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111417 CC Agenda
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title II] AGENDA TEMECULA CITY COUNCIL REGULAR MEETING CITY COUNCIL CHAMBERS 41000 MAIN STREET TEMECULA, CALIFORNIA NOVEMBER 14, 2017 — 7:00 PM At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and may continue all other items on which additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M. 6:00 PM - The City Council will convene in Closed Session in the Canyons Conference Room on the third floor of the Temecula City Hall concerning the following matters: Conference with Real Property Negotiators. The City Council will meet in closed session pursuant to Government Code Section 54956.8 regarding the potential sale of one parcel of real property owned by the City consisting of approximately 3.64 acres located at the corner of Diaz Road and Rancho California Road (APN 921-020-089). The parties to the negotiations for the potential acquisition of the property are: Advance Management & Investment, LLC and the City of Temecula. Negotiators for the City of Temecula are: Aaron Adams, Peter Thorson, Greg Butler, Luke Watson and Pat Thomas. Under negotiation are price and terms of the potential sale of the property. Next in Order: Ordinance: 17-13 Resolution: 17-76 CALL TO ORDER: Mayor Maryann Edwards Prelude Music: Makayla O'Sullivan Invocation: Pastor William Rench of Calvary Baptist Church Flag Salute: Council Member James "Stew" Stewart ROLL CALL: Comerchero, Naggar, Rahn, Stewart, Edwards PRESENTATIONS/PROCLAMATIONS Presentation of Certificates of Achievement to Mitchell Hiddessen, Justin Levinter, and Lucas Wilhite of Troop #301 for Attaining Eagle Scout Rank Presentation of #ValleyGIVESday Proclamation Presentation of Proclamation for the 17th Annual Community Candlelight Tribute Day PUBLIC COMMENTS A total of 30 minutes is provided for members of the public to address the City Council on items that appear within the Consent Calendar or a matter not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the City Council on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form may be filled out and filed with the City Clerk prior to the City Council addressing Public Comments and the Consent Calendar. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business items on the agenda, a Request to Speak form may be filed with the City Clerk prior to the City Council addressing that item. Each speaker is limited to five minutes. CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, 10 minutes will be devoted to these reports. CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action. 1 Waive Reading of Standard Ordinances and Resolutions RECOMMENDATION: 1.1 That the City Council waive the reading of the text of all standard ordinances and resolutions included in the agenda except as specifically required by the Government Code. 2 Approve the Action Minutes of October 24, 2017 RECOMMENDATION: 2.1 That the City Council approve the action minutes of October 24, 2017. 3 Approve the List of Demands RECOMMENDATION: 3.1 That the City Council adopt a resolution entitled: 2 RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Approve the City Treasurer's Report as of September 30, 2017 RECOMMENDATION: 4.1 That the City Council approve and file the City Treasurer's Report as of September 30, 2017. 5 Adopt Ordinance 17-11 to Approve an Amendment to Chapters 17.06, 17.24, and 17.34 of the Temecula Municipal Code Regulating Accessory Dwelling Units (Second Reading) RECOMMENDATION: 5.1 That the City Council adopt an ordinance entitled: ORDINANCE NO. 17-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTERS 17.06, 17.24 AND 17.34 OF THE TEMECULA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS, AND MAKING A FINDING OF EXEMPTION UNDER PUBLIC RESOURCES CODE SECTION 21080.17 6 Adopt Ordinance 17-12 Regulating Conduct in Order to Protect the Health, Safety and Quality of Life of Persons in Temecula (Second Reading) RECOMMENDATION: 6.1 That the City Council adopt an ordinance entitled: ORDINANCE NO. 17-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA MODIFYING THE TEMECULA MUNICIPAL CODE TO REGULATE AND PROHIBIT CERTAIN CONDUCT AND CONDITIONS TO PROTECT HEALTH AND SAFETY BY AMENDING SECTION 9.65.060 TO PROHIBIT SOLICITATIONS IN RESTROOMS OPEN TO PUBLIC, ADDING CHAPTER 9.70 PROHIBITING CERTAIN CONDUCT ON PUBLIC PROPERTY, INCLUDING CAMPING, HINDERING OR OBSTRUCTING FREE PASSAGE, BODILY FUNCTIONS, WALK, STAND OR LIE ON PUBLIC BENCHES OR BE ON CERTAIN PUBLIC FIXTURES, PROHIBITING DWELLING IN VEHICLES ON CITY STREETS AND PUBLIC PROPERTY, AND REGULATING FOOD DISTRIBUTION ON PUBLIC PARKS AND PUBLIC PROPERTY, ADDING CHAPTER 9.75 PROHIBITING THE STORAGE OF 3 PERSONAL PROPERTY ON PUBLIC PROPERTY AND PROVIDING FOR THE REMOVAL OF SUCH PROPERTY; REPEALING CHAPTER 9.02 AND SECTION 10.08.080 AS THESE ARE INCLUDED IN THE NEW PROVISIONS; AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM CEQA PURSUANT TO SECTION 15060 OF THE CEQA GUIDELINES 7 Approve a Cooperative Agreement with Temecula Sunrise Rotary Club in Support of the Annual Community Christmas Dinner RECOMMENDATION: 7.1 That the City Council approve the Cooperative Agreement with Temecula Sunrise Rotary Club, in the amount of $7,255 of in-kind services and support, for the annual Community Christmas Dinner. 8 Approve an Agreement for Consultant Services with MDG Associates for the Provision of Community Development Block Grant (CDBG) Administration Services RECOMMENDATION: 8.1 That the City Council approve an Agreement for Consultant Services with MDG Associates, in the amount of $80,600, for the Provision of Community Development Block Grant (CDBG) Administration Services. 9 Approve the Fourth Amendment to the Agreement for Consultant Services with Willdan Engineering for On -Call Traffic Engineering Services RECOMMENDATION: 9.1 That the City Council approve the Fourth Amendment to the Agreement for Consultant Services with Willdan Engineering, in the amount of $75,000, for On -Call Traffic Engineering Services. 10 Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park), PW17-04 RECOMMENDATION: 10.1 Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park), PW17-04; 10.2 Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. 4 11 Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Sixth Street Improvements, PW17-05 RECOMMENDATION: 11.1 Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Sixth Street Improvements, PW17-05; 11.2 Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. 12 Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Ynez Road (Winchester Road to County Center Drive), PW17-22 RECOMMENDATION: 12.1 Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Ynez Road (Winchester Road to County Center Drive), PW17-22; 12.2 Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. 13 Approve Parcel Map 33488 (Located South of Santiago Road, North of Lolita Road, Approximately 800 Feet East of John Warner Road) RECOMMENDATION: 13.1 Approve Parcel Map 33488 (located south of Santiago Road, north of Lolita Road, approximately 800 feet east of John Warner Road) in conformance with the Conditions of Approval; 13.2 Approve the Subdivision Improvement Agreement and accept the Faithful Performance Bond and Labor and Material Bond as security for the Agreement. ******************** RECESS CITY COUNCIL MEETING TO SCHEDULED MEETINGS OF THE TEMECULA COMMUNITY SERVICES DISTRICT, THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY, THE TEMECULA HOUSING AUTHORITY, AND THE TEMECULA PUBLIC FINANCING AUTHORITY ******************** 5 TEMECULA COMMUNITY SERVICES DISTRICT MEETING Next in Order: Ordinance: CSD 17-01 Resolution: CSD 17-05 CALL TO ORDER: President Jeff Comerchero ROLL CALL: DIRECTORS: Edwards, Naggar, Rahn, Stewart, Comerchero CSD PUBLIC COMMENTS A total of 30 minutes is provided for members of the public to address the Board of Directors on items that appear within the Consent Calendar or a matter not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the Board of Directors on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form may be filled out and filed with the City Clerk prior to the Board of Directors addressing Public Comments and the Consent Calendar. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or District Business items on the agenda, a Request to Speak form may be filed with the City Clerk prior to the Board of Directors addressing that item. Each speaker is limited to five minutes. CSD CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the Temecula Community Services District request specific items be removed from the Consent Calendar for separate action. 14 Approve the Action Minutes of October 24, 2017 RECOMMENDATION: 14.1 That the Board of Directors approve the action minutes of October 24, 2017. 15 Approve the Agreement with Kingdom Causes DBA City Net for a Citywide Homeless Collaborative Services Pilot Program (At the Request of Human Services Ad Hoc Subcommittee Mayor Edwards and Council Member Stewart) RECOMMENDATION: 15.1 That the Board of Directors approve the Agreement for Contractor Services with Kingdom Causes DBA City Net, and appropriate $120,000 from available fund balance, for a City-wide homeless collaborative services pilot program. 6 CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGER REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT Next regular meeting: Tuesday, November 28, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. 7 SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY MEETING Next in Order: Ordinance: SARDA 17-01 Resolution: SARDA 17-06 CALL TO ORDER: Chairperson Maryann Edwards ROLL CALL: DIRECTORS: Comerchero, Naggar, Rahn, Stewart, Edwards SARDA PUBLIC COMMENTS A total of 15 minutes is provided for members of the public to address the Board of Directors on items that appear within the Consent Calendar or a matter not listed on the agenda. Each speaker is limited to three minutes. If the speaker chooses to address the Board of Directors on an item listed on the Consent Calendar or a matter not listed on the agenda, a Request to Speak form may be filled out and filed with the City Clerk prior to the Board of Directors addressing Public Comments and the Consent Calendar. Once the speaker is called to speak, please come forward and state your name for the record. For all Public Hearing or Agency Business items on the agenda, a Request to Speak form may be filed with the City Clerk prior to the Board of Directors addressing that item. Each speaker is limited to five minutes. SARDA CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the Successor Agency to the Temecula Redevelopment Agency request specific items be removed from the Consent Calendar for separate action. 16 Approve the Action Minutes of October 24, 2017 RECOMMENDATION: 16.1 That the Board of Directors approve the action minutes of October 24, 2017. SARDA BUSINESS 17 Approve the Official Statement Relating to the Issuance and Sale of Tax Allocation Bonds to Refinance Outstanding 2002, 2006, 2007, 2010 and 2011 Bonds of the Former Temecula Redevelopment Agency, and Approving Related Documents and Official Action RECOMMENDATION: 17.1 That the Board of Directors adopt a resolution entitled: 8 RESOLUTION NO. SARDA 17- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF REFUNDING BONDS IN ORDER TO REFUND CERTAIN OUTSTANDING BONDS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING RELATED DOCUMENTS AND ACTIONS SARDA EXECUTIVE DIRECTOR REPORT SARDA BOARD OF DIRECTORS REPORTS SARDA ADJOURNMENT Next regular meeting: Tuesday, November 28, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. 9 TEMECULA HOUSING AUTHORITY — No Meeting TEMECULA PUBLIC FINANCING AUTHORITY — No Meeting RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARING Any person may submit written comments to the City Council before a public hearing or may appear and be heard in support of or in opposition to the approval of the project(s) at the time of the hearing. If you challenge any of the project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City Clerk at, or prior to, the public hearing. 18 Approve Draft Substantial Amendments to the Fiscal Years 2012-2013, 2015-2016, 2016- 2017 and Fiscal Year 2017-2018 Community Development Block Grant (CDBG) Annual Action Plans, and the Fiscal Year 2017-18 CDBG Annual Action Plan and Funding Recommendations RECOMMENDATION: 18.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING SUBSTANTIAL AMENDMENTS TO FISCAL YEARS 2012-13, 2015-16, 2016-17, AND 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLANS CITY COUNCIL BUSINESS 19 Introduce Ordinance Allowing Private Traffic Control and Direction on Public Streets Subject to Certain Terms and Conditions and Adopt a Resolution Adopting the Fee Schedule RECOMMENDATION: 19.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION, TO THE TEMECULA MUNICIPAL CODE 10 19.2 Adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE FEE SCHEDULE PURSUANT TO THE TEMECULA MUNICIPAL CODE, CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION DEPARTMENTAL REPORTS 20 City Council Travel/Conference Report BOARD/COMMISSION REPORTS CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next regular meeting: Tuesday, November 28, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. NOTICE TO THE PUBLIC The agenda packet (including staff reports and public Closed Session information) will be available for public viewing in the Main Reception area at the Temecula Civic Center (41000 Main Street, Temecula) after 4:00 PM the Friday before the City Council meeting. At that time, the agenda packet may also be accessed on the City's website — TemeculaCA.gov — and will be available for public viewing at the respective meeting. Supplemental material received after the posting of the Agenda Any supplemental material distributed to a majority of the City Council regarding any item on the agenda, after the posting of the agenda, will be available for public viewing in the Main Reception area at the Temecula Civic Center (41000 Main Street, Temecula, 8:00 AM — 5:00 PM). In addition, such material will be made available on the City's website — TemeculaCA.gov — and will be available for public review at the respective meeting. If you have questions regarding any item on the agenda for this meeting, please contact the City Clerk's Department, (951) 694-6444. 11 PRESENTATIONS City of Temecula Certificate of Achievement The City Council of the City of Temecula commends the outstanding achievement of: Mitch ell Hiddess en of Troop #301 We congratulate Mitchell for his achievement on receiving the rank of Eagle Scout, which is the highest achievement earned in Scouting. We are proud of Mitchell' s accomplishment and wish him continued success in his promising and bright future. IN WITNESS WHEREOF, I have hereunto affixed my hand and official seal this fourteenth clay of November, 2017. Maryann Edwards, Mayor Randi Johl, City Clerk City of Temecula Certificate of Achievement The City Council of the City of Temecula commends the outstanding achievement of: Justin Levinter of Troop #301 We congratulate Justin for his achievement on receiving the rank of Eagle Scout, which is the highest achievement earned in Scouting. We are proud of Justin's accomplishment and wish him continued success in his promising and bright future. IN WITNESS WHEREOF, I have hereunto affixed my hand and official seal this fourteenth clay of November, 2017. Maryann Edwards, Mayor Randi Johl, City Clerk City of Temecula Certificate of Achievement The City Council of the City of Temecula commends the outstanding achievement of: Lucas Wilhite of Troop #301 We congratulate Lucas for his achievement on receiving the rank of Eagle Scout, which is the highest achievement earned in Scouting. We are proud of Lucas' s accomplishment and wish him continued success in his promising and bright future. IN WITNESS WHEREOF, I have hereunto affixed my hand and official seal this fourteenth clay of November, 2017. Maryann Edwards, Mayor Randi Johl, City Clerk Si Si , .sJ yryyyr yyry ry �����0.R6R6R��I�Wi����G ` i����� _ 1 � � � t'!�� ��� maeaewm M1—...: ..����, •wwwwaY man j: ����t � ..,,p,p«�n,.,„a'P.:?!:'i:ll: u,¢pa "` - �� •. l �� �AR �wwww. _ pp,, ,,pp 3333 The City of Temecula PROCLAMATION WHEREAS, Valley GIVES day was established as a local day of giving on the Tuesday following Thanksgiving known as national Giving Tuesday; and WHEREAS, Valley GIVES day is a celebration of philanthropy and volunteerism where people give whatever they are able to give; and WHEREAS, Valley GIVES day is a day where citizens work together to share commitments, rally for favorite causes, build a stronger community, and think about other people; and WHEREAS, it is fitting and proper on Valley GIVES day and on every day to recognize the tremendous impact of philanthropy, volunteerism, and community service in the City of Temecula; and WHEREAS, Valley GIVES day is an opportunity to encourage citizens to serve others throughout this holiday season and during other times of the year. NOW, THEREFORE, I, Maryann Edwards, on behalf of the City Council of the City of Temecula, do hereby proclaim November 28, 2017 to be "# Valley GIVESday" in the City of Temecula, and encourage all citizens to join together to give back to the community in any way that is personally meaningful. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Temecula to be affixed this fourteenth day of November, 2017. Maryann Edwards, Mayor Randi Johl, City Clerk Si Si yQyQ�� , .sJ yr'wayyy'wyrryy yyyyryry ryay �����aa6R6R��mWi����G' i����� _ 1 � � � t'!�� ��� maeaewm M1—...: ..����, •wwwwaY j: man ����t � ..,,p,p«�n,.,„a'P.:?!:'i:ll: � u,¢p�a "` - �� •. l �� �AR �wwww. _ pp,, ,,pp The City of Temecula PROCLAMATION WHEREAS, the communities of Temecula, Murrieta, and the region come together for the 17th annual Community Candlelight Tribute to attend a special holiday celebration for "Remembering Those We've Loved and Lost" over the years, and recently "Across the Miles"; and WHEREAS, especially during the holidays, just as all year long, we grieve, miss, and remember our loved ones with this special time of remembrance through this day of tribute; and WHEREAS, we invite the citizens of Temecula, Murrieta, and the surrounding communities to join together to light a candle during this time of remembrance with special music, poetry, and inspirational speakers; and WHEREAS, this is an opportunity for everyone to show support, comfort, and empathy to all the families of those who have lost a loved one "Across the Miles" from various recent tragic events in our nation and around the world; and WHEREAS, this community event is sponsored by Jacob's House, a home away from home and a member of the National Healthcare Hospitality Network, which provide temporary lodging for families of a loved one who is hospitalized in one of our local or regional hospitals who travel from across our nation and around the world. NOW, THEREFORE, I, Maryann Edwards, on behalf of the City Council of the City of Temecula, hereby proclaim December 3, 2017, to be "Remembering Those We've Loved and Lost Across the Miles Day" The 17th Annual Community Candlelight Tribute to be held at the City Hall Civic Center front steps on December 3, 2017, and encourage all citizens of Temecula to come and participate in this important event to benefit emotional and mental health, welfare, and harmony of our city, our communities, and our families. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Temecula to be affixed this fourteenth day of November, 2017. Maryann Edwards, Mayor Randi Johl, City Clerk CITY COUNCIL CONSENT Item No. 1 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Randi Johl, City Clerk DATE: November 14, 2017 SUBJECT: Waive Reading of Standard Ordinances and Resolutions PREPARED BY: Randi Johl, City Clerk RECOMMENDATION: That the City Council waive the reading of the text of all standard ordinances and resolutions included in the agenda except as specifically required by the Government Code. BACKGROUND: The City of Temecula is a general law city formed under the laws of the State of California. With respect to adoption of ordinances and resolutions, the City adheres to the requirements set forth in the Government Code. Unless otherwise required, the full reading of the text of standard ordinances and resolutions is waived. FISCAL IMPACT: None ATTACHMENTS: None Item No. 2 ACTION MINUTES TEMECULA CITY COUNCIL REGULAR MEETING CITY COUNCIL CHAMBERS 41000 MAIN STREET TEMECULA, CALIFORNIA OCTOBER 24, 2017 — 7:00 PM 6:00 PM - The City Council will convene in Closed Session in the Canyons Conference Room on the third floor of the Temecula City Hall concerning the following matters: CONFERENCE WITH REAL PROPERTY NEGOTIATORS. The City Council will meet in closed session pursuant to Government Code Section 54956.8 regarding the potential acquisition of one parcel of real property owned by American Property Enterprises consisting of approximately 12.42 acres located east of Ynez Road and south of Rancho California Road and the Temecula Duck Pond (APNs 944-330-004, 944-330-005, and 944-330-006). The parties to the negotiations for the potential acquisition of the property are: American Property Enterprises and the City of Temecula. Negotiators for the City of Temecula are: Aaron Adams, Peter Thorson, Greg Butler, and Luke Watson. Under negotiation are price and terms of the potential acquisition of the property. At 6:00 PM Mayor Edwards called the City Council meeting to order and recessed to Closed Session to consider the matters described on the Closed Session agenda. The City Council meeting convened at 7:02 PM. CALL TO ORDER: Mayor Maryann Edwards Prelude Music: Aubrey Chang Invocation: Pastor Frank Correa of Calvary Chapel Temecula Valley Flag Salute: Mayor Pro Tem Matt Rahn ROLL CALL: Comerchero, Naggar, Rahn, Stewart (Absent), Edwards PRESENTATIONS/PROCLAMATIONS • Presentation of Temecula Police Department Canines Dayka and Boris by Police Chief Lisa McConnell • Presentation of National Domestic Violence Awareness Month Proclamation • Presentation of Proclamation to Sue Steffen 1 PUBLIC COMMENTS The following individuals addressed the City Council: • Laurel Lamont CITY COUNCIL REPORTS CONSENT CALENDAR 1 Waive Reading of Standard Ordinances and Resolutions - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 1.1 That the City Council waive the reading of the text of all standard ordinances and resolutions included in the agenda except as specifically required by the Government Code. 2 Approve the Action Minutes of October 10, 2017 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 2.1 That the City Council approve the action minutes of October 10, 2017. 3 Approve the List of Demands - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 3.1 That the City Council adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 Approve Financial Statements for the 4th Quarter Ended June 30, 2017 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 4.1 Receive and file the Financial Statements for the 4th Quarter Ended June 30, 2017; 2 4.2 Approve a transfer of $3,600 from the Finance department (001.140) to the City Attorney department (001.130) to cover legal services expenses; 4.3 Approve an increase in appropriation of $500 Operating Transfer Out for Fund 160 Supplemental Law Enforcement Services Funds (SLESF) and Transfer In to the General Fund. 5 Approve Revised Exhibit "A" to Cooperative Agreement with County of Riverside to Provide Fire Protection, Fire Prevention, Rescue and Medical Emergency Services to Add Staffing for Roripauqh Fire Station No. 95 and Citywide Inspection Program - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 5.1 Approve Revised Exhibit "A" to the Cooperative Agreement with the County of Riverside to provide Fire Protection, Fire Prevention, Rescue and Medical Emergency Services for the City of Temecula; 5.2 Designate the City Manager as "Contract Administrator," in accordance with Section E. of the Cooperative Agreement to provide Fire Protection, Fire Prevention, Rescue and Medical Emergency Services for the City of Temecula. 