit shall be approved within the City; provided, however, that building permits may be issued upon execution by the applicant of an agreement, accompanied by security, providing that the applicant shall participate in a fee program adopted by the City in order to finance, in total, or in part, public facilities and major thoroughfares and bridges within the City. SECTION 5. The City Attorney shall develop a form of agreement providing for participation in any fee program adopted by the City for payment of all or part of the cost of providing public facilities and major thoroughfares and bridges within the area. The agreement shall provide for the posting of security to insure payment of the fees established by the program upon adoption of the program. The agreement shall also provide that, should a fee program not be adopted on or before [ Date ], the agreement shall be of no further force or effect and the security shall thereupon be released. The agreement shall further provide that nothing therein shall limit the applicant's right to protest or otherwise oppose adoption of a fee program. As the amount of fees which may be required by a fee program cannot be ascertained until adoption thereof, the city Attorney shall fix a maximum commitment in the agreement. That amount shall be as follows: Bridge and Major Thorogughfares Fee Der unit Single-Family Unit Multi-Family Unit Non-Residential per 1,000 square feet City Hall. Police Station & Maintenance Yard Fee per unit Single-Family Unit Multi-Family Unit Non-Residential per 1,000 square feet -3- jec/ORD12300(041790-2) Community Center. Performinq Arts Center Fee per unit Single-Family Unit Multi-Family Unit Non-Residential per 1,000 square feet Parkland Fee Der unit Non-Residential per 1,000 square feet In the event that the fee program provides for higher fees, the agreement shall provide that the differences between such fees and the above amount shall be waived. SECTION 6. only until [ Date repealed. This ordinance shall remain in effect ] and, as of such date is SECTION 7. This ordinance shall not apply to development which is exempt from property taxation. Nor shall it apply to permits for remodeling or reconstructing existing structures to the same number of individual dwelling units or equal commercial building area, or to permit for construction of retaining walls, patio covers, swimming pools, and other non-inhabitable residential structures. SECTION 8. Should any person in receipt of any permit or entitlement believe that they have a vested right to develop without compliance with this Ordinance, they may apply for an exemption to this Ordinance. Such exemption may be granted by the City Council only upon recommendation by the Planning Commission and after due notice and public hearing thereon by both bodies. SECTION 9. The City Council determines that it is necessary for the proper functioning of the City government, and therefore necessary for the protection and preservation of the public peace, health, safety and general welfare, that this Ordinance be adopted as an urgency ordinance and that the same take effect immediately upon its adoption. SECTION 10. This Ordinance is adopted pursuant to Government Code Section 65858. This Ordinance shall remain in effect until and may, thereafter, be extended in the time and manner provided by law. -4- jec/ORD12300(041790-2) SECTION 11. SEVERABILITY. The City Council hereby declares that the provisions of this Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any sentence, paragraph, or section of this Ordinance to be invalid, such decision shall not affect the validity of the remaining parts of this Ordinance. SECTION 12. That the City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law. PASSED, APPROVED AND ADOPTED this , 1990. day of ATTEST: RON PARKS MAYOR F. D. ALESHIRE City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) CITY OF TEMECULA ) I, F. D. Aleshire, city Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 90-__ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the day of , 1990, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the day of , 1990, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: APPROVED AS TO FORM: F. D. ALESHIRE CITY CLERK Scott F. Field City Attorney CITY OF TEMECULA AGENDA REPORT AB#: MTG: DEPT: TITLE: DEPT HD 5 / 8 / 9 0 Riverside County CITY ATTY CM Sheriff Department &greement CITY HGR ~ RECOMMENDED ACTION It is recommended that the City Council approve the Riverside County Sheriff's Department Agreement for Law Enforcement Services in Temecula. BACKGROUND The Law Enforcement Committee feels this proposal provides the needed level of service and recommends your favorable action. If reductions are necessary due to budgetary restrictions, the Committee suggests that changes in the contract proposed by the Sheriff's Department, be reviewed by City Staff and the Public Safety Commission. The Commission will be appointed in the near future. Furthermore, the Committee recommends consideration be given to the following issues: 1) Location and size of City Police offices (10,000 sq. ft. was suggested by Chief John Jones) 2) Office hours for the Community 3) City identity on uniforms and vehicles 4) School Resource Officer options as follows: a) School District funded b) Cost shared by City and School District c) City funded City o_-' ?emecuJa Discussion Document Contract Proposal Riverside Prepared by: County Sheri~f's Department Cots Byrd, Sherill TABLE OF CONTENTS INTRODUCTION II. III. IV. V. VI. VII. VIII. DEMOGRAPHICS ............................................. 1 POPULATION ............................................... 2 REPORTING DISTRICTS ...................................... 3 SHERIFF'S ACTIVITY ....................................... 3 TRAFFIC ACTIVITY ......................................... ? LAW ENFORCEMENT CONTRACT COSTS ........................... 9 SPECIALIZED FUNCTIONS .................................... 13 CITY IDENTITY ............................................ 14 APPENDIX A - CALLS FOR SERVICE ........................... 15 B - YEARLY COMPARISON BURGLARY/THEFT ............ 16 C - YEARLY COMPARISON CRIMINAL/NON-CRIMINAL ..... 17 D - ACTIVITY BY DAY OF WEEK ..................... 18 E - ACTIVITY BY HOUR OF DAY ..................... 19 F - ACTIVITY BY MONTH ........................... 20 G - YEARLY TRAFIC COLLISION COMPARISON .......... 21 INTRODUCTION The City of Temecula has incorporated and as of July 1, 1990, will start their own city services. The Riverside County Sheriff's Department is desirous of providing general law enforcement services to the City through contract agreement. This draft proposal is submitted to the City of Temecula for discussion. There have been no detailed discussions concerning the proposal with anyone in the city government. In order to meet the FY 1990-91 schedules and hiring deadlines, it is important to address the contract issue as soon as possible. January 23, 1990 I. DEMOGRAPHICS Incorporated on December 1, 1989, the City of Temecula is the sixth largest city in Riverside County in population, with 26 square miles and a population of 30,561. (Per City Manager Frank Aleshire, the State Department of Finance uses the number of registered voters multiplied by 3 to determine population. It was determined through the Riverside County Registrar of Voters that there are 10,187 registered voters in Temecula.) The new city consists of communities formerly called Rancho California and Temecula. Highway 15 runs north to south through the western portion of the city. Though no major highways run east to west in the city limits, two service roads do run east to west connecting the city with outlying areas. The city extends to the southern limits of the county, adjoining with the San Diego County border. The northern limits of the city adjoin the unincorporated areas of Murrieta and Murrieta Hot Springs. The city limits to the east adjoin a continuation of the unincorporated area of Rancho California and the city limits to the west adjoin the unincorpo- rated area of Santa Rosa. The areas east and west of the city limits are sparsely populated with low density housing and agricultural use. Available land and a broad range of housing costs have given the city a "swelling" population. Migration from San Diego County, Orange County and parts of Riverside County have added to the population of the city in recent years. Fundamentally residential in nature, there is a strong emphasis being placed on industry. A portion of the city along the western most limits is dedicated to environmentally sound industrial growth. - 1 - General law enforcement has been the responsibility of the Riverside County Sheriff's Department from its Lake Elsinore Station. Increased population means increased called for services including both criminal and non-criminal activities. The trend of increased activity is expected to continue for several years prior to the area stabilizing. Traffic enforcement and accident investigation have been the responsibility of the California Highway Patrol. As of July I, 1990, the CHP will no longer perform these functions. All traffic related activity will become part of general law enforcement responsibility. II. POPULATION The population of a city is a major consideration when determining the need for service. In the preparation of this proposal, four different population figures from reliable sources have been suggested. In addition to the estimate of 30,561, the following estimates were submitted. The Riverside County Planning Department has determined that there are currently 6,734 dwelling units in the city limits. Using an accepted standard of 3.2 as an average number of residents per dwelling unit, the population would be 21,549. The U.S. Postal Service has determined that there are 9,361 dwelling units currently in the city limits of Temecula. Using the same formula of 3.2 residents per unit, the population would be 29,955. The Southern California Edison Co. has determined that there are 10,127 dwelling units based on the electric hook-ups in the city limits. This company uses the average occupancy rate as 2.6 residents, making the population 26,330. By using the county figure of 3.2, the population would be 32,406. Thus, there are -2- five different population figures to be proposal. used in determining the For the purposes of this proposal, the population figure of 30,561, supplied by City Manager Frank Aleshire h&s been used in determining proposed staffing and deployment levels. III. REPORTING DISTRICTS For use in the following activity figures, Temecula is defined as the area which falls into the following established reporting districts. Since the reporting districts do not follow the same boundaries as the new City Limits, an estimate of activity in certain districts must be made based on what percentage of the activity occurs within the City Limits. As illustrated, two of the reporting districts fall entirely within the City Limits while two are only partially within the City Limits. Dist. 052D (5%) Dist. 053 (100%) Dist. 054 Dist 061 (20%) Northern Temecula North/Central Temecula South/Central Temecula Southern Temecula IV. SHERIFF'S ACTIVITY Generally, the Department discusses total called for services which include any on-sight (Deputy generated) activity~. The total is divided into three categories; criminal, non-criminal~ and traffic. The criminal activities, as implied, are violations of laws reported to the Sheriff's Department for a given area. The non-criminal are the many activities requested by citizens, but are not violations of law such as missing persons, check the welfare, emergency messages, etc. Traffic includes both traffic law enforcement and traffic collision investigation. 2 - See Appeld I z C -3- The criminal activity which is most likely to impact someone is theft. Theft investigations are also the major activity of most law enforcement agencies. Some figures showing this will follow~. The purpose of this information is to lay a foundation based on statistical data which will aid in the deployment of manpower and resources in the City of Temecula. Data used in this report was gathered from the 1988, 1987, and 1988 Riverside Sheriff's Annual Reports and data from the Crime Pattern Analysis Unit's Criminal Inquiry System for 1989. The following information reflects the activity occurring within the City Limits during the past 4 years. The purpose is to illustrate the rapid increase in activity during this time. CRIMINAL ACTIVITY BY DISTRICT District 1986 1987 1988 1989 052D (5%) 12 9 12 26 053 (100%) 746 659 1039 j850 054 (100%) 923 1579 1804 2595 061 (20%) 16 ,,~2 24 31 TOTAL: 1697 2269 2879 4502 Year to Year Percentage Increase/Decrease: 1986 To 1987 = +33.7% 1987 To 1988 = +26.88% 1988 To 1989 = +56.37 1986 To 1989 = +165.29% -4,- NON-CRIMINAL ACTIVITY DISTRICT J.986 ~,987 052D (5%) 4 3 053 (100%) 494 343 054 (100%) 617 709 061 (20%) 7 ,, 8 TOTAL: 1122 1063 1988 7 609 716 8 1340 4989 13 1061 1200 2288 Year to Year Percentage Increase/Decrease: 1986 To 1987 = -5.25% 1987 To 1988 = +26.05% 1988 To 1989 -- +70.74% 1986 To 1989 = +103.92 TOTAL CRIMINAL/NON-CRIMINAL ALL DISTRICTS 1586 1987 1988 1989 2819 3332 4219 6790 Year to Year Percentage Increase/Decrease: 1986 To 1987 = +18.19% 1987 To 1988 = +26.62% 1988 To 1989 = +60.93 1986 To 1989 = +140.86% BURGLARY~ DISTRICT 1986 lg~y 1988 1989 052D (5%) I 2 2 3 053 (100%) 119 82 127 293 054 (100%) 116 218 253 417 061 (20%) ,,3 5 5 5 TOTAL: 239 307 387 718 -5- Year to Year Percentage Increase/Decrease: 1986 To 1987 = +28.45% 1987 To 1988 = +26.05 1988 To 1989 c +85.52% 1986 To 1989 = +200.41% THEFT~ DISTRICT !986 1987 1988 1,989 052D (5%) 1 1 2 3 053 (100%) 112 119 124 320 054 (100%) 125 116 274 415 061 (20%) 2 2 2 3 TOTAL: 240 238 402 641 Year to Year Percentage Increase/Decrease: 1986 To 1987 = -0.83% 1987 To 1988 = +68.90% 1988 To 1989 = +59.45% 1986 To 1989 = +167.08% Based on 1989 data, the following is a breakdown of activity by time of day, day of month, by month and by shift. This information is further supported by graphs located in the attached appendix. ACTIVITY BY DAY OF WEEK2 Monday = 14.7% Thursday = 13.8% Tuesday = 14.9% Friday = 15.1% Wednesday = 15.1% Saturday = 13.6% Sunday = 12.8% -6- ACTIVITY BY MONTH~ January = 6.3% May = 7.5% February = 5.8% June = 8.4% March = 6.6% July = 8.3% April = 7.0% August = 10.5% September = 9.1% October = 9.8% November = 9.4% December = 11.3% ACTIVITY BY TIME OF DAY' 0000-0200 = 5,6% 0200-0400 = 4.2% 0400-0600 = 4.2% 0600-0800 = 8.1% 0800-1000 = 12.5% 1000-1200 = 10.5% 1200-1400 1400-1600 1600-1800 1800-2000 2000-2200 2200-2400 = 9.9% = 9.3% = 9.6% = 10.0% = 8.7% = 7.4% Watch I Watch II ACTIVITY BY SHIFT = 22.0% = 42.5% Watch III = 35.5% V. TRAFFIC ACTIVITY Traffic statistics have been obtained from California Highway Patrol Monthly Collision Logs. the Temecula All collisions referred to herein occurred on surface streets within the city limits of Temecula~. Collisions occurring on Interstate 15 are not included as these will remain the responsibility of the C.H.P. These figures include non-injury, injury and fatal collisions. 3 - See Appoid I z G -7- Traffic collisions have increased by 127.3% in a two year period of 1987 to 1989. There is every reason to believe that significant increases in traffic collisions will continue until the population of Temecula stabilizes. Through the addition of a dedicated traffic team, the escalating number of traffic collisions occurring in the City will be stabilized or decreased even in light of increased traffic. Currently, the California Highway Patrol has no available statistics for traffic citation activity within the City Limits. In 1986 there was one fatal collision. In 1987 there was one fatal collision. In 1988 there were four fatal collisions and in 1989 there were six fatal collisions. Four Year Traffic Collision Statistics 1986 1987 2988 1989 168 178 304 400 Year to Year Percentage Increase/Decrease: 1986 To 1987 = +6.0% 1987 To 1988 = +72.7 1988 to 1989 = +31.6% 1986 To 1989 = +141.0% 1987 to 1989 = +127.3% -8- VI. TEMECULA LAW ENFORCEMENT DEPOYMENT AND COSTS BASED ON FY 89/90 RATES Current Deployment Cu'rrent deployment in the area is about 48 hours per 24 hour period. This equates to two Deputies for each of the three eight hour shifts per day. This deployment has not been adequate compared to activity and size, but represents a distribution of available resources. The added responsibility of traffic enforcement and investigation would make this deployment even more unsuitable. Provosed Devloyment The Sheriff's Department has determined through studies that the ratio of Sworn Personnel to population should be 1.5 per 1000. This ratio does not include personnel dedicated to certain activities such as traffic enforcement and School Resources Deputies. This proposal recommends the addition of one Deputy to act as a School Resource Officer and five Deputies to act as dedicated traffic personnel. Based on the current population estimate of 30,561, and utilizing this ratio, the recommended staffing level is 52 sworn personnel' 1.5 X 30.561 = 46 plus 5 traffic deputies and 1 school resource deputy = 52 Sworn personnel. Of these 52 sworn personnel, 40 are Deputies and the remaining 12 are made up of Lieutenants, Sergeants and Investigators as shown below. Captain~ Lieutenant Sergeants Investigators %~1 IIFFOlIJIll IlJl~OF~Otl%l, IFIII, Coltract City le veil -9- This complement of personnel would be deployed as follows: Watch I Patrol Watch II Patrol Watch III Patrol Target Team Traffic Team Crime Prevention School Resource Officer Detective Unit Supervision Management Administration Midnight to 8:00 AM 8:00 AM to 4:00 PM 4:00 PM to Midnight - 10 Deputies - [0 Deputies - 11 Deputies - 2 Deputies - 5 Deputies - I Deputy - 1 Deputy - 5 Investigators - 5 Sergeants - I Lieutenant - 1 Captain Actual patrol, traffic and target team deployment would represent a maximum of 68,400 hours a year, which when averaged would equate to: o 187 hours per day; o 7 or 8 deputies per days per year. 8 hour shift, 3 shifts per day, 365 Necessarily, there would be a minimum level of deployment agreed to, thus creating a "window" of deployment level. The need for a window is caused by such factors as needed flexibility to address enforcement problems and personnel attrition, selection, recruit- ment and training. Community Service Officer Team - 4 Sheriff's Aide II's In addition to sworn personnel, the recognized the value of non-sworn personnel being used "passive" policing functions. These non-sworn Sheriff's Aide II positions, commonly referred to as "Community Service Officers" (CSO's), will be responsible for passive policing functions to Sheriff's Department has in include past criminal reports, traffic collision investigations, assisting in crime scenes and any other passive functions that are normally handled by patrol deputies. The intent is to provide a lower cost position to handle simpler tasks, freeing the patrol deputy for more proactive patrol time. The cost of these positions is in addition to the cost for sworn personnel. It is recommended that the City employ a team of 4 CSO's to perform this support role. Cost Determination The contract Law Enforcement rate for FY 89/90 is $53.52 per hour. This cost includes all of the listed support positions required for each deputy. In addition, this rate also covers costs involved with administration, clerical, records, warrants, communications, etc. Community Service Officers are available at a rate of $17.41 per hour. Not included in the cost is vehicle mileage which is charged at the rate of 42 cents a mile for a black and white patrol unit and 38 cents a mile for a plain unit. It is estimated that a black and white patrol unit is driven an average of 30,000 miles per year and a plain units is driven an average of 12,000 miles per year~. Considering the number of deputies in the proposed contract, there will be a need for approximately 15 black and white patrol units and 4 plain units. Using these figures, the yearly cost of operating 15 black and white units is $189,000.00. The yearly cost to operate 4 plain units is $18,240.00. The total cost for operating all units is $207,240.00. In determining the final cost of these positions the Sheriff's Department utilizes the following formula: # of Personnel X 1800 Productive Hours X Hourly Rate = Total Cost 40 Deputy Sheriff's X 1800 Hours X $53.52 = $3,853,440.00 4 CSO's X 1800 Hours X $17.41 = $125,352.00 Estimated Vehicle Mileage Cost = $207,240.00 Total Annual Contract Cost = $4,204,298.00 OTHER COSTS Office Space As a result of growth in the southwestern portion of Riverside County, the Sheriff intends to build a facility near the French Valley Airport. Pending it's completion, the Sheriff will lease office space in the Temecula area. This will provide service to the unincorporated area as should it contract with enforcement. well as to the City of Temecula, the County of Riverside for it's law The City would be expected to pay a pro-rated share of the costs. CAL-ID Each city in the Counties of Riverside and San Bernardino are participating in and supporting a regional automated fingerprint system (CAL-ID). It is based on an annual per capita cost which this fiscal year is $0.597682279. Based on a population of 30,561, the annual share of the City of Temecula will be $18,266.00. This amount is included in the final proposed total found above. VII. SPECIALIZED FUNCTIONS Special activities that require a need for specialized law enforcement are separated into four categories· These positions are taken from the complement of 40 Deputy Sheriff's under contract. Each of these special positions are outlined below. Target Team Traffic Team Crime Prevention/Neighborhood Watch Programs. School Resource Officer TARGET TEAM - 2 Deputies The Target Team will be a "crime specific" unit for the City of Temecula composed of a team of two deputies which is available for uniformed or non-uniformed details. The Target Team will be used for a variety of purposes including, but not limited to, robbery stake outs, off road vehicle enforce- ment, arrests of subjects under the influence of drugs, drunk driving enforcement, stake outs for drug sales and selected enforcement problems identified by crime analysis. TRAFFIC TEAM - 5 Deputies The traffic team will be comprised of five deputies taken from the complement of 40 deputies assigned to the city. Their responsi-bililty will be to promote traffic safety through traffic law enforcement and traffic collision investigation. These deputies will be specially trained in the area of traffic accident investigation and reconstruction and may also be trained in areas such as commercial vehicle enforcement and impaired driver detection. NEIGHBORHOOD WATCH - I Deputy The Neighborhood Watch Program is designed to improve the public's awareness of how to reduce and prevent burglary and thefts. This is done through a program of cooperation of all members of the community, improved home/business security and Operation ID. This position is to be filled by a sworn deputy and may be supplemented by a Community Service Officer. This service will be available to all residents and business owners within the City Limits. SCHOOL RESOURCE OFFICER - t Deputy The School Resource Officer position is designed to provide the local schools with a law enforcement liaison. The Deputy would provide students with information on drug abuse, drinking and driving, crime prevention and other safety related topics. The Deputy would also handle the majority of on campus criminal investigations. This position would be filled by a Deputy Sheriff out of the complement of 40 Deputies under contract. VIII, CITY IDENTITY Should the City elect to contract with the Sheriff's Department, it may choose to personalize it's complement of Deputies and marked units. This would be accomplished by using tan uniforms with personalized shoulder patches as well as vehicle door emblems using a City of Temecula logo. This option is currently being used by Moreno Valley as well as other contract cities. Conversely, the City may decide to retain the Sheriff's Depart- ment uniform and vehicle markings as the City of Norco has done. - l&- 0 -I~ o~ Appendix A 0 limaam, ~0 - lS - Appendix B 0 1 0 0 L o('D - 16 - Appendix C 0 0 0 0 0 0 0 41. 0 0 0 0 0 0 2'0 ZO m 0 - 17 - Appendix D - 18 - - It)- Appendix E o~ ~ Z ~ 0 - 20 - Appendix F ~.0 0 0 I ,101 ro o I 0 0 Appendix G - 21 - CITY OF TEMECULA AGENDA REPORT AB#: TITLE: CABLR TRLEVI'S'FOH FRAHCH'FSE AHALYS:!:S DEPT HD MTG: 5/8/~o CITY ATT DEPT: I)TS CITY RECOMMENDATION: Receive and file. BACKOROUND= There are six cable television companies that currently have Riverside County licenses apparently authorizing them to operate a cable television system in the City of Temecula. All of the licenses were authenticated by County officials prior to the City of Temecula becoming a City. Three of the cable television companies applied for County licenses less than one year prior to the incorporation of the City of Temecula. This rush to receive a license is not an attempt by the cable television companies trying to get a license prior to our incorporation. Rather, the rush is attributed to the fact that a new State law, which became effective January 1, 1990, demands all new licenses require new cable television companies to parallel existing cable television systems. This law will eliminate multiple companies in an area each having their own monopoly. Instead, the consumer will have multiple cable television service from which to choose. This forced competition is expected to lower basic cable television rates and improve the service to the consumer. The following is a short synopsis of each cable television company with the action that has been taken or will be taken by your staff: - DIMENSIONS AKA TIMES MIRROR: Dimensions' County license was granted on September 12, 1989 for 15 years and accepted by Dimensions on November 17, 1989 (See Attachment A). The license authorizes Dimensions to operate in the then unincorporated areas of Temecula. However, Dimensions' County license is considered not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: - Two duly authorized officers did not accept the license as signature is recorded on the license. Dimensions' corporate required. Only one - The license agreement does not contain a corporate seal as required by the license. - The required surety bond was not filed within ten days after the issuance of the license as required by the license. The license did not become effective until November 17, 1989. - Dimensions did not in good faith commence construction in the Temecula area within four months from the issuance of the license as required by the license. 1 A letter from the City will be sent to Dimensions notifying them that their County license is not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the aforementioned reasons. - KING VIDEOCABLE COMPANY: King's County license was granted on November 20, 1984 for 15 years and accepted by King on February 4, 1985 (See Attachment B). King was included in this report due to unofficial information that King was planning to expand into the City of Temecula. The license does not authorize King to operate in the then unincorporated areas of Temecula. Therefore, the license is considered not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: - As indicated by the County, King has a license authorizing King to operate within the Lake Elsinore unincorporated area of the County of Riverside. This "limited service area" has been designated as Bundy Canyon. - The license agreement does not contain a corporate seal as required by the license. - The required surety bond was not filed within ten days after the issuance of the license as required by the license. - King did not in good faith commence construction in the Temecula area within four months from the issuance of the license as required by the license. A letter from the City will be sent to King notifying them that their County license is not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the aforementioned reasons. - TOTAL TV OF CALIFORNIA, INCORPORATED: Total's County license was granted on December 6, 1988 for 15 years and accepted by Total on February 23, 1989 (See Attachment C). The license authorizes Total to operate in the surrounding unincorporated areas of Temecula. However, Total's County license is considered not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: - The license appears to specifically target Lake Mathews, Pettis, Edgemont, Lake Perris, Lakeview, and the Woodcrest areas of the County of Riverside as Total's license area. Even exhibit "A".of the license does not highlight Temecula. The County has indicated that Total is authorized to operate in the Western unincorporated portions of Riverside County. This has not been factually proven by the County. - The license agreement does not contain a corporate seal as required by the license. - The required surety bond was not filed within ten days after the issuance of the license as required by the license. - Total did not in good faith commence construction in the Temecula area within four months from the issuance of the license as required by the license. A letter from the City will be sent to Total notifying them that their County license is not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the aforementioned reasons. - CONTINENTAL C/%BLEVISION: Continental's County license was granted on AugUst 28, 1967 for 25 years and accepted by Continental on September 12, 1967 (See Attachment D). The license authorizes Continental to operate in the then unincorporated areas of Temecula. However, Continental's County license is considered not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: - The license agreement does not contain a corporate seal as required by the license. - The required surety bond was not filed within ten days after the issuance of the license as required by the license. - Continental did not in good faith commence construction in the Temecula area within four months from the issuance of the license as required by the license. A letter from the City will be sent to Continental notifying them that their County license is not a valid license to operate a cable television system within the jurisdiction of the city of Temecula for the aforementioned reasons. - JONES INTERCABLE INCORPORATED: Jones' County license was granted on October 31, 1989 for 15 years and accepted by Jones on January 18, 1990 (See Attachments E and F). The license authorizes Jones to operate in the then unincorporated areas of Temecula. However, Jones' County license is considered not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: - Two duly authorized Jones' corporate officers did not accept the license as required. Only one signature is recorded on the license dated January 18, 1990, over one and one half months after our incorporation. - The license agreement does not contain a corporate seal as required by the license. - The required surety bond was not filed within ten days after the issuance of the license as required by the license and was filed on January 18, 1990, over one and one half months after our incorporation. - Jones did not in good faith commence construction and diligently proceed with the completion of the work within four months from the issuance of the license as required by the license. One receiver with one subscriber is not considered diligent and complete. A plant, an office in the City, and a business address within the City does not exist. A letter from the City Attorney was sent to Jones (See Attachment F) on April 26, 1990 notifying them that their County license is not a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the aforementioned reasons. Jones was requested to cease all expansion, construction, and operations within the City limits of Temecula, immediately. - INLAND VALLEY CABLEVISION: Inland Valley's County license was granted on May 28, 1985 for 15 years and accepted by Inland Valley on August 1, 1985 (See Attachment G). The license authorizes Inland Valley to operate in the then unincorporated areas of Temecula. Inland Valley's County license is considered a valid license to operate a cable television system within the jurisdiction of the City of Temecula for the following reasons: unincorporated incorporation. - They have been operating in the Temecula areas for over four years prior to our - They have over 80% of the available market within Temecula and have made a substantial investment in their cable television system. license. They did have two corporate officers sign their - No corporate seal is present on their license and their surety bond was not filed within ten days of the issuance of the license. However, these minor omissions do not in themselves render a license invalid, especially since they were five years ago when complete jurisdiction was under the County. To deny Inland Valley the authority to operate within the City of Temecula after they have successfully satisfied every other license requirement for over one-third of their 15 year license term could not be legally supported and would not be in the best interests of Inland Valley, the City of Temecula, and the over 6,865 City subscribers. 4 Near the expiration of Inland Valley's license (August 2000), Inland Valley will be required to request renewal of their license from the City of Temecula. In the meantime, Inland Valley Cablevision has agreed to enter into an addendum to the County license with the City of Temecula addressing those specific issues that cities must oversee. For example, public and municipal channel access, performance criteria establishment and monitoring systems, educational support, auditing agreement, franchise fee payments, etc.. This addendum would be negotiated after the City Council approves a City Cable Television ordinance. Staff has been tasked to study the cable television issue, gather public comments and desires for multiple cable television systems, meet with the local School District and receive their input, and draft a City ordinance for cable television. It is anticipated that these actions will be completed in six to nine months depending upon other City priorities. FISCAL IMPACT= None. ATTACHMENTS~ (A) (C) (D) (E) (F) Copy of Dimensions' License Copy of King's License Copy of Total's License Copy of Continental's License Copy of Jones' License Copy of City Attorney's ltr to Jones Copy of Inland Valley's License 1 2 6 7 8 9 10 11 12 16 17 18 19 20 21 22 2~ 2~ 2§ 26 27 28 GERALD J. GEERUNGS COUNTY COUNSEL SUITE 300 3535- lOTH STREET RIVERSIDE. CALIFORNIA A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM ALONG, UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE UNINCORPORATED AREAS ADJACENT TO THE CITIES OF RIVERSIDE, MORENO VALLEY, CORONA, NORCO, LAKE ELSINORE, PERRIS, SAN JACINTO, HEMET, BEAUMONT AND BANNING WITHIN THE COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to Times Mirror Cable Television, herein called "Licensee", for a period of fifteen (15) years from the date hereof to construct, operate and maintain a community antenna television system comprised of a system of antennae coaxial cable or other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside, including without limitation the distribution of broadcast television' ' signals or radio signals, specialized programming or any other video, audio or data transmission to or from subscribers, along, under and across such public roads as now or may hereafter exist within the unincorporated areas adjacent to the Cities of Riverside, Moreno Valley, Corona, Norco, Lake Elsinore, Pettis, San Jacinto, Hemet, Beaumont, and Banning within of the County of Riverside, as shown on the map attached hereto as Exhibit "A" "Public roads" as used in this license means any public highway, road, street, lane, alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensee shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County, and shall make no installation or excavation, in, on or over any road under the County's jurisdiction without first obtaining an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In any State highway, Licensee shall abide by all provisions of State laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines of a public utility company are reasonably available for use by Licensee pursuant to a pole attachment agreement with the public utility company, Licensee shall not erect any poles for the purpose of installing its operating equipment. -1- 1 2 6 7 8 9 10 11 12 1§ 16 17 18 19 20 21 22 25 2A 2§ 26 27 28 G~RALD J. GEERUNGS COUNTY COUNSEL SUITE 300 353S- IOTH STREET RIVERSIDE. CALIFORNIA be Pay to the County on demand the cost of all repairs to public property made necessary by any of its operations. Indemnify and hold the County, its officers and employees harmless from all liability for damages resulting from all operations under this license. Remove, relocate or place underground, at its own expense, any equipment and facilities installed under this license, if the County determines that it is necessary for any reason, including construc- tion of a new road, change of grade, alignment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public pro- perty, or the construction, maintenance or reloca- tion of any installation of a public utility operating under a franchise. Take out and maintain public liability insurance satisfactory to the County to protect Licensee and the County, its officers and employees, against ~ 'ss from liability imposed by law for damag~ on -:ount of bodily injury, including death, result- ~,~g therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person in~ured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where the transmission and distribution facilities of the public utilities providing tele- phone service and electric service are underground or hereafter may be placed underground, then Licensee shall also place or relocate all of its transmission, amplification and distribution facilities underground. 4. Licensee, in making its service available shall not discriminate for or against any suppliers of television sets, and in those areas where service is made available, Licensee shall provide service to all applicants in the order of receipt of orders therefor, so far as reasonable and practical. No person, firm or corporation in the approved service area of Licensee shall be arbi- trarily refused service; provided, however, that Licensee shall not be required to provide service to any subscriber who does not pay the reasonable, applicable connection fee or monthly service -2- 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 GERALD J. GEERUNGS COUNTY COUNSEL SUITE 300 3.535- lOTH STREET RIVERSIDE. CALIFORNIA charge. Licensee shall not discriminate either in favor of or against any subscriber or potential subscriber of CATV services on the basis of sex, age, race, creed, color or national origin. 5. The County, State, or any city or public agency may con- struct any new road, and improve, reconstruct, repair or maintain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other public improvement. Upon thirty (30) days notice being given to Licensee of the work, and area in which it is to be performed, Licensec shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of Licensee. 6. If the State. County, any city or public agency shall acquire the property of Licensee, either by purchase or through the right of eminent. domain, this license .shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensee to the County at the time of the appli- cation for the license. 