6 Approve the First Amendment to the Purchase and Installation Agreement with PlayCore Wisconsin, Inc. dba GameTime for Butterfield Stage Park Playground Equipment Replacement, PW17-10 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 6.1 That the City Council approve the First Amendment to the Purchase and Installation Agreement with PlayCore Wisconsin, Inc. dba GameTime, for Butterfield Stage Park Playground Equipment Replacement, PW17-10, by reducing the Agreement amount to $261,960.15. 7 Accept Improvements and File the Notice of Completion for the Citywide Slurry Seal for Arterial Streets, PW15-10 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 7.1 Approve an increase to the contingency, in the amount of $19,567.84, for the Citywide Slurry Seal for Arterial Streets, PW15-10; 7.2 Increase the City Manager change order approval authority in the amount of $19,567.84; 7.3 Accept the improvements for the Citywide Slurry Seal for Arterial Streets, PW15-10, as complete; 3 7.4 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one-year Maintenance Bond in the amount of 10% of the Contract amount; 7.5 Release the Labor and Materials Bond seven months after filing the Notice of Completion, if no liens have been filed. 8 Receive and File Intermittent Street Closure of 3rd Street as Part of the Truax Hotel Construction Project - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Naggar, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 8.1 That the City Council receive and file the following proposed action by the City Manager: Intermittent Street Closure of 3rd Street between Old Town Front Street and Mercedes Street as part of Truax Hotel construction project. RECESS: At 7:44 PM, the City Council recessed and convened to the Temecula Community Services District and Successor Agency to the Temecula Redevelopment Agency meetings. At 7:49 PM, the City Council resumed with the remainder of the City Council Agenda. PUBLIC HEARING 13 Approve Assembly Bill (AB) 1600 Financial Reports — Development Impact Fee Expenditures - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Comerchero, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 13.1 That the City Council approve the AB 1600 Financial Reports for Fiscal Year Ending June 30, 2017. 14 Approve an Amendment to Chapters 17.06, 17.24, and 17.34 of the Temecula Municipal Code Regulating Accessory Dwelling Units - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Rahn, Second by Comerchero; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 14.1 That the City Council introduce and read by title only an ordinance entitled: 4 ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTERS 17.06, 17.24 AND 17.34 OF THE TEMECULA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS, AND MAKING A FINDING OF EXEMPTION UNDER PUBLIC RESOURCES CODE SECTION 21080.17 CITY COUNCIL BUSINESS 15 Approve Recommendation for Community Service Funding Program for Fiscal Year 2017-18 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Comerchero, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 15.1 That the City Council approve the Community Service Funding Ad Hoc Subcommittee's recommendation to allocate a total of $82,000 to fund 22 out of 26 grant applications received from nonprofit organizations for the Fiscal Year 2017-18 Community Service Funding Program. 16 Presentation by Riverside County Flood Control & Water Conservation District for Santa Margarita River Water Quality Improvement Plan (SMR-WQIP) — No action, receive and file only. RECOMMENDATION: 16.1 That the City Council receive a presentation from Riverside County Flood Control & Water Conservation District regarding the Santa Margarita River Water Quality Improvement Plan (SMR-WQIP). 17 Establish the Southwest Riverside County Energy Authority (SRCEA), Joint Powers Authority, and Approval of Various Agreements to Enable the City to Purchase Solar Generated Electricity from the Santa Margarita Ecological Reserve Solar Power Generating Facility - Approved Staff Recommendation (3-0-1, Rahn Abstain/Absent from Room, Stewart Absent); Motion by Comerchero, Second by Naggar; and electronic vote reflected approval by Comerchero, Naggar, and Edwards with Rahn abstaining and absent from the room and Stewart absent. Mayor Edwards and Council Member Stewart were appointed as Directors to the SRCEA. RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, APPROVING A JOINT POWERS AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND THE CITY OF TEMECULA FOR THE ESTABLISHMENT OF THE 5 SOUTHWEST RIVERSIDE COUNTY ENERGY AUTHORITY (SRCEA) 17.2 Appoint two Members of the City Council to serve as Directors of SRCEA; 17.3 Adopt a Resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF TEMECULA AND AS A MEMBER OF THE SOUTHWEST RIVERSIDE COUNTY ENERGY AUTHORITY (SRCEA), APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY BY RESPONSIBLE OFFICERS OF THE SRCEA OF THE SOLAR POWER PURCHASE AGREEMENT, THE SUBLEASE AGREEMENT, THE LICENSE USE AGREEMENT, AND THE INTERCONNECTION AGREEMENT, AND APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE GUARANTEE OF THE POWER PURCHASE AGREEMENT 18 Presentation Regarding the City's Homeless Outreach Efforts; Adopt an Administrative Procedure Regarding the Removal of Unlawful Campsites, Bulky Items, and Personal Property; Introduce Ordinance Regulating Conduct in Order to Protect the Health, Safety and Quality of Life of Persons in Temecula — For Item 18.2, Approved Staff Recommendation (4-0, Stewart Absent); Motion by Comerchero, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. For Item 18.3, Approved Staff Recommendation (4- 0, Stewart Absent); Motion by Comerchero, Second by Naggar; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 18.1 Receive a Presentation Regarding the City's Homeless Outreach Efforts; 18.2 Adopt an Administrative Procedure regarding the Removal of Unlawful Campsites, Bulky Items, and Personal Property; 18.3 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA MODIFYING THE TEMECULA MUNICIPAL CODE TO REGULATE AND PROHIBIT CERTAIN CONDUCT AND CONDITIONS TO PROTECT HEALTH AND SAFETY BY AMENDING SECTION 9.65.060 TO PROHIBIT SOLICITATIONS IN RESTROOMS OPEN TO PUBLIC, ADDING CHAPTER 9.70 PROHIBITING CERTAIN CONDUCT ON PUBLIC PROPERTY, INCLUDING CAMPING, HINDERING 6 OR OBSTRUCTING FREE PASSAGE, BODILY FUNCTIONS, WALK, STAND OR LIE ON PUBLIC BENCHES OR BE ON CERTAIN PUBLIC FIXTURES, PROHIBITING DWELLING IN VEHICLES ON CITY STREETS AND PUBLIC PROPERTY, AND REGULATING FOOD DISTRIBUTION ON PUBLIC PARKS AND PUBLIC PROPERTY, ADDING CHAPTER 9.75 PROHIBITING THE STORAGE OF PERSONAL PROPERTY ON PUBLIC PROPERTY AND PROVIDING FOR THE REMOVAL OF SUCH PROPERTY; REPEALING CHAPTER 9.02 AND SECTION 10.08.080 AS THESE ARE INCLUDED IN THE NEW PROVISIONS; AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM CEQA PURSUANT TO SECTION 15060 OF THE CEQA GUIDELINES The following individuals addressed the City Council on Item 18: • Scott Treadway BOARD/COMMISSION REPORTS CITY MANAGER REPORT CITY ATTORNEY REPORT City Attorney Thorson stated there were no reportable actions under the Brown Act in regards to the Closed Session item. ADJOURNMENT At 9:25 PM, the City Council meeting was formally adjourned to Tuesday, November 14, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] 7 Item No. 3 TO: FROM: DATE: SUBJECT: Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT City Manager/City Council Jennifer Hennessy, Director of Finance November 14, 2017 Approve the List of Demands PREPARED BY: RECOMMENDATION: Pascale Brown, Fiscal Services Manager Pam Espinoza, Accounting Tech I That the City Council adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A BACKGROUND: All claims and demands are reported and summarized for review and approval by the City Council on a routine basis at each City Council meeting. The attached claims represent the paid claims and demands since the last City Council meeting. FISCAL IMPACT: All claims and demands were paid from appropriated funds or authorized resources of the City and have been recorded in accordance with the City's policies and procedures. ATTACHMENTS: 1. Resolution 2. List of Demands RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That the following claims and demands as set forth in Exhibit A, on file in the office of the City Clerk, has been reviewed by the City Manager's Office and that the same are hereby allowed in the amount of $5,440,471.04. Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 17- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk CITY OF TEMECULA LIST OF DEMANDS 10/12/2017 TOTAL CHECK RUN: $ 2,955,339.91 10/19/2017 TOTAL CHECK RUN: 1,597,278.14 10/26/2017 TOTAL CHECK RUN: 453,042.65 10/19/2017 TOTAL PAYROLL RUN: 434,810.34 TOTAL LIST OF DEMANDS FOR 11/14/2017 COUNCIL MEETING: $ 5,440,471.04 DISBURSEMENTS BY FUND: CHECKS: CITY OF TEMECULA LIST OF DEMANDS 001 GENERAL FUND $ 3,686,600.63 140 COMMUNITY DEV BLOCK GRANT 32,718.42 150 AB 2766 FUND 10,000.00 165 AFFORDABLE HOUSING 1,862.92 170 MEASURE A FUND 226,629.34 190 TEMECULA COMMUNITY SERVICES DISTRICT 185,431.81 192 TCSD SERVICE LEVEL B STREET LIGHTS 73,836.53 194 TCSD SERVICE LEVEL D REFUSE RECYCLING 1,031.94 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 15,927.59 197 TEMECULA LIBRARY FUND 32,943.60 210 CAPITAL IMPROVEMENT PROJECTS FUND 271,491.87 300 INSURANCE FUND 86,528.85 305 WORKERS' COMPENSATION 24,003.11 320 INFORMATION TECHNOLOGY 136,724.09 325 TECHNOLOGY REPLACEMENT FUND 17,616.94 330 CENTRAL SERVICES 20,153.44 340 FACILITIES 37,195.90 380 SARDA DEBT SERVICE FUND 13,262.00 472 CFD 01-2 HARVESTON A&B DEBT SERVICE 2,215.48 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 4,635.48 474 AD03-4 JOHN WARNER ROAD DEBT SERVICE 1,315.48 475 CFD03-3 WOLF CREEK DEBT SERVICE FUND 2,385.48 476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 2,360.48 477 CFD 03-02 RORIPAUGH DEBT SERVICE FUND 2,515.48 478 CFD 16-01 RORIPAUGH PHASE II 2,452.40 501 SERVICE LEVEL"C"ZONE 1 SADDLEWOOD 3,112.42 502 SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK 6,646.69 503 SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS 3,287.87 504 SERVICE LEVEL"C"ZONE 4 THE VINEYARDS 507.79 505 SERVICE LEVEL"C"ZONE 5 SIGNET SERIES 2,521.06 506 SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY 1,288.37 507 SERVICE LEVEL"C"ZONE 7 RIDGEVIEW 1,160.41 508 SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE 6,285.74 509 SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA 241.05 510 SERVICE LEVEL"C"ZONE 10 MARTINIQUE 583.10 511 SERVICE LEVEL"C"ZONE 11 MEADOWVIEW 425.09 512 SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS 3,490.45 513 SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP. 2,712.24 514 SERVICE LEVEL"C"ZONE 14 MORRISON HOMES 1,119.42 515 SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES 563.92 516 SERVICE LEVEL"C"ZONE 16 TRADEWINDS 1,103.98 517 SERVICE LEVEL"C"ZONE 17 MONTE VISTA 157.05 518 SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS 6,583.60 519 SERVICE LEVEL"C"ZONE 19 CHANTEMAR 3,071.05 520 SERVICE LEVEL"C"ZONE 20 CROWNE HILL 6,196.07 521 SERVICE LEVEL"C"ZONE 21 VAIL RANCH 14,586.28 522 SERVICE LEVEL"C"ZONE 22 SUTTON PLACE 244.66 523 SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 437.75 524 SERVICE LEVEL"C"ZONE 24 HARVESTON 29,151.66 525 SERVICE LEVEL"C"ZONE 25 SERENA HILLS 3,205.07 526 SERVICE LEVEL"C"ZONE 26 GALLERYTRADITION 109.52 527 SERVICE LEVEL"C"ZONE 27 AVONDALE 610.22 528 SERVICE LEVEL"C"ZONE 28 WOLF CREEK 14,310.95 529 SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT 107.96 $ 5,005,660.70 CITY OF TEMECULA LIST OF DEMANDS 001 GENERAL FUND $ 264,502.08 140 COMMUNITY DEV BLOCK GRANT 413.48 165 AFFORDABLE HOUSING 3,206.96 190 TEMECULA COMMUNITY SERVICES DISTRICT 111,251.13 192 TCSD SERVICE LEVEL B STREET LIGHTS 412.47 194 TCSD SERVICE LEVEL D REFUSE RECYCLING 2,414.98 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 386.35 197 TEMECULA LIBRARY FUND 1,804.85 300 INSURANCE FUND 931.51 305 WORKERS' COMPENSATION 1,907.58 320 INFORMATION TECHNOLOGY 30,842.49 330 CENTRAL SERVICES 4,548.74 340 FACILITIES 9,867.38 472 CFD 01-2 HARVESTON A&B DEBT SERVICE 45.07 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 45.07 474 AD03-4 JOHN WARNER ROAD DEBT SERVICE 45.07 475 CFD03-3 WOLF CREEK DEBT SERVICE FUND 45.07 476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 45.07 477 CFD 03-02 RORIPAUGH DEBT SERVICE FUND 45.07 478 CFD 16-01 RORIPAUGH PHASE II 225.40 501 SERVICE LEVEL"C"ZONE 1 SADDLEWOOD 29.41 502 SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK 47.74 503 SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS 39.55 504 SERVICE LEVEL"C"ZONE 4 THE VINEYARDS 6.03 505 SERVICE LEVEL"C"ZONE 5 SIGNET SERIES 68.21 506 SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY 10.37 507 SERVICE LEVEL"C"ZONE 7 RIDGEVIEW 12.29 508 SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE 226.82 509 SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA 2.08 510 SERVICE LEVEL"C"ZONE 10 MARTINIQUE 9.65 511 SERVICE LEVEL"C"ZONE 11 MEADOWVIEW 3.57 512 SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS 129.73 513 SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP. 27.74 514 SERVICE LEVEL"C"ZONE 14 MORRISON HOMES 10.06 515 SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES 8.35 516 SERVICE LEVEL"C"ZONE 16 TRADEWINDS 32.49 517 SERVICE LEVEL"C"ZONE 17 MONTE VISTA 1.14 518 SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS 120.43 519 SERVICE LEVEL"C"ZONE 19 CHANTEMAR 64.30 520 SERVICE LEVEL"C"ZONE 20 CROWNE HILL 179.96 521 SERVICE LEVEL"C"ZONE 21 VAIL RANCH 295.22 522 SERVICE LEVEL"C"ZONE 22 SUTTON PLACE 4.48 523 SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 7.71 524 SERVICE LEVEL"C"ZONE 24 HARVESTON 166.10 525 SERVICE LEVEL"C"ZONE 25 SERENA HILLS 53.35 526 SERVICE LEVEL"C"ZONE 26 GALLERYTRADITION 1.53 527 SERVICE LEVEL"C"ZONE 27 AVONDALE 7.71 528 SERVICE LEVEL"C"ZONE 28 WOLF CREEK 255.61 529 SERVICE LEVEL"C"ZONE 29 GALLERY PORTRAIT 2.89 434,810.34 TOTAL BY FUND: $ 5,440,471.04 apChkLst 10/12/2017 9:35:32AM Final Check List CITY OF TEMECULA Page: 1 Bank : union UNION BANK Check # Date Vendor 3523 10/10/2017 000621 WESTERN RIVERSIDE COUNCIL OF 3524 10/10/2017 006887 UNION BANK OF CALIFORNIA 000210 LEAGUE OF CALIF CITIES 3525 10/10/2017 006887 UNION BANK OF CALIFORNIA 000210 LEAGUE OF CALIF CITIES 3526 10/10/2017 006887 UNION BANK OF CALIFORNIA 003392 AARON BROTHERS ART & FRAMING 003392 AARON BROTHERS ART& FRAMING 017118 KRACH, BREE B. 020246 BASS PRO ONLINE 3528 10/10/2017 006887 UNION BANK OF CALIFORNIA 000210 LEAGUE OF CALIF CITIES 016384 CALIFORNIA INLAND 013703 LAKE ELSINORE VALLEY CHAMBER 019592 URBAN CAFE 3529 10/10/2017 006887 UNION BANK OF CALIFORNIA MICHAELS STORES INC 006952 PAY PAL 006952 PAY PAL Description SEPT '17 TUMF PAYMENT ME RFSHMNTS: CONFERENCE 9/13-9/15 MR REGIST: ANNUAL CONFERENCE 9/13-9/15 CD REPLACE BROKEN PICTURE FRAME CD REPLACE BROKEN PICTURE FRAME CD PRESENTATION TO HONOR TCC MEMBER CD REPLACE FLASHLIGHT FOR INSPECTOR AA REGIS: ANNUAL CONFERENCE 9/13-9/15 AA BOY SCOUT CITIZEN DINNER: 9/28/17 AA REGIS: STATE OF THE CITY 9/28 AA RFSHMNTS: CITY ATTY MTG 9/5/17 JH ECO DEV FRAME FOR OFFICE JH REGIS: OC TRAFFIC ASSOC TRAINING: JH VERISIGN PAYFLOW PRO TRANSACTION Amount Paid Check Total 303,171.53 30.00 30.00 36.98 119.63 135.94 46.75 30.00 600.00 53.00 87.33 461.94 270.00 303,171.53 30.00 30.00 339.30 770.33 59.10 791.04 Pagel apChkLst 10/12/2017 9:35:32AM Final Check List CITY OF TEMECULA Page: 2 Bank : union UNION BANK (Continued) Check # Date Vendor 3530 10/10/2017 006887 UNION BANK OF CALIFORNIA 017501 LUKE'S ON FRONT 005531 FRONT STREET BAR & GRILL 012381 EXECUTIVE EVENTS 019967 MISAC 019967 MISAC 013851 STORM SOURCE, LLC 3532 10/10/2017 006887 UNION BANK OF CALIFORNIA 000912 CITY CLERKS ASSN OF CALIF 005531 FRONT STREET BAR & GRILL 000210 LEAGUE OF CALIF CITIES 008123 JOANN ETC 014529 DOLLAR TREE STORES, INC. 000733 ABBEY PARTY RENTS 000912 CITY CLERKS ASSN OF CALIF 000912 CITY CLERKS ASSN OF CALIF 006692 SAM'S CLUB 018323 GOAT & VINE, THE Description MH RFRSHMNTS: INTERVIEW PANEL - MH RFSHMNTS: INTERVIEW PANEL - RECEPTION MH REGISTRATION: MISAC CONF: HESLIN MH MEMBERSHIP RENEWAL: HESLIN MH MEMBERSHIP RENEWAL: CROWELL MH APPOINTMENT PLUS:IT RO REGISTRATION: RAMIREZ, ERIKA 11/8 RO RFHSMNTS: CNCL CLOSED SESSION 8/22 RO REGISTRATION FOR SEMINAR: JOHL-OLSON ROANNUAL BOARD & COMM RECOGN: 9/7 ROANNUAL BOARD & COMM RECOGN: 9/7 ROANNUAL BOARD & COMM RECOGN: 9/7 RO REGISTRATION: RAUCH, GEORGANN 11/8 RO REGISTRATION: POLLAK, SHELLEY 11/8 RO RFHSMNTS: CNCL CLOSED SESSION 8/22 RO RFHSMNTS: CNCL CLOSED SESSION 9/5 Amount Paid Check Total 32.19 35.45 525.00 160.00 130.00 40.00 50.00 192.91 475.00 7.59 5.44 234.37 75.00 75.00 7.98 127.24 922.64 1,250.53 Page2 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 3 Bank : union UNION BANK (Continued) Check # Date Vendor 3533 10/10/2017 006887 UNION BANK OF CALIFORNIA Description Amount Paid Check Total 020186 GREAT HARVEST BREAD CO IG RFSHMNTS FOR HEALTH FAIR 720.47 001500 SAN DIEGO REGIONAL TRAIN IG ART OF BUSINES WRITING CLASS: 150.00 CTR CAMERON 008337 STAPLES BUSINESS IG MISC OFFICE SUPPLIES: HUMAN -234.90 ADVANTAGE RESOURCES 008337 STAPLES BUSINESS ADVANTAGE 008337 STAPLES BUSINESS ADVANTAGE 008668 WES FLOWERS 015626 EVENTBRITE.COM IG EOC SUPPLIES 108.86 IG EOC SUPPLIES 234.90 RO SUNSHINE FUND 61.43 IG EDUCATION: UNEMPLOYMENT 119.03 CLASSES 001264 COSTCO TEMECULA #491 IG WEB EOC ITEMS 72.51 008668 WES FLOWERS IG SUNSHINE FUND 61.43 001264 COSTCO TEMECULA#491 IG SUPPLIES FOR HEALTH FAIR 120.23 008668 WES FLOWERS IG SUNSHINE FUND 61.43 007282 AMAZON.COM, INC IG OFFICE SUPPLIES: HR 11.95 3535 10/10/2017 006887 UNION BANK OF CALIFORNIA 020249 LAUND3R.COM LLC GB LINEN CLEANING FOR INTERN 170.00 MEETING 001264 COSTCO TEMECULA #491 GB SUPPLIES: REBATE -1.30 001264 COSTCO TEMECULA #491 GB SUPPLIES: REBATE -26.00 010061 TEMECULA OLIVE OIL GB SPEAKER GIFTS FOR TEMECULA 304.97 COMPANY TREKKERS 020141 SUGARPLUM ARTISAN GB ATTENDEE GIFTS FOR TEMECULA 37.52 CHOCOLATES TREKKERS 015558 ROSATI'S PIZZA GB RFRSHMNTS: INNOVATORS MRG 134.25 8/17/17 015558 ROSATI'S PIZZA GB RFRSHMNTS: INNOVATORS MRG 15.00 8/17/17 000210 LEAGUE OF CALIF CITIES GB REGIST: ANNUAL CONFERENCE: 30.00 BUTLER 018583 WHICH WICH GB RFRSHMNTS: YOUTH INNOVATORS 200.00 020248 AMERICAN COLLEGE OF GB MEDICAL SCRIBE PRGM CERTS 1,547.00 012684 CALIF CENTER FOR THE ARTS GB HIGH SCHOOL COUNSELF CONF: 110.00 WALKER 012684 CALIF CENTER FOR THE ARTS GB HIGH SCHOOL COUNSELF CONF: 110.00 NIETO 1,487.34 007341 SOUTH COAST WINERY, INC. GB RFRSHMNTS: COMMISSION 190.08 2,821.52 DINNER Page :3 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 4 Bank : union UNION BANK (Continued) Check # Date Vendor 3536 10/12/2017 007282 AMAZON.COM, INC 185407 10/12/2017 020247 ACCOUNT MANAGEMENT SERVICES 185408 10/12/2017 005058 ADAMS, AARON 185409 10/12/2017 010904 AFECO INC 185410 10/12/2017 015217 AIRGAS, INC. 185411 10/12/2017 004601 ALL THE KING'S FLAGS Description Amount Paid Check Total COMPUTER EQUIP:INFO TECH 688.12 MISC SUPPLIES & TOOLS:PREVENTION 70.65 MISC SUPPLIES AND TOOLS - PREVENTI 96.28 855.05 COLLECTION FEE PER AGREEMENT 360.00 360.00 LEAGUE OF CA CITIES CONF 9/13-15 482.92 482.92 SMALL TOOLS: STA 73 & 84 31.75 31.75 WELDING EQUIPMENT: STA92 1,562.94 1,562.94 US AND POW/MIA FLAGS: VAR PARKS 685.87 685.87 185412 10/12/2017 013015 ALWAYS RELIABLE BACKFLOW BACKFLOW REPAIR:RANCHO 206.00 HIGHLANDS SLOPE BACKFLOW TESTS & REPAIRS: VAR PAR 54.00 185413 10/12/2017 004240 AMERICAN FORENSIC NURSES NOV '17 STAND BY FEE:POLICE 1,248.00 (AFN) 185414 10/12/2017 000936 AMERICAN RED CROSS 185415 10/12/2017 002187 ANIMAL FRIENDS OF THE PHLEBOTOMY SRVCS:TEMECULA POLIC 270.00 260.00 PHLEBOTOMY SRVCS:TEMECULA POLIC 600.00 2,118.00 CERTIFICATION MATERIALS:AQUATICS 35.00 35.00 AUG ANIMAL CONTROL SVCS:CITY OF 10,000.00 10,000.00 VALLEYS TEMECULA 185416 10/12/2017 011954 BAKER & TAYLOR INC 185417 10/12/2017 014293 BIBLIOTHECA ITG, LLC 185418 10/12/2017 004262 BIO-TOX LABORATORIES 185419 10/12/2017 005665 BLACKS TOWING BOOK COLLECTIONS:LIBRARY 2,141.03 2,141.03 SELF SVC CHECKOUT SYSTEM: 8,722.48 8,722.48 LIBRARY DRUG/ALCOHOL ANALYSIS:POLICE 2,522.00 DRUG/ALCOHOL ANALYSIS:POLICE 935.00 DRUG/ALCOHOL ANALYSIS:POLICE 490.50 TOWING SERVICES: TEM POLICE 444.60 TOWING SERVICES: TEM POLICE 185420 10/12/2017 014284 BLAKELY'S TRUCK SERVICE VEH & EQUIP REPAIRS: PW STREET MAI NT VEH & EQUIP REPAIRS: PW STREET MAI VEH & EQUIP REPAIRS: PW STREET MAI VEH & EQUIP REPAIRS: PW STREET MAI VEH & EQUIP REPAIRS: PW STREET MAI VEH & EQUIP REPAIRS: PW STREET MAI 3,947.50 247.00 691.60 356.76 603.68 351.99 80.00 493.96 96.00 1,982.39 Page4 apChkLst 10/12/2017 9:35:32AM Final Check List CITY OF TEMECULA Page: 5 Bank : union UNION BANK (Continued) Check # Date Vendor 185421 10/12/2017 011348 BONCOR WATER SYSTEMS LLC 185422 10/12/2017 017115 BUREAU OF OFFICE SERVICES, INC 185423 10/12/2017 003138 CAL MAT 185424 10/12/2017 004248 CALIF DEPT OF JUSTICE-ACCTING 185425 10/12/2017 000152 CALIF PARKS & RECREATION SOC 185426 10/12/2017 004462 CDW, LLC 185427 10/12/2017 017429 COBRA ADVANTAGE INC., DBA: FLEX ADVANTAGE 185428 10/12/2017 014521 COSTAR GROUP INFORMATION, INC 185429 10/12/2017 010650 CRAFTSMEN PLUMBING & HVAC INC 185430 10/12/2017 000209 CROP PRODUCTION SERVICES 185431 10/12/2017 020105 CUMBERBATCH, JAMAL 185432 10/12/2017 002990 DAVID TURCH &ASSOCIATES 185433 10/12/2017 003945 DIAMOND ENVIRONMENTAL SRVCS Description 9/21-10/18 WATER TANK FILTER REPL: STA 7 TRANSCRIPTION SRVCS:TEMECULA POLICE ASPHALT PURCH:PW STREET MAINT ASPHALT PURCH:PW STREET MAINT ASPHALT PURCH:PW STREET MAINT ASPHALT PURCH:PW STREET MAINT AUG DOJ FINGERPRINTING SRVCS: VAR. DEPT REGIS:BARNETT, B. & TURNER, C. 3/13-16 COMPUTERS AND PRINTER:CITY CLERK MISC SMALL TOOLS & EQUIP:INFO TECF MISC SMALL TOOLS & EQUIP:INFO TECF SEP 17 COBRAADMINISTRATION: HR OCT 17 WEB SUBSCRIPTION:ECO DEV CONCESSION STAND ROOF REHAB: PBSP REPAIR AND MAINTENANCE: STA 12 TCSD INSTRUCTOR EARNINGS SEP FEDERAL LOBBYING SVCS: AMEND 2 PORTABLE RESTROOM RENTALS:VAIL RANCH PAR PORTABLE RESTROOM RENTALS:RIVER PORTABLE RESTROOM RENTALS:LASEI PORTABLE RESTROOM RENTALS:LONG Amount Paid Check Total 254.00 25.97 483.44 389.02 166.72 392.74 5,273.00 850.00 7,670.26 18.57 695.33 533.50 453.19 15, 300.00 4.57 630.00 3,500.00 55.96 55.96 55.96 55.96 254.00 25.97 1,431.92 5,273.00 850.00 8,384.16 533.50 453.19 15, 300.00 4.57 630.00 3,500.00 223.84 Pages apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 6 Bank : union UNION BANK (Continued) Check # Date Vendor 185434 10/12/2017 004192 DOWNS ENERGY FUEL& LUBRICANTS Description FUEL FOR CITY VEHICLES: BLDG INSPECTORS FUEL FOR CITY VEHICLES:POLICE FUEL FOR CITY VEHICLES:PW DEPTS FUEL FOR CITY VEHICLES:PW PARKS M. FUEL FOR CITY VEHICLES:TCSD FUEL FOR CITY VEHICLES: CODE ENFOI FUEL FOR CITY VEHICLES: PUBLIC WOF FUEL FOR CITY VEHICLES:PW LAND DE` FUEL FOR CITY VEHICLES:PW TRAFFIC 185435 10/12/2017 019293 E&F PET SUPPLIES, INC. k-9 food & supplies: tem police 185436 10/12/2017 004829 ELLISON WILSON ADVOCACY OCT STATE LOBBYING SVCS LLC Amount Paid Check Total 243.62 71.14 135.69 854.08 389.39 150.50 681.02 68.88 218.79 2,813.11 159.97 159.97 3,500.00 3,500.00 185438 10/12/2017 001056 EXCEL LANDSCAPE, INC. PLANT INSTALL: WINCHESTER CREEK 3,228.00 SLOPE SEP LDSCP MAI NT SVCS: LEVEL C SLOF 36,314.91 SEP LDSCP MAI NT SVCS: NORTH SLOPE 23,074.18 SEPT LDSCP MAINT SRVCS:VAR FACILIl 11,340.40 SEP LDSCP MAINT:PARKS: PARKS/MEDI) 51,049.63 IRRIGATION REPAIRS: VARIOUS PARKS 2,765.16 SEP LANDSCAPE MAINT:PARKS: SCHOC 54,261.63 SEP LANDSCAPE MAINT:PARKS: MEDIAN 19,085.51 201,119.42 185439 10/12/2017 019469 FALCON ENGINEERING SEP CONSTRUCTION MGMNT SVCS: 122,646.85 122,646.85 SERVICES PW04-08 185440 10/12/2017 009953 FEDERAL CLEANING OCT 17 JANITORIAL SRVCS:POLICE 922.50 922.50 CONTRACTORS MALL 185441 10/12/2017 000165 FEDERAL EXPRESS INC 9/26 EXP MAIL SVCS: TCSD 23.24 23.24 185442 10/12/2017 020251 FROKE, CASEY REFUND:BRIGHT START FOR KIDS 163.20 163.20 6000.203 185443 10/12/2017 018858 FRONTIER CALIFORNIA, INC. OCT INTERNET SVCS:EOC OCT INTERNET SVCS:SKATE PARK OCT INTERNET SVCS:LIBRARY OCT INTERNET SVCS:LIBRARY OCT INTERNET SVCS:FIRE STN 95 135.00 41.94 7.42 7.42 122.04 313.82 185444 10/12/2017 005405 GILLILAND, ROBIN HOMELESS OUTREACH EVENT 9/25 107.67 107.67 Pages apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 7 Bank : union UNION BANK (Continued) Check # Date Vendor 185445 10/12/2017 000177 GLENNIES OFFICE PRODUCTS INC 185446 10/12/2017 015451 GREATAMERICA FINANCIAL SVCS Description Amount Paid Check Total MISC OFC SUPPLIES: FINANCE 77.52 OFFICE SUPPLIES: PARKS MISC. OFFICE SUPPLIES: WORKFORCE MISC. OFFICE SUPPLIES - MEDICS MISC. OFFICE SUPPLIES - PREVENTION MISC. OFFICE SUPPLIES: BC Office supplies: Bldg & Safety MISC. OFFICE SUPPLIES: CITY CLERK MISC. OFFICE SUPPLIES: CITY CLERK OFFICE SUPPLIES:INFO TECH supplies for building/bulletin boards SEP LEASE FOR COPIERS: VARI. LOCATIONS Lease for 16 copiers:City Hall/off-site SEP LEASE FOR 6 COPIERS:LIBRARY 185447 10/12/2017 020252 GRESHAM, MIREYA REFUND:SEC DEP: RM RENTAL:TCC 185448 10/12/2017 003342 HABITAT FOR HUMANITY 10/15-9/15/2017 CDBG RECIPIENT AUG CDBG SUB -RECIPIENT FY 15/16 FEB -AUG CDBG SUB -RECIPIENT FY 15/1 16-17 CDBG recipient, Critical Home 38.91 124.19 163.13 413.20 380.81 18.43 104.26 -9.08 146.56 2,700.39 291.45 1,351.02 793.89 4,158.32 2,436.36 200.00 200.00 10,000.00 5,543.31 8,049.40 8,867.10 32,459.81 Page:7 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 8 Bank : union UNION BANK (Continued) Check # Date Vendor 185449 10/12/2017 000186 HANKS HARDWARE INC Description MISC SMALL TOOLS & EQUIP: PW TRAFFIC HARDWARE SUPPLIES - STA 12 HARDWARE SUPPLIES - STA 12 HARDWARE SUPPLIES - STA 84 HARDWARE SUPPLIES - STA 84 HARDWARE SUPPLIES - STATION 95 HARDWARE SUPPLIES - STATION 95 HARDWARE SUPPLIES - STA73 HARDWARE SUPPLIES - STA73 HARDWARE SUPPLIES - STA73 MAINTENANCE SUPPLIES: VAR PARKS MAINTENANCE SUPPLIES: VAR PARKS MAINTENANCE SUPPLIES: VAR PARKS MAINTENANCE SUPPLIES: VAR PARKS HARDWARE SUPPLIES - STATION 95 HARDWARE SUPPLIES - TCC HARDWARE SUPPLIES - TCC HARDWARE SUPPLIES - STA73 HARDWARE SUPPLIES - STA73 HARDWARE SUPPLIES - STA73 MAINTENANCE SUPPLIES: VAR PARKS MAINTENANCE SUPPLIES: VAR PARKS MISC SMALL TOOLS & EQUIP: PW TRAFF MAINTENANCE SUPPLIES: VAR PARKS Amount Paid Check Total 283.80 68.97 62.05 5.31 221.67 15.21 102.26 37.50 102.19 9.23 13.33 18.31 14.65 324.62 16.40 51.47 49.50 49.97 8.61 7.62 43.03 34.05 598.47 76.91 2,215.13 185450 10/12/2017 010210 HOME DEPOT SUPPLY INC, EVENT SUPPLIES:CULTURALARTS 152.10 152.10 THE 185451 10/12/2017 003198 HOME DEPOT, THE MAINT SUPPLIES: VAR FACILITES 46.80 46.80 185452 10/12/2017 014062 ID CARD GROUP PROXIMITY CARD SUPPLIES:HELP 1,435.50 DESK PROXIMITY CARD SUPPLIES:HELP DESF 324.08 1,759.58 185453 10/12/2017 019274 INFINEON TECHNOLOGIES REFUND:SEC DEP:RM RENTAL:CRC 200.00 200.00 185454 10/12/2017 006914 INNOVATIVE DOCUMENT AUG COPIER 5,659.36 SOLUTIONS MAINT/REPAIR/USAGE:CITYWIDE AUG COPIER MAINT/REPAIR/USAGE:CIT 611.42 6,270.78 185455 10/12/2017 001407 INTER VALLEY POOL SUPPLY POOL CHEMICAL SUPPLIES: VAR 306.68 INC POOLS POOL CHEMICAL SUPPLIES: VAR POOLE 444.52 751.20 185456 10/12/2017 015358 KELLY PAPER COMPANY, INC. PAPER/BINDING/PCKG SUPP:CENTRAL 370.90 370.90 SERV 185457 10/12/2017 001282 KNORR SYSTEMS INC POOL MAINT SUPPLIES: AQUATICS 761.40 761.40 Page:8 apChkLst 10/12/2017 9:35:32AM Final Check List CITY OF TEMECULA Page: 9 Bank : union UNION BANK (Continued) Check # Date Vendor 185458 10/12/2017 015953 LLOYDS DESIGNS 185459 10/12/2017 013826 MALL MEDIA INC 185460 10/12/2017 013443 MIDWEST TAPE LLC 185461 10/12/2017 016445 MKB PRINTING & PROMOTIONAL INC 185462 10/12/2017 004040 MORAMARCO, ANTHONY J. 185463 10/12/2017 017861 MYTHOS TECHNOLOGY INC 185464 10/12/2017 020234 NELSON, RANDY 185465 10/12/2017 001323 NESTLE WATERS NORTH AMERICA 185466 10/12/2017 002292 OASIS VENDING 185467 10/12/2017 010334 OBMANN, REBECCA 185468 10/12/2017 019839 O'CONNOR, DENISE 185469 10/12/2017 002105 OLD TOWN TIRE & SERVICE 185470 10/12/2017 013127 ON STAGE MUSICALS Description GRAPHIC DESIGN SERVICES:TCSD SUPPLIES:HOLIDAY EVENTS BOOKS/COLLECTIONS:LI BRARY BUSINESS CARDS & STATIONERY:ADMI N PROMO ITEMS/DEISGN WORK: HALLOWEEN OCT IT MONITORING SRVCS: TVE2 MOTOR MOUNT -RADAR PRINTER WRITER REWORK MOTOR MOUNT -RADAR PRINTER WRITE MOTOR MOUNT -RADAR PRINTER WRITE 8/23-9/22 DRINKING WATER - SKATE PARK 8/23-9/22 DRINKING WATER - PBSP 8/23-9/22/17 DRINKING WATER: LIBRARY 8/23-9/22/17 WATER DELIV. SVCS: TVE2 8/23-9/22/17 DRINKING WATER: THEATEF 8/23-9/22 WATER DELIV SVC:CITY COUN 8/23-9/22 DRINKING WATER:AQUATICS 8/23-9/22/17 DRINKING WATER: CRC 8/23-9/22/17 DRINKING WATER: TCC 8/23-9/22/17 DRINKING WATER: FOC 8/23-9/22/17 DRINKING WATER: MUSEUM 8/23-9/22/17 DRINKING WATER: MRC 8/23-9/22/17 DRINKING WATER: IWTCM KITCHEN SUPPLIES:CIVIC CENTER KITCHEN SUPPLIES:FOC RAFFLE BASKET & SUPPLIES:E.M. SUMMIT TCSD INSTRUCTOR EARNINGS CITY VEHICLE MAINT SVCS:PW PARKS CITY VEHICLE MAINT SVCS:PW STREET Amount Paid Check Total 2,000.00 668.28 100.25 96.55 350.00 100.00 486.00 324.00 324.00 6.45 55.27 69.76 58.39 28.83 27.32 6.51 102.06 19.15 165.17 29.87 40.01 22.31 851.99 250.79 86.12 105.00 65.78 1,217.47 "THE MILLS BROTHERS" TICKET 4,067.80 SALES 10/1/1 2,000.00 668.28 100.25 96.55 350.00 100.00 1,134.00 631.10 1,102.78 86.12 105.00 1,283.25 4,067.80 Page9 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 10 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185471 10/12/2017 019711 OWEN GROUP, INC., OWEN AUG ADA TRANSITION PLAN UPDATE DESIGN GROUP SRVCS:PW 185472 10/12/2017 019334 PARK CONSULTING GROUP, SEPT CONSULTING & ENTERPRISE INC SRVCS:I.T. Amount Paid Check Total 11,626.50 11,626.50 3,575.00 3,575.00 185473 10/12/2017 003663 PECHANGA BAND OF LUISENO AUG EXCAVATION MONITOR:I-15/79S 8,686.00 ULT INTR CREDIT:BILLING ADJ:I-15/SR79S ULT. INT -60.00 185474 10/12/2017 000249 PETTY CASH 2017 HALLOWEEN CARNIVAL PETTY 1,500.00 CASH 8,626.00 1,500.00 185475 10/12/2017 010338 POOL & ELECTRICAL CHEMICAL SUPPLIES:SPLASH PAD & 171.57 171.57 PRODUCTS INC POOLS 185476 10/12/2017 011549 POWER SPORTS UNLIMITED VEHICLE MAI NT & REPAIR: POLICE 586.20 586.20 185477 10/12/2017 012904 PROACTIVE FIRE DESIGN SEPT PLAN REVIEW SRVCS: 3,156.30 3,156.30 PREVENTION 185478 10/12/2017 016931 REACH SPORTS MARKETING SOFTWARE LICENSE 1,028.00 GROUP RENEWAL:LIBRARY 185479 10/12/2017 000406 RIVERSIDE CO SHERIFFS 07/20/17-08/16/17 LAW ENFORCEMENT 2,039,516.83 DEPT 185480 10/12/2017 004274 SAFE & SECURE LOCKSMITH LOCKSMITH SRVCS:HARVESTON 429.38 PARK LOCKSMITH SRVCS:CROWN HILL PARK 187.67 LOCKSMITH SRVCS:PARKS 87.28 LOCKSMITH SRVCS:CIVIC CENTER 20.20 LOCKSMITH SRVCS:THEATER 429.27 185481 10/12/2017 009980 SANBORN, GWYNETH A. COUNTRY LIVE! @ THE MERC 10/7/17 185482 10/12/2017 017699 SARNOWSKI, SHAWNA, M PRESTON 185483 10/12/2017 018012 SAUNDERS, CATHY PHOTOGRAPHY SRVCS:COLLEGE FAIR 2017 PHOTOGRAPHY SRVCS:HEALTH 2017 PHOTOGRAPHY SRVCS:COMMISSION D TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS 1,028.00 2,039,516.83 1,153.80 585.75 585.75 150.00 150.00 150.00 450.00 327.60 327.60 350.70 352.80 1,358.70 185484 10/12/2017 009213 SHERRY BERRY MUSIC JAZZ @ THE MERC 10/5/17 483.00 483.00 Pagel 0 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 11 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185485 10/12/2017 018306 SHURRAB, MOAMER REFUND:SEC DEP:RM RENTAL:CRC 185486 10/12/2017 000537 SO CALIF EDISON SEP 2-00-397-5067:TCSD SVC LEV C SEP 2-00-397-5042:43200 BUS PARK DR SEP 2-35-403-6337:41375 MCCABE CT SEP 2-25-393-4681:41951 MORAGA RD SEP 2-35-664-9053:29119 MARGARITA RE SEP 2-02-502-8077:43210 BUS PARK DR I SEP 2-31-404-6020:28771 OT FRONT ST SEP 2-28-629-0507:30600 PAUBA RD SEP 2-29-657-2332:45538 REDWOOD RD AUG -SEP 2-35-707-0010:33451 S HWY-79 SEP 2-39-732-3171:41997 MARGARITA RE SEP 2-29-657-2563:42902 BUTTERFIELD SEP 2-29-295-3510:32211 WOLF VLY RD SEP 2-30-520-4414:32781 TEM PKWY LS: SEP 2-29-223-8607:42035 2ND ST PED SEP 2-31-536-3226:28690 MERCEDES ST SEP 2-29-953-8447:31738 WOLF VLY RD SEP 2-30-220-8749:45850 N WOLF CREEL SEP 2-31-936-3511:46488 PECHANGA PK SEP 2-29-953-8082:31523 WOLF VLY RD SEP 2-29-953-8249:46497 WOLF CREEK [ 185487 10/12/2017 012652 SOUTHERN CALIFORNIA OCT GEN USAGE::0141,0839,2593,9306 185488 10/12/2017 005786 SPRINT AUG 26 - SEP 25 CELLULAR USAGE/EQUIP 185489 10/12/2017 000293 STADIUM PIZZA INC 185490 10/12/2017 008337 STAPLES BUSINESS ADVANTAGE Amount Paid Check Total 200.00 200.00 2,241.78 6,484.58 1,316.16 791.88 1,103.41 399.17 706.08 14,222.70 24.45 99.23 25.69 195.70 2,116.36 1,079.68 556.62 2,076.10 24.30 359.02 48.57 30.02 28.72 33,930.22 569.26 569.26 6,713.28 6,713.28 REFRESHMENTS:WORKFORCE DEV 102.57 102.57 9/20 OFFICE SUPPLIES:CRC 49.29 49.29 185491 10/12/2017 006884 TEMECULA VALLEY CHAMBER FY17/18 2ND QTR OPERATING AGRMNT:ECODEV 185492 10/12/2017 016311 TIERCE, NICHOLAS GRAPHIC DESIGN SRVCS:THEATER 185493 10/12/2017 010276 TIME WARNER CABLE OCT HIGH SPEED INTERNET:LIBRARY 33,750.00 33,750.00 2,835.00 2,835.00 598.32 598.32 Page:11 apChkLst Final Check List 10/12/2017 9:35:32AM CITY OF TEMECULA Page: 12 Bank : union UNION BANK (Continued) Check # Date Vendor 185494 10/12/2017 005460 U S BANK Description TRUSTEE ADMIN FEES:HARVESTON I CFD 01-2 TRUSTEEADMIN FEES:RORIPAUGH CFC TRUSTEE ADMIN FEES:HARVESTON II C TRUSTEEADMIN FEES:RORIPAUGH CFC TRUSTEE ADMIN FEES:JOHN WARNER TRUSTEE ADMIN FEES:WOLF CREEK -CF Amount Paid Check Total 2,200.00 2,375.00 2,345.00 2,500.00 1,300.00 2,370.00 13,090.00 185495 10/12/2017 017579 U.S. HEALTHWORKS MEDICAL PRE-EMPLOYMENT SCREENINGS: HR 385.00 PRE-EMPLOYMENT SCREENINGS: HR 396.00 PRE-EMPLOYMENT SCREENINGS: HR 251.00 PRE-EMPLOYMENT SCREENINGS: HR 55.00 1,087.00 185496 10/12/2017 012549 UPODIUM VEHICLE MAI NT: STA 12 156.87 156.87 185497 10/12/2017 008977 VALLEY EVENTS, INC. RENTALS:HEALTH FAIR 9/30/17 5,009.00 5,009.00 185498 10/12/2017 018174 VCA ANIMAL HOSPITALS, INC. VET CARE: POLICE K-9 OFFICER 192.10 192.10 185499 10/12/2017 003730 WEST COASTARBORISTS INC 8/16-31 EMERG TREE MAI NT 475.00 475.00 SRVCS:VAR. SLOP 185500 10/12/2017 013286 WEST SAFETY SERVICES, INC. OCT ENTERPRISE 911 SVCS: IT 300.00 300.00 185501 10/12/2017 000341 WILLDANASSOCIATES INC JULTRAFFICCONSULTANTSRVCS: 4,420.00 4,420.00 PW TRAFFIC 1001871 09/29/2017 020253 CASTER, CASEY REFUND:BRIGHT START EXT 6005.201 180.00 180.00 1001872 09/29/2017 020254 CHOI, JULIE ANNE REFUND:PARENT & ME DANCE 38.40 38.40 1970.202 1001873 09/29/2017 020255 COBURN, KRISTY REFUND:FIDDLER ON THE ROOF 3400.201 193.75 193.75 Grand total for UNION BANK: 2,955,339.91 Page:12 apChkLst 10/12/2017 9:35:32AM Final Check List CITY OF TEMECULA Page: 13 108 checks in this report. Grand Total All Checks: 2,955,339.91 Page:13 apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 1 Bank : union UNION BANK Check # Date Vendor Description Amount Paid Check Total 3538 10/10/2017 018098 ACME ADMINISTRATORS, INC WORKERS COMP CLAIM WITH ACME 20,000.00 20,000.00 3539 10/13/2017 000246 PERS (EMPLOYEES' PERS RETIREMENT PAYMENT 91,857.76 91,857.76 RETIREMENT) 3540 10/19/2017 010349 CALIF DEPT OF CHILD SUPPORT PAYMENT 1,008.45 1,008.45 SUPPORT 3541 10/19/2017 000194 I CMA RETIREMENT -PLAN I CMA RETIREMENT TRUST 457 7,957.88 7,957.88 303355 PAYMENT 3542 10/19/2017 000444 INSTATAX (EDD) STATE TAXES PAYMENT 22,572.74 22,572.74 3543 10/19/2017 000283 INSTATAX (IRS) FEDERAL TAXES PAYMENT 84,974.90 84,974.90 3544 10/19/2017 000389 NATIONWIDE RETIREMENT OBRA- PROJECT RETIREMENT SOLUTION PAYMENT 3545 10/19/2017 001065 NATIONWIDE RETIREMENT NATIONWIDE RETIREMENT PAYMENT SOLUTION 3546 10/19/2017 019088 NATIONWIDE RETIREMENT NATIONWIDE LOAN REPAYMENT SOLUTION PAYMENT 185502 10/19/2017 004802 ADLERHORST INTERNATIONAL OCT POLICE K-9 TRAINING LLC 185503 10/19/2017 015217 AIRGAS, INC. 2,555.74 2,555.74 9,116.54 9,116.54 442.44 442.44 350.00 350.00 WELDING EQUIPMENT: STA92 46.32 GAS FOR DRY ICE EXPERIMENTS:PPW 185504 10/19/2017 001916 ALBERTA WEBB ASSOCIATES P/E 9/30 MISC CONSULTING SVCS:FINANCE 2.94 49.26 9,565.45 9,565.45 185505 10/19/2017 009374 ALLEGRO MUSICAL VENTURES PIANO TUNING & MAINT: THEATER 260.00 260.00 185506 10/19/2017 007282 AMAZON.COM, INC MUSEUM SUPPLIES:TVM 1,174.49 1,174.49 185507 10/19/2017 000101 APPLE ONE INC SEP TEMP EMP: CODE ENF/CLERK/HR 9,363.66 AUG TEMP EMP: CODE ENF/CLERK/HR 12,483.80 21,847.46 Pagel apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 2 Bank : union UNION BANK (Continued) Check # Date Vendor 185508 10/19/2017 013950 AQUA CHILL OF SAN DIEGO 185509 10/19/2017 018941 AZTEC LANDSCAPING, INC. 185510 10/19/2017 017149 B G P RECREATION, INC. 185511 10/19/2017 004462 CDW, LLC Description OCT DRINKING WATER SYSTEM SRVCS: PW OCT DRINKING WATER SYS MAINT: CIVIC OCT DRINKING WATER SYS MAINT: MPS OCT DRINKING WATER SYS MAINT: JRC OCT DRINKING WATER SVCS: INFO TEC WKEND JANITORIAL SERVICES: VAR PARKS SEP RESTROOMS:SHELTERS MAI NT: VA TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS MISC SMALL TOOLS & EQUIP:INFO TECH MISC SMALL TOOLS & EQUIP:INFO TECF LAPTOP:CHILDREN'S MUSEUM MISC SMALL TOOLS & EQUIP:INFO TECF Amount Paid Check Total 28.28 183.71 34.75 28.28 28.28 938.82 303.30 7,329.74 8,268.56 2,413.95 3,491.25 2,613.45 -583.43 175.41 1,155.46 271.59 8,518.65 1,019.03 185512 10/19/2017 004405 COMMUNITY HEALTH EMPLOYEE CHARITY DONATIONS 24.00 24.00 CHARITIES, C/O WELLS FARGO PAYMENT BANK 185513 10/19/2017 011922 CORELOGIC, INC. SEP PROP IDENTIFICATION SFTWR: 284.50 284.50 CODE ENF 185514 10/19/2017 013379 COSSOU, CELINE TCSD INSTRUCTOR EARNINGS 168.00 168.00 185515 10/19/2017 004329 COSTCO TEMECULA #491 THEATER HOSPITALITY & OFFICE 172.88 172.88 SUPPLIES 185516 10/19/2017 018491 CRONBERG PHOTOGRAPHY TCSD INSTRUCTOR EARNINGS 224.00 224.00 185517 10/19/2017 001393 DATA TICKET, INC. SEP PARKING CITATION PROCESSING:POLICE 185518 10/19/2017 020271 DUARTE, JUAN CARLOS REFUND:BAL. ADJ.:VIOL. DISMISSAL 87499 185519 10/19/2017 002390 EASTERN MUNICIPAL WATER DIST SEP WATER METER:32131 S LOOP RD DCDA SEP WATER METER:32131 S LOOP RD B SEP WATER METER:32131 S LOOP RD LI 185520 10/19/2017 008704 EDWARDS, MARYANN LEAGUE OF CA CITIES CONF 9/13-15 185521 10/19/2017 016839 EHS INTERNATIONAL, INC. WC SAFETY CONSULTANT: RISK MGMT 841.35 841.35 70.00 70.00 43.38 106.71 307.01 457.10 3.33 3.33 2,062.50 2,062.50 Page2 apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 3 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185522 10/19/2017 002982 FRANCHISE TAX BOARD SUPPORT PAYMENT 185523 10/19/2017 014865 FREIZE UHLER, KIMBERLY SUMMIT SUPPLIES: EMER MGMT 185524 10/19/2017 018858 FRONTIER CALIFORNIA, INC. OCT INTERNET SVCS:DMV INET LINE OCT INTERNET SVCS:TCC OCT INTERNET SVCS:C. MUSEUM, GIFT Amount Paid Check Total 150.00 150.00 110.27 110.27 107.84 146.98 126.98 381.80 185525 10/19/2017 012066 GEOCON WEST, INC 8/7-9/3/17 GEOTECH TESTING: 7,464.00 PW12-11 8/7-9/3 GEOTECH SVCS: PLANNING DEP 2,500.00 8/7-9/3/17 GEOTECH SVCS: PLANNING 2,500.00 GEOTECHNICAL SRVCS: PLANNING DIV 2,500.00 14,964.00 185526 10/19/2017 020265 GORDON, HELEN REFUND:SEC DEP:RM RENTAL:TCC 150.00 150.00 185527 10/19/2017 005664 GOSCH TOWING & RECOVERY TOWING SERVICES: TEM POLICE 720.00 720.00 185528 10/19/2017 015451 GREATAMERICA FINANCIAL OCT LEASE FOR 16 COPIERS:CITY 523.70 523.70 SVCS HALL/OFF-S 185529 10/19/2017 019732 HARC, INC. CNSLT SVCS: REGIONAL CANCER TREATMENT CNSLT SVCS: REGIONAL CANCER TREA CNSLT SVCS: REGIONAL CANCER TREA 13,833.90 8,704.00 14,504.35 37,042.25 185530 10/19/2017 020143 JOHNSON, GREGORY THOMAS LIGHT BAR REPLACEMENT & 2,344.36 INSTALLATION LIGHT BAR REPLACEMENT & INSTALLAT 329.44 2,673.80 185531 10/19/2017 020272 KAVANAGH, KRAIG REFUND:BAL. ADJ.:VIOL. DISMISSAL 30.00 30.00 87738 185532 10/19/2017 012945 LABELLE- MARVIN INC MATERIALS TESTING SVCS: PW17-03 64,432.50 64,432.50 185533 10/19/2017 019508 LARRY WALKER ASSOCIATES, INC. CREDIT: BILL WAS IN EXCESS OF -160.00 17/18 RATE AUG ENV.COMPLIANCE SRVCS: PW17-0' 8,663.75 8,503.75 185534 10/19/2017 011145 LODATO, JILL CHRISTINE TCSD INSTRUCTOR EARNINGS 2,070.60 TCSD INSTRUCTOR EARNINGS 3,276.00 5,346.60 185535 10/19/2017 003782 MAIN STREET SIGNS SIGNS: VARIOUS PARKS 492.10 492.10 185536 10/19/2017 004141 MAINTEX INC CLEANING SUPPLIES: CIVIC CTR 702.95 702.95 185537 10/19/2017 020266 MARIAN HUGHES INSURANCE REFUND:SEC DEP:RM RENTAL:TCC 200.00 200.00 Page3 apChkLst 10/19/2017 10:55:10A M Final Check List CITY OF TEMECULA Page: 4 Bank : union UNION BANK (Continued) Check # Date Vendor 185538 10/19/2017 014431 MARTLAND, BETTE B 185539 10/19/2017 014392 MC COLLOUGH, JILL DENISE 185540 10/19/2017 018314 MICHAEL BAKER INT'L INC. 185541 10/19/2017 013443 MIDWEST TAPE LLC 185542 10/19/2017 001868 MIYAMOTO-JURKOSKY, SUSAN ANN 185543 10/19/2017 016445 MKB PRINTING & PROMOTIONAL INC 185544 10/19/2017 020267 MORGAN, PAUL 185545 10/19/2017 019019 MUSIC CONNECTION LLC 185546 10/19/2017 015164 NATURES IMAGE, INC 185547 10/19/2017 008820 NEIGHBORS NEWSPAPER 185548 10/19/2017 020234 NELSON, RANDY 185549 10/19/2017 002292 OASIS VENDING 185550 10/19/2017 003964 OFFICE DEPOT BUSINESS SVS DIV 185551 10/19/2017 004473 OLD TOWN TEMECULA GUNFIGHTERS 185552 10/19/2017 002105 OLD TOWN TIRE & SERVICE 185553 10/19/2017 002105 OLD TOWN TIRE & SERVICE Description Instructional presentation:Culture Quest plantscape srvcs:civic ctr & library - OCT PLANTSCAPE SRVCS:LIBRARY 6/1-8/31 CEQA STUDY:GENERATIONS SR HOUSI ENG SUPPORT SVCS: PW04-08 BOOKS/COLLECTIONS: LI BRARY TCSD INSTRUCTOR EARNINGS TCSD INSTRUCTOR EARNINGS BUSINESS CARDS: CODE ENFORCEMENT BUSINESS CARDS: BLDG & SAFETY DEF REFUND:HIGH HOPES - THANKSGIVING REFUND:HIGH HOPES - HALLOWEEN PA STTLMNT: SPEAKEASY AT THE MERC 10/14 SEP PECHANGA PKWY ENVIRON MITIGATION SEP ENVIRO MITIGATION:FVP OVERCRC ADVERTISING: TEMECULA PRESENTS motor mount - radar printer writer KITCHEN & COFFEE SUPPLIES:MPSC CREDIT: OFFICE SUPPLIES/HR OFFICE SUPPLIES: FINANCE OFFICE SUPPLIES: FINANCE OFFICE SUPPLIES: FINANCE PERFORMANCE:WESTERN DAYS 9/23/17 CITY VEHICLE MAINT SVCS:PARKS MAINT CITY VEHICLE MAINT SVCS:PARK RANG CITY VEHICLE MAINT SVCS:PW TRAFFIC Amount Paid Check Total 150.00 500.00 200.00 3,025.00 22,648.50 39.25 150.00 700.00 25,673.50 39.25 315.00 315.00 630.00 137.20 68.60 205.80 2.00 2.00 4.00 486.50 486.50 897.75 280.25 1,178.00 250.00 250.00 378.00 378.00 1,076.45 1,076.45 -22.99 150.93 19.56 142.56 290.06 1,250.00 1,250.00 925.24 233.42 1,158.66 164.18 164.18 Page4 apChkLst 10/19/2017 10:55:10A M Final Check List CITY OF TEMECULA Page: 5 Bank : union UNION BANK (Continued) Check # Date Vendor 185554 10/19/2017 002105 OLD TOWN TIRE & SERVICE 185555 10/19/2017 012948 PAVEMENT COATINGS COMPANY 185556 10/19/2017 011549 POWER SPORTS UNLIMITED 185557 10/19/2017 018351 PR NEWSWIRE ASSOCIATION LLC 185558 10/19/2017 005075 PRUDENTIAL OVERALL SUPPLY 185559 10/19/2017 020268 PURNELL, CONSTANCE 185560 10/19/2017 017648 RAHN, MATT 185561 10/19/2017 000262 RANCHO CALIF WATER DISTRICT 185562 10/19/2017 016596 REGENT INLAND JV LLC 185563 10/19/2017 003591 RENES COMMERCIAL MANAGEMENT 185564 10/19/2017 002412 RICHARDS WATSON & GERSHON 185565 10/19/2017 000353 RIVERSIDE CO AUDITOR 185566 10/19/2017 010777 RIVERSIDE CO EXECUTIVE OFFICE Description CITY VEHICLE MAINT SVCS:TCSD SLURRY SEAL SRVCS:ARTERIAL STREETS CITYW VEHICLE MAI NT& REPAIR: POLICE MOTORS VEHICLE MAI NT& REPAIR: POLICE MOT, VEHICLE MAI NT& REPAIR: POLICE MOT, PRESS RELEASE PUBLICATION: ECON DEV SEPT UNIFORMS/FLR MATS:PARKS MAINT/CIVIC REFUND:BARRE STRETCH & TONE 1930.202 LEAGUE OF CA CITIES CONF 9/13-15 SEP VAR WATER PUJOL ST SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER SEP VAR WATER METERS:28640 METERS:PW CIP METERS:TCSD SVC LE METERS:FIRE STNS METERS:PW MAINT METERS:PW JRC METERS:PW CIP METERS:PW MAINT METERS:PW FAC METERS:PW OLD TOW METERS:PW VARIOUS REFUND:ENG GRAD DEP:LD15-4493 WEED ABATEMENT:ALONG RIVER -DEL RIO/STN 7 AUG 2017 LEGAL SERVICES SEPT'17 PRKG CITATION ASSESSMENTS Amount Paid Check Total 56.68 226,629.34 259.75 776.62 38.80 1,870.00 710.35 48.00 456.34 10.46 59.57 44, 517.10 849.60 171.45 168.27 437.88 422.64 4,030.57 1,087.66 933.15 50,000.00 2,490.00 134,693.58 4,081.50 56.68 226,629.34 1,075.17 1,870.00 710.35 48.00 456.34 52,688.35 50,000.00 2,490.00 134,693.58 4,081.50 OCT -DEC '17 ANIMAL SHELTER 40,471.41 OPERATIONS FY 17/18 DEBT SERVICE FEES:TEMECUL 175,978.00 216,449.41 Pages apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 6 Bank : union UNION BANK (Continued) Check # Date Vendor Description Amount Paid Check Total 185567 10/19/2017 014311 RMSJ, INC. CIRCULATION PUMP: DUCK POND 1,065.83 PUMP PARTS: CRC POOL 1,255.05 2,320.88 185568 10/19/2017 001048 ROSAS CANTINA RESTAURANT REFRESHMENTS:TVM EXHIBIT 165.13 165.13 10/20/17 185569 10/19/2017 004270 RUFFIAN SPECIALTIES EMERGENCY EQUIP: STA 73 323.73 185570 10/19/2017 000277 S & S ARTS & CRAFTS INC SUPPLIES:SKATE PARK 72.18 323.73 72.18 185571 10/19/2017 004274 SAFE & SECURE LOCKSMITH LOCKSMITH SRVCS: VARIOUS PARKS 23.71 LOCKSMITH SRVCS: VARIOUS PARKS 25.86 LOCKSMITH SRVCS:CIVIC CENTER 43.10 LOCKSMITH SRVCS:CIVIC CENTER 11.31 103.98 185572 10/19/2017 005329 SAFE ALTERNATIVES FOR REFUND:SEC DEP:RM RENTAL:CONF 200.00 200.00 EVERYONE CTR A/B 185573 10/19/2017 008529 SHERIFF'S CIVIL DIV - CENTRAL 185574 10/19/2017 009213 SHERRY BERRY MUSIC SUPPORT PAYMENT 40.89 SUPPORT PAYMENT 60.00 100.89 JAZZ @ THE MERC 10/12/17 462.00 462.00 185575 10/19/2017 009746 SIGNS BY TOMORROW PARKING ENTRANCE SIGNAGE: CIVIC 361.74 CTR SIGN POSTING SRVCS PA15-1892-95:PLI 851.00 1,212.74 185576 10/19/2017 000645 SMART & FINAL INC REFRESHMENTS:ART OFF THE WALLS 43.40 43.40 10/6 Pages apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 7 Bank : union UNION BANK (Continued) Check # Date Vendor 185577 10/19/2017 000537 SO CALIF EDISON 185578 10/19/2017 000519 SOUTH COUNTY PEST CONTROL INC Description SEP 2-36-531-7916:44205 MAIN ST PED SEP 2-39-043-8521:29028 OT FRONT ST SEP 2-25-350-5119:45602 REDHAWK PKV SEP 2-36-122-7820:31777 DEPORTOLA SEP 2-29-458-7548:32000 RANCHO CAL SEP 2-30-066-2889:30051 RANCHO VISTA SEP 2-35-421-1260:41955 4TH ST LS3 SEP 2-05-791-8807:31587 TEM PKWY LS2 SEP 2-39-737-1063:42061 MAIN ST SEP 2-27-805-3194:42051 MAIN ST SEP 2-02-351-5281:30875 RANCHO VISTA SEP 2-10-331-2153:28816 PUJOL ST SEP 2-20-798-3248:42081 MAIN ST SEP 2-29-974-7899:26953 YNEZ RD LS3 SEP 2-31-031-2590:28301 RANCHO CAL SEP 2-29-479-2981:31454 TEM PKWY TC' SEP 2-01-202-7330:VARIOUS LS -1-E SEP 2-36-171-5626:BUTTERFIELD/LA SEF PEST CONTROL SRVCS: WOLF CREEK PARK PEST CONTROL SERVICES: STA 92 PEST CONTROL SRVCS: VARIOUS PARK Amount Paid Check Total 126.37 25.15 28.59 25.82 259.28 23.66 15.52 8,891.61 24.86 5,755.98 8,022.12 1,614.20 2,523.21 167.21 18.37 106.82 73,663.47 24,440.90 49.00 42.00 125,733.14 70.00 161.00 185579 10/19/2017 020273 SPEAS, EDITH REFUND:BAL. ADJ.:OVERPMT 87657 25.00 25.00 185580 10/19/2017 000293 STADIUM PIZZA INC REFRESHMENTS:WORKFORCE DEV 8/10/17 REFRESHMENTS:COLLEGE FAIR 9/23/17 REFRESHMENTS:HEALTH FAIR 9/30/17 233.53 282.21 281.34 797.08 185581 10/19/2017 007698 SWANK MOTIONS PICTURES, RENTAL:MOVIES IN THE PARK 10/6 543.00 543.00 INC. 185582 10/19/2017 003677 TEMECULA