7. Licensec may. without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed five percent (5%) per year: provided, however, that Licensee shall have notified each sub- scriber at least thirty (30) days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with Licensec and, provided further, that Licensee shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within ten (10) days after such increase takes effect. Notwithstanding the fore- going, Licensee may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communica- tions Commission adopted pursuant to 47 U.S.C. Section 543(b), as amended, provide that Licensec is subject to effective competi- tion. If Licensee is not determined to be subject to effective competition under such rules and regulations, Licensee shall be permitted to adjust the rates and charges for its basic CATV service as provided in such rules and regulations. Except as otherwise provided in this paragraph or applicable law, the County shall not regulate the rates and charges for basic CATV service provided by Licensec. For the purposes of this license, "basic CATV service" shall mean the service tier or tiers of Licensee's CATV system which includes the retransmission of local television broadcast signals. -3- 1 2 4 5 6 7 8 9 10 11 12 14 8. Upon request, Licensee shall provide CATV service, with- out charge, at the following locations: a. Police and fire stations: b. Public libraries: c. Public schools: and, Other public buildings owned and controlled by the County used for public purposes and not for resi- dential use. This obligation shall be limited to (i) making one standard installation at one point reasonably convenient to use at the location in question and shall not require the wiring of an entire building, and (ii) providing only Licensee's basic CATV service. In the event service calls or repairs are required for any location as to which such service is rendered without charge following initial installation, Licensec shall be entitled to charge therefor in accordance with its then effective rates and charges for such service. 9. This license shall not be construed to impose upS~ the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction 15. within four (4) months from the issuance of this license and shall diligently proceed with the completion of'the work. If significant 16 construction has not been accomplished within one (1) year of cer- tification by the Federal Communications Commission, this license shall be forfeited. The CATV system shall be installed and main- tained in accordance with standards generally accepted in the cable television industry for similar cable television systems similarly situated, the requirements of this license and the rules and regulations of the Federal Communications Commission applicable to cable television systems. 17 18 19 2O 21 22 2~ 24 25 11. All final, published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this license on the date said final rule is adopted. This license shall, in all respects, be interpreted and applied so as to be con- sistent with the Cable Communications Policy Act of 1984, as from time to time amended (47 U.S.C. Sections 521, et seq.), applicable California law, and the rules and regulations of the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such Act shall prevail. 12. This license shall not be construed to require Licensec to implement a policy of construction which will require a complete 27 wiring of the service area. However, Licensee shall be required to extend energized trunk cable from any existing terminus of the 28 CATV system to any area immediately adjacent thereto having a GERALD J. GEERUNGS COUNTY COUNSEL SUITE 300 3535- 10TH STREET RIVERSIDE. CALIFORNIA -4- density of at least forty (40) single-family residential dwelling units per cable/conduit mile: provided, however, that Licensec shall not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas and Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is Licensee required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 6 13. Licensee shall establish procedures for the investiga- tion and resolution of all complaints regarding its cable televi- ? sion service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality 8 of service, equipment malfunctions, billing disputes and similar matters. Licensec shall maintain an office with a toll free tele- 9 phone number in the area to be served that will be open to receive inquiries or complaints during business hours, and in no event less 10 than 9:00 A.M. to 5:00 P.M., Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than 11 three (3) business days from their receipt by Licensec: provided, however, that where unusual circumstances exist, Licensee shall 12 have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said record~ ~ill 13 indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time 14 and date thereof. These records shall be made available for periodic inspection by the County. All such records shall be kept 1§ on a calendar year basis and no records less than three (3) years old shall be destroyed by Licensec. Licensec shall, at the time 16 the subscriber initially receives cable television service, provide each subscriber with the above information, together with the toll 17 free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies 18 the subscriber of this information. 19 14. All actions of Licensec pursuant to this license shall be subject to review by the Clerk of the Board of Supervisors or 20 his designee. 15. Licensec shall pay annually to the County five percent (5%) of its annual gross receipts derived from the operation of the cable system; however, such receipts shall not include (a) refunds made to subscribers in connection with such services to the extent that the amount of such refund has been included in the determination of annual gross receipts, (b) bad debts written off by Licensec in the usual and ordinary course of business to the extent that the amount thereof has been included in the determina- tion of annual gross receipts, (c) amounts received from subscri- bers in the nature of refundable security deposits, and (d) taxes imposed by law on the subscribers which Licensee is obligated to collect and pay to federal, state or county governments. Licensee 'shall file with the Clerk of the Board of Supervisors, within three (3) months after the expiration of each calendar year, following the issuance of this license, a verified statement GERALD .I. GEERUNGS COUNTY COUNSEL SUITE 300 3535.10TH STREET RIVERSIDE. CALIFORNIA -5- 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 showing its total annual gross receipts during the preceding year. Not more than fifteen (15) days thereafter, Licensee shall pay to the County of Riverside an amount equal to five percent (5%) of said annual gross receipts. 16. This license may be terminated prior to its date of expiration by the Board of Supervisors in the event the Board finds, after thirty (30) days notice of proposed termination and after a full public hearing affording due process, that (a) Licensee has failed to comply with any provision of this ordinance; or (b) any provision of this ordinance has become invalid or unen- forceable and the Board of Supervisors further finds that such provision constituted a consideration material to the granting of the license; or (c) the County acquires the CATV property of Licensee. Failure to comply with any of the conditions of this license shall constitute cause for forfeiture hereof, in addition to all other rights held by the County. If the County forfeits this license, Licensee shall be excluded from any further opera- tions hereunder. If the license is forfeited by the County, or if Licensee shall cease operations under the license for any reason, Licensee shall contact the Road Commissioner and perform all work necessary to attain certification that any facilities installed by Licensee in the public roads pursuant to encroachment permit have been removed or left in a condition that does not require r~oval, and that no further action is needed to protect the public interest. 17. Licensee shall file an approved corporate surety bond in favor of the County in the penal sum of $10,000.00, conditioned that Licensee shall well and truly perform every term and condition hereof and, in case of any breach of condition, the whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. The bond shall be filed with the Clerk of the Board by the original licensee within ten (10) days after issuance of this license. Any subsequent holder of this license shall file a similar bond within thirty (30) days of the approval of the trans- fer of this license by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This license shall not be effective until Licensee has filed an approved bond. If the license is forfeited, or if Licensee shall cease operations under the license for any reason, the surety bond or cash deposit shall not be released until Licensee obtains the required clearance from the Road Commissioner. 18. Licensee shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this license if such delay or failure arises from any cause or causes beyond the reasonable control of Licensee, including without limitation labor dispute, strikes, other labor or industrial dis- turbances, acts of God, floods, lightning, shortage of materials, rationing, utility or communication failures, earthquake casual- ties, war, acts of a public enemy, riots, insurrection, freight or other embargoes, blockages, actions, restrictions, regulations, orders or quotas imposed by any government, agency or subdivision GERALD ,I. GEERUNGS COUNTY COUNSEL SUITE 300 3535 · 10TH STREET RIVERSIDE. CALIFORNIA -6- 1 2 $ thereof, inability to secure necessary parts or materials oc any similar causes. 19. This license is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 20. Licensec recognizes and understands that this license may create a possessory interest subject to property taxation and that licensec may be subject to the payment of the property taxes levied on such interest. 21. Any transfer of this license requires the approval of the Board of Supervisors. No approval or disapproval of a pro- posed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirements of Sections 3, 4 and 5 of Riverside County Ordinance No. 503, as amended. The Board of Supervisors may, as a condition of approval of the transfer, require the new licensec to pay to the County of Riverside that percentage of its annual gross receipts which new applicants are then required to pay. 22. All rights, obligations and duties imposed by this license are binding on Licensec, its successors and assigns. 23. Licensec shall have the right to request renewal of its license upon written notice delivered to the Board of Supervisors not less than six (6) months before expiration of the original term of this license. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. Section 546, as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the license is renewed, the renewal term shall be for five (5) years and upon such conditions as are contained in its license as in effect on the date of its expiration or upon such other conditions as the County and Licensee shall agree. Should the County deny the renewal request, such denial shall be accompanied by a written statement setting forth the reasons for such denial. Should renewal proceedings not be completed prior to the expiration of the original term of this license, Licensec shall have the right and authority to continue operation of its CATV system pursuant to the terms and conditions of its license until such time as the renewal proceedings are finally concluded unless the delay or failure to complete the proceedings is due primarily to the action or inaction of Licensec; 23 IIII 24 IIII 25 //// 26 IIII 27 //// 28 //// GERALD J. GEERUNGS COUNTY COUNSEL $urr~ aoo 3.535 * 10TH STREET RIVERSIDE. CALiFORNiA -7- 1 2 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 2O 21 22 2~ 24 25 26 27 28 GERALD J. GEERUNGS COUNTY COUNSEl SUITE 300 3535 - lOTH STREET RIVERSIDE. CALIFORNIA but in no event shall the right to continue operation under this provision continue for more than three (3) months after the expiration date of the license. ATTEST: BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA GERALD A. MALONEY ¢' Clerk of the Board By [/' Chai~n, Board of Supervisors (SEAL) Licensec hereby accepts and agrees to faithfully perform and abide by all the terms and conditions of this license and understands 'that this license is not effective until an approved surety bond has been filed. Dated: //~7/~ TIMES MIRROR CABLE TELEVISION OF RIVERSIDE COUNTY, INC. Title'. Senior V.P., Operations By Title: (Corporate Seal) GB:jf OO161it 103089 -8- ASSISTANT SECRETARY'S CERTIFICATE The certify that: undersigned, Rose H. Perez, does hereby Secretary of County, Inc. She is Times the duly elected and acting Assistant Mirror Cable Television of Riverside Inc. 1978. was Times Mirror Cable Television of Riverside, incorporated in the State of California on May 5, seal. 3. The corporation does not have a corporate IN WITNESS WHEREOF, she has executed this certificate as of the 21st day of November 1989. ROSE H. PEREZ Assistant Secretary 1 4 5 6 ? 8 10 11 12 15 14 15 16 1'7 18 19 21 28 A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A TELEVISION ANTENNA CABLE SERVICE ALONG,'UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE LAKE ELSINORE AREA, COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to KING VIDEOCABLE COMPANY, a Washington corporation, for a period of 15 years from the date hereof to construct, operate and maintain a television antenna cable service which will transmit and distribute light and/or electrical impulses and signals to produce reproductions of sights and sounds for television or radio purposes, along, under and across such public roads as now or may hereafter exist within the Lake Elsinore unincorporated area of the County of Riverside, as shown on the map attached hereto as Exhibit "A." ae "Public roads" as used in this license means any public highway, road, street, lane, alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensee shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County, and shall make no installation or excavation, in, on or over any road under County's jurisdiction without first obtaining an encroachment permit under Ordinance No. 449 or any amendment or revision thereof. In any state highway, Licensee shall abide by all provisions of state laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines for a public utility company are reasonably available for use by Licensee pursuant to a pole attachment agreement with the public utility company, Licensee shall not erect any poles for the purpose of installing its operating equipment. be Pay to the County on demand the cost of all repairs to public property made necessary by any of its operations. Co Indemnify and hold the County, its officers, and employees harmless from all liability for damages resulting from all operations under this license. 1 2 $ 4 5 6 Remove, relocate or place underground, at its own expense, any equipment and facilities installed under this license, if the County determines that it is necessary for any reason, including construction of a new road, change of grade, alignment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public property, or the construction, maintenance or relocation of any installation of a public utility operating under a franchise. 7 8 9 10 11 12 15 14 15 Take out and maintain public liability insurance satisfactory to the County to protect Licensee and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death resulting therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $100,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 16 17 18 19 20 21 22 25 24 25 26 27 28 COUNTY COUNSF..L 3.535 - lffl'H STeEr RIV~$1D~. CALIFORNIA 3. In any area of the County where the transmission and distribution facilities of the public utilities providing telephone service and electric service are underground or hereafter may be placed underground, then the Licensee shall also place or relocate all of its transmission, amplification and distribution facilities underground. 4. Licensee, in making its service available shall not discriminate for or against any suppliers or television sets, and in those areas where service is made available, Licensee shall provide service to all applications in the order of receipt of orders therefor, so far as reasonable and practical. 5. The County, State, or any city or public agency may construct any new road, and improve, reconstruct, repair or maintain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may remove any such road or other public improvement. Upon 30 days notice being given to the Licensee of the work, and area in which it is to be performed, the Licensee shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to 2 1 2 3 4 5 6 7 8 permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost aad expense of Licensee. 6. If the State, County, any city or public agency shall acquire the property of Licensee, either by purchase or through the right of eminent domain, this License shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensee to the County at the time of the application for the License. 9 10 11 14 7. Licensee shall not charge any sums other than those approved by the Board of Supervisors for regular subscriber services at the time of granting this License unless modifications of the charges for regular subscribed services are approved by the Board after appropriate public proceedings affording due p~ocess. For purposes of this License, charges for regular subscriber services shall be limited to charges for installation of the necessary equipment, all broadcast, signal carriage, and programs carried on access or origination channels. Regular subscriber services shall not include services for specialized programming for which a per program or per channel charge is made. 15 16 17 18 19 2O 21 22 25 24 25 26 27 28 COUNTY COUNSEL 353~- 10TH STREET RIVERSIDE, CALIFORNIA 8. Any proposed changes in the approved schedule of charges for regular subscriber services shall be filed with the Board of Supervisors together with such documents and statements as are necessary to justify the changes. Upon receipt of a schedule of proposed changes, the Clerk of the Board shall set a date for a public hearing thereon, which date shall not be less than 15 nor more than 45 days from the receipt of the proposed charges. Not less than 15 days prior to the date of said hearing, the Clerk of the Board shall cause notice of said hearing to be given in the community or district in which the television antenna cable service will be located by causing to be published, once, in a newspaper of general circulation in the County, a notice setting forth the fact that an application for a change in the rates charged to its television antenna cable service subscribers has been filed by Licensee and the area of the County that will be affected by the change or rates if said changes are approved. Licensee shall be notified by mail of the date of the hearing. Licensee shall attend the hearing fully prepared to give specific and detailed information regarding its capital investment, expenses of operation, income, equipment, amortization schedule, and all other information necessary for a determination of fair and just rates for services rendered. The County shall allow and provide for a fair and reasonable return upon investment to 'Licensee. In the event the California Public Utilities Commission assumes jurisdiction over the operation and rates of Licensee, then the authority of the County to approve charges shall cease. 3 1 5 8 ? 8 10 11 12 14 15 18 17 9. This License shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction within 4 months from the issuance of this License and shall diligently proceed with the completion of the work. If significant construction has not been accomplished within one year of certification by the Federal Communications Commission, this License is forfeited. 11. All final, published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this License on the date said final rule is adopted. 12. This License shall not be construed to require the Licensee to implement a policy of construction which will require a complete wiring of the service area. 13. The Licensee shall establish procedures for the investigation and resolution of all complaints regarding its cable television service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctions, billing disputes and similar matters. Licensee shall maintain an office with a toll free telephone number in the area to be served that will be open to receive inquiries or complaints during normal business hours, and in no event less than 9:00 A.M. to 5:00 P.M. Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than 3 business days from their receipt by Licensee; provided, however, that where unusual circumstances exist, Licensee shall have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said records will indicate the nature of each service 18 complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall 19 be made available for periodic inspection by the County. All such records shall be kept on a calendar year basis and no records less 20 than 3 years old shall be destroyed by Licensee. Licensee shall, at the time the subscriber initially receives cable television 21 service, provide each subscriber with a card upon which is printed the above information together with the toll free telephone number 2Z of the local office which will receive all complaints. 25 24 15. Licensee shall pay annually to the County three percent (3%) of its annual revenue. Annual revenue, for purposes of this License, shall be limited to that revenue Licensee receives as a result of providing its customers with regular subscriber services as that term is defined by the Federal Communications Commission. Licensee shall file with the Clerk of the Board of Supervisors within 3 months after the expiration of each calendar year, GERALD ~. GEERUNGS COUNTY COUNSF. J_ RIVERSIDE. CAUFORNIA !4. All actions of Licensee pursuant to this License shall be subject to review by the County Clerk or his designee. 28 1 3 following the issuance of this License, a verified statement showing its total annual revenues during the preceding year. Not ~ore than 15 days thereafter, Licensee shall pay to the County of Riverside an amount equal to three percent (3%) of said annual revenues. 16. Failure to comply with any of the conditions of this License shall constitute cause for forfeiture hereof, in addition to all other rights held by County. If County forfeits this License, Licensee shall be excluded from any further operations hereunder. If the License is forfeited by County, or if Licensee shall cease operations under the License for any reason, Licensee shall contact the Road Commissioner and perform all work necessary to attain certification that any facilities installed by Licensee in the public road pursuant to encroachment permit have been removed or left in a condition that does not require removal, and that no further action is needed to protect the public interest. 10 11 12 15 14 15 16 17 18 19 20 21 22 25 24 25 26 27 28 COUNI~' COUNSEL RIVERSIDE. CALIFORNIA 17. Licensee shall file an approved corporate surety bond in favor of County in the penal sum of $10,000.00, conditioned that Licensee shall well and truly perform every term and condition hereof and, in case of any breach of condition, the whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. The bond shall be filed with the Clerk of the Board by the original licensee within ten (10) days after issuance of this License. Any subsequent holder of this License shall file a similar bond within thirty (30) days of the approval of the transfer of this License by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This License shall not be effective until Licensee has filed an approved bond. If the License is forfeited, or if Licensee shall cease operations under the License for any reason, the surety bond or cash deposit shall not be released until Licensee obtains the required clearance from the Road Commissioner. 18. This License may be terminated prior to its date of expiration by the Board of Supervisors in the event the Board finds, after 30 days notice of proposed termination and after a full public hearing affording due process, that (a) Licensee has failed to comply with any provision of this ordinance; or, (b) any provision of this ordinance has become invalid or unenforceable and the Board of Supervisors further finds that such provision constituted a consideration material to the granting of the License; or, (c) County acquires the CATV property of Licensee. 19. This License is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. 20. Any transfer of this License requires the approval of the Board of Supervisors. No approval or disapproval of a proposed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirements of Sections 3, 4 and 5 of Riverside County Ordinance No. 503. 1 2 $ 5 6 ? 8 9 10 11 12 14 15 16 17 18 19 : rmh R5 3/85 ~ video ~ 73 COMl~rl~' CO~.INSEL 21. All rights, obligations and duties imposed by this License are binding on Licensee, its successors and assigns. Dated: ~8~° £ 0 1984 ATTEST' BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA Chair~h GERALD A. MALONEY Clerk of the Board By ~i>.~ Deputy (SEAL) Licensee hereby accepts and agrees to faithfully perform and abide by all the terms and conditions of this License and understands that this License is not effective until a~ approved surety bond has been filed. KING VIDEOCABLE COMPANY, a Washington corporation Title: (Corporate Seal) Jl it c Attachment D Proposed Cable Services Channel Television Station/Satellite Services 2 KNXT 3 Home Box Office 4 KNBC 5 KTLA 6 KCET 7 KABC 8 ESPN 9 KHJ 10 The USA Cable Network 11 KTTV 12 The Cable News Network 13 KCOP The proposed franchise area is currently served with cable television services by Farm Master Antenna System, Inc. Upon approval of King's request for a new license, King will assume ownership and operation of the existing cable system. King's intention is to offer the same services to the proposed franchise area, as we presently offer our customers in our Lake Elsinore service area. The requested franchise area is approximately three miles from the end of our existing cable system. Our first priority will be to vastly improve the signal quality available to customers. The second priority will be to improve customer service. King employs a staff of 24 professionals in the Elsinore Valley and maintains a 24 hour customer service phone number for customers with problems or questions. After the first two objectives are met, we will work to incorporate the proposed franchise area into our existing Elsinore Valley cable system. This should occur approximately one year after King assumes ownership of the exisitng cable system. Attachment D (continued) King presently offers the following services to our Elsinore Valley customers: Channel Television Station/Satellite Services 2 KNXT 3 Local Community Channel 4 KNBC 5 KTLA 6 KCET 7 KABC 8 KMEX 9 KHJ 10 ESPN 11 KTTV 12 KTBN 13 KCOP 14 The Disney Channel 15 The Movie Channel 16 The Playboy Channel 17 ON-TV 18 Home Box Office 19 The Nashville Network 20 Cable News Network 21 The USA Cable NEtwork 22 MTV-Music Television 23 Nickelodeon 24 Arts and Entertainment Network 25 KSCI 26 KDOC Attachment Financial Ability o King Videocable Company, a wholly owned subsidiary of King Broadcasting Company, is a large financially sound company with a proven track record. King Broadcasting Company is a major west coast broadcasting company, with four television stations and six radio stations, and is one of the largest cable television operators on the west coast. We operate in three states with over 80,000 customers in more than 30 cable television franchises. Our relationships with the communities and customers we serve have been excellent. We have proven that we have the determination and the strength to follow through on our commitments. We have the people and the facilities now available to service the requested franchise area residents faster than any other company. King Broadcasting Company was founded in 1946, and had assets, as of June 30, 1984, of $90.3 million. The company generated in excess of $20.5 million in cash flow on revenues of $92 million in its most recent fiscal year. In Riverside County, King Videocable Company currently operates a cable television system serving Lake Elsinore, Canyon Lakes, Sedco, Wildomar, Quail Valley, and Meadowbrook. King Videocable Company also operates nearby cable television systems in Los Angeles, Newhall and Valencia. King Videocable Company is a local cable television company - with over 7100 cable television customers and more than 275 miles of cable television system in operation. In short, King Videocable Company has the funds, the determination and the people to successfully operate the requested cable television franchise. Attachment F Proposed Schedule of Changes On October 9, 1984, the Riverside County Board of Supervisors approved a rate schedule for King Videocable Company's Elsinore Valley cable system. These rates will also apply to the requested franchise area. Basic Monthly Service Extra Outlet Monthly Service Installation Rates: Install Cable Reconnect Cable Relocate Outlet Add Extra Outlet Disconnect Service 9.95 1.50 30.00 20.00 20.00 20.00 N/C Service Charges: King Videocable Company installed equipment will be maintained free of charge. Service calls initiated due to customer installed equipment and/or negligence can result in a $20.00 charge at King's discretion. Attachment Complaint Procedures King Videocable Company should be given the first chance to resolve customer complaints. When an individual becomes a customer, King provides them with information concerning the services we carry, our rates, our office address, phone numbers and information regarding our 24 our trouble call service. We make every attempt to insure that our customers feel comfortable about contacting us concerning service related problems or questions. Each complaint will be referred to the system general manager or business manager for resolution. If a customer does not feel they are being satisfactorily dealt with, the customer should contact King Videocable Company's corporate offices in Seattle, Washington. Our local office and contact person is: Mr. Thomas A. Thomas, II General Manager 16655 Lakeshore Drive P.O. Box 989 Lake Elsinore, California 92330 714/674-7741 Our corporate office and contact person is: Mr. Richard D. Shay Vice President King Videocable Company P.O. Box 24525 Seattle, Washington 98124 206/343-3600 Attachment H An environmental assessment is no longer necessary for a cable television project. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 OERALD J. GEERUNGS COUNTY COUNSEL 3S35-'!0TH STREET RIVERSIDE. CALIFORNIA A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM ALONG, UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE LAKE MATHEWS, PERRIS, EDGEMONT, LAKE PERRIS, LAKEVIEW AND WOODCREST AREAS OF THE COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to Total TV of California, Inc., herein called "Licensee", for a period of fifteen (15) years from the date hereof to con- struct, operate and maintain a community antenna television system comprised of a system of antennae coaxial cable or other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside, including without limitation the distribution of broadcast television signals or radio signals, specialized programming or any other video, audio or data transmission to or from subscribers, along, under and across such public roads as now or may hereafter exist within the Lake Mathews, Pettis, Edgemont, Lake Perris, Lakeview, and Woodcrest areas of the County of Riverside, as shown on the map attached hereto as Exhibit "A". "Public roads" as used in this license means any public highway, road, street, lane, alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensec shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County, and shall make no installation or excavation, in, on or over any road under the County's ~urisdiction without first obtaining an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In any State highway, Licensec shall abide by all provisions of State laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines of a public utility company are reasonably available for use by Licensec pursuant to a pole attachment agreement with the public utility company, Licensee shall not erect any poles for the purpose of installing its operating equipment. b. Pay to the County on demand the cost of all repairs -1- 1 2 § 6 7 8 9 10 11 12 14 1§ 17 18 19 C o to public property made necessary by any of its operations. Indemnify and hold the County, its officers and employees harmless from all liability for damages resulting from all operations under this license. Remove, relocate or place underground, at its own expense, any equipment and facilities installed under this license, if the County determines that it is necessary for any reason, including construc- tion of a new road, change of grade, alignment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public pro- perty, or the construction, maintenance or reloca- tion of any installation of a public utility operating under a franchise. Take out and maintain public liability insurance satisfactory to the County to protect Licensee and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death, fe%ult- ing therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where the transmission and 20 distribution facilities of the public utilities providing tele- 21 phone service and electric service are underground or hereafter may be placed underground, then Licensee shall also place or relocate all of its transmission, amplification and distribution facilities underground. 25 4. Licenseeo in making its service available shall not discriminate for or against any suppliers of television sets, and in those areas where service is made available, Licensee shall provide service to all applicants in the order of receipt of orders therefor, so far as reasonable and practical. No person, '26 firm or corporation in the approved service area of Licensee shall be arbitrarily refused service; provided, however, that Licensee shall not be required to provide service to any subscriber who does not pay the reasonable, applicable connection fee or monthly 28 service charge. Licensee shall not discriminate either in favor GERALD a. GEERUNGS COUN'rY COUNSEL SUITE 300 3535. lOTH STREET RIVERSIDE. CALIFORNIA -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 lB 19 20 21 22 23 24 25 26 28 GERALD J. GEERUNGS COUNTY COUNSEL 3535. ]0TH STREET RIVERSIDE. CALIFORNIA of or against any subscriber or potential subscriber of CATV services on the basis of sex, age, race. creed, color or national origin. 5. The County, State, or any city or public agency may con- struct any new road, and improve, reconstruct,- repair or maintain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other public improvement. Upon thirty (30) days notice being given to Licensee of the work, and area in which it is to be performed, Licensec shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensec shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensec for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of Licensec. 6. If the State, County, any city or public agency shall acquire the property of Licensec, either by purchase or through the right of eminent domain, this license shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensec to the County at the time of the application for the license. 7. Licensec may, without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed five percent (5%) per year; provided, however, that Licensee shall have notified each sub- scriber at least thirty (30) days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with Licensec and, provided further, that Licensee shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within ten (10) days after such increase takes effect. Notwithstanding the fore- going, Licensec may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communica- tions Commission adopted pursuant to 47 U.$.C. Section 543(b), as amended, provide that Licensec is subject to effective competi- tion. If Licensec is not determined to be subject to effective competition under such rules and regulations, Licensec shall be permitted to adjust the rates and charges for its basic CATV service as provided in such rules and regulations. Except as otherwise provided in this paragraph or applicable law, the County shall not regulate the rates and charges for basic CATV service provided by Licensec. For the purposes-of this license, "basic CATV service" shall mean the service tier or tiers of Licensee's CATV system which includes the retransmission of local television -3- 1 2 3 4 broadcast signals. 8. Upon request, Licensee shall provide CATV service, with- out charge, at the following locations: a. Police and fire stations: b. Public libraries: Public schools; and, Other public buildings owned and controlled by the County used for public purposes and not for resi- dential use. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 This obligation shall be limited to (i) making one standard installation at one point reasonably convenient to use at the location in guestion and shall not require the wiring of an entire building, and (ii) providing only Licensee's basic CATV service. In the event service calls or repairs are required for any location as to which such service is rendered without charge following initial installation, Licensee shall be entitled to charge therefor in accordance with its then effective rates and charges for such service. ' ° 9. This license shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction within four (4) months from the issuance of this license and shall diligently proceed with the completion of the work. If significant construction has not been accomplished within one (1) year of cer- tification by the Federal Communications Commission, this license shall be forfeited. The CATV system shall be installed and maintained in accordance with standards generally accepted in the cable television industry for similar cable television systems similarly situated, the requirements of this license and the rules and regulations of the Federal Communications Commission applicable to cable television systems. 11. All final, published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this license on the date said final rule is adopted. This license shall, in all respects, be interpreted and applied so as to be consistent with the Cable Communications Policy Act of 1984, as from time to time amended (47 U.S.C. Sections 521, et seq.), applicable California law, and the rules and regulations of the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such Act shall prevail. 12. This license shall not be construed to require Licensee to implement a policy of construction which will require acom- GF.~ALD .I. GEERUNGS COUNTY COUNSEL 3535- lOTH STREET RIVERSIDE. CALIFORNIA -4- 1 2 § 6 ? 