MOTORSPORTS VEH REPAIR & MAINT:TEMECULA 143.91 LLC POLICE VEH REPAIR & MAI NT:TEMECULA POLICI 1,561.79 VEH REPAIR & MAINT:TEMECULA POLICI 769.42 VEH REPAIR & MAINT:TEMECULA POLICI 79.61 2,554.73 185583 10/19/2017 017295 TEMECULA PIZZA FACTORY REFRESHMENTS:HIGH HOPES 263.50 263.50 10/20/17 185584 10/19/2017 020269 TEMECULA VALLEY REFUND:SEC DEP/CREDIT:PICNIC 237.50 237.50 RENTAL:PALA 185585 10/19/2017 020270 TEMECULA VALLEY REFUND:SEC DEP:RM RENTAL:CRC 200.00 200.00 Page:7 apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 8 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185586 10/19/2017 010046 TEMECULA VALLEY AUG '17 BUS. IMPRV DISTRICT CONVENTION & ASMNTS Amount Paid Check Total 136,272.00 136,272.00 185587 10/19/2017 017415 THYSSENKRUPP ELEVATOR OCT -DEC ELEVATOR MAI NT 5,049.00 5,049.00 CORP SRVCS:CITY FACS 185588 10/19/2017 019291 TLK ICE, INC. REFRESHMENTS:TEAM PACE 275.00 275.00 RECOGN 9/7/17 185589 10/19/2017 018556 TRAUB, NORMAN A. WORKPLACE INVESTIGATIONS:HR 3,035.52 3,035.52 185590 10/19/2017 000278 TRONC, INC. AUG LEGAL ADVERTISING: CITY 1,325.25 CLERK/PLNG SEPT LEGAL ADVERTISING: CITY CLERK 753.22 185591 10/19/2017 000161 TYLER TECHNOLOGIES, INC ENERGOV SOFTWARE MAINT:INFO 86,096.20 TECH 185592 10/19/2017 005460 U S BANK TRUSTEE ADMIN FEE:CROWNE HILL CFD 03-1 185593 10/19/2017 002702 U S POSTAL SERVICE POSTAGE FOR B/L RENEWAL NTCS:FINANCE 185594 10/19/2017 004794 VALLEY WINDS COMMUNITY PERFORMANCE:ART OFF THE WALLS 8/4/17 185595 10/19/2017 014848 VALUTEC CARD SOLUTIONS, SEPT '17 TICKETING SERVICES: LLC THEATER 2,078.47 86,096.20 4,620.00 4,620.00 4,015.55 4,015.55 500.00 500.00 66.13 66.13 185596 10/19/2017 020274 VAN ROEKEL, MAURICE REFUND:BAL. ADJ.:OVERPMT 322034 305.00 305.00 CARR! E 185597 10/19/2017 009101 VISION ONE, INC. SEPT SHOWARE TICKETING 2,310.60 2,310.60 SRVCS:THEATER 185598 10/19/2017 010283 W B PRODUCTIONS INC TIMING SERVICES:FIT COLOR RUN 9/17/17 7,388.40 7,388.40 185599 10/19/2017 018147 WADDLETON, JEFFREY L. DJ/ANNOUNCER SRVCS:SKYVIEW 360.00 360.00 PARK 10/21 185600 10/19/2017 007987 WALMART EVENT SUPPLIES:CRC 100.74 SUPPLIES:HUMAN SRVCS/MPSC 294.36 SUPPLIES:SKATE PARK 197.38 592.48 185601 10/19/2017 010487 WATSON, LUKE REIMB:OFFICE CHAIR 326.24 326.24 Page:8 apChkLst Final Check List 10/19/2017 10:55:10AM CITY OF TEMECULA Page: 9 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185602 10/19/2017 001342 WAXIE SANITARY SUPPLY INC CLEANING SUPPLIES:CIVIC CENTER Amount Paid Check Total 163.07 163.07 185603 10/19/2017 003730 WEST COAST ARBORISTS INC 7/16-31/17 TREE MAI NT: ROW TREES 427.00 7/16-31/17 TREE MAINT:PARKS & MEDIAS 13,079.00 9/16-30/17 TREE MAI NT: PARKS & MEDIAS 5,250.00 9/16-30/17 TREE MAINT:PRESLEY SLOPE 400.00 7/16-31/17 TREE MAINT:HARVESTON 20,283.00 9/16-30/17 TREE MAI NT: ROW TREES 9,570.00 49,009.00 1001874 10/06/2017 020261 BROOKS, MARISSA REFUND:PICNIC RENTAL:HARVESTON 45.00 45.00 1001875 10/06/2017 020159 DEAN, KELLY REFUND:BEGINNING GYMNASTICS 70.00 70.00 1710.204 1001876 10/06/2017 020262 FLAKES, ALISA REFUND:SEC DEP:RM RENTAL:TCC 125.45 125.45 1001877 10/06/2017 019455 HEMET/TEMECULA EMPLOYER REFUND:SEC DEP:RM RENTAL:TCC 200.00 200.00 1001878 10/06/2017 020195 NATIONAL CHARITY LEAGUE REFUND:SEC DEP:RM RENTAL:CRC 200.00 200.00 1001879 10/06/2017 020263 PCE SOLUTIONS REFUND:SEC DEP:RM RENTAL:TCC 200.00 200.00 1001880 10/06/2017 013991 PRIEBOY, JILL REFUND:SEC DEP:PICNIC 200.00 200.00 RENTAL:HARVESTON 1001881 10/06/2017 017312 PRIME CARE OF TEMECULA REFUND:SEC DEP:RM RENTAL:CRC 200.00 200.00 1001882 10/06/2017 019276 TEMECULA DOLLARS REFUND:SEC DEP:RM RENTAL:CONF 200.00 200.00 CTR A/B 1001883 10/06/2017 019240 TOMASIAN, SHERRY REFUND:GOLF - JR CLINIC 1502.205 150.00 150.00 1001884 10/06/2017 017644 VALLEY PHYSICIANS REFUND:SEC DEP:RM RENTAL:CONF 200.00 200.00 NETWORK CTR A/B 1001885 10/06/2017 020264 WATKINS, RAMEY REFUND:CREDIT:PICNIC 48.00 48.00 RENTAL:TEMEKU Grand total for UNION BANK: 1,597,278.14 Page9 apChkLst 10/19/2017 10:55:10A M Final Check List CITY OF TEMECULA Page: 10 123 checks in this report. Grand Total All Checks: 1,597,278.14 Pagel 0 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 1 Bank : union UNION BANK Check # Date Vendor 3527 10/10/2017 006887 UNION BANK OF CALIFORNIA Description Amount Paid Check Total 008956 PANERA BREAD LW MTG: PLANNING/TRAFFIC 219.78 COMMISSION 015626 EVENTBRITE.COM LW TRAINING: FISKAND PETERS 220.00 3531 10/10/2017 006887 UNION BANK OF CALIFORNIA 020249 LAUND3R.COM LLC KH LAUNDER TABLE DRAPES FOR 111.00 CONF CTR 019825 GETTY IMAGES KH IMAGES FOR PROMOTIONAL 149.00 FLYERS 006952 PAY PAL KH VERISIGN PAYFLOW PRO 318.60 TRANSACTION 020250 GARDENS ALIVE.COM KH SUPPLIES FOR HORTICULTURE 55.92 PROGRAM 002377 BEST BUY COMPANY INC KH RING DOORBELL FOR THEATER 271.86 002377 BEST BUY COMPANY INC KH RETURN OF RING DOOR BELL FOR -54.37 THEATER 007949 WESTERN ARTS ALLIANCE KH REFUND: ANN'L CONF:B.BARNETT -490.00 9/5-9/17 002377 BEST BUY COMPANY INC 017736 FEAST CALIFORNIA CAFE, LLC KH GO -PRO FOR TCSD EVENTS KH RFSHMNTS: SPECIAL EVENT PLANNERS MTG 483.91 126.64 001365 RIVERSIDE, COUNTY OF KH WESTERN DAYS EVENT HEALTH 2.30 PERMIT 439.78 001365 RIVERSIDE, COUNTY OF KH WESTERN DAYS EVENT HEALTH 97.00 1,071.86 PERMIT 3534 10/10/2017 006887 UNION BANK OF CALIFORNIA PT REVERSAL OF FRAUDULENT -690.55 CHARGES 020024 THE BRIDGE ON THIRD PT RFSHMNTS: INTERVIEW PANEL: 60.84 ENGINEER 020236 CLIPPERCREEK, INC. PT ELECTRIC CAR CHARGING 2,380.03 1,750.32 STATION: CIV 3547 10/26/2017 007282 AMAZON.COM, INC IPAD CASE:GIS 97.71 SUPPLIES:HUMAN SERVICES 10.79 BOOKS/COLLECTIONS: LI BRARY 448.66 EMERGENCY MGMT SUPPLIES 95.10 OFC SUPPLIES: FINANCE 26.20 678.46 3548 10/27/2017 000444 INSTATAX (EDD) 3RD QTR 2017 STATE UI & ETT 10,725.95 10,725.95 PAYMENT 3549 10/27/2017 000246 PERS (EMPLOYEES' PERS EMPLOYEE RETIREMENT RETIREMENT) PAYMENT 93,040.76 93,040.76 Pagel apChkLst 10/26/2017 9:26:03AM Final Check List CITY OF TEMECULA Page: 2 Bank : union UNION BANK (Continued) Check # Date Vendor 185604 10/26/2017 018098 ACME ADMINISTRATORS, INC 185605 10/26/2017 010851 ADAMIAK, DAWN 185606 10/26/2017 001517 AETNA BEHAVIORAL HEALTH, LLC 185607 10/26/2017 004767 ALERT ALL CORPORATION 185608 10/26/2017 003951 ALL AMERICAN ASPHALT 185609 10/26/2017 013015 ALWAYS RELIABLE BACKFLOW 185610 10/26/2017 004240 AMERICAN FORENSIC NURSES (AFN) 185611 10/26/2017 013950 AQUA CHILL OF SAN DIEGO 185612 10/26/2017 011666 BPS TACTICAL INC 185613 10/26/2017 011954 BAKER & TAYLOR INC 185614 10/26/2017 004262 BIO-TOX LABORATORIES 185615 10/26/2017 018408 BOB CALLAHAN'S POOL SERVICE 185616 10/26/2017 003138 CAL MAT 185617 10/26/2017 013265 CALIF BUILDING 185618 10/26/2017 000638 CALIF DEPT OF CONSERVATION 185619 10/26/2017 004248 CALIF DEPT OF JUSTICE-ACCTING Description NOV '17 3RD PARTY CLAIM ADMIN: WRKRS REIMB:FABRIC:OT CHRISTMAS TREE NOV EMPLOYEE ASSISTANCE PRGM DEBIT: ADDITION OF 5 MEMBERS FOR N PUBLIC EDUCATION MATERIALS:FIRE ASPHALT PRODUCTS: CITYWIDE BACKFLOW TESTS & REPAIRS: VAR PARKS BACKFLOW TESTS & REPAIRS: VAR PAR BACKFLOW TESTS: CIVIC CTR PHLEBOTOMY SRVCS:TEMECULA POLICE PHLEBOTOMY SRVCS:TEMECULA POLIC PHLEBOTOMY SRVCS:TEMECULA POLIC OCT WATER SVCS: POLICE STOREFRONT OFC tactical ballsitic vest cover, pop BOOK COLLECTIONS:LIBRARY BOOK COLLECTIONS:LIBRARY DRUG/ALCOHOL ANALYSIS:POLICE DRUG/ALCOHOL ANALYSIS:POLICE DRUG/ALCOHOL ANALYSIS:POLICE SEP MONTHLY POOL SVC: CRC SEP POOLS & FOUNTAINS MAINT:VAR F/ ASPHALT PURCH:PW STREET MAINT ASPHALT PURCH:PW STREET MAINT 3RD QTR PAYMENT OF SB1473 2017 2017 3RD QTR PMT:STRONG MOTION (JUL-SEP) Amount Paid Check Total 1,250.00 434.57 633.60 22.00 3,480.00 874.93 394.00 513.00 27.00 211.90 405.00 1,134.00 28.28 484.88 20.11 166.59 1,298.00 1,312.00 1,654.90 1,140.00 925.00 252.37 334.18 1,123.00 8,290.85 1,250.00 434.57 655.60 3,480.00 874.93 934.00 1,750.90 28.28 484.88 186.70 4,264.90 2,065.00 586.55 1,123.00 8,290.85 SEP DOJ FINGERPRINTING SRVCS: 4,907.00 VAR. DEPTS AUG DOJ ALCOHOLANALYSIS:TEMECUL 35.00 4,942.00 Page2 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 3 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185620 10/26/2017 013318 CARDENAS, ROBERT SUPPLIES:EMERG MGMT SUMMIT 10/19 185621 10/26/2017 000131 CARL WARREN & COMPANY SEP LIABILITY INSURANCE: RISK INC MGMT 185622 10/26/2017 009640 CERTIFION CORPORATION SEP ONLINE DATABASE SUBSCRIPTION: TEM 185623 10/26/2017 000137 CHEVRON AND TEXACO SEP 17 CITY VEHICLES FUEL: POLICE DEPT 185624 10/26/2017 020201 CIRCLE OF SAFE -T, INC. SART EXAMS: TEM POLICE 185625 10/26/2017 000442 COMPUTER ALERT SYSTEMS ALARM MONITORING & CELL MODULE:TCC 185626 10/26/2017 002945 CONSOLIDATED ELECTRICAL ELECTRICAL SUPPLIES: VAR PARKS 339.30 339.30 DIST. 185627 10/26/2017 013379 COSSOU, CELINE TCSD INSTRUCTOR EARNINGS 371.70 371.70 Amount Paid Check Total 172.51 172.51 1,244.00 1,244.00 150.00 150.00 1,541.55 1,541.55 2,900.00 2,900.00 421.00 421.00 185628 10/26/2017 001264 COSTCO TEMECULA #491 MISC SUPPLIES: TCC 317.62 317.62 185629 10/26/2017 010650 CRAFTSMEN PLUMBING & HVAC REPAIR: MARGARITA REC HVAC INC CENTER REPLACED HVAC PARTS:JRC ROOF VENT REPAIRS: CIVIC CENTER ROOF VENT REPAIRS: CIVIC CTR REPLACED TILE FLOOR: PENNYPICKLE 230.00 248.00 260.00 260.00 3,725.00 4,723.00 185630 10/26/2017 014580 DANCE THEATRE COLLECTIVE SETTLEMENT:DANCEXCHANGE 10/17 147.00 147.00 185631 10/26/2017 001233 DANS FEED & SEED INC SUPPLIES: PW STREET 13.00 MAINTENANCE SUPPLIES: PW STREET MAINT 53.24 66.24 185632 10/26/2017 001393 DATA TICKET, INC. SEP PARKING CITATION PROCESSING:POLICE 200.00 200.00 185633 10/26/2017 010461 DEMCO INC SUPPLIES:LIBRARY 497.68 497.68 185634 10/26/2017 003945 DIAMOND ENVIRONMENTAL PORTABLE RESTROOM RENTALS: 55.96 55.96 SRVCS GREAT OAK HS 185635 10/26/2017 019720 DIVERSIFIED WATERSCAPES , SEP WATER QUALITY MAI NT:DUCK INC. PON D: HARV 6,766.00 6,766.00 Page3 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 4 Bank : union UNION BANK (Continued) Check # Date Vendor 185636 10/26/2017 004192 DOWNS ENERGY FUEL& LUBRICANTS Description Amount Paid Check Total FUEL FOR CITY VEHICLES: LAND DEV 55.39 FUEL FOR CITY VEHICLES: TCSD FUEL FOR CITY VEHICLES: PW FUEL FOR CITY VEHICLES: TCSD FUEL FOR CITY VEHICLES: PUBLIC WOF FUEL FOR CITY VEHICLES: PUBLIC WOF FUEL FOR CITY VEHICLES: TRAFFIC DIV FUEL FOR CITY VEHICLES: POLICE DEP' FUEL FOR CITY VEHICLES: CODE ENFOI FUEL FOR CITY VEHICLES: BLDG INSPE1 185637 10/26/2017 019293 E&F PET SUPPLIES, INC. k-9 food & supplies: tem police 185638 10/26/2017 002390 EASTERN MUNICIPAL WATER DIST SEP WATER METER:MURR HOT SPRINGS RD SEP WATER METER:MURR HOT SPRING SEP WATER METER:39656 DIEGO DR SEP WATER METER:39569 SERAPHINA F 185639 10/26/2017 013367 ELECTRO INDUSTRIAL SUPPLY MISC SMALL TOOLS & EQUIP: PW TRAFFIC 185640 10/26/2017 015090 EVAPCO PRODUCTS, INC. OCT CONDENSER H2O SYS MAINT: CIVIC CTR 185641 10/26/2017 001056 EXCEL LANDSCAPE, INC. IRRIGATION REPAIRS: VARIOUS MEDIANS IRRIGATION REPAIRS: VARIOUS PARKS IRRIGATION REPAIRS:HARVESTON PARI IRRIG REPAIRS:VAR SLOPES IRRIG REPAIRS:VAR SLOPES 185642 10/26/2017 000165 FEDERAL EXPRESS INC 10/5 EXP MAIL SVCS: CITY CLERK 9/19-10/2 EXP MAIL SVCS: PD & INFO TEI 36.03 580.75 409.60 1,243.54 203.75 85.12 67.87 221.06 142.45 3,045.56 84.70 84.70 100.21 30.75 104.60 266.60 502.16 961.96 961.96 583.50 583.50 322.96 1,183.62 241.72 1,625.96 1,056.07 30.64 300.91 4,430.33 331.55 185643 10/26/2017 000795 FRED PRYOR TRAINING REWARD 299.00 299.00 SEMINARS-CAREERTRAC MBRSHP:ROBINSON, S. 185644 10/26/2017 018858 FRONTIER CALIFORNIA, INC. OCT INTERNET SVCS:41000 MAIN ST OCT INTERNET SVCS:41000 MAIN ST OCT INTERNET SVCS:SR CTR, SKATE P/ OCT INTERNET SVCS:SENIOR CENTER OCT INTERNET SVCS:CITY HALL 185645 10/26/2017 003946 G T ENTERTAINMENT DJ/ANNOUNCING- HALLOWEEN CARNIVAL 4,845.06 2,507.02 203.55 146.98 291.98 7,994.59 400.00 400.00 Page4 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 5 Bank : union UNION BANK (Continued) Check # Date Vendor 185646 10/26/2017 000177 GLENNIES OFFICE PRODUCTS INC Description MISC OFC SUPPLIES: CODE ENFORCEMENT OFFICE SUPPLIES: PW CIP MISC OFC SUPPLIES:CENTRAL SVCS MISC. OFFICE SUPPLIES: WORKFORCE MISC. OFFICE SUPPLIES - PREVENTION MISC. OFFICE SUPPLIES - PREVENTION MISC. OFFICE SUPPLIES - PREVENTION MISC. OFFICE SUPPLIES - STA 84 MISC. OFFICE SUPPLIES - STA 92 185647 10/26/2017 009608 GOLDEN VALLEY MUSIC STTLMNT: CLASSICS AT THER MERC: SOCIETY OCTOBER 185648 10/26/2017 016552 GONZALES, MARK ALLEN TCSD INSTRUCTOR EARNINGS Amount Paid Check Total 52.27 20.76 21.74 67.66 47.10 28.73 150.36 142.89 107.38 638.89 490.00 490.00 360.00 360.00 185649 10/26/2017 019721 GOVCONNECTION, INC. WiFi hardware lifecycle repl:info tech 17,616.94 17,616.94 185650 10/26/2017 003792 GRAINGER 185651 10/26/2017 020290 GRIFFITH, BETHANY 185652 10/26/2017 000186 HANKS HARDWARE INC SAFETY SUPPLIES: PW STREET 158.52 MAINT DIV SAFETY SUPPLIES: PW STREET MAI NT [ 68.29 REFUND:RETURNED LOST 26.00 MATERIALS:LIBRARY MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: MAINT FAC MAINT SUPPLIES: CHILDREN'S MUSEUM MAINT SUPPLIES: CRC HARDWARE SUPPLIES - STA73 MAINTENANCE SUPPLIES:PW STREET C Misc small tools & equip: pw land dev MAINT SUPPLIES: MAINT FAC MAINT SUPPLIES: CHILDREN'S MUSEUM MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: TVM MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: CHILDREN'S MUSEUM MAINT SUPPLIES: CIVIC CTR MAINT SUPPLIES: CIVIC CTR HARDWARE SUPPLIES - STATION 95 HARDWARE SUPPLIES - STATION 95 MAINT SUPPLIES: TCC 185653 10/26/2017 015121 HESLIN, MICHAEL REIMB: MISAC CONF 9/30-10/04 11.94 54.34 16.30 20.31 119.35 2.71 15.20 22.65 71.74 27.99 126.14 4.34 30.97 15.75 52.16 14.67 40.23 170.06 183.70 156.53 226.81 26.00 1,157.08 32.26 32.26 Pages apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 6 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185654 10/26/2017 016564 IMPACT TELECOM SEP 800 SERVICES:CIVIC CENTER Amount Paid Check Total 57.05 57.05 185655 10/26/2017 006914 INNOVATIVE DOCUMENT SEP COPIER 6,765.66 SOLUTIONS MAINT/REPAIR/USAGE:CITYWIDE SEP COPIER MAINT/REPAIR/USAGE:CIT` 607.21 185656 10/26/2017 001407 INTER VALLEY POOL SUPPLY POOL CHEMICAL SUPPLIES: VAR 419.56 INC POOLS 185657 10/26/2017 015358 KELLY PAPER COMPANY, INC. PAPER/BINDING/PCKG SUPP:CENTRAL SERV 7,372.87 419.56 488.06 488.06 185658 10/26/2017 020292 KIANG, LILIAN REFUND:SENIOR EXCURSION:PALM 28.00 28.00 SPRINGS 185659 10/26/2017 017118 KRACH, BREE B. NAME PLATE: MOSES, IVAN 21.75 21.75 185660 10/26/2017 017946 LANDRUM, KAREN TCSD INSTRUCTOR EARNINGS 910.00 910.00 185661 10/26/2017 014772 LOTA, RAYMONDA PHOTO BOOTH RENTAL: HALLOWEEN 698.00 698.00 185662 10/26/2017 004813 M & J PAUL ENTERPRISES INC SNOKONE MACHINE RENTAL:COLOR 150.00 RUN INFLATABLE RENTALS: 9/23/17 1,000.00 185663 10/26/2017 003782 MAIN STREET SIGNS SIGNS AND SUPPLIES: 63.82 RIGHT-OF-WAYS 1,150.00 63.82 185664 10/26/2017 000217 MARGARITA OFFICIALS ASSN SEP OFFICIATING ADULT 4,403.00 4,403.00 SOFTBALL:SPORTS 185665 10/26/2017 020293 MEDARIS, MICHAEL REFUND:CHOPPED COOKING CHALLENGE 80.00 80.00 185666 10/26/2017 019823 MERCHANTS BLDG. MAI NT. SEP JANITORIALSVCS:VARIOUS 20,665.99 20,665.99 LLC FACILITIES 185667 10/26/2017 013443 MIDWEST TAPE LLC BOOKS/COLLECTIONS:LIBRARY 83.94 BOOKS/COLLECTIONS: LI BRARY 89.37 185668 10/26/2017 009835 MIRACLE PLAYGROUND SALES ENG DRAWINGS: SHADE STRUCTURE 957.00 INC 185669 10/26/2017 012264 MIRANDA, JULIO C. TCSD INSTRUCTOR EARNINGS 609.00 TCSD INSTRUCTOR EARNINGS 705.60 TCSD INSTRUCTOR EARNINGS 151.20 173.31 957.00 1,465.80 Pages apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 7 Bank : union UNION BANK (Continued) Check # Date Vendor 185670 10/26/2017 016445 MKB PRINTING & PROMOTIONAL INC 185671 10/26/2017 017956 MONOPRICE INC. Description Amount Paid Check Total BUSINESS CARDS: BLDG & SAFETY 150.92 DEPT BUSINESS CARDS:FINANCE DEPT 151.35 BUSINESS CARDS:FINANCE DEPT 151.35 BUSI NESS CARDS & STATIONERY:ADMI 151.35 PRI NTI NG:QUI LT SHOW 268.11 PRI NTI NG:QUI LT SHOW 67.07 AUDIO VISUAL SUPPLIES:INFO TECH 106.06 AUDIO VISUAL SUPPLIES:INFO TECH 166.48 AUDIO VISUAL SUPPLIES:INFO TECH 12.44 185672 10/26/2017 009443 MUNYON, DENNIS G. OCT -DEC LIC FEE FOR OLD TOWN PARKING LOT 185673 10/26/2017 002925 NAPA AUTO PARTS AUTO PARTS & MISC SUPPLIES: STA84 185674 10/26/2017 000727 NATIONAL FIRE PROTECTION PREVENTION WEEK: PREV ASSN &STATIONS 940.15 284.98 2,875.00 2,875.00 10.85 10.85 2,965.03 2,965.03 185675 10/26/2017 020234 NELSON, RANDY motor mount - radar printer writer 810.00 810.00 185676 10/26/2017 003964 OFFICE DEPOT BUSINESS SVS OFFICE SUPPLIES:PW NPDES 32.28 32.28 DIV 185677 10/26/2017 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE MAINT SVCS:PW 1,412.59 1,412.59 FACILITIES 185678 10/26/2017 002105 OLD TOWN TIRE & SERVICE CITY VEHICLE MAINT SVCS:BLDG & 8.68 8.68 SAFETY 185679 10/26/2017 020291 PACIFIC FIRE PROTECTION REFUND:FEE ADJ. FROM 257.00 257.00 FY16-17:F17-2763 185680 10/26/2017 000249 PETTY CASH PETTY CASH REIMBURSEMENT 1,092.13 1,092.13 185681 10/26/2017 010338 POOL & ELECTRICAL PRODUCTS INC 185682 10/26/2017 004029 R J M DESIGN GROUP INC 185683 10/26/2017 000262 RANCHO CALIF WATER DISTRICT CHEMICALS AND SUPPLIES: VAR 282.84 POOLS CHEMICAL SUPPLIES:SPLASH PAD/POO 56.57 AUG SERVICES:MARGARITA REC 6,357.15 CENTER CREDIT:BILLING ADJUSTMENT/MRC -881.40 SEP LNDSCP WATER METER:CALLE 121.47 ELENITA OCT VAR WATER METERS:TCSD SVC LE 24,343.71 SEP VAR WATER METERS:41951 MORAL 340.82 OCT VAR WATER METERS:PW YMCA 363.38 339.41 5,475.75 25,169.38 Page:7 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 8 Bank : union UNION BANK (Continued) Check # Date Vendor Description 185684 10/26/2017 002412 RICHARDS WATSON & SEPT 2017 LEGAL SERVICES GERSHON 185685 10/26/2017 000418 RIVERSIDE CO CLERK & NTC EXEMPTION:MERCEDES ST RECORDER SIDEWALK IMPRV 185686 10/26/2017 000418 RIVERSIDE CO CLERK & NTC EXEMPTION:YNEZ RD SIDEWALK RECORDER IMPRV 185687 10/26/2017 000418 RIVERSIDE CO CLERK & NTC EXEMPTION:SIXTH ST SIDEWALK RECORDER IMPRV 185688 10/26/2017 012251 ROTH, DONALD J. Amount Paid Check Total 103,668.30 103,668.30 50.00 50.00 50.00 50.00 50.00 50.00 TCSD INSTRUCTOR EARNINGS 378.00 TCSD INSTRUCTOR EARNINGS 567.00 945.00 185689 10/26/2017 009196 SACRAMENTO THEATRICAL SOUND/LIGHTING SUPPLIES: 2,354.62 LIGHTING THEATER LIGHTING REPAIR: THEATER 224.23 2,578.85 185690 10/26/2017 004274 SAFE & SECURE LOCKSMITH CRC KEYS FOR PD SUB -STATION 215.50 215.50 185691 10/26/2017 009980 SANBORN, GWYNETH A. COUNTRY LIVE! @ THE MERC 10/21/17 528.75 528.75 185692 10/26/2017 009213 SHERRY BERRY MUSIC JAZZ @ THE MERC 10/19/17 462.00 462.00 185693 10/26/2017 009746 SIGNS BY TOMORROW 185694 10/26/2017 000645 SMART & FINAL INC SIGN POSTING SRVCS PA17-0328:PLNG SIGN POSTING PA14-0155,PA17-1235:PLI SIGN POSTING SRVCS PA17-1015:PLNG SIGN POSTING SRVCS PA15-1885-1886:F SIGN POSTING PA15-1885-1886:PLNG SIGN POSTING SRVCS PA17-0088:PLNG SIGN POSTING SRVCS PA17-0109,20,70:1 SIGN POSTING SRVCS PA17-0712-13:PLI SIGN POSTING SRVCS PA17-0109,20,70:1 MISC SUPPLIES:VARIOUS SPECIAL EVENTS REFRESHMENTS:SUMMER DAY CAMP 425.50 212.75 212.75 851.00 851.00 425.50 851.00 425.50 851.00 156.39 5,106.00 91.38 247.77 Page:8 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 9 Bank : union UNION BANK (Continued) Check # Date Vendor 185695 10/26/2017 000537 SO CALIF EDISON Description SEP 2-28-171-2620:40820 WINCHESTER RD SEP 2-33-237-4818:30499 RANCHO CAL SEP 2-31-419-2659:26706 YNEZ RD TC1 SEP 2-29-974-7568:26953 YNEZ RD TC1 OCT 2-31-693-9784:26036 YNEZ RD TC1 SEP 2-29-223-9571:30395 MURR HOT SPI SEP 2-30-608-9384:28582 HARVESTON SEP 2-26-887-0789:40233 VILLAGE RD PE SEP 2-00-397-5059:33340 CAMINO PIEDR SEP -OCT 2-27-560-0625:32380 DEERHOL SEP 2-30-296-9522:46679 PRIMROSE AVE Amount Paid Check Total 858.50 104.86 142.20 109.11 336.85 47.13 477.79 2,038.78 9,224.52 3,203.85 494.97 185696 10/26/2017 001212 SO CALIF GAS COMPANY SEP 055-475-6169-5:32380 169.97 DEERHOLLOW SEP 015-575-0195-2:32211 WOLF VLY RD 73.82 185697 10/26/2017 018751 SOLARCITY CORPORATION REFUND:80% BLDG FEES:B17-1030, 231.36 1715 185698 10/26/2017 000519 SOUTH COUNTY PEST CONTROL INC PEST CONTROL SRVCS:WOLF CREEK PARK PEST CONTROL SRVCS:VARIOUS PARK: 49.00 493.00 SEPT PEST CONTROL SRVCS:CITY FACI 822.00 185699 10/26/2017 019250 ST. FRANCIS ELECTRIC, LLC SEPT TRAFFIC SGNL MAINT SRVCS: PW 335.61 17,038.56 243.79 231.36 1,364.00 335.61 185700 10/26/2017 000293 STADIUM PIZZA INC REFRESHMENTS:S.K.I.P. 10/11/17 157.90 157.90 185701 10/26/2017 008337 STAPLES BUSINESS ADVANTAGE OFFICE SUPPLIES:HUMAN SERVICES 45.20 OFFICE SUPPLIES:THEATER OFFICE SUPPLIES:PW LAND DEV OFFICE SUPPLIES:PD OLD TOWN STORI OFFICE SUPPLIES:THEATER OFFICE SUPPLIES:CRC OFFICE SUPPLIES:TVM OFFICE SUPPLIES:TCSDADMIN OFFICE SUPPLIES:TCSDADMIN OFFICE SUPPLIES:CRC OFFICE SUPPLIES:SKATE PARK OFFICE SUPPLIES:TVM OFFICE SUPPLIES:TVM OFFICE SUPPLIES:TCSDADMIN OFFICE SUPPLIES:PW TRAFFIC OFFICE SUPPLIES:PD OLD TOWN STORI OFFICE SUPPLIES:PD OLD TOWN STORI OFFICE SUPPLIES:PD MALL STOREFROI OFFICE SUPPLIES:LIBRARY 152.48 168.87 67.50 84.14 42.18 174.44 180.25 45.27 110.16 43.05 21.01 87.53 39.54 14.66 4.34 9.73 401.46 124.14 1,815.95 Page9 apChkLst 10/26/2017 9:26:03AM Final Check List CITY OF TEMECULA Page: 10 Bank : union UNION BANK (Continued) Check # Date Vendor 185702 10/26/2017 020294 TEMECULA BAHAI FUND 185703 10/26/2017 003677 TEMECULA MOTORSPORTS LLC 185704 10/26/2017 003067 TEMECULA VALLEY R V SERVICE 185705 10/26/2017 003941 TEMECULA WINNELSON COMPANY 185706 10/26/2017 010276 TIME WARNER CABLE 185707 10/26/2017 019100 TNT ENTERTAINMENT GROUP LLC 185708 10/26/2017 019464 TRIAD CONSULTING & SYSTEM 185709 10/26/2017 017579 U.S. HEALTHWORKS MEDICAL 185710 10/26/2017 007766 UNDERGROUND SERVICE ALERT 185711 10/26/2017 000621 WESTERN RIVERSIDE COUNCIL OF 185712 10/26/2017 004567 WITCHER ELECTRIC 1001886 10/19/2017 020280 BOUDREAU, LYNN 1001887 10/19/2017 017449 CHRIST PRESBYTERIAN CHURCH 1001888 10/19/2017 020281 CHUN, SUKWON Description REFUND:SEC DEP:KITCHEN RENTAL:CRC VEH REPAIR & MAINT:TEMECULA POLICE VEH REPAIR & MAINT:TEMECULA POLICI EQUIP REPAIR & MAINT: TEMECULA POLICE CRC POOL REPLACEMENT GRATES OCT HIGH SPEED INTERNET:32364 OVERLAND OCT HIGH SPEED INTERNET:DMV FIBER OCT HIGH SPEED INTERNET:29119 MART OCT HIGH SPEED INTERNET:32211 WOL DJ/SOUND SRVCS:TEEN PUMPKIN PLUNGE 10/6 AUG PRJT MGMT SRVCS:SURVEILLANCE SYSTEM PRE-EMPLOYMENT SCREENINGS: HR SEPT UNDERGROUND UTILITY LOCATOR ALERTS: AUG UNDERGROUND UTILITY LOCATOR JUL UNDERGROUND UTILITY LOCATOR, FY 17/18 CLEAN CITIES COALITION DUES STREET LIGHT REPAIR - OLD TOWN REFUND:YOGA ON MARGARITA 4110.203 REFUND:SEC DEP:RM RENTAL:TCC REFUND:FROM MARKET TO PLATE 1620.201 Amount Paid Check Total 200.00 610.22 1,483.39 1,195.90 730.79 54.99 4,408.00 348.13 184.62 1,950.00 15,410.00 165.00 198.10 269.05 193.15 10,000.00 316.00 48.00 200.00 40.00 200.00 2,093.61 1,195.90 730.79 4,995.74 1,950.00 15,410.00 165.00 660.30 10,000.00 316.00 48.00 200.00 40.00 1001889 10/19/2017 020282 DAY, LAURA REFUND:TOTS'N POTS 1660.201 45.00 45.00 Pagel 0 apChkLst Final Check List 10/26/2017 9:26:03AM CITY OF TEMECULA Page: 11 Bank : union UNION BANK (Continued) Check # Date Vendor Description 1001890 10/19/2017 020283 DEPAZ, SYLVIA REFUND:SEC DEP:RM RENTAL:TCC 1001891 10/19/2017 020284 FELIX, ESTAFANI REFUND:SEC DEP:KITCHEN RENTAL:CRC Amount Paid Check Total 200.00 200.00 200.00 200.00 1001892 10/19/2017 020285 HAGBERG, SUSAN REFUND:CREDIT:PICNIC 60.00 60.00 RENTAL:RRSP 1001893 10/19/2017 020286 HARTIT, HEEBA REFUND:HIGH HOPES - GAME NIGHT 8.00 8.00 1001894 10/19/2017 020287 HENNICKE, CARLY REFUND:SEC DEP:RM RENTAL:TCC 120.35 120.35 1001895 10/19/2017 018616 HILL, STEVE 1001896 10/19/2017 014878 MOMENI, JOANN 1001897 10/19/2017 018368 PANINGBATAN, SABRINA REFUND:TOTS'N POTS 1660.201 45.00 45.00 REFUND:FROM MARKET TO PLATE 40.00 40.00 1620.201 REFUND:SEC DEP:RM RENTAL:CRC 200.00 200.00 1001898 10/19/2017 020288 PHOMAVONG, JAY REFUND:SEC DEP:KITCHEN RENTAL:CRC 1001899 10/19/2017 020289 VAN PELT, JAMIE REFUND:BARRE STRETCH & TONE 1930.202 200.00 200.00 48.00 48.00 Grand total for UNION BANK: 453,042.65 Page:11 apChkLst 10/26/2017 9:26:03AM Final Check List CITY OF TEMECULA Page: 12 129 checks in this report. Grand Total All Checks: 453,042.65 Page:12 Item No. 4 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Jennifer Hennessy, Director of Finance DATE: November 14, 2017 SUBJECT: Approve the City Treasurer's Report as of September 30, 2017 PREPARED BY: Rudy J. Graciano, Fiscal Services Manager RECOMMENDATION: That the City Council approve and file the City Treasurer's Report as of September 30, 2017. BACKGROUND: Government Code Sections 53646 and 41004 require reports to the City Council regarding the City's investment portfolio, receipts, and disbursements respectively. Adequate funds will be available to meet budgeted and actual expenditures of the City for the next six months. Current market values are derived from the Local Agency Investment Fund (LAIF) reports, Union Bank of California trust and custody statements, and from US Bank trust statements. Attached is the City Treasurer's Report that provides this information. The City's investment portfolio is in compliance with the statement of investment policy and Government Code Sections 53601 and 53635 as of September 30, 2017. FISCAL IMPACT: None ATTACHMENTS: City Treasurer's Report as of September 30, 2017 Investments City of Temecula, California Portfolio Management Portfolio Summary September 30, 2017 Par Market Book % of Value Value Value Portfolio Term City of Temecula 41000 Main Street P.O. Box 9033 Temecula, CA 92590 (951)694-6430 Days to YTM YTM Maturity 360 Equiv. 