8 9 10 11 12 1A 1§ 16 17 18 19 2O 21 22 2~ 2~ 2§ 26 27 28 plete wiring of the service area. However, Licensee shall be required to extend energized trunk cable from any existing terminus of the CATV system to any area immediately adjacent thereto having a density of at least forty (40) single-family residential dwelling units per cable/conduit mile: provided, however, that Licensee shall not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas and Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is Licensee required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 13. Licensee shall establish procedures for the investiga- tion and resolution of all complaints regarding its cable televi- sion service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctions, billing disputes and similar matters. Licensee shall maintain an office with a toll free telephone number in the area to be served that will be open to receive inquiries or complaints during business hours, and in no event less than 9:00 A.M. to 5:00 P.M., Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than three (3) business days from their recei~by Licensee; provided, however, that where unusual circumstances exist, Licensee shall have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said records will indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall be made available for periodic inspection by the County. All such records shall be kept on a calendar year basis and no records less than three (3) years old shall be destroyed by Licensee. Licensee shall, at the time the subscriber initially receives cable tele- vision service, provide each subscriber with the above information, together with the toll free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies the subscriber of this information. 14. All actions of Licensee pursuant to this license shall be subject to review by the Clerk of the Board of Supervisors or his designee. 15. Licensee shall pay annually to the County five percent (5%) of its annual gross receipts derived from the operation of the cable system; however, such receipts shall not include (a) refunds made to subscribers in connection with such services to the extent that the amount of such refund has been included in the determination of annual gross receipts, (b) bad debts written off by Licensee in the usual and ordinary course of business to the extent that the amount thereof has been included in the determina- tion of annual gross receipts, (c) amounts received from subscri- bers in the nature of refundable security deposits, and (d) taxes imposed by law on the subscribers which Licensee is obligated to collect and pay to federal, state or county governments. Licensee GERALD J. GEERUNGS COUHTY COUNSEL SUITE 300 3535- lOTH STREET RWERSIDE CALIFORNIA -5- shall file with the Clerk of the Board of Supervisors, within 1 three (3) months after the expiration of each calendar year, following the issuance of this license, a verified statement showing its total annual gross receipts during the preceding year. Not more than fifteen (15) days thereafter, Licensee shall pay to the County of Riverside an amount equal to five percent (5%) of said annual gross receipts. 4 16. This license may be terminated prior to its date of 5 expiration by the Board of Supervisors in the event the Board finds, after thirty (30) days notice of proposed termination and 6 after a full public hearing affording due process, that (a) Licensec has failed to comply with any provision of this 7 ordinance: or (b) any provision of this ordinance has become invalid or unenforceable and the Board of Supervisors further 8 finds that such provision constituted a consideration material to the granting of the license; or (c) the County acquires the CATV 9 property of Licensec. Failure to comply with any of the condi- tions of this license shall constitute cause for forfeiture 10 hereof, in addition to all other rights held by the County. If 11 the County forfeits this license, Licensec shall be excluded from any further operations hereunder. If the license is forfeited by the County, or if Licensee shall cease operations under the lZ license for any reason, Licensec shall contact the Road ' ° 15 Commissioner and perform all work necessary to attain certifica- tion that any facilities installed by Licensee in the public roads 14 pursuant to encroachment permit have been removed or left in a condition that does not require removal, and that no further action is needed to protect the public interest. 15 16 17. Licensec shall file an approved corporate surety bond in favor of the County in the penal sum of $10,000.00, conditioned that Licensee shall well and truly perform every term and 17 condition hereof and, in case of any breach of condition, the 18 whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and 19 surety upon said bond. The bond shall be filed with the Clerk of the Board by the original licensee within ten (10) days after 20 issuance of this license. Any subsequent holder of this license shall file a similar bond within thirty (30) days of the approval 21 of the transfer of this license by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This license shall not be effective until Licensee has filed an approved bond. If the license is forfeited, or if Licensee shall 25 cease operations under the license for any reason, the surety bond or cash deposit shall not be released until Licensec obtains the 24 required clearance from the Road Commissioner. 18. Licensec shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this license if such delay or failure arises from any cause or causes beyond the reasonable control of Licensec, including 27 without limitation labor dispute, strikes, other labor or industrial disturbances, acts of God, floods, lightning, shortage ~8 of materials, rationing, utility or communication failures, GERALD J. GEERUNGS COUNTY COUNSEL 3535. ]0TH STREET RIVERSIDE. CALIFORNIA -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 '26 27 28 ~ERALD J. GEERUNGS COUNTY COUNSEL 3S3S- ].0TH STREET RIVERSIDE. CALIFORNIA earthquake casualties, war, acts of a public enemy, riots, insurrection, freight or other embargoes, blockages, actions, restrictions, regulations, orders or quotas imposed by any government, agency or subdivision thereof, inability to secure necessary parts or materials or any similar causes. 19. This license is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. 20. Licensec recognizes and understands that this license may create a possessory interest subject to property taxation and that licensec may be subject to the payment of the property taxes levied on such interest. 21. Any transfer of this license requires the approval of the Board of Supervisors. No approval or disapproval of a pro- posed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirements of Sections 3, 4 and 5 of Riverside County Ordinance No. 503, as amended. The Board of Supervisors may, as a condition of approval of the transfer, require the new licensec to pay to the County of Riverside that percentage of its annual gross receipts which new applicants are then required to pay. 22. All rights, obligations and duties imposed by this license are binding on Licensee, its successors and assigns. 23. Licensec shall have the right to request renewal of its license upon written notice delivered to the Board of Supervisors not less than six (6) months before expiration of the original term of this license. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. Section 546, as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the license is renewed, the renewal term shall be for five (5) years and upon such conditions as are contained in its license as in effect on the date of its expiration or upon such other conditions as the County and Licensec shall agree. Should the County deny the renewal request, such denial shall be accompanied by a written statement setting forth the reasons for such denial. Should renewal proceedings not be completed prior to the expiration of the original term of this license, Licensee shall have the right and authority to continue operation of its CATV system pursuant to the terms and conditions of its license until such time as the renewal proceedings are finally concluded unless the delay or failure to complete the proceedings is due primarily to the action or inaction of Licensee; but in no event shall the IIII IIII IIII IIII IIII -7- 1 2 $ § 7 8 10 11 12 1§ 17 18 20 21 22 2~ 2A 021689 a8 ~ ]. GF.~RUNGS C~ C~NSEL ~- l~ S~EET R~RSIDE. CALIFORNIA right to continue operation under this provision continue for more than three (3) months after the expiration date of the license. Dated:~-~F~ L_e, %~ ATTEST: BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA GERALD A. MALONEY Clerk of the Board Deputy By ~ .~.~.- ,-. ~ ,- .,:.-..- Chairman (SEAL) Licensee hereby accepts and agrees to faithfully perf~r~ and abide by all the terms and conditions of this license and understands that this license is not effective until an approved surety bond has been filed. Dated: 2--.~ 7--¥'/ (Corporate Seal) -8- February 23, 1989 P.O. Box 348 Janesville, WI 53547 Mr. Gerald A. Maloney Clerk of the Board County of Riverside 4080 Lemon Street 14th Flr. Riverside, CALIF 92501 Dear Mr. Maloney, Enclosed please find the original, signed copy of the License for Total TV of California to construct, operate and maintain a community antenna television system in the Lake Mathews, Perris, Edgemont, Lake Pettis, Lakeview and Woodcrest areas of the County of Riverside. Sincerely, Secretary TOTAL TV OF CALIFORNIA, INC., 18845 VAN BUREN BLVD., BUILDING 9A, RIVERSIDE, CA 92504 (714) 760-5600 CORPORATE OFFICE: 839 HARDING ST., P.O. BOX 348, JANESVILLE, WI 53547 (608) 756-4523 I0 12 14 17 18 19 20 21 24 25 26 28 ~0 A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 25 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A TELEVISION ANTENNA CABLE SERVICE ALONG, UNDER AND ACROSS THE PUBLIC ROADS, AS THEY NOW OR MAY HEREAFTER EXIST IN THE UNINCORPORATED AREA OF THE COUNTY OF RIVERSIDE 1. A non-exclusive license is hareby granted to CONTINENTAL TRANSMISSION CORPORATION, a Delaware corporation , herein called "Licensee," for a period of 25 years from the date hereof to construct, .operate and maintain a television antenna cable service along, under and across the public roads as they now or may hereafter exist in the unincorporated area of the Oounty of Riverside for transmitting and distributing electrical impulses and signals to produce reproductions of sights and sounds for television or rad/o purposes. The license' does not permit the operation of a closed circuit subscription television system, or any s~m~lar type of pay television which is provided to and can be received only by subscribers. (a) "Public roads" as used in this license means any public highway, road, street, lane'., alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2.. Licensee shall: (a) Construct, install and maintain all equipment and facilities in accordance with all requirements of the CoUnty, and shall make no installation or excavation, in, on or over any road under Countyts jurisdiction without first obtain/ng an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In a~y State highway, Licensee shall abide by all provisions of state laws and regulations relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines of a public utility company are reasonably available for use by Licensee pursuanT to a pole attachment agreement with the public -1- 15 14 15: 16 utility company, Licensec shall not erect any poles for the purpose of installi~ its operating equipment. (b) Pay to the County on demand the cost of all repairs to public property made necessary by any of its operations. (c) Indemnify and hold the County, its officers, and employees harmless from all liability for damages res~lting from all operations under thi~ license. (d) Remove, relocate or place underground, at its ow~ expense, any equipment and facilities installed under this license, if the County determines that it is necessary for any reason, includi~ donstruction of a new road, change of grade, ali~/%ment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public property, or the construction, maintenance or relocation of any installation of a public utility operating under a franchise. (e) Take out and maintain 'public liability insurance satisfactory to the County to protect licensec and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death resulting therefrom, a~d property damage, suffered or alleged to be suffered ] by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licenseets control or direction. The insurance shall be kept in force during the term of this.license in the amounts of not less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where either the trans- mission and distribution facilities of a public utility providing telephone service or a utility providin~ electric service are -2- 2O 21 24 26 ~0 underground or hereafter may be placed underground, then the Licensec shall also place or relocate all of its transmission, amplification and distribution facilities underground. 4. Licensec, in makin~ its service available shall ~ot discriminate for or against any suppliers of television sets, and in those areas where service is made available, Licensec shall provide service to all applicants in the order of receipt of orders therefor, so far as possible. 5. The County, State, or any city or public agency may construct any new road, and improve, reconstruct, repair or maintai~ any existing road, or portion thereof, or other public facility in which Licensee:s equipment and facilities have been constructed or installed, and may remove any such road or other public improvement.i Upon 30 days notice being given to the Licensec of the work, and area in which it is to be performed, the Licensec shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensec shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. A~y 'private easements acquired by Licensec for the construction and installation of its equipment and facilities shall be constructed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of the Licensec. 6. If the State, County, any city or public agency shall acquire the property of the Licensec, either by purchase or through the right of eminent domain, this license shall not be assigned any! value, before any court or other public authority, in excess of the sum paid by the Licensec to the County at the time of the issuance of the license. 7. Licensee shall, from time to time, submit to the Board a schedule showing all its rates and charges for services rendered to customers under t~is license. No charge shall be made § except in accordance with the schedule submitted to, and not 61! disapproved by, the County. If the Board disapproves Licensee's · ?.!; rate schedule, it shall set a rate hearing on its regular calendar 81 as soon as reasonably possible thereafter, and give notice to Licensee of the hearing. Licensee shall attend the hearing fully 10 prepared to give. specific and detailed information regarding its 14 capital investment, expenses of operation, income, equipment, amortization schedule, and all other information necessary for a determination of fair and just rates for services rendered. The County shall allow and provide for a fair and reasonable return 151 upon investment to the Licensee. In the event the California 17 2O 24 27 Public Utilities Commission assumes jurisdiction over the operation and rates of the Licensee, then the authority of the County to approve charges shall cease. 8. This license shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain 'any road in which Licensee's property is located. 9. Licensee shall in good faith commence construction within 4 months from the issuance of this license and shall diligently proceed with the completion of the work. If the work does not commence within 6 months, this license is forfeited unless an extension of time has previously been obtained from the Board. 10. Licensee shall, upon issuance~ pay to the County the sum of $250.00 for this license. Licensee shall pay annually to the County one-half of one percent of the gross annual receipts of 30 Licensee derived from the operation of Licensee's television 51. antenna cable service. Licensee shall file with the Clerk of the ~Zi Board of Supervisors within 3 months after the expiration of each .1: 2 4 5 8 9 10 12 14 15 17 18 19 24 25 26 29 50 calendar year, following the issuance of this license, a verified statement showing the total gross receipts of Licensee during the preceding year derived from Licensee's cable service business. Not more than 15 days thereafter, licensee shall pay to the County of Riverside an amount equal to one-half of one percent of said gross annual receipts. 11. - Failure to comply with any of the conditions of this license shall constitute cause for forfeiture hereof, in addition to all other rights held by the County. If the County forfeits this license, Licensee shall be excluded from any further operations hereunder. -- 12. Licensee shall file an approved corporate surety bond in favor of the County in the penal sum of $1,000.00, conditioned that Licensee shall well and truly perform every term and condition hereof and in case of any breach of condition, the whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. The bond shall be filed with the Clerk of the Board within 10 days after issuance of this license. A cash deposit in the same amount may be made in lieu of said bond. This license shall not be effective until Licensee has filed an approved bond. 13. This license is issued pursuant to California Government Code, Section 53066; is not exclusive; and shall not be transferrable without prior approval of the Board. All rights, obligations and duties are binding on the Licensee, its successors and assigns. Dated: AUG ~8 ~67 COUNTY OF RIVERSIDE, STATE OF CALIFORNIA Chazrman, Board of Supervisors --5-- .I Licensee hereby accepts and agrees to faithfully perform 2' and abide by all the terms and conditions of this license and 5, ur~ders~ands that this license is not effective until an approved 4~i surety bond has been filed. li'ii (¢orporaze Seal) 14 17¸ 28 29 51 GZG :barn 52., $157 :', !.. September 1Z, 1967 CONTINENTAL TRANSMISSION CORPORATION 7 Title Asst. Secretar¥-q'reasurer Address P.o. Box 5Z46 Oildale, California 93308 BOARD OF SUP ....... ~"~S -6- CLEF ? 'S COPY 3 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 2~ 24 25 26 27 28 GERALD J. GEERUNGS COUNTY COUNSEL SUITE 300 3535 · 10TH STREET RIV[R$1D[. CALIFORNIA A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A COMMUNITY ANTENNA TELEVISION SYSTEM ALONG, UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE UNINCORPORATED AREAS ADJACENT TO THE CITIES OF RIVERSIDE, MORENO VALLEY, CORONA, NORCO, LAKE ELSINORE, PERRIS, SAN JACINTO, HEMET, BEAUMONT AND BANNING WITHIN THE COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive license is hereby granted to Jones Intercable of San Diego, Inc., herein called #Licensee", for a period of fifteen (15) years from the date hereof to construct, operate and maintain a community antenna television system comprised of a system of antennae coaxial cable or other transmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside, including without limitation the distribution of broadcast television-signals or radio signals, specialized programming or any other video, audio or data transmission to or from subscribers, along, under and across such public roads as now or may hereafter exist within the unincorporated areas adjacent to the Cities of Riverside, Moreno Valley, Corona, Norco, Lake Elsinore, Pettis, San Jacinto, Hemet, Beaumont, and Banning within of the County of Riverside, as shown on the map attached hereto as Exhibit "A". "Public roads" as used in this license means any public highway, road, street, lane, alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensee shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County, and shall make no installation or excavation, in, on or over any road under the County's jurisdiction without first obtaining an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In any State highway, Licensee shall abide by all provisions of State laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines of a public utility company are reasonably available for use by Licensee pursuant to a pole attachment agreement with the public utility company, Licensee shall not erect any poles for the 1 purpose of installing its operating equipment. 2 Pay to the County on demand the cost of all repairs to public property made necessary by any of its operations. 4 5 Indemnify and hold the County, its officers and employees harmless from all liability for damages resulting from all operations under this license. 6 7 8 9 10 11 Remove, relocate or place underground, at its own expense, any equipment and facilities installed under this license, if the County determines that it is necessary for any reason, including construc- tion of a new road, change of grade, alignment or width of any existing road, or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public pro- perty, or the construction, maintenance or reloca- tion of any installation of a public utility operating under a franchise. 12 13 14 15. 16 17 18 19 20 21 22 23 24 Take out and maintain public liability insurance satisfactory to the County to protect License~ and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death, result- ing therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensee or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not less than $250,000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where the transmission and distribution facilities of the public utilities providing tele- phone service and electric service are underground or hereafter may be placed underground, then Licensee shall also place or relocate all of its transmission, amplification and distribution facilities underground. GERALD .L GEERUNGS COUNTY COUNSEL SUITE 300 3535- [0TH STREET RIVERSIDE. CALIFORNIA 4. Licensee, in making its service available shall not discriminate for or against any suppliers of television sets, and 26 in those areas where service is made available, Licensee shall provide service to all applicants in the order of receipt of orders 27'.therefor, so far as reasonable and practical. No person, firm or corporation in the approved service area of Licensee shall be arbi- trarily refused service; provided, however, that Licensee shall not be required to provide service to any subscriber who does not --2-- 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 /28 GERALD .I. GEERUNGS COUNTY COUNSEL 3535- lOTH STREET RIVERSIDE CA~FORhlIA pay the reasonable, applicable connection fee or monthly service charge. Licensee shall not discriminate either in favor of or against any subscriber or potential subscriber of CATV services on the basis of sex, age, race, creed, color or national origin. 5. The County, State, or any city or public agency may con- struct any new road, and improve, reconstruct, repair or maintain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other public improvement. Upon thirty (30) days notice being given to Licensee of the work, and area in which it is to be performed, Licensee shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of Licensee. ' ° 6. If the State, County, any city or public agency shall acquire the property of Licensee, either by purchase or through the right of eminent domain, this license shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensee to the County at the time of the appli- cation for the license. 7. Licensee may, without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed five percent (5%) per year; provided, however, that Licensee shall have notified each sub- scriber at least thirty (30) days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with Licensee and, provided further, that Licensee shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within ten (10) days after such increase takes effect. Notwithstanding the fore- going, Licensee may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communica- tions Commission adopted pursuant to 47 U.S.C. Section 543(b), as amended, provide that Licensee is subject to effective competi- tion. If Licensee is not determined to be subject to effective competition under such rules and regulations, Licensee shall be permitted to adjust the rates and charges for its basic CATV service as provided in such rules and regulations. Except as otherwise provided in this paragraph or applicable law, the County shall not regulate the rates and charges for basic CATV service provided by Licensee. For the purposes of this license, "basic CATV service" shall mean the service tier or tiers of Licensee's --3-- 1 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 GERALD J. GEERUNGS, COUNTY CO~NS£L SUITE 300 3535. 10TH STREET RIVERSIDE. CALiFORHIA CATV system which includes the retransmission of local television broadcast signals. 8. Upon request, Licensee shall provide CATV service, with- out charge, at the following locations: a. Police and fire stations; b. Public libraries; c. Public schools; and, Other public buildings owned and controlled by the County used for public purposes and not for resi- dential use. This obligation shall be limited to (i) making one standard installation at one point reasonably convenient to use at the location in question and shall not require the wiring of an entire building, and (ii) providing only Licensee's basic CATV service. In the event service calls or repairs are required for any location as to which such service is rendered without charge following initial installation, Licensee shall be entitled to charge therefor in accordance with its then effective rates'a~d charges for such service. 9. This license shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction within four (4) months from the issuance of this license and shall diligently proceed with the completion of the work. If significant construction has not been accomplished within one (1) year of cer- tification by the Federal Communications Commission, this license shall be forfeited. The CATV system shall be installed and main- tained in accordance with standards generally accepted in the cable television industry for similar cable television systems similarly situated, the requirements of this license and the rules and regulations of the Federal Communications Commission applicable to cable television systems. 11. All final, published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this license on the date said final rule is adopted. This license shall, in all respects, be interpreted and applied so as to be con- sistent with the Cable Communications Policy Act of 1984, as from time to time amended (47 U.S.C. Sections 521, et ~e~q.), applicable California law, and the rules and regulations of the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such Act shall prevail. 12. This license shall not be construed to require Licensee to implement a policy of construction which will require a complete wiring of the service area. However, Licensee shall be required --4-- 6 7 8 9 10 11 12 14 15 16 17 18 19 2O 21 22 25 24 25 '26 27 28 COUNTY COUhSEL SUITE 300 3535- lOTH STREET RIV£R$1DE CALIFORNIA to extend energized trunk cable from any existing terminus of the CATV system to any area immediately adjacent thereto having a density of at least forty (40) single-family residential dwelling units per cable/conduit mile; provided, however, that Licensee shall not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas and Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is Licensee required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 13. Licensee shall establish procedures for the investiga- tion and resolution of all complaints regarding its cable televi- sion service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctions, billing disputes and similar matters. Licensee shall maintain an office with a toll free tele- phone number in the area to be served that will be open to receive inquiries or complaints during business hours, and in no event less than 9:00 A.M. to 5:00 P.M., Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than three (3) business days from their receipt by Licensee; provided, however, that where unusual circumstances exist, Licensee s~11 have a reasonable time to respond to said complaints. Licensee shall keep records of all maintenance service. Said records will indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall be made available for periodic inspection by the County. All such records shall be kept on a calendar year basis and no records less than three (3) years old shall be destroyed by Licensee. Licensee shall, at the time the subscriber initially receives cable television service, provide each subscriber with the above information, together with the toll free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies the subscriber of this information. 14. All actions of Licensee pursuant to this license shall be subject to review by the Clerk of the Board of Supervisors or his designee. 15. Licensee shall pay annually to the County five percent (5%) of its annual gross receipts derived from the operation of the cable system; however, such receipts shall not include (a) refunds made to subscribers in connection with such services to the extent that the amount of such refund has been included in the determination of annual gross receipts, (b) bad debts written off by Licensee in the usual and ordinary course of business to the extent that the amount thereof has been included in the determina- tion of annual gross receipts, (c) amounts received from subscri- bers in the nature of refundable security deposits, and (d) taxes imposed by law on the subscribers which Licensee is obligated to collect and pay to federal, state or county governments. Licensee shall file with the Clerk of the Board of Supervisors, within three (3) months after the expiration of each calendar year, 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COVNT¥ COUNSEL SUITE 300 3535 . lOTH STREET RIVERSIDE. CALIFORNIA following the issuance of this license, a verified statement showing its total annual gross receipts during the preceding year. Not more than fifteen (15) days thereafter, Licensee shall pay to the County of Riverside an amount equal to five percent (5%) of said annual gross receipts. 16. This license may be terminated prior to its date of expiration by the Board of Supervisors in the event the Board finds, after thirty (30) days notice of proposed termination and after a full public hearing affording due process, that (a) Licensee has failed to comply with any provision of this ordinance; or (b) any provision of this ordinance has become invalid or unen- forceable and the Board of Supervisors further finds that such provision constituted a consideration material to the granting of the license; or (c) the County acquires the CATV property of Licensee. Failure to comply with any of the conditions of this license shall constitute cause for forfeiture hereof, in addition to all other rights held by the County. If the County forfeits this license, Licensee shall be excluded from any further' opera- tions hereunder. If the license is forfeited by the County, or if Licensee shall cease operations under the license for any reason, Licensee shall contact the Road Commissioner and perform all work necessary to attain certification that any facilities installed by Licensee in the public roads pursuant to encroachment permit ~ave been removed or left in a condition that does not require removal, and that no further action is needed to protect the public interest. 17. Licensee shall file an approved corporate surety bond in favor of the County in the penal sum of $10,000.00, conditioned that Licensee shall well and truly perform every term and condition hereof and, in case of any breach of condition, the whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. The bond shall be filed with the Clerk of the Board by the original licensee within ten (10) days after issuance of this license. Any subsequent holder of this license shall file a similar bond within thirty (30) days of the approval of the trans- fer of this license by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This license shall not be effective until Licensee has filed an approved bond. If the license is forfeited, or if Licensee shall cease operations under the license for any reason, the surety bond or cash deposit shall not be released until Licensee obtains the required clearance from the Road Commissioner. 18. Licensee shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this license if such delay or failure arises from any cause or causes beyond the reasonable control of Licensee, including without limitation labor dispute, strikes, other labor or industrial dis- turbances, acts of God, floods, lightning, shortage of materials, rationing, utility or communication failures, earthquake casual- ties, war, acts of a public enemy, riots, insurrection, freight or other embargoes, blockages, actions, restrictions, regulations, orders or quotas imposed by any government, agency or subdivision --6-- 1 2 § 6 7 8 9 10 11 12 1A 1§ 16 17 18 19 2O 21 22 2~ 2~ 2§ 26 27 28 COuN'PF COUNSEL 3,535. 10TH STREET RIVERSIDE, CALIFORNIA thereof, inability to secure necessary parts or materials or any similar causes. 19. This license is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. 20. Licensee recognizes and understands that this license may create a possessory interest subject to property taxation and that licensee may be subject to the payment of the property taxes levied on such interest. 21. Any transfer of this license requires the approval of the Board of Supervisors. No approval or disapproval of a pro- posed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirements of Sections 3, 4 and 5 of Riverside County Ordinance No. 503, as amended. The Board of Supervisors may, as a condition of approval of the transfer, require the new licensee to pay to the County of Riverside that percentage of its annual gross receipts which new applicants are then required to pay. 22. All rights, obligations and duties imposed by this license are binding on Licensee, its successors and assigns. 23. Licensee shall have the right to request renewal of its license upon written notice delivered to the Board of Supervisors not less than six (6) months before expiration of the original term of this license. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. Section 546, as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the license is renewed, the renewal term shall be for five (5) years and upon such conditions as are contained in its license as in effect on the date of its expiration or upon such other conditions as the County and Licensee shall agree. Should the County deny the renewal request, such denial shall be accompanied by a written statement setting forth the reasons for such denial. Should renewal proceedings not be completed prior to the expiration of the original term of this license, Licensee shall have the right and authority to continue operation of its CATV system pursuant to the terms and conditions of its license until such time as the renewal proceedings are finally concluded unless the delay or failure to complete the proceedings is due primarily to the action or inaction of Licensee; IIII IIII IIII IIII .1111 IIII -8- 1 2 $ 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 2O 21 22 23 24 25 26 28 6ERALD .I. ~EERUNGS COUNTY COUNSEL SUITE 300 3535 - lOTH STREET RIVI~RSID£. CALIFORNIA but in no event shall the right to continue operation under this provision continue for more than three (3) months after the expiration date of the license. Dated: October 31, 1989 ATTEST: GERALD A. MALONEY Clerk of the Board Deputy BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA Board of Supervisors (SEAL) Licensee hereby accepts and agrees to faithfully perform and abide by all the terms and conditions of this license and understands that this license is not effective until an approved surety bond has been filed. Dated: January 18, 1990 JONES INTERCABLE OF SAN DIEGO, INC. By Title: (Corporate Seal) GB:jf 00381it 112889 -9- .! X VENTURA COUNTY OFFICE ~15lO PONDEROSA 0RIVE SUITE I CAMARILL0. CALIFORNIA g3010 (BOS} BB7-346B TELECOPIER: (805) 4B='-B634 LAW OFFICES BURKE, WILLIAI~I$ ~: SORENSEN 3:~OO BRISTOL STREET SUITE: COSTA lelESA, CALIFORNIA (714) 545-555g April 26, 1990 LOS ANGELES OFFICE ONE WILSHIRE BUIL01NG ~2~ SOUTH GRAND AVENUE. II't, FLOOR LOS ANGELES. CALIFORNIA 90017 (213} :='36-0600 TELl[COPIER: (='13) 23B~2700 Charles R. Gill, Esq. McDonald, Hecht & Solberg Great American Building, Suite 1100 600 "B" Street San Diego, CA 92101 Re: Validity of Riverside County Cable Television License Granted to Jones Intercable, Inc. in the city of Temecula Dear Mr. Gill: This Firm serves as City Attorney to the City of Temecula. Your letter of April 19, 1990 concerning your claim on behalf of your client, Jones Intercable, Inc., to hold a cable television license for the City of Temecula has been referred to my office for a response. It is our conclusion that Jones does not hold a valid franchise to operate a cable television system within the jurisdiction of the City of Temecula because: (1) Jones did not accept the license prior to City incorporation and, to this date, still has not had two duly authorized corporate officers execute the license acceptance; and (2) Jones failed to file a surety bond within ten (10) days after issuance of the license. The basis for our conclusion is as follows: Jones did not accept the license prior to City incorporation. Pursuant to Article 11, Section 7 of the California Constitution, as well as Section 53066 of the California Government Code, the County only has the authority to issue a cable television license within its jurisdiction. In essence, the license the County approved on October 31, 1989 was an offer that was capable of being accepted up to November 30, 1989. The following day, the City of Temecula incorporated and the County lost all juridiction to make this offer. Since Jones did not even attempt to accept the Charles R. Gill, Esq. April 26, 1990 Page 2 offer until January 18, 1990, this acceptance is invalid and no license was ever issued. It should be further noted that Jones still may not have properly accepted the license. Typically, most corporations require two officers to execute contracts. Moreover, the license clearly indicates that it is to be signed by two corporate officers along with the corporate seal. That has never been done. Consequently, the license has still not been accepted. 