365 Equiv. Managed Pool Accounts 47,976,451.56 47,976,451.56 47,976,451.56 43.16 1 1 0.917 0.930 Retention Escrow Account 600,948.16 600,948.16 600,948.16 0.54 1 1 0.148 0.150 Letter of Credit 1.00 1.00 1.00 0.00 1 1 0.000 0.000 Local Agency Investment Funds 32,581,939.43 32,550,728.25 32,581,939.43 29.31 1 1 1.096 1.111 Federal Agency Callable Securities 20,000,000.00 19,904,780.00 20,000,000.00 17.99 1,347 943 1.490 1.510 Federal Agency Bullet Securities 10,000,000.00 9,969,810.00 9,993,680.00 8.99 1,061 413 1.248 1.265 Investments 111,159, 340.15 111,002, 718.97 111,153,020.15 100.00% 338 208 1.098 1.113 Cash Passbook/Checking 6,410,721.87 6,410,721.87 6,410,721.87 1 1 0.000 0.000 (not included in yield calculations) Total Cash and Investments 117, 570, 062.02 117, 413, 440.84 117,563,742.02 338 208 1.098 1.113 Total Earnings September 30 Month Ending Fiscal Year To Date Current Year Average Daily Balance Effective Rate of Return 100,454.68 115,924,752.15 1.05% Reporting period 09/01/2017-09/30/2017 Run Date: 10/26/2017 - 14:57 307,786.93 122,979,552.59 0.99% Portfolio TEME CP PM (PRF_PM1) 7.3.0 Report Ver. 7.3.6.1 CUSIP City of Temecula, California Portfolio Management Portfolio Details - Investments September 30, 2017 Page 1 Average Purchase Stated YTM YTM Days to Maturity Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 233358006-6 01-2 REF RES First Amer Govt Oblig Fund CI 505,469.83 505,469.83 505,469.83 0.880 0.868 0.880 1 233358000-6 01-2 REF ST First Amer Govt Oblig Fund CI 69,096.37 69,096.37 69,096.37 0.880 0.868 0.880 1 276213009-6 03-02 COI First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 276213008-6 03-02 IMPR First Amer Govt Oblig Fund CI 1,137,616.63 1,137,616.63 1,137,616.63 0.880 0.868 0.880 1 276213006-6 03-02 RES First Amer Govt Oblig Fund CI 742,291.23 742,291.23 742,291.23 0.880 0.868 0.880 1 164741008-6 03-03IMP First Amer Govt Oblig Fund CI 298,042.52 298,042.52 298,042.52 0.880 0.868 0.880 1 164741006-6 03-03RES First Amer Govt Oblig Fund CI 391.39 391.39 391.39 0.880 0.868 0.880 1 164741000-6 03-03SPEC First Amer Govt Oblig Fund CI 193,969.33 193,969.33 193,969.33 0.880 0.868 0.880 1 164742000-6 03-06SPEC First Amer Govt Oblig Fund CI 13,834.81 13,834.81 13,834.81 0.880 0.868 0.880 1 229462007-6 03-1 2012 RF First Amer Govt Oblig Fund CI 07/01/2017 41.40 41.40 41.40 0.890 0.878 0.890 1 229462009-6 03-1 COI First Amer Govt Oblig Fund CI 07/31/2017 13,539.63 13,539.63 13,539.63 0.880 0.868 0.880 1 229462006-6 03-1 RESERV First Amer Govt Oblig Fund CI 07/31/2017 17,237.01 17,237.01 17,237.01 0.880 0.868 0.880 1 229462000-6 03-1 SPECF First Amer Govt Oblig Fund CI 07/31/2017 22,257.81 22,257.81 22,257.81 0.880 0.868 0.880 1 94669921-6 03-1ACQ11 First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.870 0.858 0.870 1 94669911-6 03-1ACQA11 First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 94669917-6 03-1 RES First Amer Govt Oblig Fund CI 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 94669916-6 03-1 RESB 11 First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 94669000-6 03-1 SPTAX11 First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 276213002-6 03-2 REFU First Amer Govt Oblig Fund CI 08/01/2017 2,777.40 2,777.40 2,777.40 0.880 0.868 0.880 1 276213000-6 03-2 SPEC First Amer Govt Oblig Fund CI 4,985.74 4,985.74 4,985.74 0.880 0.868 0.880 1 94686001-6 03-4ADMIN11 First Amer Govt Oblig Fund CI 510.85 510.85 510.85 0.880 0.868 0.880 1 94686005-6 03-4PREP11 First Amer Govt Oblig Fund CI 13.06 13.06 13.06 0.920 0.907 0.920 1 94686000-6 03-4RED11 First Amer Govt Oblig Fund CI 31,818.99 31,818.99 31,818.99 0.880 0.868 0.880 1 94686006-6 03-4RES11 First Amer Govt Oblig Fund CI 34,025.38 34,025.38 34,025.38 0.880 0.868 0.880 1 276213022-6 16-01 BOND F First Amer Govt Oblig Fund CI 08/01/2017 12,584.77 12,584.77 12,584.77 0.880 0.868 0.880 1 276213023-6 16-01 CAPINT First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.870 0.858 0.870 1 276213029-6 16-01 COI First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 276213028-6 16-01 IMP First Amer Govt Oblig Fund CI 6,431,512.83 6,431,512.83 6,431,512.83 0.880 0.868 0.880 1 276213026-6 16-01 RESERV First Amer Govt Oblig Fund CI 3,155,395.23 3,155,395.23 3,155,395.23 0.880 0.868 0.880 1 276213020-6 16-01 SPECF First Amer Govt Oblig Fund CI 07/01/2017 2,329.77 2,329.77 2,329.77 0.880 0.868 0.880 1 233358009-6 233358009-6 First Amer Govt Oblig Fund CI 0.00 0.00 0.00 0.000 0.000 1 94434160-6 RDA-02INT First Amer Govt Oblig Fund CI 116.51 116.51 116.51 0.880 0.868 0.880 1 94434161-6 RDA-02PRIN First Amer Govt Oblig Fund CI 79.35 79.35 79.35 0.880 0.868 0.880 1 107886000-6 RDA-06AINT First Amer Govt Oblig Fund CI 68.80 68.80 68.80 0.890 0.878 0.890 1 107886001-6 RDA06APRIN First Amer Govt Oblig Fund CI 07/01/2017 40.52 40.52 40.52 0.890 0.878 0.890 1 107886010-6 RDA06BINT First Amer Govt Oblig Fund CI 221.61 221.61 221.61 0.880 0.868 0.880 1 Run Date: 10/26/2017 - 14:57 Portfolio TEME CP PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 CUSIP City of Temecula, California Portfolio Management Portfolio Details - Investments September 30, 2017 Page 2 Average Purchase Stated YTM YTM Days to Maturity Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 107886011-6 RDA06BPRIN First Amer Govt Oblig Fund CI 07/01/2017 1.46 1.46 1.46 0.680 0.671 0.680 1 107886016-6 RDA06BRES First Amer Govt Oblig Fund CI 202,539.66 202,539.66 202,539.66 0.880 0.868 0.880 1 107886020-6 RDA07INT First Amer Govt Oblig Fund CI 1,212.11 1,212.11 1,212.11 0.880 0.868 0.880 1 107886021-6 RDA07PRIN First Amer Govt Oblig Fund CI 7.54 7.54 7.54 0.930 0.917 0.930 1 107886028-6 RDA07PROJ First Amer Govt Oblig Fund CI 210,818.52 210,818.52 210,818.52 0.880 0.868 0.880 1 107886026-6 RDAO7RES First Amer Govt Oblig Fund CI 1,106,401.05 1,106,401.05 1,106,401.05 0.880 0.868 0.880 1 136343008-6 RDA10APROJ First Amer Govt Oblig Fund CI 20,059.06 20,059.06 20,059.06 0.880 0.868 0.880 1 136343018-6 RDA10BPROJ First Amer Govt Oblig Fund CI 5,214,852.73 5,214,852.73 5,214,852.73 0.880 0.868 0.880 1 136343000-6 RDA101NT First Amer Govt Oblig Fund CI 157,201.96 157,201.96 157,201.96 0.880 0.868 0.880 1 136343001-6 RDA1OPRIN First Amer Govt Oblig Fund CI 07/01/2017 36.26 36.26 36.26 0.880 0.868 0.880 1 136343006-6 RDA1 ORSRV First Amer Govt Oblig Fund CI 1,264,861.14 1,264,861.14 1,264,861.14 0.880 0.868 0.880 1 146161000-6 RDA11AINT First Amer Govt Oblig Fund CI 110.93 110.93 110.93 0.880 0.868 0.880 1 146161001-6 RDA11APRIN First Amer Govt Oblig Fund CI 36.44 36.44 36.44 0.880 0.868 0.880 1 94669902-3 03-1 BOND3 First American Treasury 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 94434160-1 RDA 02 INT1 First American Treasury 0.00 0.00 0.00 0.010 0.010 0.010 1 94434161-2 RDA 02 PRIN2 First American Treasury 0.00 0.00 0.00 0.010 0.010 0.010 1 136343018-2 RDA 10B CIP2 First American Treasury 0.00 0.00 0.00 0.010 0.010 0.010 1 146161008-3 RDA11APROJ Federated Institutional Tax Fr 7,323,005.70 7,323,005.70 7,323,005.70 0.770 0.759 0.770 1 146161006-3 RDA11ARSRV Federated Institutional Tax Fr 1,313,592.06 1,313,592.06 1,313,592.06 0.770 0.759 0.770 1 94669921-5 03-01 ACQ11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94669911-5 03-01 ACQA11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94669917-5 03-01 RES Federated Tax Free Obligations 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 94669906-5 03-01 RESA11 Federated Tax Free Obligations 0.00 0.00 0.00 0.001 0.001 0.001 1 94669916-5 03-01 RESB11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94669000-5 03-01 SPTAX11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 164742006-5 03-06 RES Federated Tax Free Obligations 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 164742000-5 03-06 SPEC Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94669902-5 03-lbond fd Federated Tax Free Obligations 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 94686001-5 03-4 ADMIN11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94686005-5 03-4 PREP11 Federated Tax Free Obligations 07/01/2017 0.00 0.00 0.00 0.000 0.000 1 94686006-5 03-4 RES11 Federated Tax Free Obligations 0.00 0.00 0.00 0.250 0.247 0.250 1 94669917-1 03-01-1 RES CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 276213008-1 03-02 IMP CA Local Agency Investment Fun 15,063,214.73 15,063,214.73 15,063,214.73 1.111 1.096 1.111 1 164742006-1 03-06 RES -1 CA Local Agency Investment Fun 311,704.57 311,704.57 311,704.57 1.111 1.096 1.111 1 229462007-1 03-1 2012 RE CA Local Agency Investment Fun 07/01/2017 779,261.44 779,261.44 779,261.44 1.111 1.096 1.111 1 94669911-1 03-1 ACQ A2 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 Run Date: 10/26/2017 - 14:57 Portfolio TEME CP PM (PRF_PM2) 7.3.0 CUSIP City of Temecula, California Portfolio Management Portfolio Details - Investments September 30, 2017 Page 3 Average Purchase Stated YTM YTM Days to Maturity Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 94669921-1 03-1 ACQ B2 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 744727011-1 03-3 ACQ 2 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 164741006-1 0303-1 RES CA Local Agency Investment Fun 1,444,434.92 1,444,434.92 1,444,434.92 1.111 1.096 1.111 1 107886028-1 RDA 07 PRO -1 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 107886026-1 RDA 07 RES -1 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 136343018-1 RDA 10B CIP1 CA Local Agency Investment Fun 0.00 0.00 0.00 1.111 1.096 1.111 1 107886006 RDA 06 RES A MBIA Surety Bond 1.00 1.00 1.00 0.000 0.000 1 94434166 RDA TABs RES MBIA Surety Bond 1.00 1.00 1.00 0.000 0.000 1 229462020-0 03-01 CASH USBANK 07/01/2017 794.68 794.68 794.68 0.000 0.000 1 233358050-1 01-2 SPECESC U.S. Treasury 0.00 0.00 0.00 0.360 0.355 0.360 1 229462020-2 03-01 TREASB U.S. Treasury 07/31/2017 872,033.83 872,033.83 872,033.83 0.063 0.062 0.063 1 Subtotal and Average 47,987,681.45 47,976,451.56 47,976,451.56 47,976,451.56 0.917 0.930 1 Retention Escrow Account ARMY CORPS Army Corps Union Bank Subtotal and Average 600,948.16 600,948.16 600,874.14 600,948.16 600,948.16 0.150 0.148 0.150 1 600,948.16 600,948.16 0.148 0.150 1 Letter of Credit 233358006-1 01-2 REFRESI ASSURANCE CO BOND INSURANCE 07/01/2017 1.00 1.00 1.00 Subtotal and Average 1.00 1.00 1.00 1.00 0.000 0.000 1 0.000 0.000 1 Local Agency Investment Funds SYSCITY CITY CA Local Agency Investment Fun 8,165,691.85 8,157,869.70 8,165,691.85 1.111 1.096 1.111 1 SYSRDA RDA CA Local Agency Investment Fun 1,773.11 1,771.41 1,773.11 1.111 1.096 1.111 1 SYSTCSD TCSD CA Local Agency Investment Fun 24,414,474.47 24,391,087.14 24,414,474.47 1.111 1.096 1.111 1 Subtotal and Average 34,781,939.43 32,581,939.43 32,550,728.25 32,581,939.43 1.096 1.111 1 Federal Agency Callable Securities 3130A4G89 01207 Federal Home Loan Bank 03/24/2015 1,000,000.00 999,510.00 1,000,000.00 1.650 1.627 1.650 723 09/24/2019 3130AAME5 01226 Federal Home Loan Bank 01/30/2017 1,000,000.00 996,330.00 1,000,000.00 2.020 1.948 1.975 1,577 01/25/2022 3130AANA2 01227 Federal Home Loan Bank 01/30/2017 1,000,000.00 999,330.00 1,000,000.00 1.750 1.726 1.750 1,033 07/30/2020 3130AAW38 01228 Federal Home Loan Bank 03/22/2017 1,000,000.00 995,310.00 1,000,000.00 1.500 1.479 1.500 1,633 03/22/2022 3130AB3N4 01231 Federal Home Loan Bank 04/28/2017 1,000,000.00 996,510.00 1,000,000.00 1.550 1.529 1.550 758 10/29/2019 3130ABYY6 01235 Federal Home Loan Bank 08/24/2017 1,000,000.00 995,220.00 1,000,000.00 1.750 1.726 1.750 1,242 02/24/2021 3134G67C1 01210 Federal Home Loan Mtg Corp 06/22/2015 1,000,000.00 999,070.00 1,000,000.00 1.200 1.184 1.200 264 06/22/2018 Run Date: 10/26/2017 - 14:57 Portfolio TEME CP PM (PRF_PM2) 7.3.0 CUSIP City of Temecula, California Portfolio Management Portfolio Details - Investments September 30, 2017 Page 4 Average Purchase Stated YTM YTM Days to Maturity Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Federal Agency Callable Securities 3134G8QB8 01219 Federal Home Loan Mtg Corp 03/29/2016 1,000,000.00 995,930.00 1,000,000.00 1.270 1.253 1.270 544 03/29/2019 3134G8PP8 01220 Federal Home Loan Mtg Corp 03/30/2016 1,000,000.00 993,710.00 1,000,000.00 1.500 1.661 1.684 1,095 09/30/2020 3134GAXX7 01224 Federal Home Loan Mtg Corp 11/30/2016 1,000,000.00 994,110.00 1,000,000.00 1.000 0.986 1.000 425 11/30/2018 3134GBAB8 01229 Federal Home Loan Mtg Corp 03/27/2017 1,000,000.00 997,420.00 1,000,000.00 1.670 1.647 1.670 908 03/27/2020 3134GBGZ9 01232 Federal Home Loan Mtg Corp 04/27/2017 1,000,000.00 997,370.00 1,000,000.00 2.000 1.964 1.991 1,579 01/27/2022 3134GBNK4 01234 Federal Home Loan Mtg Corp 05/30/2017 1,000,000.00 997,670.00 1,000,000.00 1.625 1.603 1.625 971 05/29/2020 3134GBL42 01237 Federal Home Loan Mtg Corp 09/28/2017 1,000,000.00 997,030.00 1,000,000.00 1.670 1.647 1.670 1,093 09/28/2020 3136G2EC7 01205 Federal National Mtg Assn 02/27/2015 1,000,000.00 997,380.00 1,000,000.00 1.300 1.282 1.300 514 02/27/2019 3136G2WT0 01216 Federal National Mtg Assn 01/27/2016 1,000,000.00 995,590.00 1,000,000.00 1.450 1.430 1.450 848 01/27/2020 3136G2XH5 01217 Federal National Mtg Assn 02/24/2016 1,000,000.00 994,170.00 1,000,000.00 1.400 1.381 1.400 876 02/24/2020 3136G3CL7 01218 Federal National Mtg Assn 03/24/2016 1,000,000.00 990,610.00 1,000,000.00 1.420 1.401 1.420 1,089 09/24/2020 3136G3TE5 01221 Federal National Mtg Assn 06/29/2016 1,000,000.00 986,910.00 1,000,000.00 1.250 1.233 1.250 1,002 06/29/2020 3136G3X59 01222 Federal National Mtg Assn 08/23/2016 1,000,000.00 985,600.00 1,000,000.00 1.100 1.085 1.100 691 08/23/2019 Subtotal and Average 19,100,000.00 20,000,000.00 19,904,780.00 20,000,000.00 1.490 1.510 943 Federal Agency Bullet Securities 3133EDNDO 01196 Federal Farm Credit Bank 06/11/2014 1,000,000.00 1,000,100.00 1,000,000.00 1.200 1.179 1.195 102 01/11/2018 3133EEHU7 01202 Federal Farm Credit Bank 01/14/2015 1,000,000.00 999,290.00 1,000,000.00 1.410 1.391 1.410 470 01/14/2019 3133EGJ30 01225 Federal Farm Credit Bank 11/18/2016 1,000,000.00 989,280.00 1,000,000.00 1.100 1.085 1.100 778 11/18/2019 3130A4AJ1 01206 Federal Home Loan Bank 02/27/2015 1,000,000.00 999,570.00 1,000,000.00 1.140 1.124 1.140 149 02/27/2018 3130A5MH9 01211 Federal Home Loan Bank 06/26/2015 1,000,000.00 999,470.00 1,000,000.00 1.360 1.341 1.360 451 12/26/2018 3130A8ZV8 01223 Federal Home Loan Bank 08/23/2016 1,000,000.00 987,430.00 1,000,000.00 1.000 0.986 1.000 691 08/23/2019 3130AAYM4 01230 Federal Home Loan Bank 03/14/2017 1,000,000.00 999,620.00 1,000,000.00 1.125 1.110 1.125 164 03/14/2018 3130ABDX1 01233 Federal Home Loan Bank 05/24/2017 1,000,000.00 997,650.00 1,000,000.00 1.400 1.381 1.400 600 05/24/2019 3130AC3F9 01236 Federal Home Loan Bank 08/10/2017 1,000,000.00 997,510.00 1,000,000.00 1.420 1.853 1.878 696 08/28/2019 3135G0PQ0 01194 Federal National Mtg Assn 11/26/2013 1,000,000.00 999,890.00 993,680.00 0.875 1.026 1.040 25 10/26/2017 Subtotal and Average 9,993,680.00 10,000,000.00 9,969,810.00 9,993,680.00 1.248 1.265 413 Total and Average 115,924,752.15 Run Date: 10/26/2017 - 14:57 111,159, 340.15 111,002,718.97 111,153,020.15 1.098 1.113 208 Portfolio TEME CP PM (PRF_PM2) 7.3.0 CUSIP City of Temecula, California Portfolio Management Portfolio Details - Cash September 30, 2017 Average Purchase Stated YTM YTM Days to Investment # Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Page 5 Passbook/Checking Accounts 1453718479 WORKERS COMP BANK OF AMERICA MERRILL LYNC 07/01/2017 8,292.85 8,292.85 8,292.85 0.000 0.000 1 SYSPetty Cash Petty Cash City of Temecula 07/01/2017 3,261.00 3,261.00 3,261.00 0.000 0.000 1 SYSGen Ck Acct Gen Ck Acct Union Bank of California 6,388,270.52 6,388,270.52 6,388,270.52 0.000 0.000 1 SYSParking Ck PARKING CITA Union Bank of California 07/01/2017 10,897.50 10,897.50 10,897.50 0.000 0.000 1 Average Balance 0.00 1 Total Cash and Investments 115,924,752.15 Run Date: 10/26/2017 - 14:57 117,570,062.02 117,413,440.84 117,563,742.02 1.098 1.113 208 Portfolio TEME CP PM (PRF_PM2) 7.3.0 Cash and Investments Report CITY OF TEMECULA Through September 2017 Fund # Fund Name Beainnina Balance Receipts Disbursements Fund Total 001 GENERAL FUND 002 MEASURE S FUND 100 STATE GAS TAX FUND 120 DEVELOPMENT IMPACT FUND 125 PEG PUBLIC EDUCATION & GOVERNMENT 135 BUSINESS INCUBATOR RESOURCE 145 TEMECULA ENERGY EFFICIENCY ASSET TEAM 150 AB 2766 FUND 160 SUPPLEMENTAL LAW ENFORCEMENT SERVICES 161 LARRY ROBINSON REWARD 165 AFFORDABLE HOUSING 170 MEASURE A FUND 190 TEMECULA COMMUNITY SERVICES DISTRICT 192 TCSD SERVICE LEVEL "B" STREET LIGHTS 194 TCSD SERVICE LEVEL "D" REFUSE/RECYCLING 195 TCSD SERVICE LEVEL "R" STREET/ROAD MAINT 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 197 TEMECULA LIBRARY FUND 198 PUBLIC ART 210 CAPITAL IMPROVEMENT PROJECT FUND 273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND 275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND 277 CFD-RORIPAUGH 278 CFD-RORIPAUGH II 300 INSURANCE FUND 305 WORKERS COMPENSATION 310 VEHICLES AND EQUIPMENT FUND 320 INFORMATION TECHNOLOGY 325 TECHNOLOGY REPLACEMENT FUND 330 CENTRAL SERVICES 340 FACILITIES 380 SARDA DEBT SERVICE FUND 460 CFD 88-12 DEBT SERVICE FUND 472 CFD 01-2 HARVESTON A&B DEBT SERVICE 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 474 AD 03-4 JOHN WARNER ROAD DEBT SERVICE 475 CFD 03-3 WOLF CREEK DEBT SERVICE FUND 476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 477 CFD 03-02 RORIPAUGH DEBT SERVICE FUND 478 CFD-RORIPAUGH II 501 SERVICE LEVEL"C"ZONE 1 SADDLEWOOD 502 SERVICE LEVEL"C"ZONE 2 WINCHESTER CREEK 503 SERVICE LEVEL"C"ZONE 3 RANCHO HIGHLANDS 504 SERVICE LEVEL"C"ZONE 4 THE VINEYARDS 505 SERVICE LEVEL"C"ZONE 5 SIGNET SERIES 506 SERVICE LEVEL"C"ZONE 6 WOODCREST COUNTRY 508 SERVICE LEVEL"C"ZONE 8 VILLAGE GROVE 509 SERVICE LEVEL"C"ZONE 9 RANCHO SOLANA 510 SERVICE LEVEL"C"ZONE 10 MARTINIQUE 511 SERVICE LEVEL"C"ZONE 11 MEADOWVIEW 512 SERVICE LEVEL"C"ZONE 12 VINTAGE HILLS 513 SERVICE LEVEL"C"ZONE 13 PRESLEY DEVELOP 514 SERVICE LEVEL"C"ZONE 14 MORRISON HOMES 515 SERVICE LEVEL"C"ZONE 15 BARCLAY ESTATES 516 SERVICE LEVEL"C"ZONE 16 TRADEWINDS 517 SERVICE LEVEL"C"ZONE 17 MONTE VISTA 518 SERVICE LEVEL"C"ZONE 18 TEMEKU HILLS 519 SERVICE LEVEL"C"ZONE 19 CHANTEMAR 520 SERVICE LEVEL"C"ZONE 20 CROWNE HILL 521 SERVICE LEVEL"C"ZONE 21 VAIL RANCH 522 SERVICE LEVEL"C"ZONE 22 SUTTON PLACE 523 SERVICE LEVEL"C"ZONE 23 PHEASENT RUN 524 SERVICE LEVEL"C"ZONE 24 HARVESTON 525 SERVICE LEVEL"C"ZONE 25 SERENA HILLS 526 SERVICE LEVEL"C"ZONE 26 GALLERYTRADITION 527 SERVICE LEVEL"C"ZONE 27 AVONDALE 528 SERVICE LEVEL"C"ZONE 28 WOLF CREEK 530 SERVICE LEVEL"C"ZONE 30 FUTURE ZONES $ 32,172,429.89 $ 6,233,960.56 $ 4,832,700.59 $ 33,573,689.86 601,632.78 1,947,138.97 365,597.94 2,183,173.81 402,475.20 44.06 - 402,519.26 5,105,814.26 520,800.62 52,734.36 5,573,880.52 283,397.53 30.24 7,135.13 276,292.64 131,588.96 239.41 225.00 131,603.37 197,396.79 21.61 - 197,418.40 100,345.44 35,418.36 - 135,763.80 16,688.10 76,307.55 - 92,995.65 25,628.24 2.81 - 25,631.05 782,510.53 442.35 16,617.32 766,335.56 6, 251, 469.14 347, 825.88 13, 642.81 6, 585, 652.21 934,263.46 204,054.81 501,088.20 637,230.07 93,894.34 2.16 74,153.16 19,743.34 344,450.86 39.22 7,088.24 337,401.84 23,372.74 2.56 - 23,375.30 359,129.29 37.11 20,142.66 339,023.74 226,701.10 9,543.90 24,357.22 211,887.78 83,892.43 6,477.08 455.86 89,913.65 15, 073, 317.85 1, 368, 799.53 4, 425, 858.97 12, 016, 258.41 272.55 0.20 272.75 - 297,820.74 221.78 - 298,042.52 16,325,040.97 860.22 - 16,325,901.19 6,426,726.98 4,785.85 - 6,431,512.83 151, 245.86 2,821.11 4,956.82 149,110.15 846,968.77 91.57 10,475.00 836,585.34 1,603,113.51 175.49 - 1,603,289.00 253,641.04 5,233.37 185,439.61 73,434.80 455,004.52 49.81 - 455,054.33 420,043.61 1,562.26 28,201.93 393,403.94 398,521.12 1,419.23 99,549.80 300,390.55 16,802,674.51 10,520.90 3,082.72 16,810,112.69 90,082.45 9.86 - 90,092.31 1,534,455.05 1,939.89 924,879.86 611,515.08 4,577,376.90 759.43 2,805,006.76 1,773,129.57 121,879.97 106.88 49,367.36 72,619.49 3,382,188.63 1,239.88 1,393,192.36 1,990,236.15 596,076.01 207.87 232,986.12 363,297.76 1,389,439.12 1,016.59 580,505.13 809,950.58 4,386,709.20 3,344.84 1,185,626.55 3,204,427.49 5,206.30 0.29 2,581.23 2,625.36 75,487.18 8.07 1,742.80 73,752.45 14, 914.16 1.11 4,794.96 10 ,120.31 2,473.00 0.25 222.48 2,250.77 12, 643.96 1.20 1,674.27 10,970.89 21,834.44 2.34 418.15 21,418.63 66,428.45 6.58 6,326.54 60,108.49 22,375.20 2.40 486.03 21,891.57 9,020.45 0.88 990.25 8,031.08 2,162.57 0.23 96.33 2,066.47 75,472.50 7.15 10,190.66 65,288.99 12, 020.60 1.13 1,673.30 10,348.43 3,766.92 0.34 785.64 2,981.62 2,033.30 0.20 204.27 1,829.23 42,053.29 4.08 4,817.37 37,240.00 741.13 0.07 101.04 640.16 27,268.40 2.64 3,150.25 24,120.79 79,495.80 8.52 1,691.54 77,812.78 126, 499.31 12.81 9,493.71 117, 018.41 153, 499.13 15.88 8,396.36 145,118.65 4,582.48 0.49 109.27 4,473.70 12,518.54 1.34 302.03 12,217.85 62,382.15 5.79 9,484.53 52,903.41 40,671.96 4.31 1,318.02 39,358.25 635.51 0.06 98.32 537.25 6,548.63 0.71 48.93 6,500.41 366,848.95 38.94 11,173.67 355,714.22 34,200.90 3.74 - 34,204.64 Grand Total: $ 124,553,465.65 $ 10,787,687.37 $ 17,927,712.18 $ 117,413,440.84 Journal Entries completed after August's Treasurer's Report was issued are reflected in the Receipts / Disbursements columns. Item No. 5 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Randi Johl, City Clerk DATE: November 14, 2017 SUBJECT: Adopt Ordinance 17-11 to Approve an Amendment to Chapters 17.06, 17.24, and 17.34 of the Temecula Municipal Code Regulating Accessory Dwelling Units (Second Reading) PREPARED BY: Randi Johl, City Clerk RECOMMENDATION: That the City Council adopt an ordinance entitled: ORDINANCE NO. 17-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTERS 17.06, 17.24 AND 17.34 OF THE TEMECULA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS, AND MAKING A FINDING OF EXEMPTION UNDER PUBLIC RESOURCES CODE SECTION 21080.17 BACKGROUND: The City of Temecula is a general law city formed under the laws of the State of California. With respect to adoption of ordinances and resolutions, the City adheres to the requirements set forth in the Government Code. With the exception of urgency ordinances, Government Code Section 36934 requires two readings of standard ordinances more than five days apart. Ordinances must be read in full at the time of introduction or passage unless a motion waiving the reading is adopted by a majority of the City Council present. Ordinance No. 17-11 was first introduced at the regularly scheduled meeting of October 24, 2017. FISCAL IMPACT: None ATTACHMENTS: Ordinance ORDINANCE NO. 17-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AMENDING CHAPTERS 17.06, 17.24 AND 17.34 OF THE TEMECULA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS, AND MAKING A FINDING OF EXEMPTION UNDER PUBLIC RESOURCES CODE SECTION 21080.17 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Subsection S ("S" Definitions and Illustrations) of Section 17.34.010 of Chapter 17.34 (Definitions of terms) of Title 17 (Zoning) is hereby amended to delete the definition of "Secondary Dwelling Unit". Section 2. Subsection A ("A" Definitions and Illustrations) of Section17.34.010 of Chapter 17.34 (Definitions of terms) of Title 17 (Zoning) is hereby amended to add the definiton of "Accessory Dwelling Unit" in alphabetical order to read as follows, with all other definitions remaining unchanged: "Accessory dwelling unit" means an attached or detached residential dwelling unit on a lot with an existing single-family residence (primary residence) that provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel that the single-family dwelling is situated. "Accessory dwelling unit" includes an "Efficiency Unit" as defined in Health and Safety Code Section 17958.1 and a "Manufactured Home" as defined in Health and Safety Code Section 18007. Section 3. Table 17.24.040 of Section 17.24.040 (Parking Requirements) of Chapter 17.24 (Off -Street Parking and Loading) of Title 17 (Zoning) of the Temecula Municipal Code is hereby amended so that "Second unit" is renamed "Accessory Dwelling Unit" and is amended to read as follows: Accessory Dwelling Unit The following parking shall be provided, except as as otherwise provided in Section 17.06.050(L)(7): 1 parking space per accessory dwelling unit or per bedroom shall be provided, whichever is less. The parking space may be provided as tandemn parking on a driveway. Section 4. Table 17.06.030 of Section 17.06.030 (Use Regulations) of Chapter 17.06 (Residential Districts) of Title 17 (Zoning) of the Temecula Municipal Code is hereby amended to read as follows: Description of Use HR RR VL L-1 L-2 LM M H HR - SM Accessory dwelling units PPPPPPP -11 P Notes: 11. Legal nonconforming single family residences will be permitted to construct accessory dwelling units if they meet the requirements of this Section 17.06.050(L). Section 5. Subsection L of Section 17.06.050 (Special use standards and regulations) of Chapter 17.06 (Residential Districts) of Title 17 (Zoning) of the Temecula Municipal Code is hereby amended to read as follows: "L. Accessory Dwelling Units. 