2. Jones failed to timely file a surety bond. While Section 1 of the license grants Jones a license, Section 17 expressly states that the "license shall not be effective until Licensee has filed an approved surety bond." This Section further provides that the bond shall be filed within ten (10) days after issuance of the license. There is no ambiguity regarding these clauses. Jones failed to timely submit the surety bond, and once it was submitted the City had already incorporated. Consequently, the offer of the license was no longer effective from the County. In conclusion, because Jones Intercable does not have a license to operate within the City of Temecula, Jones is requested to cease all expansion, construction, and operations within the City limits, immediately. I hope this letter satisfactorily resolves this issue. Should you have any questions or desire to discuss this matter further, please do not hesitate to call me. Sincerely, Scott F. Field City Attorney CITY OF TEMECULA sff/LTR13211:bjj cc: F. D. Aleshire, City Manager Joe Hreha, Manager of Information Systems 1 2 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 '26 27 28 ¢OUN~ COUNSEL SUITE ~ 3535- ).0TH STREET RIVERSIDE. CALIFORNIA A NON-EXCLUSIVE LICENSE OF THE COUNTY OF RIVERSIDE FOR A PERIOD OF 15 YEARS TO CONSTRUCT, OPERATE AND MAINTAIN A TELEVISION ANTENNA CABLE SERVICE ALONG, UNDER AND ACROSS SUCH PUBLIC ROADS AS NOW OR MAY HEREAFTER EXIST IN THE WINCHESTER, LAKEVIEW, NUEVO, ROMOLAND, HOMELAND, SAN JACINTO, HEMET AND IDYLLWILD AREAS, COUNTY OF RIVERSIDE 1. After public hearing affording due process, and after full consideration of the Licensee's legal, character, financial, technical and other qualifications, including the feasibility of its construction arrangements, a non-exclusive License is hereby granted to INLAND VALLEY CABLEVISION, herein called "Licensee", for a period of 15 years from the date hereof to construct, operate and maintain a community antenna system comprised of a system of antennae. coaxial cable or other tranmission line and associated equipment and facilities installed, operated and maintained for the purpose of broadband communication services within the County of Riverside. including without limitation the distribution of broadcast television signals or radio signals. specialized programming or any other video, audio or data transmission to or from subscribers, along, under and across such public roads as now or may hereafter exist within the WINCHESTER, LAKEVIEW, NUEVO, ROMOLAND, HOMELAND, SAN JACINTO, HEMET AND IDYLLWILD UNINCORPORATED AREAS of the County of Riverside, as shown on the map attached hereto as Exhibit "A". "Public roads" as used in this License means any public highway, road, street, lane, alley, court, sidewalk, parkway, or easement therefor, dedicated or offered for dedication to the County of Riverside. 2. Licensee shall: Construct, install and maintain all equipment and facilities in accordance with all requirements of the County, and shall make no installation or excavation, in, on or over any road under County's jurisdiction without first obtaining an encroachment permit under Ordinance No. 499 or any amendment or revision thereof. In any state highway. Licensec shall abide by all provisions of state laws relating to the construction, location and maintenance of such equipment and facilities. In any area of the County where existing pole lines for a public utility company are reasonbly available for use by Licensec pursuant to a pole attachment agreement with the public utility company, Licensec shall not erect any poles for the purpose of installing its operating equipment. b. Pay to the County on demand the cost of all repairs 1 1 2 5 6 7 8 9 10 11 12 14 15 16 17 18 19 20 21 22 to public property made necessary by any of its operation. Indemnify and hold the County, its officers and employees harmless from all liability for damages resulting from all operations under this License. Remove, relocate or place underground, at its own expense, any equipment and facilities installed under this License, if the County determines that it is necessary for any reason, including construction of a new road, change of grade, alignment or width of any existing road. or the construction, use or maintenance of any bridge, subway, viaduct or other public work or the use of any public property, or the construction, maintenance or relocation of any installation of a public utility operating under a franchise. Take out and maintain public liability insurance satisfactory to the County to protect Licensec and the County, its officers and employees, against loss from liability imposed by law for damages on account of bodily injury, including death, resulting ' therefrom, and property damage, suffered or alleged to be suffered by any person or persons whatsoever resulting directly or indirectly from any act or omission of Licensec or any person acting under Licensee's control or direction. The insurance shall be kept in force during the term of this license in the amounts of not less than $250.000.00 for one person injured in one accident and not less than $500,000.00 for more than one person injured in one accident, and not less than $50,000.00 property damage. Proof of insurance shall be filed with the Clerk of the Board of Supervisors. 3. In any area of the County where the transmission and distribution facilities of the public utilites providing telephone service and electric service are underground or hereafter may be placed underground. then the Licensec shall also place or relocate all of its transmission, amplification and distribution facilities underground. 25 24 25 26 27 28 4. Licensee, in making its service available shall not discriminate for or against any suppliers of television sets, and in those areas where service is made available, Licensec shall provide service to all/applications in the order of receipt of orders therefor, so far as reasonable and practical. No person, firm or corporation in the approved service area of the Licensec shall be arbitrarily refused service: provided, however, that the Licensec shall not be required to provide service to any subscriber who does not pay the reasonable, applicable connection fee or monthly service charge. The Licensee shall not discriminate either in favor of or against any subscriber or GERALD J. GEERUNGS COUNTY COUNSEL SUITE 300 3535- 10TH STREET RIVERSIDE. CALIFORNIA 2 1 2 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 GERALD .I. GEERUNGS COUNTY COUHSEL 3535 . 10TH STREET RIVERSIDE. CALIFORNIA potential subscriber of CATV services on the basis of sex, age, race, creed, color or national origin. 5. The County, State, or any city or public agency may construct any new road, and improve, reconstruct, repair or maintain any existing road, or portion thereof, or other public facility in which Licensee's equipment and facilities have been constructed or installed, and may abandon or remove any such road or other. public improvement. Upon 30 days notice being given to the Licensec of the work, and area in which it is to be performed, the Licensec shall do all things necessary to protect its property during the progress of the work and if ordered by the governmental agency performing such work, Licensee shall disconnect, remove or relocate its property in such manner as shall be required to permit the performance of the work, and the maintenance, operation and use of the road or public improvement. Any private easements acquired by Licensee for the construction and installation of its equipment and facilities shall be construed to be subordinate to the rights of the County, presently existing or hereafter acquired, for future road construction or reconstruction. All of such things to be done and work to be performed shall be at the sole cost and expense of Licensec. 6. If the State. County, any city or public agency shall acquire the property of Licensec, either by purchase or through the right of eminent domain, this License shall not be assigned any value, before any court or other public authority, in excess of the sum paid by Licensec to the County at the time of the application for the License. 7. The Licensee may, without the approval of the Board of Supervisors, increase the rates and charges for its basic CATV service by an amount not to exceed 5% per year; provided, however, that the Licensec shall have notified each subscriber at least 30 days in advance of such proposed increase and afforded such subscriber the right to terminate its CATV service with the Licensec and, provided further, that the Licensec shall file each such increase in the rates and charges for its basic CATV service with the Board of Supervisors within 10 days after such increase takes effect. Notwithstanding the foregoing, the Licensec may adjust the rates and charges for its basic CATV service without regard to the limitation contained in this paragraph if the rules and regulations of the Federal Communications Commission adopted pursuant to 47 U.S.C. Section 543(b), as amended, provide that the Licensee is subject to effective competition. If the Licensee is not determined to be subject to effective competition under such rules and regulations, the Licensec shall be permitted to adjust the rates and charges for its basic CATV service as provided in such rules and regulations. Except as otherwise provided in this paragraph or applicable law, the County shall not regulate the rates and charges for basic CATV service provided by the Licensee. For the purposes of this License, "basic CATV service" shall mean the service tier or tiers of the Licensee's CATV system which includes the retransmission of local 3 1 2 4 § 6 7 8 9 10 11 12 14 1§ 16 17 18 19 20 21 22 2~ 2A 2§ 26 27 28 GERALD J. GEERUNGS COUNTY COUNSEL 3535 - ]~H S~EET RIVERSIDE. CALIFORNIA television broadcast signals. 8. Upon request, the Licensec shall provide CATV service, without charge, at the following locations: a. Police and fire stations: b. Public libraries: c. Public schools: and, d. Other public buildings owned and controlled by the County used for public purposes and not for residential use. This obligation shall be limited to (i) making one standard installation at one point reasonably convenient to use at the location in question and shall not require the wiring of an entire building, and (ii) providing only the Licensee's basic CATV service. In the event service calls or repairs are required for any location as to which such service is rendered without charge following initial installation, the Licensee shall be entitled to charge therefor in accordance with its then effective rates and charges for such service. 9. This License shall not be construed to impose upon the County any duty or obligation to construct, repair or maintain any road in which Licensee's property is located. 10. Licensee shall in good faith commence construction within 4 months from the issuance of this License and shall diligently proceed with the completion of the work. If significant construction has not been accomplished within one year of certification by the Federal Communications Commission, this License shall be forfeited. The CATV system shall be installed and maintained in accordance with standards generally accepted in the cable television industry for similar cable television systems similarly situated, the requirements of this License and the rules and regulations of the Federal Communications Commission applicable to cable television systems. 11. All final, published rules of the Federal Communications Commission shall, to the extent applicable, be considered a part of this License on the date said final rule is adopted. This License shall, in all respects, be interpreted and applied so as to be consistent with the Cable Communications Policy Act of 1984, as from time to time amended (47 U.S.C. Sections 521, et seq.), applicable California law, and the rules and regulations of the Federal Communications Commission applicable to cable television systems. If any provision of this license or its application should be inconsistent with any of the foregoing, such Act shall prevail. 12. This License shall not be construed to require the Licensec to implement a policy of construction which will require a complete wiring of the service area. However, the Licensec shall be required to extend energized trunk cable from any existing terminus of the CATV system to any area immediately 1 2 6 7 8 9 10 11 12 14 16 17 18 19 ~0 ~4 ~6 ~8 GERALD J. GEERUNGS COUNTY COUNSEL 3.535- 10TH STREET RIVERSIDE. CALIFORNIA adjacent thereto having a density of at least 40 single-family residential dwelling units per cable/conduit mile; provided, however, that the Licensec shall not be obligated to service areas to which it is unable to obtain pole line facilities located in a direct route to such areas and the Licensee shall not be required to erect or obtain the use of pole line facilities along any indirect or circuitous route, nor is the Licensec required to use underground conduit where underground conduit is not otherwise required in order to supply service to any such areas. 13. The Licensee shall establish procedures for the investigation and resolution of all complaints regarding its cable television service and operations. These procedures shall include a system for reporting and resolving complaints regarding the quality of service, equipment malfunctions, billing disputes and similar matters. Licensec shall maintain an office with a toll free telephone number in the area to be served that will be open to receive inquiries or complaints during business hours, and in no event less than 9:00 A.M. to 5:00 P.M. Monday through Friday. Any complaints from subscribers shall be investigated and acted upon not less than 3 business days from their receipt by Licensee; provided, however, that where unusual circumstances exist, Licensec shall have a reasonable time to respond to s~id complaints. Licensec shall keep records of all maintenance service. Said records will indicate the nature of each service complaint, the date and time it was received, the disposition of said complaint and the time and date thereof. These records shall be made available for periodic inspection by the County. All such records shall be kept on a calendar year basis and no records less than 3 years old shall be destroyed by Licensec. Licensee shall at the time the subscriber initially receives cable television service provide the subscriber with the above information, together with the toll free telephone number of the local office which will receive all complaints, in a permanent written form which reasonably notifies the subscriber of this information. 14. All actions of Licensee pursuant to this License shall be subject to review by the Clerk of the Board of Supervisors or his designee. 15. Licensee shall pay annually to the County five percent (5%) of its annual revenue. Annual revenue, for purposes of this License. shall be limited to that revenue Licensec receives as a result of providing its customers located in the unincorporated area of the County serviced by the Licensec with regular subscriber services as that term is defined by the Federal Communications Commission; however, annual revenue shall not include (i) refunds made to subscribers in connection with such services to the extent that the amount of such refund has been included in the determination of annual revenue, (ii) bad debts written off by the Licensec in the usual and ordinary course of business to the extent that the amount thereof has been included in the determination of annual revenue, (iii) amounts received 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 '26 27 28 COUNTY COUNSEL 3535- 10TH STREET RIVERSIDE. CALIFORNIA from subscribers in the nature of refundable security deposits, and (iv) taxes imposed by law on the subscribers which the Licensec is obligated to collect and pay to federal, state or county governments. Licensee shall file with the Clerk of the Board of Supervisors, within 3 months after the expiration of each calendar year, following the issuance of this License. a verified statement showing its total annual revenues during the preceding year. Not more than fifteen (15) days thereafter, Licensec shall pay to the County of Riverside an amount equal to five percent (5%) of said annual revenues. 16. This License may be terminated prior to its date of expiration by the Board of Supervisors in the event the Board finds, after 30 days notice of proposed termination and after a full public hearing affording due process, that (a) the Licensee has failed to comply with any provision of this ordinance: or (b) any provision of this ordinance has become invalid or unenforceable and the Board of Supervisors further finds that such provision constituted a consideration material to the granting of the License; or (c) the County acquires the CATV property of the Licensec. Failure to comply with any of the conditions of this License shall constitute cause for forfeiture hereof, in addition to all other rights held by County. If County forfeits this License. Licensec shall be excluded fro~ any further operations hereunder. If the License is forfeited by County, or if Licensec shall cease operations under the License for any reason, Licensec shall contact the Road Commissioner and perform all work necessary to attain certification that any facilities installed by Licensec in the public roads pursuant to encroachment permit have been removed or left in a condition that does not require removal, and that no further action is needed to protect the public interest. 17. Licensec shall file an approved corporate surety bond in favor of County in the penal sum of $10,000.00, conditioned that Licensec shall well and truly perform every term and condition hereof and, in case of any breach of condition, the whole amount of the penal sum shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and surety upon said bond. The bond shall be filed with the Clerk of the Board by the original Licensec within ten (10) days after issuance of this License. Any subsequent holder of this License shall file a similar bond within thirty (30) days of the approval of the transfer of this License by the Board of Supervisors. A cash deposit in the same amount may be made in lieu of said bond. This License shall not be effective until Licensee has filed an approved bond. If the License is forfeited, or if Licensec shall cease operations under the License for any reason, the surety bond or cash deposit shall not be released until Licensec obtains the required clearance from the Road Commissioner. 18. The Licensee shall not be liable or responsible for any failure or delay in the performance of any of its obligations under this License if such delay or failure arises from a cause 1 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 21 GERALD J. GEERUNGS COUIqTY CO~JN,~EL 3S35- ~ S~EET RIVERSIDE. CAUF~NIA or causes beyond the reasonable control of the Licensee, including without limitation labor disputes, strikes, other labor or industrial disturbances, acts of God, floods, lightning, shortage of materials, rationing, utility or communication failures, earthquake casualties, war, acts of a public enemy. riots, insurrection, freight or other embargoes, blockages, actions, restrictions, regulations, orders or quotas imposed by any government, agency or subdivision thereof, inability to secure necessary parts or materials or any similar causes. 19. This License is not exclusive, and is issued pursuant to Section 53066 of the California Government Code. 20. Any transfer of this License requires the approval of the Board of Supervisors. No approval or disapproval of a proposed transfer shall take place unless and until a public hearing affording due process is held in accordance with the requirments of Sections 3, 4 and 5 of Riverside County Ordinance No. 503, as amended. The Board of Supervisors may, as a condition of approval of the transfer, require the new Licensee to pay to the County of Riverside that percentage of its annual revenues which new applicants are then required to pay. 21. All rights, obligations and duties imposed by this License are binding on Licensee, its successors and assigns. 22. The Licensee shall have the right to request renewal of its License upon written notice delivered to the Board of Supervisors not less than six (6) months before expiration of the original term of this License. The procedures and standards for renewal shall be consistent with those set forth in 47 U.S.C. Section 546, as amended. A filing fee of $750.00 shall accompany a request for a renewal. If the License is renewed, the renewal term shall be for five (5) years and upon such conditions as are contained in its License as in effect on the date of its expiration or upon such other conditions as the County and the Licensee shall agree. Should the County deny the renewal request, such denial shall be accompanied by a written statement setting forth the reasons for such denial. Should renewal proceedings not be completed prior to the expiration of the original term of this License, the Licensee shall have the right and authority to continue operation of its CATV system pursuant to the terms and conditions of its License until such time as the renewal proceedings are finally concluded unless the delay or failure to complete the proceedings is due primarily to the action or inaction of the Licensee; but in no event shall the IIII IIII IIII IIII 1 2 3 4 5 right to continue operation under this provision continue for more than three months after the expiration date of the license. Dated: May 28, 1985 'i ERALn A LONEY ? t~ Clerk of the Board 81i B -,~7 Deputy// · 9 10 (SEAL) 11 12 13 14 15 16 17 18 19 20 21 23 BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE. STATE OF CALIFORNIA Cha 1 rma n Licensee hereby accepts and agrees to faithfully perform and abide by all the terms and conditions of this License and understands that this License is not effective until an approved surety bond has been filed. Dated: August 1, 1985 INLAND VALLEY CABLEVISION 24 (Corporate Seal) 25 26 27 28 GERALD ,L GEERUNGS COUNTY COUNSEL SUIT~ 3OO 353,5.10TH STREET RIVERSIDE. CALIFORNIA ' ?:" ..'::.. ~,'::?:..,.:~!~:?!~!~..:'..:~i:i?~ :'~:-?,'.~!'=."~ '."? :.' :.' (" .:....:'!.;.'=:'..:.""...".:.. '.' ":~ ~.",~ ..,....~~'.:.~,~~;~:-,.~'=.~ .:.' ?.',.~ ~'~' : .... ,.'..'.. ~ .... ".":','~?"~C.'~. ~i:.."', . ',:,~ . :' .'.'~'"'~.. · .:'.... · .'~ ~.. ""?' ', ' 'i . ..; -.. :: ' :.' "A '.. .. "., ,~. ',.,.' ...... 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'~.:.,... ,- · . : · .. · .. ~;.. ~" '~"~'~" ~"" ' ' :... . :.¥, ' ...?~...,,.. : ~... ',.~: '.' .-, / , '. .,, . :.'., '.- . .... :...., ~,.."~ '-:' '-" :~ ._~..,~ ..."~ Z~'.,~ .... · ,': .... ' . .. ........ .,: ~..,.=~,..., .',,-,,~--~-.... . .~. ..'".".".'... ': -'.:..:. ,::!.~ :,':.,:'.::'.::..":... '. :.. '.. : . .....:,... . .-. ,' ' ',~ .' · ~-~. '"' "' ' ~' ' ' ,, 1 "'" ":':"'~:"'~" :""'.'-''' · .....P~J. ol '~t, ..~lmaa~a, cal.!£arnia... ':..~..~:....'..~.....".,.:..?::::.:., :"' .. . . . . . · ........~..,: .,:... .'. ,..~ . ..../ · ~ ,'~,~, , .., - .... ' - ~ - ,'. ' '. - ,'..",,.~.,~,~'~~~;, ,,..~ .'~:: .,,~'..; .: ~'.~-~; ,~..~.;: .'~,..,,..~'~.,~ ..-.~ ,,~:,'.~;,.~', ............. , ,' ',.. .... . ..'a,~.. , '-. . · '..~.- ~,~, ~ ,.......~ · ~ . . · ,. ~...,;..:,~.~... ,,.:, ? '~.~.~.. ~ . ....~ ..:..~:.,~. , ~,.... ~... ~., ...... , . .....,...... ,. ,,.... .:.~...;.~..,,~ .................~ ............ :~,~. ....... . ....... . ... ......: .. . ,... ' ~':; "~ '~ . ' ' '~'~i,~,~.~e,~,: :. · . MINUTES OF A REGULAR MEETING OF THE TEMECUL~ COI414UNITY SERVICES DISTRICT HELD FEBRUARY 2?, 1990 A regular meeting of the Temecula Community Services District was called to order at 8:19 P.M. at the Temecula Community Center, 28816 Pujol Street, Temecula by Vice-President Sal Muhoz. ROLL CALL PRESENT: 4 DIRECTORS: L i n d e m a n s , M o o r e , Mufioz, Parks ABSENT: 1 DIRECTORS: Birdsall Also present were City Manager Frank Aleshire, City Attorney Scott F. Field, and Deputy City Clerk June S. Greek. PUBLIC COMMENTS None offered at this time. CSD BUSINESS Minutes of CSA-143 Advisory Committee It was moved by Director Parks, seconded by Director Moore to approve staff recommendation as follows: 1.1 Receive and file minutes of February 6, 1990. 1.2 Receive and file minutes of February 15, 1990. The motion carried by the following vote: AYES: 4 DIRECTORS: Lindemans, Moore, Mufioz Parks NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Birdsall 2/CSDMinuteW2/27/90 - 1- 04l 12/90 .... CSD Minutes February 27, 1990 DIRECTORS REPORT Director Lindemans asked if a consultant for Parks and Recreation has been hired. City Manager Frank Aleshire advised that he has hired a consulting Parks and Recreation Director who is preparing a report for the Board of Directors to be presented on the next agenda. Vice-President Muhoz asked if the park benches and landscaping at the Sports Park have been given any attention since the last request by the CSD Board. ADJOURNMENT It was moved by Director Parks, seconded by Director Moore to adjourn the meeting at 8:27 PM to a meeting to be held March 13, 1990, at 7:00 PM in the Temecula Community Center, 28816 Pujol Street, Temecula, California. The motion was unanimously carried by all members present. 2/CSDMinut~W2/27/90 -2- 04/12/90 MINUTES OF ~ RE~UI.%RMEET~N~ OF THE TEMECUL~ COI~UN~TY SERVICES DISTR~CT HELD M~RCH ~3~ L990 A regular meeting of the Temecula Community Services District was called to order at 8:17 P.M. at the Temecula Community Center, 28816 Pujol Street, Temecula by President Pat Birdsall. ROLL CALL PRESENT: 5 DIRECTORS: Birdsall, Lindemans, Moore, Munoz, Parks ABSENT: 0 DIRECTORS: None Also present were City Manager Frank Aleshire, City Attorney Scott F. Field, and Deputy City Clerk June S. Greek. PUBLIC COMMENTS There were no public comments offered. CSD BUSINESS 1. Minutes It was moved by Director Moore, seconded by Director Parks to approve the minutes of February 6, 1990 and February 13, 1990 as mailed. The motion was unanimously carried. 2. Construction of Retaining Wall Rancho California Sports Park city Manager Aleshire gave a staff report recommending acceptance of the low bid and award of the contract. It was moved by Director Parks, seconded by Director Moore to accept the low bid of Harris Construction of La Habra in the amount of $113,310, award the contract to harris Construction and authorize the CSD president to execute the contract documents. The motion was unanimously carried MANAGERS REPORT City Manager Aleshire reported on the assignments given to Bill Holley the City's consultant for Parks and Recreation and introduced Mr. Holley. c~d\031390 -1- 04/12/90 _--- CSD Minutes March 13. 1990 Bill Holley presented a staff report outlining the activities he has been involved in since beginning his consulting assignment with the City of Temecula. He advised that budget information is being prepared for the Board of Directors. Councilmember Lindemans asked if the apartment projects within the City have been assessed any parks fees at the time of their approvals by the County. Mr. Holley replied that he would attempt to secure that information. President Birdsall requested that research be conducted regarding the feasibility of taking over the CSA-143 and the Parks within that service area within the next six months. ADJOURNMENT It was moved by Director Parks, seconded by Director Moore to adjourn at 8:30 to March 27, 1990 at 7:00 PM, at the Temecula Community Center, 28816 Pujol Street, Temecula, California. The motion was unanimously carried. ¢sd\031390 -2- 04/12/90 CITY OF TEMECULA AGENDA REPORT AB#: .~?.~ TITLE: A Proposal by Willdan Assoo. for DEPT HD MTG: 6'-~ .,/c Assessment Engineering Services CITY ATT¥ DEPT: 'p~,~ CITY MGR RECOMMENDATION: It is staff's recommendation that the Board of Directors of the Temecula Community Service District accept the Assessment Engineering proposal of Willdan Associates, and authorize the City Manager to prepare and sign an agreement with Willdan Associates for said Assessment Engineering Services. BACKGROUND: On April 21, the Board of the TCSD directed staff to spread the cost of providing park and recreation services district-wide. On April 23, 1990, it was determined that the most effective method to accomplish this, given the extremely tight time frame within the task must be accomplished, was to seek the services of Willdan Associates, experienced assessment engineers. The proposal of Willdan Associates, attached, describes the range of services provided. In addition to the direct cost of Willdan's services, $30,000, there will be an additional cost of printing of the notice of public hearing and its mailing, assessor's computer tape, assessor's parcel maps, attorney's cost, and staff cost. Depending upon the number of parcels generated within the District, this additional cost could range between $7,500 and $12,500, with mailing costs being the largest single additional expense. This additional cost figure will be tightened up as the work progresses. FISCAL IMPACT: The fiscal impact will be approximately $37,500 to $42,500, which will be covered within the cost of the TCSD assessment spread. This accounts for approximately 2% of the District's budget. ALTERNATIVES: In consideration of the tight time frame for developing the schedule of assessments, notice of hearing, the public hearing, and preparing and submitting the assessments to the County Assessor, there is no other "guaranteed" method of meeting the Board's direction than the one presented. ATTACHMENTS: Proposal of Willdan Associates. 11:$2 ~213 2~5 2700 BW&S LA HAIN TO: Pat Birdsall, President Temecutm Community Services District ~ROM: Betsy Hanna, City Attorney~ Office Frank Aleshire Bill Scott Field RE: Temeoula Communi~ Services Dietriot - Rates and Charges for P¥ ZggO-gl DATED: May i, 1990 At its April 21 workshop, the City Council, aotin~ CSD Zones A (streetlights, slope mainechin=e) ams B (s~ree~ligh=s) and to propose a new, CMD- and Ci~ywid~ service c~arge for park purposes (in=ludlng maintenance of preparation of a Master Plan and maintenance of medians ~e~lcate~ =o r~e c~ty by developers). T~erefore, t~is memo outll~es t/~e procedures and schedule for r/~e e ermlna lon and levy of suc~ service charges within the CSD for FY 1990-91. Suc~ service charges will be l~posed by CSD Resolution after a puPlie ~earing and collected on the tax bill by Riverside County. The Board needs to determine three levels of o~arges: 1) those for the servlce9 provided only within Zone A; 2) those for the services provided ?nly within Zone B; and 3) those to be provided on a Distr~ctwide and Citywide basis. Much o~ ~he %nfor~ation required to le_v~ the Zone A and B charges is available fro~ the ~unty of Riverside. However, the Board needs to develop within a very short period of time -- a list of par~ improvements to be financed (such as lights, median upkeep and the mas:er plan), their cost, and the cost per parcel. Once that schedule of charges hie been developed and approved by ~he Board, the Board has directed that that schedule ~nd a notice of heari~ on the charges should be mailed to all those property owners who will be charged for 05/02/90 11:32 '~215 2:~6 2700 BW&$ LA FAIN determine £rom the schedule his or her total charge for F¥ 1990-9Z. FOr example, a property owner within Zone A or Zone B will pay a two-tiered charge because he cr she receives certain services within Zone A not provided citywide, as well as the park se~-~ices proposed to be provided citywide. In contrast, a property owner not within either zone will pay only %he proposed park service charqt. After any ad~us~men~ of suc~ charges as a result of ~es~imon¥ a= =~e puPlie ~earing, the ~oard of Directors will a~opt ~e servlce ¢~arges. cl~y s~a£f =~en will piece suc~ c~arges on =~e county =a~ roll by preparing a repor~ marching parcel numbers =0 =~e appropriate service c~arge an~ filing t~e report with the County Au~l=Or Dy August 1. The Cl~¥ Manager ~as recommended ~ha= t~e CSD see~ t~e services of an assessment engineer in developing t~e service charge schedule to be sure that the charges represent ~he reasonable value of =he service to be provided, plus overhead. SCHEDL%E May 8: aeview W£11dan proposal to provide assessment en~ineering se~v!ces~ approve contract with Willdan for such services. May 8 - 22 - ~eg£n CEmA review of the resolution adoptinq rates and charges~ Willdan and staff are preparin~ ~ud~et and schedule of ra~es and char~es and obtainin~ tax roll from Riverside County. May 22: Willdan and Staff present budget and schedule of charge~: 8card of Director~ reviews, modifies and preliminaril¥ approves =he hueget and schedule (by mo=ion}~ Board of Directors directs the CSD ~ecretar¥ to give notice of a public hearing on June 26 on such service charges hy ~aillng to all those to ~e c~arged. May 23-June 12~ Will,an and Staff mail to all those to be o~arged! Willdan and Staff contact County Auditor to ~etermine 0olleotlon charge~ and obtain any contract necessary June 26: Public Hearing. Board of Directors hears all in=treated persons, pro or con~ modifiea~ corrects, or deoreaee~ ~h~ ~ervi~e chargem, and finally adopts a Resolution oonf£r~ing such charges for F¥ ~990-91 and providing for their collection on ~he ta~ roll and making the appropriate CEQA ~ete~ination. -2- 05/02./90 11~33 ~213 236 270{) BW&S LA HAIN ~0e,4/00,4 By August i AT THE LATEST: Willdan and Staff prepare a report which lists the service charges for each APN No. to be charged and file the ~eport with tl%e County Auditors office. Please let me know if you have questions or comments reqardin~ this schedule. elh/M]'IMT?54o -3- April ?.6, ~990 -- 11LLDAN ASSOCIATES [] ENGINEERS & PLANNEi?S Pr, Ol'e~5101101CO,rlSUttlrlg services 5i, qce I?[:4 Mr. W. L Holley Project Services City of Temecula 7515 Valle Vista Drive Rancho Cucamon/~a, California 91730 ~ubject; City of Temecula - Community :Servic~ District Dear Bill: In respome to your request on behalf of the City of Temecula, we are pleased to ,submit this propm/d for ass~amcnt cnginvedng servicc~ in connection with dxe 1~0/1991 levy of assessment for the City of Temecula Coimuu~Jty Services D~tfict (CSD). Our proposed Scope of' Serv/ces is as follows: ~eo~ of $ervice~ Task I - Spread of Assessments Obtain the formula for spreading assessments from die CSD. The formula was established on format/on of the CiD and is not to be modffied. Obtain the tape(s) from tl~e Riverside County Assessor which contains the following data for all parcels within the City: · Assessor Parcel Number · Owner Name . Owner Address · Parcel Value · Acreage · Land Use Code Tax Rate Area , Base Year (Year Bought) . Taxability Rate Square Footage · Number of Dwelling Units Attached/Detached 200 S. ANAHEIM 8OLILEVARO · SUITE 100 · ANAHEIM, CALIFOI'INIA gRg05.38g~ · (~t4) !/'4-~740 · (2~3) g24-1{~.31, FAX (714] TT4.B468 ~ c/ WU I~:IT OF~GT"T 'AI:~W : WO/:L.-I Mr. W. L, Holloy City of Temecula April 26, 1990 Pa~ 2 And identify those paxeels in Zon~ A (former CSA 14.3) and B (former CSA's 75 and 103). We will rely on this data without review for all of our work in this enga~c- rilelilt. Read the above data into our Intergraph 6000 computer. Establistt the above data into a database using our Informix relational data base language. Using the formula provided, program the formula to compute assessments for: all parcels within the District (City-wide)/or the budget amomxt for Parks aiid R~rcation; all parcels within Zone A for the budget iunouat for streetlight maintenance and for soil conservation and drainage control; all parcels within Zone B for ihe budget amount for street {ight maintenance; and all parcels within former CSA 143 which paid a rofus~ collection fee in 1989/1990, compute and apply a credit re 1990/1991 aaaessmeats based on $71.01 pox parcel and $239,587 in total, but not in excess o£ the 1990j1991 assessment. Spread the assessments and produce a report that details the ass~sm~ata for each parcel by Zone. Provide a copy of the report to the CSD. Ta~k 2 - Prq,arution of Engineers Report Prepare Engtneer's Report to be u,~d in the procegdings for the levy of the 1990/1991 assessment. Such report will contain the following: brief description of the services to be funded by the levy of the assessments; a description of the formula for spreadin8 the assessments; a descriptioa of the ~ones e~tabLish~d within the CSD; budgeted expenditures for each service, the refuse credit, and administrative espemes; Mr. W. L Holley City of Tcmccula April 2~, 1990 Page 3 a brief description of the method of collection of the a,~csbmcnts; and a reduce,~d scale map of the C3O. Ta~k 3 - Meetlnss, Proceedings, Public Hearing Attend up to five meetings with City staff for purposes of reviewing reports, assessments, etc. t Attend the Public Hearins on the m~c~mcnta and prc~:nt the Enginccds Report if requested. Task 4. _N'ottce~ Prepare 3.7 x 8.§-inch iraefts for No. t0 envelopes provided by the City, which contain assessor parcel number, owner's nanm and addres.% propose~ ass~sment, and a shor~ message can be included, for use by the City in mailing notices. We suggest that required legal notic~ be prepared by legal counsel and that a layman's explanation al~o be included in the mailin& We also aug$~t flint a pro£essiona! bulk mail house b~ used for this purpose. Tusk 5- Submit Assessment to County for Collection After the Public Hearing, obtain a ~rtified copy of th~ resolution levying the assessment. Prepare a computer tap~ uf th~ u~ac~mcnts by a.,~sc.~or parcel number in a format compatible with the County Ass~sor's computer. Submit the tape to ~he County Assessor. Receive the "appLied" and 'unapplicd" (exceptions) lists after the County prece~$e~ the tape. Clear and resubt)dt unapplied parcels by using the rates d~t©rmineA in the spread of the assessments. Prepare a final asse, ssment spread t,'ontaining dcarcd exceptions and submit it to the City. Mr, W, L Ho!l~y City of Temeaula Page ¢ We understand that the budget for 1990/1991 will be substantially as follows: Zone A Zone B Street Ughts Soft Conservation and Drainase Control Re~us© Credit CSD Wide Parks and Recreation $155,979 ~%380 (~9,5S7) 85,591 2,087,62!, Totat before administrative e*penses $2,181,984 ProJec~ Scheduiq The project must be completed in the foRowing time frame: April 23 to May 22, 1990 - Prepare assessment spread. May 8, 1990 . Board states intent; orders a~essment information pre- pared. May 22, 1990 - Board reviews a~sessmem information; sets Public Hearing date. May 23 to June 12, 1990 - Staff mails notice of Public Heating to each property owrt©r. June 26, 1990 Board holds Public Hearing (must b~ complete by 7/24 if .continued). Augua: 10, 1990- A~csamcnta arc received and procesacd by County Assessor. Items to be ,qql~11~]l ~y..~be District Formula for spreading assessments; Complete set of current assessor parcel maps for the Cl~y; Map o[ the CSD boundary; and S d NO ~EI:TT 06~T'~ 'Ate4 : WO~d ~r. W. L. Hullc7 City o~ T~mecul~ e Computer tapes containing data or all parcels in the CSD (city) plus designation of which parcels are the former CSA's 75, 103, 143 to be used to establish zones. Fee ,qehedule We p~opose a lump sum fee for the tasks listed in the Scope of Services of $30,000 plus the cost ot County Assessor tapes, payable moralsly as the work prosteases. No:e that this proposal contair~ no tasks for the parcel research or establishing which parcels are in which zones. We will rely on the County data for this We appreciate the confidence placed in us to complete this project in the compressed :true frame requlrecl. We look forward :o working with you and the District (City). Wc will begin work upoa receipt of a lctt¢.r ac~cptin8 our proposal; however, we must order the ropes from the County immediately and begin loading the data Into our computer. If you have any quitions, please call Mr. Robert N. Brown, Manager of Willdan's Special Districts Dirision~ regarding this project. Respectfully submitted, WILLD.~q ASSOCIAT~ Chsrles W. Lake Vim President/ Regional Office Manager copy; Mr, Robert N, Brown, Willdan Associates Mr. William Stookey, Willdan Associates Mr. Ronald E. Espslin, Willdan Associates Mr. Jim McLean, Willdan Associates 8~o/2ooo/o~o