1. Application Requirements. Applications for accessory dwelling units shall be completed in accordance with Section 17.03.030 of this Development Code. The application for the accessory dwelling unit permit must be signed by the owner(s) of the parcel of land and the primary residence. 2. General Standards. Accessory dwelling units are permitted in all residential zoning districts where there is a proposed or an existing owner -occupied single-family detached dwelling. In accordance with state law, an accessory dwelling unit shall be considered a residential use and shall not be considered to exceed the allowable density for the lot upon which it is permitted. Only one accessory dwelling unit shall be permitted on any one lot. Any accessory dwelling unit that meets the standards set forth in this Subsection L shall be approved by the Community Development Director. 3. Size Restrictions. An accessory dwelling unit shall not exceed 50% of the area of the proposed or existing primary residence, or 1,200 square feet, whichever is smaller. The accessory dwelling shall not be smaller in size than an "efficiency unit" as defined in Section 17958.1 of Health and Safety Code. 4. Design. The accessory dwelling unit shall have the same design, architecture, and materials of the primary residence and the surrounding neighborhood in terms of height, mass, landscaping, and architectural materials. 5. Transfer. An accessory dwelling unit shall not be sold, transferred, or assigned separately from the primary residence, but may be rented. The accessory dwelling unit shall not be used for short term rentals for less than thirty days. 6. Occupancy Requirement/Covenant Required. The property owner must occupy either the primary residence or the accessory dwelling unit. Within thirty (30) days of the issuance of a building permit for an accessory dwelling unit pursuant to this Subsection L, the owner of record shall record a covenant, in a form satisfactory to the City Attorney, which shall place future buyers on notice of the maximum size of the accessory dwelling unit as set forth in this Subsection L, the required amount of off street parking to be provided for the accessory dwelling unit, that the accessory dwelling unit may not be sold, transferred or assigned separately from the primary dwelling unit, that the accessory dwelling unit may not be used for short term rentals for less than thirty days, and that such restrictions shall run with the land and be binding upon all future owners. The covenant shall be recorded in the official records of the County of Riverside, and a copy of the covenant shall be filed with the office of the City Clerk. 7. Parking Requirements: a. Parking for the accessory dwelling unit shall be provided in accordance with the off-street parking standards in Chapter 17.24, except that the parking space for the accessory dwelling unit may be located in setback areas or through tandem parking, unless the Community Development Director makes findings that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. b. Notwithstanding the foregoing requirements, no additional parking space is required for an accessory dwelling unit that satisfies any of the following: 1. It is located within one-half mile of an active public transit stop; 2. It is located within an architecturally and historically significant district; 3. It is part of a proposed or existing primary residence or accessory structure; 4. It is located within one block of a car share vehicle; or 5. It is located in an area where the City requires on -street parking permits but does not offer the permits to the accessory dwelling unit occupant. c. If a garage, carport, or covered parking structure is demolished or converted in conjunction with the construction of the accessory dwelling unit, the off- street parking spaces lost as a result of the demolition shall be replaced on-site. The replacement parking spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. 8. Setbacks. An accessory dwelling unit must comply with all setback requirements applicable to the primary dwelling unit except under the following conditions: a. No setback shall be required for an existing garage that is converted to an accessory dwelling unit. b. If an accessory dwelling unit is constructed above a garage, the required side and rear setbacks shall be a minimum of five feet from the side and rear lot lines. 9. Utilities. The accessory dwelling unit shall have adequate water and sewer services. These services may be provided from the water and sewer points of connection for the primary dwelling unit and need not be a separate set of services. 10. Historic Resources. Any accessory dwelling unit that has the potential to adversely impact any historical resource listed on the National Register or the California Register of Historic Places, shall be designed and constructed in accordance with the "Secretary Of The Interior's Standards For The Treatment Of Historic Properties With Guidelines For Preserving, Rehabilitating, Restoring, And Reconstructing Historic Buildings" found at 36 CFR 68.3, as amended from time to time. 11. Conversion of Exisinq Space of a Residence or Accessory Structure: In accordance with State law, and notwithstanding any other provision of this Section, the Community Development Director shall ministerially approve an accessory dwelling unit that satisfies all of the following requirements: a. It is located on a lot zoned single-family residential; b. It is the only accessory dwelling unit on the lot; c. It is contained within the existing space of an existing residence or accessory structure; d. It has independent exterior access; and e. It has side and rear setbacks sufficient for fire safety." Section 6. Table 17.06.050A of Subsection D (Accessory Structures and Uses.) of Section 17.06.050 (Special use standards and regulations.) of Chapter 17.06 (Residential Districts) of Title 17 (Zoning) of the Temecula Municipal Code is hereby amended to rename "Detached second unit" as "Accessory dwelling unit" and to add footnote "6" to read as follows: Accessory Structure Front Yard Rear Yard Interior Side Yard Accessory dwelling unit Not permitted in actual front yard unless it complies with Section 17.06.050(L)(11)46 Refer to rear yard setbacks in Table 17.06.0406 Refer to the side yard setbacks in Table 17.06.0406 Notes 6: The setback requirements will apply except as follows: A. For an accessory dwelling unit that is constructed above an existing garage, the minimum setback from all property lines is five feet. B. For an accessory dwelling unit that is converted from an existing garage, no additional setbacks beyond the existing garage setback shall be required, except as may be required by the local building and fire codes. Section 7. CEQA. This Ordinance was analyzed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The City Council finds that adoption of the Ordinance is exempt from CEQA pursuant to Public Resources Code Section 21080.17, which provides that CEQA "does not apply to the adoption of an ordinance by a city or county to implement the provisions of Section 65852.1 or 65852.2 of the Government Code." This Ordinance is adopted to implement recent changes in Government Code Section 65852.2, and thus is exempt from CEQA's environmental review requirements. Section 8. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. Section 9. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same or a summary thereof to be published and posted in the manner required by law. Section 10. Effective Date. This Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 17-11 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 24th day of October, 2017, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk Item No. 6 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Randi Johl, City Clerk DATE: November 14, 2017 SUBJECT: Adopt Ordinance 17-12 Regulating Conduct in Order to Protect the Health, Safety and Quality of Life of Persons in Temecula (Second Reading) PREPARED BY: Randi Johl, City Clerk RECOMMENDATION: That the City Council adopt an ordinance entitled: ORDINANCE NO. 17-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA MODIFYING THE TEMECULA MUNICIPAL CODE TO REGULATE AND PROHIBIT CERTAIN CONDUCT AND CONDITIONS TO PROTECT HEALTH AND SAFETY BY AMENDING SECTION 9.65.060 TO PROHIBIT SOLICITATIONS IN RESTROOMS OPEN TO PUBLIC, ADDING CHAPTER 9.70 PROHIBITING CERTAIN CONDUCT ON PUBLIC PROPERTY, INCLUDING CAMPING, HINDERING OR OBSTRUCTING FREE PASSAGE, BODILY FUNCTIONS, WALK, STAND OR LIE ON PUBLIC BENCHES OR BE ON CERTAIN PUBLIC FIXTURES, PROHIBITING DWELLING IN VEHICLES ON CITY STREETS AND PUBLIC PROPERTY, AND REGULATING FOOD DISTRIBUTION ON PUBLIC PARKS AND PUBLIC PROPERTY, ADDING CHAPTER 9.75 PROHIBITING THE STORAGE OF PERSONAL PROPERTY ON PUBLIC PROPERTY AND PROVIDING FOR THE REMOVAL OF SUCH PROPERTY; REPEALING CHAPTER 9.02 AND SECTION 10.08.080 AS THESE ARE INCLUDED IN THE NEW PROVISIONS; AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM CEQA PURSUANT TO SECTION 15060 OF THE CEQA GUIDELINES BACKGROUND: The City of Temecula is a general law city formed under the laws of the State of California. With respect to adoption of ordinances and resolutions, the City adheres to the requirements set forth in the Government Code. With the exception of urgency ordinances, Government Code Section 36934 requires two readings of standard ordinances more than five days apart. Ordinances must be read in full at the time of introduction or passage unless a motion waiving the reading is adopted by a majority of the City Council present. Ordinance No. 17-12 was first introduced at the regularly scheduled meeting of October 24, 2017. FISCAL IMPACT: ATTACHMENTS: None Ordinance ORDINANCE NO. 17-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA MODIFYING THE TEMECULA MUNICIPAL CODE TO REGULATE AND PROHIBIT CERTAIN CONDUCT AND CONDITIONS TO PROTECT HEALTH AND SAFETY BY AMENDING SECTION 9.65.060 TO PROHIBIT SOLICITATIONS IN RESTROOMS OPEN TO PUBLIC, ADDING CHAPTER 9.70 PROHIBITING CERTAIN CONDUCT ON PUBLIC PROPERTY, INCLUDING CAMPING, HINDERING OR OBSTRUCTING FREE PASSAGE, BODILY FUNCTIONS, WALK, STAND OR LIE ON PUBLIC BENCHES OR BE ON CERTAIN PUBLIC FIXTURES, PROHIBITING DWELLING IN VEHICLES ON CITY STREETS AND PUBLIC PROPERTY, AND REGULATING FOOD DISTRIBUTION ON PUBLIC PARKS AND PUBLIC PROPERTY, ADDING CHAPTER 9.75 PROHIBITING THE STORAGE OF PERSONAL PROPERTY ON PUBLIC PROPERTY AND PROVIDING FOR THE REMOVAL OF SUCH PROPERTY; REPEALING CHAPTER 9.02 AND SECTION 10.08.080 AS THESE ARE INCLUDED IN THE NEW PROVISIONS; AND FINDING THAT THIS ORDINANCE IS EXEMPT FROM CEQA PURSUANT TO SECTION 15060 OF THE CEQA GUIDELINES THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The title of Chapter 9.65 and Section 9.65.060 of the Temecula Municipal Code is hereby amended to read as follows: "Chapter 9.65 PROHIBITION AGAINST CERTAIN FORMS OF SOLICITATION AND LINGERING AND LOITERING ON MEDIANS" "9.65.060 All solicitations prohibited at specified locations. A. Financial Institutions and Automated Teller Machines (ATMs). No person shall solicit within twenty-five feet of any entrance or exit of any financial institution during its business hours or within twenty-five feet of any automated teller machine during the time it is available for customers' use. When an automated teller machine is located within an automated teller machine facility, such distance shall be measured from the entrance or exit of the automated teller machine facility. No person shall solicit within an automated teller machine facility where a reasonable person would or should know that he or she does not have the permission to do so from the owner or other person lawfully in possession of such facility. B. Parking Lots. No person shall solicit in any public parking lot or structure any time after dark. C. Public Transportation Vehicles and Stops. No person shall solicit in any public transportation vehicle or within fifty feet of any designated or posted public transportation vehicle stop. D. Gasoline Stations and Fuel Pumps. No person shall solicit from an operator or occupant of a motor vehicle while such vehicle is stopped in a gasoline station or at a fuel pump. E. Driveways Accessing Shopping Center, Retail and Business Establishments. No person shall solicit from an operator or occupant traveling in a motor vehicle while such vehicle is located within twenty-five feet of a driveway providing vehicular access to a shopping center, retail or business establishment. F. Medians. 1. No person shall linger on a median. 2. No person shall loiter on a median. 3. No person shall solicit upon any median. G. Dining Establishments. No person shall solicit in any outdoor dining area of any restaurant or other dining establishment serving food for immediate consumption. H. No person shall solicit in any restroom open to the public. Section 2. Chapter 9.70, Prohibtion Against Certain Conduct on Public Property and Property Open to the Public, is hereby added to the Temecula Municipal Code to read as follows: "Chapter 9.70 Prohibtion Against Certain Conduct on Public Property and Property Open to the Public 9.70.010. Purpose. 9.70.020. Definitions. 9.70.030. Unlawful Camping. 9.70.040. Camp Permit Regulations. 9.70.050. Free Passage Shall Not be Hindered or Obstructed. 9.70.060. Prohibited Conduct on Public Property, Monuments, and Lawns. 9.70.070. Public Urination and Defecation Prohibited. 9.70.080. Prohibited Conduct on Private Property. 9.70.090. 9.70.100. 9.70.110. Food Distribution at Public Parks and Public Property. Use of Vehicles for Dwelling Restricted on City Streets and Public Property Penalty; Enforcement 9.70.010. Purpose. The public areas within theCity, including streets, sidewalks, parks, public building and public land, should be readily accessible and available to residents and the public at large for use in a safe and healthy manner. The use of these areas for overnight camping purposes and the use of those areas for the purposes of certain well defined types of loitering interferes with the ability of residents and the public at large to use the areas in the healthy and safe manner for the uses intended. Such camping and defined loitering activity and their attendant negative effects constitute a significant public health and safety hazard, which adversely impacts other members of the public and neighborhoods, as well as industrial, agricultural, and commercial areas. The City's streets, sidewalks, parking lots, parks and other public areas are intended for daytime use by the general public, not for storage of personal, stolen, or abandoned property, or for overnight occupancy. Detrimental impacts from illegal storage, dumping, or camping in these public areas which are not designed for such storage or human habitation include lack of proper water and sanitary facilities, safety hazards for visitors and the inhabitants of substandard temporary structures, presence of trash and debris, criminal activities including illegal drug use, and other conditions which are inconsistent with the intended use and enjoyment of these areas by the general public. Moreover, the proliferation of lost, abandoned, or stolen shopping carts and other personal property around the City results in the obstruction of free access to sidewalks, streets, parking lots, and other ways; interferes with pedestrian and vehicular traffic on public and private streets; and impedes emergency services. A purpose of this chapter is to maintain public and private lands, streets, sidewalks, alleys, ways, creeks, waterways, parks, playgrounds, recreation areas, plazas, open spaces, lots, parcels and other public and private areas within theCity, in a clean, sanitary and accessible condition. A further purpose of this chapter is to protect the health, safety and welfare of the community, while recognizing that, subject to reasonable conditions, camping and camping facilities associated with certain events can be beneficial to the cultural and educational well-being of theCity. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public or private property. 9.70.020. Definitions. As used in this chapter, the following terms shall have the following meanings: "Business Establishments" mean retail stores, food markets, theaters, restaurants, drive-in restaurants, gasoline service stations, bars, hotels, motels, or any other establishment which is open to and provides the public with any goods or services. "Camp" means to place, pitch or occupy camp facilities; to live temporarily in a camp facility or outdoors; to use camp paraphernalia. "Camp Facilities" mean all temporary shelters, including but not limited to, tents, huts, yurts, vehicles, vehicle camping outfits or temporary shelters. "Camp Paraphernalia" means items including, but not limited to, bedrolls, air mattresses, tarpaulins, cots, beds, sleeping bags, hammocks and similar equipment. "Community Development Director" means the community development director or designee. "Dwelling" means more than one of the following activities and when it reasonably appears, in light of all the circumstances, that a person is using a vehicle as a place of residence or accommodation: (1) Possessing inside or on a vehicle items that are not associated with ordinary vehicle use, such as a sleeping bag, tarps, bedroll, blanket, sheet, pillow, kitchen utensils, cookware, cooking equipment, containers of bodily fluids; or (2) obscuring some or all of the vehicle's windows; or preparing or cooking meals inside or on a vehicle; or sleeping inside a vehicle. "Establish" means to set up or move equipment, supplies or materials on to public or private property to camp or operate camp facilities. "Maintain" means to keep or permit equipment, supplies or materials to remain on public or private property in order to camp or operate camp facilities. "Operate" means to participate or assist in establishing or maintaining a camp or camp facility. "Street" means all streets, avenues, highways, lanes, alleys, ways, crossings or intersections, co -routes and cul-de-sacs. "Outstanding Citation" means a citation issued pursuant to section 9.02.030 of this chapter that is not paid or that is under appeal. "Private Property" means all private property including, but not limited to, streets, sidewalks, alleys, and improved or unimproved land. "Public Property" means any real or personal property owned or controlled by the City and includes, but is not limited to, any publicly -owned park, building, street, sidewalk, way, path, alley, park, parking lot or other public property owned or controlled by the City and located within the City of Temecula and such other publicly owned property for which the City is authorized by contract or permit to maintain. 9.70.030. Unlawful Camping It is unlawful and a public nuisance for any person to camp, establish, maintain, operate or occupy camping facilities, or use camp paraphernalia in the following areas: A. Any public property, improved or unimproved, including but not limited to public streets and sidewalks, open space, and other property or any private property, improved or unimproved. B. The prohibition set forth in this section does not apply to: 1. Mobile home parks and special occupancy parks operating in accordance with the Temecula Municipal Code; 2. Camping on public or private property pursuant to a permit issued under Temecula Municipal Code section 9.70.040; and 3. Day use for lawful activities on public property pursuant to a permit issued under Temecula Municipal Code section 9.70.040. 9.70.040. Camp Permit Regulations. A. The City Manager may promulgate regulations to establish a program pursuant to which a permit may be issued to establish, maintain and operate a camp or a camp facility, for overnight or day use, in connection with a special event. A special event is intended to include, but is not limited to, programs operated by departments of the City, events organized by nonprofit or community- based organizations, organized youth or school events, and sporting events. The regulations shall be published on the City's website. Regulations promulgated by the City Manager shall have the same force and effect of law and become effective upon date of publication. B. It is unlawful for any person to establish, maintain, conduct or carry on any camp or camp facility unless a permit pursuant to this section has been issued. The permit shall be at all times posted in a conspicuous place upon the area or tract of land upon which the camp or camp facility is located. 9.70.050. Free Passage Shall Not be Hindered or Obstructed. A. No person or persons shall stand, sit, linger, idle, or loiter on any street, alley, sidewalk, park or other public place, or in or about the entrance or exit of any business establishment or public building, either on foot or in an automobile or other vehicle, in such a manner as to obstruct or hinder the free passage of persons along such public way, or obstruct or hinder persons entering and exiting from any business establishment or public building, or in such a manner as to create a health or safety hazard for the community or for the patrons of such public place. B. No person in violation of this prohibition shall refuse or fail to disperse or move on when directed to do so by a police officer or City employee. 9.70.060. Prohibited Conduct on Public Property, Monuments, and Lawns. No person shall: A. Walk, stand, sit, or lie upon any monument, vase, decorative fountain, drinking fountain, bike rack, trash receptacle, median, fire hydrant, street - tree planter, berm, utility cabinet, railing, fence, planter, stairwell, parking lot or parking structure, or upon any other public property not designed or customarily used for such purposes; B. Walk, stand, sit, or lie upon any public lawn or planted area that is posted with signs that forbid such conduct; or C. Walk, stand, or lie upon any public bench. 9.70.070. Public Urination and Defecation Prohibited. No person shall urinate or defecate on private property in any area exposed to the public view, or on any public street, roadway, boulevard, alley, parking lot, sidewalk, or any other property owned, controlled and/or operated by the City, County or any public agency, except when using a urinal, toilet, or commode located in a bathroom, restroom, or other structure specifically designated for the purpose of urination and defecation. 9.70.080. Prohibited Conduct on Private Property. The City Council finds and determines that encampments located on private property have at least the same health, safety, and welfare concerns as encampments on public property and find the same to constitute a public nuisance. The City Manager is authorized to promulgate all regulations necessary to provide for City clean-up and removal of encampments located on private property and for the recovery of all costs and expenses associated therewith consistent with the provisions of the Temecula Municipal Code and applicable law. The regulations shall be published on the City's website. Regulations promulgated by the City Manager shall have the same force and effect of law and become effective upon date of publication. 9.70.090 Food Distribution at Public Parks and Public Property. A. Persons and groups who wish to routinely distribute free meals and other food to needy people in the City are encouraged to participate in programs which provide meals indoors in conjunction with other services intended to help needy people find housing and jobs. Information on how to participate in such programs may be obtained from the Department of Community Services. B. Any person or group that serves or distributes food to the public in City parks or on public property shall comply with the following regulations: 1. All applicable State and Riverside County health and safety standards regulating food service and distribution, including, but not limited to, the requirements of obtaining and displaying a valid permit from the Riverside County Department of Environmental Services, or its succesor agency, for distributing food at a location approved by the City; 2. All applicable requirements of the Temecula Municipal Code regarding the issuance of a vending permit, temporary use permit, or event permit; and 3. All applicable requirements of the Temecula Municipal Code regaring protection of park facilities and foliage and clean-up of parks and public areas. C. No person shall distribute or serve food to the public on a public street or sidewalk without issuance of a City vending permit, temporary use permit, or event permit. However, no permit or license shall be required for a noncommercial food distribution that does not hinder or interfere with the free use of the sidewalk or street by pedestrian or vehicular traffic. 9.70.100. Use of Vehicles for Dwelling Restricted on City Streets and Public Property. A. No person shall use a parked Vehicle for Dwelling as follows: 1. Between the hours of 9:00 P.M. and 6:00 A.M. on any street or public property in the City; or 2. At any time within a five hundred (500) foot radius of any edge of a parcel or group of parcels containing a park or public or private school for children in grades between kindergarten and twelfth (12th) grade or a licensed pre-school or daycare facility. B. Nothing herein precludes the enforcement of any other laws such as parking restrictions, including, but not limited to, prohibitions on overnight parking, storage of vehicles, littering, illegal discharge or dumping of materials, and parking for more than 72 hours. C. The City Manager may, in writing, suspend the enforcement of all or a portion of this section in designated locations in connection with special events or holidays. D. The Director of Public Works shall post signs at the entrances to the City describing such restrictions. 9.70.110 Penalty; Enforcement A. Misdemeanor. Any person who violates any provision of this chapter shall be guilty of a misdemeanor or infraction as provided in Chapter 1.20 of Title 1 of the Temecula Municipal Code. The violation may be charged as an infraction with the consent of the City Attorney. B. Administrative Citations. Any person who violates any provision of this chapter shall be guilty of violating the Temecula Municipal Code and may be issued an administrative citation and be subject to the applicable punishments pursuant to Chapter 1.21 of Title 1 of the Temecula Municipal Code. C. Other Remedies. Nothing in this chapter shall limit or preclude the enforcement of any other applicable laws or remedies available for violations of this chapter, including, but not limited to, the enforcement provisions of Title 1 or Chapter 8.12 of the Temecula Municipal Code." Section 3. Chapter 9.75 Storage of Personal Property on Public Property of the Temecula Municipal Code is hereby added to read as follows: "Chapter 9.75 Storage of Personal Property on Public Property. 9.75.010. Purpose. 9.75.020 Definitions. 9.75.030. Prohibition on the storage of personal property on Public Property. 9.75.040. Prohibition on attachments. 9.75.050. Removal of stored personal property; discarding of stored personal property. 9.75.060. Pre -removal notice. 9.75.070. Failure to remove attended personal property. 9.75.080. Storage and disposal. 9.75.090. Repossession. 9.75.100. Illegal dumping. 9.75.110. Limitation on applicability. 9.75.120. Establishment of Administrative Procedure by City Manager. 9.75.130. Penalty; Enforcement. 9.75.010. Purpose. The public areas within the City, including streets, sidewalks, parks, public building and public land, should be readily accessible and available to residents and the public at large for use in a safe and healthy manner. The use of these areas for storage of personal property interferes with the ability of residents and the public at large to use the areas in the healthy and safe manner for the uses intended. Such storage of personal property and its attendant negative effects constitute a significant public health and safety hazard, which adversely impacts other members of the public and neighborhoods, as well as industrial, agricultural, and commercial areas. The City's streets, sidewalks, parking lots, parks and other public areas are intended for daytime use by the general public, not for storage of personal, stolen, or abandoned property, or for overnight occupancy. Detrimental impacts from illegal storage, dumping, or camping in these public areas which are not designed for such storage or human habitation include lack of proper water and sanitary facilities, safety hazards for visitors and the inhabitants of substandard temporary structures, presence of trash and debris, criminal activities including illegal drug use, and other conditions which are inconsistent with the intended use and enjoyment of these areas by the general public. Moreover, the proliferation of lost, abandoned, or stolen shopping carts around the City results in the obstruction of free access to sidewalks, streets, parking lots, and other ways; interferes with pedestrian and vehicular traffic on public and private streets; and impedes emergency services. A purpose of this chapter is to maintain public and private lands, streets, sidewalks, alleys, ways, creeks, waterways, parks, playgrounds, recreation areas, plazas, open spaces, lots, parcels and other public and private areas within the City, in a clean, sanitary and accessible condition. Nothing in this chapter is intended to interfere with otherwise lawful and ordinary uses of public or private property. 9.75.020. Definitions. As used in this chapter, the following terms shall have the following meanings: "Administrative Procedure" means the City's Administrative Procedure for the Removal of Personal Property approved by the City Manager as established pursuant to Section 9.75.120. "Bulky item" means any personal property that is too large to be handled by normal collection, processing or disposal methods which means personal property that is too large to be placed in a garbage receptacle with a 96 -gallon capacity. "Notice to Remove Personal Property" means the form of notice provided in the Administrative Procedure. "Person" means any individual, group, business, company, corporation, joint venture, partnership or other entity or association composed of two or more individuals. "Personal property" means any and all tangible property, and includes, but is not limited to, goods, materials, merchandise, tents, tarpaulins, bedding, sleeping bags, hammocks, and personal items such as luggage, backpacks, clothing, documents, medication, and household items. "Public property" means any real or personal property owned or controlled by theCity and includes, but is not limited to, any publicly owned park, building, street, sidewalk, way, path, alley, park, parking lot or other public property owned or controlled by the city and located within theCity of Temecula and such other publicly owned property for which the City is authorized by contract or permit to maintain. "Store," "Stored," "Storage" or "Storing" means to put aside or accumulate for use when needed, to put for safekeeping, to place or leave in a location. "Tent" means any tent, as that term is generally understood, and also includes any tarpaulin, cover, structure or shelter, made of any material which is not open on all sides and which hinders an unobstructed view behind or into the area surrounded by the tarpaulins, cover, structure or shelter. 9.75.030. Prohibition on the Storage of Personal Property on Public Property. Except as may otherwise be expressly permitted by the Temecula Municipal Code, no person shall store any personal property on public property. 9.75.040. Prohibition on Attachments. Except as may otherwise be expressly permitted by the Temecula City Code, no person shall erect any barrier against or join any wires, ropes, chains or otherwise attach any personal property to any public property including any trees or plants including, but not limited to, a building or a portion thereof, playground equipment, fencing, bike rack, table, bench, tree, bush, shrub or plant, without the City's prior written consent. 9.75.050. Removal of Stored Personal Property; Discarding of Stored Personal Property. In the event personal property placed on public property poses an immediate threat to the health or safety of the public, including, without limitation, a threat arising? from the personal property containing biological materials, hazardous substances, or hazardous waste, the City may remove and discard it without prior notice. 9.75.060. Pre -Removal Notice. In the event City employees or agents determine that property is being stored on public property, notice of the City's removal of personal property shall be provided as set forth in the Administrative Procedure. 9.75.070. Failure to Remove Attended Personal Property. No person shall fail to remove personal property stored on public property by the date of scheduled removal provided on the written notice posted in accordance with the Administrative Procedure. 9.75.080. Storage and Disposal. Personal property which is not removed by the date of scheduled removal set forth on the notice posted pursuant to this chapter may be removed and stored or disposed of in accordance with the Administrative Procedure. 9.75.090. Repossession. As set forth in the Administrative Procedure, the owner or other person entitled to possession of personal property removed and stored by the City may repossess the personal property prior to its disposal. Personal property not claimed within the time period set forth in the Administrative Procedure is deemed abandoned. 9.75.100. Illegal Dumping. Nothing in this chapter precludes the enforcement of any law, ordinance or regulation of any governmental entity relating to illegal dumping or deposit of hazardous substances. 9.75.110. Limitation on Applicability. This chapter is not intended to violate and shall not be applied or enforced in a manner that violates the United States or California Constitutions and applicable state or federal statutes. 9.75.120. Establishment of Administrative Procedure by City Manager The City Manager is hereby authorized and directed to establish the Administrative Procedure for the Removal of Personal Property ("Administrative Procedure"). The Administrative Procedure shall provide the procedures necessary to implement the requirements of this chapter. The City Manager shall post the Administrative Procedure on the City's website. The City Manager is authorized to delegate to other City officials the duty and authority to implement the Administrative Procedure. 9.75.130 Penalty; Enforcement. A. Misdemeanor. Any person who violates any provision of this chapter shall be guilty of a misdemeanor or infraction as provided in Chapter 1.20 of Title 1 of the Temecula Municipal Code. The violation may be charged as an infraction with the consent of the City Attorney. B. Administrative Citations. Any person who violates any provision of this chapter shall be guilty of violating the Temecula Municipal Code and may be issued an administrative citation and be subject to the applicable punishments pursuant to Chapter 1.21 of Title 1 of the Temecula Municipal Code. C. Other Remedies. Nothing in this chapter shall limit or preclude the enforcement of any other applicable laws or remedies available for violations of this chapter, including, but not limited to, the enforcement provisions of Title 1 or Chapter 8.12 of the Temecula Municipal Code." Section 4. Chapter 9.02, General, and Section 10.08.080, Loitering— Obstructing traffic, of the Temecula Municipal Code are hereby repealed in their entirety, each having been included in the new chapters added by this Ordinance. Section 5. CEQA. The City Council has reviewed the matter and, based upon the facts and information contained in the staff reports, administrative record, and written and oral testimony, hereby finds that this Ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3) and/or 15061(b)(3) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, in that it will not result in a direct or reasonably foreseeable indirect physical change in the environment nor have a significant impact on the environment. It can be seen with certainty that there is no possibility that the adoption of this Ordinance will have a significant effect on the environment because the ordinance regulates human activity so as to provide clean, sanitary and accessible condition of public property in accordance with the goal of maintaining the health and safety of the community and will not result in a permanent alteration of property nor the construction of any new or expanded structures. Section 6. Severability. If any section or provision or clause of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions and/or clauses of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision or clause thereof, regardless of the fact that any one or more section(s) or provision(s) or clause(s) may be declared invalid or unconstitutional or contravened via legislation. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 17-12 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 24th day of October, 2017, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk Item No. 7 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Kevin Hawkins, Director of Community Services DATE: November 14, 2017 SUBJECT: Approve a Cooperative Agreement with Temecula Sunrise Rotary Club in Support of the Annual Community Christmas Dinner PREPARED BY: Yvette Martinez, Community Services Supervisor I RECOMMENDATION: That the City Council approve the Cooperative Agreement with Temecula Sunrise Rotary Club, in the amount of $7,255 of in-kind services and support, for the annual Community Christmas Dinner. BACKGROUND: Founded in 1987, the Temecula Sunrise Rotary Club offers many programs benefiting the City of Temecula. The organization consists of local business leaders working to address various community and international humanitarian projects. The Club encourages high ethical standards in all vocations, and helps build goodwill and peace in the world through the Ideal of Service. The Club's objective is to encourage and foster the Ideal of Service as a basis of worthy enterprise. In 2015, the Temecula Sunrise Rotary Club and two other local Rotary Clubs took the lead on a 20 -year Community Christmas Dinner tradition held at the Mary Phillips Senior Center in Old Town Temecula. Approximately 1,700 people were served in 2015. Participation is at no cost, open to anyone in the community, and the guests are treated to a full, sit-down dinner on Christmas day. Attendance is not based on financial need, and is open to anyone and everyone who would like to spend Christmas day with others. The dinner provides a sharing of community spirit with those who may be alone for the holiday. Upon arrival, families and individuals are greeted at the door by numerous volunteers. Children attending get to meet Santa Claus, get their picture taken with Santa, and receive a wrapped Christmas gift. The Community Christmas Dinner is held in a festive atmosphere complete with Christmas decorations, lots of smiles, and hugs. Everyone is made to feel that they are part of the family. Once seated in the dining room, the guests are served punch, coffee, or water and a holiday feast of roasted turkey, dressing, mashed potatoes and gravy, vegetables, rolls, and dessert all served by volunteers. The mission of Temecula Sunrise Rotary Club is providing services to others by educating children, empowering youth, enriching families, and recognizing communities here and around the world through peace, goodwill, and fellowship. The Partnership between the City of Temecula and Temecula Sunrise Rotary Club exists to leverage resources to fulfill the needs of everyone in the community by providing a Community Christmas Dinner on December 25, 2017 at the Mary Phillips Senior Center, 41845 Sixth Street. The City of Temecula and Temecula Sunrise Rotary Club have worked cooperatively to host the Community Christmas Dinner that serves residents of Temecula and surrounding cities. This Cooperative Agreement helps to meet the City's service goals "To maintain and enhance Temecula's many quality of life assets... for the full spectrum of specific groups and their differing needs, such as seniors and those with special needs." The City will provide in-kind Community Services facilities and staff support valued at $2,880 and $175 respectively, material costs of $1,000, and in-kind promotional services valued at $3,200. In addition to the meal service described above, the non-profit Temecula Sunrise Rotary Club shall include a visit from Santa to everyone participating at the event, gifts to children, Christmas decorations throughout the Mary Phillips Senior Center, home delivered meals to those who are unable to attend the event; and will include the City of Temecula logo/name on advertisements, press releases, event posters, event flyers, and any other promotional material. FISCAL IMPACT: Funds are allocated in the FY 2017/18 Annual Operating Budget. ATTACHMENTS: Cooperative Agreement COOPERATIVE AGREEMENT BETWEEN CITY OF TEMECULA AND TEMECULA SUNRISE ROTARY CLUB THIS AGREEMENT is made and effective as of this 14th day of November, 2017 by and between the City of Temecula , a municipal corporation (hereinafter referred to as "City"), and Temecula Sunrise Rotary Club, a California nonprofit corporation (hereinafter referred to as the "Nonprofit"). In consideration of the mutual covenants, conditions and undertakings set forth herein, the parties agree as follows: 1. RECITALS This Agreement is made with respect to the following facts and purposes which each of the parties acknowledge and agree are true and correct: a. The Nonprofit shall operate the Community Christmas Dinner (hereinafter referred to as the "Event") on December 25, 2017. The Event is a special event which is located at Mary Phillips Senior Center, 41845 Sixth Street. The non-profit will require the use of the facility for preparation of the event on December 23, and will restore the facility to its original condition by Dec 26, 2017. b. The Mary Phillips Senior Center will be closed due to this event December 22 - 25, 2017. c. The Nonprofit will provide meals, refreshments, desserts, and gifts to those in need on Christmas Day, as described in Exhibit A. Anticipated attendance is 1,600 individuals. d. Alcohol will not be served. e. The City desires to be a Co -Sponsor of the above mentioned event, providing in-kind support including facilities, staff support, materials, and rentals as described in Exhibit B. 2. TERM This Agreement shall commence on November 14, 2017, and shall remain and continue in effect until tasks described herein are completed, but in no event later than December 26, 2017, unless sooner terminated pursuant to the provisions of this Agreement. 3. CONSIDERATION a. As a Co -Sponsor the City shall receive sponsor benefits as listed in Exhibit A. 4. WRITTEN REPORT Within ninety (90) days after the conclusion of the Event, the Nonprofit shall prepare and submit to the Assistant City Manager a written report evaluating the Event, its attendance, media coverage, and description of the materials in which the City has listed as a Co -Sponsor. The report shall also include samples of media, press clippings, flyers, pamphlets, etc. 5. MEETING ATTENDANCE The Nonprofit shall attend all City pre -event planning meetings and event recap meetings if warranted. 6. INDEMNIFICATION The Nonprofit shall indemnify, protect, defend and hold harmless the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its elected officials, officers, employees, volunteers, and representatives from any and all suits, claims, demands, losses, defense costs or expenses, actions, liability or damages of whatsoever kind and nature which the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of the Nonprofit's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement. 7. INSURANCE The Nonprofit shall secure and maintain from a State of California admitted insurance company, pay for and maintain in full force and effect for the duration of this Agreement an insurance policy of comprehensive general liability against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by November 14, 2017, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88. 2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Recipient owns no automobiles, a non -owned auto endorsement to the General Liability policy described above is acceptable. 3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. If the Recipient has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no employees. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1) General Liability: Two million ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One million ($1,000,000) per accident for bodily injury and property damage. 3) Worker's Compensation insurance is required only if Consultant employs any employees. Consultant warrants and represents to the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agencythat it has no employees and that it will obtain the required Worker's Compensation Insurance upon the hiring of any employees. c. Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000). d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) The City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers are to be covered as insured's, as respects: liability arising out of activities performed by or on behalf of the NonProfit; products and completed operations of the Recipient; premises owned, occupied or used by the Nonprofit; or automobiles owned, leased, hired or borrowed by the Nonprofit. The coverage shall contain no special limitations on the scope of protection afforded to the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 2) For any claims related to this project, the Nonprofit's insurance coverage shall be primary insurance as respects the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 4) The Nonprofit's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state: should the policy be canceled before the expiration date the issuing insurer will endeavor to mail thirty (30) days prior written notice to the City. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Nonprofit shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of A -:VII or better, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Nonproft shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Nonprofit's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. 8. GOVERNING LAW The City and the Nonprofit understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 9. LEGAL RESPONSIBILITIES The Nonprofit shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Nonprofit shall at all times observe and comply with all such ordinances, laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Nonprofit to comply with this section. 10. ASSIGNMENT The Nonprofit shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. 11. NOTICES Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice: Mailing Address: To Recipient: City of Temecula Attn: City Manager 41000 Main Street Temecula, CA 92590 Temecula Sunrise Rotary Club Attn: Mark Sitar P.O. Box 2203 Temecula, CA 92593 15. INDEPENDENT CONTRACTOR a. The Nonprofit shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of the Nonprofit shall at all times be under the Nonprofit's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Recipient or any of the Nonprofit's officers, employees, or agents except as set forth in this Agreement. The Nonprofit shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. The Nonprofit shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. No employee benefits shall be available to the Nonprofit in connection with the performance of this Agreement. Except for the fees paid to the Nonprofit as provided in the Agreement, City shall not pay salaries, wages, or other compensation to the Nonprofit for performing services hereunder for City. City shall not be liable for compensation or indemnification to the Nonprofit for injury or sickness arising out of performing services hereunder. 16. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 17. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of the Nonprofit warrants and represents that he or she has the authority to execute this Agreement on behalf of the Nonprofit and has the authority to bind the Nonprofit to the performance of its obligations hereunder. The City Manager is authorized to enter into an amendment on behalf of the City to make the following non -substantive modifications to the agreement: (a) name changes; (b) extension of time; (c) non -monetary changes in scope of work; (d) agreement termination. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA By: Maryann Edwards, Mayor ATTEST: By: Randi Johl, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney TEMECULA SUNRISE ROTARY CLUB (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) By: Mark Sitar, President By: Diane Sitar, Co -Chair NONPROFIT Temecula Sunrise Rotary Club Mark Sitar P.O. Box 2203 Temecula, CA 92593 Mdsitar@verizon.net PM Initials: *4 Date: EXHIBIT "A" CITY OF TEMECULA SPONSORSHIP BENEFITS CO-SPONSOR Temecula Sunrise Rotary Club ("Nonprofit") shall provide the following benefits and services for the citizens of the City of Temecula: • Complete meal service including non-alcoholic beverages free of charge to attendees at the Event • Visit from Santa to everyone participating • Gifts for children • Christmas Decorations throughout the Mary Phillips Senior Center • Home delivered meals to those who are unable to drive to the Mary Phillips Senior Center • City of Temecula logo/name on advertisements, press releases*, posters, flyers, or other promotional materials *Press Releases will be distributed to all local media, however, publication cannot be guaranteed. Press Releases can also be provided to all sponsors for distribution to their clients, agents, employees, etc. EXHIBIT "B" IN-KIND SERVICES ESTIMATED VALUE OF CITY SUPPORT SERVICES AND COSTS The City will provide the following support for the Event, valued as follows: Community Services Facility Rental (in-kind): $ 2,880.00 Community Services Staff Hours (in-kind): $ 175.00 Community Services Material Costs (equipment rental): $ 1,000.00 TOTAL: $ 4,055.00 ESTIMATED VALUE OF PROMOTIONAL SERVICES PROVIDED BY THE CITY OF TEMECULA The estimated value for in-kind promotional assistance provided by The City of Temecula for Temecula Sunrise Rotary Club event is as follows: Item Facility Promotion Event flyer posted at City Facility City Website Event listing on the City of Temecula's event calendar Value $ 1,000.00 $ 2,200.00 TOTAL VALUE: $ 3,200.00 Item No. 8 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Luke Watson, Director of Community Development DATE: November 14, 2017 SUBJECT: Approve an Agreement for Consultant Services with MDG Associates for the Provision of Community Development Block Grant (CDBG) Administration Services PREPARED BY: Lynn Kelly -Lehner, Principal Management Analyst RECOMMENDATION: That the City Council approve an Agreement for Consultant Services with MDG Associates, in the amount of $80,600, for the Provision of Community Development Block Grant (CDBG) Administration Services. BACKGROUND: As experts in the field, MDG Associates provide technical assistance for the administration and implementation of the CDBG program and work with City staff to determine project eligibility, monitor projects, and ensure compliance with all Federal, State, and local reporting requirements. MDG also completes the day to day requirements of the program including: • Preparing reports, such as the Annual Action Plan • Processing invoices and agreements • Preparation of environmental review forms for CDBG projects • Monitor CDBG related Capital Improvement Projects • Prepare and maintain files and contracts for CDBG funded activities • Work with staff to prepare funding plans for CDBG resources This agreement will enable MDG Associates to complete CDBG administration services for the Fiscal Year 2017-18. FISCAL IMPACT: There are sufficient funds to cover the costs of the amendment in CDBG budget. ATTACHMENTS: Agreement AGREEMENT FOR CONSULTANT SERVICES BETWEEN CITY OF TEMECULA AND MDG ASSOCIATES, INC. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ADMINISTRATION SERVICES FOR FY 2017-18 THIS AGREEMENT is made and effective as of November 14, 2017, between the City of Temecula, a municipal corporation (hereinafter referred to as "City"), and MDG Associates, Inc., a Corporation (hereinafter referred to as "Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on July 1, 2017, and shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2018, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Consultant shall perform the services and tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Consultant shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. a. Non-exclusive Agreement. Consultant recognizes and agrees that this agreement is for the purposes of establishing a contractual agreement between the City and Consultant for the non-exclusive procurement of temporary staffing services. Consultant acknowledges that the terms of this agreement are non-exclusive and that City reserves the right to purchase similar services from other Consultants at its discretion. b. Affordable Care Act ("ACA") Consultant agrees to comply with all provisions of the ACA applicable to Assigned Employees, including the employer shared responsibility provisions relating to the offer of "minimum essential coverage" to "full-time" employees (as those terms are defined in Code §4980H and related regulations) and the applicable employer information reporting provisions under Code §6055 and §6056 and related regulations. In addition to Consultant duties and responsibilities set forth in paragraph 1, Consultant, as the common law employer, has the right to physically inspect the work site and work processes; to review and address, unilaterally or in coordination with City, Assigned Employee work performance issues; and to enforce Consultant's employment policies relating to Assigned Employee conduct at the worksite. Although the parties intend that Consultant and not City be deemed the common law employer (within the meaning of Treas. Reg. § 31.3401(c) -1(c)) of Assigned Employees and that such employees be deemed the common law employees of Consultant and not City, the parties nevertheless intend to satisfy the requirements of Treas. Reg. § 54.4980H -4(b)(2), under which an offer of group health plan coverage made by Consultant is treated as an offer of coverage by City for all purposes of Code § 4980H, provided that certain criteria are satisfied. Accordingly, City agrees to pay Consultant, in addition to the rates set forth in Exhibit A, an additional fee per month for each month during which an employee placed with City by Consultant is enrolled in group health plan health coverage offered by Consultant. Consultant shall be solely responsible for, and shall reimburse, indemnify, and hold harmless City (hereafter collectively referred to as "City Indemnity" for, any taxes, penalties, or other liabilities assessed against Consultant or City under Code §4980H with respect to Assigned Employees due to Contractor's failure to: i. Offer "minimum essential coverage" under an "eligible employer- sponsored plan" each within the meaning of Code §5000A(f)(1)(B); or ii. Offer coverage that is not "affordable" or fails to provide "minimum value," each within the meaning of Code §36B(c)(2)(C) and §4980H(b) and related regulations. Provided, however, that in no event shall City Indemnity extend to any taxes, penalties, or other liabilities under the under Code §4980H where such tax, penalty, or other liability results from the imposition of penalties under i. Code §4980H(a), as a result of the failure by City to make offers of minimum essential coverage to its employees under an eligible employer- sponsored plan, or ii. Code §4980H(b) as a result of City's making an offer of minimum essential coverage to its employees under an eligible employer- sponsored plan that is either unaffordable or fails to provide minimum value. If City is notified by any government entity of City's potential liability for any such taxes, penalties, or other liabilities relating to Assigned Employees, Contractor shall fully cooperate, at Consultant's reasonable expense, with City's efforts to object to or appeal any such determination of liability or potential liability. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. PAYMENT a. The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B, other than the payment rates and schedule of payment, are null and void. This amount shall not exceed Eighty Thousand Six Hundred Dollars and no cents ($ 80,600.00) for the total term of this agreement unless additional payment is approved as provided in this Agreement. b. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager . Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services. c. Consultant will submit invoices monthly for actual services performed. Invoices shall be submitted between the first and fifteenth business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non -disputed fees. If the City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Director of Finance. 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City, pursuant to Section entitled "PAYMENT" herein. 6. DEFAULT OF CONSULTANT a. The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b. If the City Manager or his delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Consultant with written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts there from as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION The Consultant agrees to defend, indemnify, protect and hold harmless the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency. 9. INSURANCE REQUIREMENTS Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. a. broad as: Minimum Scope of Insurance. Coverage shall be at least as 1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88. 2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Consultant owns no automobiles, a non -owned auto endorsement to the General Liability policy described above is acceptable. 3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. If the Consultant has no employees while performing under this Agreement, worker's compensation insurance is not required, but Consultant shall execute a declaration that it has no employees. 4) Professional Liability Insurance shall be written on a policy form providing professional liability for the Consultant's profession. b. Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1) General Liability: One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One Million Dollars ($1,000,000) per accident for bodily injury and property damage. 3) Worker's Compensation as required by the State of California; Employer's Liability: One Million Dollars ($1,000,000) per accident for bodily injury or disease. 4) Professional Liability Coverage: One Million Dollars ($1,000,000) per claim and in aggregate. c. Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions shall not exceed Twenty Five Thousand Dollars and No Cents ($25,000). d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) The City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers are to be covered as insured's, as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 2) For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City of Temecula, the Temecula Community Services District, and the Successor Agency to the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 4) The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state in substantial conformance to the following: If the policy will be canceled before the expiration date the insurer will notify in writing to the City of such cancellation not less than thirty (30) days' prior to the cancellation effective date. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Consultant shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of A -:VII or better, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Consultant shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by the City before work commences. As an alternative to the City's forms, the Consultant's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR a. Consultant is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 11. LEGAL RESPONSIBILITIES The Consultant shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. 12. RELEASE OF INFORMATION a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents or subcontractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. b. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 13. NOTICES Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. Mailing Address: To Consultant: 14. ASSIGNMENT City of Temecula Attn: City Manager 41000 Main Street Temecula, CA 92590 MDG Associates, Inc. Attn: Rudy Munoz 10722 Arrow Route Suite 822 Rancho Cucamonga, CA 91730 The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Upon termination of this Agreement, Consultant's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Consultant. 15. LICENSES At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 16. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 17. PROHIBITED INTEREST No officer, or employee of the City of Temecula that has participated in the development of this agreement or its approval shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Consultant, or Consultant's sub -contractors for this project, during his/her tenure or for one year thereafter. The Consultant hereby warrants and represents to the City that no officer or employee of the City of Temecula that has participated in the development of this agreement or its approval has any interest, whether contractual, non - contractual, financial or otherwise, in this transaction, the proceeds thereof, or in the business of the Consultant or Consultant's sub -contractors on this project. Consultant further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. The City Manager is authorized to enter into an amendment on behalf of the City to make the following non -substantive modifications to the agreement: (a) name changes; (b) extension of time; (c) non -monetary changes in scope of work; (d) agreement termination. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA MDG ASSOCIATES, INC. (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) By: By: Maryann Edwards, Mayor Rudy Munoz, President ATTEST: By: By: Randi Johl, City Clerk Guadalupe Munoz, Chief Financial Officer APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONSULTANT MDG Associates, Inc. Attn: Rudy Munoz 10722 Arrow Route Suite 822 Rancho Cucamonga, CA 91730 PM Initials: Date: (- EXHIBITS A & B Tasks to be Performed and Payment Rates and Schedule Exhibit A All tasks and costs to be performed are per the proposal provided by the Contractor attached hereto and incorporated herein as though set forth in full. EXHIBIT B MDG ASSOCIATES• INC. CITY OF TEMECULA PROPOSAL COMMUNITY DEVELOPMENT BLOCK GRANT ADMINISTRATION SERVICES CORPORATE HEADQUARTERS 10722 ARROW ROUTE, SUITE 822 RANCHO CUCAMONGA, CA 91730 TELEPHONE: 909/ 476-9696 FAX NO.: 909/ 476-6086 August 2, 2017 City of Temecula Mr. Luke Watson, Director Community Development Department 41000 Main Street Temecula, CA 92590 MDG ASSOCIATES • INC. Subject: Proposal for the Community Development Block Grant (CDBG) Administration Services MDG Associates, Inc. (MDG) is pleased to submit a proposal to provide consultant services to assist the City in the administration of the City's Community Development Block Grant (CDBG) program. MDG, along with its affiliate LDM Associates, Inc. (LDM), have been providing high-quality services to municipal agencies, the U.S. Department of Housing and Urban Development (HUD) and private clients for over 26 years. MDG's emphasis and capabilities are in the grants management of HUD funded Community Planning and Development (CPD) Programs such as Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG) in addition to one-time entitlement grants such as the Neighborhood Stabilization Programs (NSP 1, 2 & 3) and the Homelessness Prevention and Rapid Rehousing Program (HPRP). The firm provides administration and/or implementation services for programs such as housing rehabilitation, commercial rehabilitation, first time homebuyer and labor compliance (both State and Federal). MDG is a registered California corporation and is a certified Minority Business Enterprise (MBE). Our consulting team is comprised of highly qualified professional staff with expertise in all aspects of CDBG and HOME Program administration and implementation. If you have any questions regarding this matter, please do not hesitate to call me at your convenience. Respectfully Sid, Rudy E. Muflo President Enclosure: Proposal 10722 Arrow Route • Suite 822 • Rancho Cucamonga • California 91730 (909) 476-9696 • Fax (909) 476-6086 CITY OF TEMECULA PROPOSAL COMMUNITY DEVELOPMENT BLOCK GRANT ADMINISTRATION TABLE OF CONTENTS Section I. Description of Firm, Qualifications and Experience 1 Section II. Firm's Methodology 3 Section III. Project Staff Qualifications 4 Section IV. Approach and Scope of Work 6 Section V. References 8 Section VI. Fee Proposal 10 SECTION I. DESCRIPTION OF FIRM, QUALIFICATIONS AND EXPERIENCE MDG Associates, Inc. (MDG) was established in 1991 and has undergone steady growth since its inception. MDG is a corporation registered in the State of California. MDG is a registered Minority Business Enterprise (MBE) and a Small Disadvantaged Business (SDB/DBE). In response to our clients' needs, MDG and its affiliate LDM Associates, Inc. (LDM) provide a wide variety of Community Development consulting services including, but not limited to. Grants Management; Project Management; Construction Management; Architectural Design; Urban Planning; and Labor Compliance Monitoring. MDG Associates, Inc. is comprised of individuals with a wide variety of expertise including the services specifically requested by the City. Currently, MDG has twenty-five (25) staff members. Thirteen (13) of the 25 staff members are knowledgeable and experienced in the administration of CDBG, HOME, ESG, and the CalHome Programs in addition to projects funded under these Programs. MDG provides administrative and management services to cities that are seeking a consultant that can act as an extension of their staff and look after the best interest of the City. Grants Management: MDG provides administration and implementation services for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), Community Development Block Grant Recovery (CDBG-R), Homelessness Prevention and Rapid Rehousing Program (HPRP), CalHome, and Neighborhood Stabilization Programs (NSP). In addition, MDG implements activities funded under the aforementioned programs such as Residential Rehabilitation, Commercial Rehabilitation, and First -Time Homebuyer, Capital Improvement Project Management and Labor Compliance Monitoring and Enforcement. MDG staff maintains an excellent relationship with the local HUD office as well as at the headquarters level (Washington D.C.). MDG staff currently provides technical assistance (TA) to grantees throughout the country on behalf of HUD Headquarters through the OneCPD and Community Compass Programs. This technical assistance is provided to states, counties, cities and other HUD funded grantees in conjunction with the CDBG, HOME, and NSP programs. In addition, MDG staff has been proving assistance to grantees through the HUD Resource Exchange Ask a Question (AAQ) program in the areas of CDBG, HOME, Environmental Review, IDIS, and DRGR. MDG and LDM are currently under contract with 18 cities and one (1) County with funds from HUD totaling approximately $18.5 million dollars. The Cities include: Azusa, Claremont, Compton, Corona, Duarte, Fontana, Hawthorne, Hesperia, Irvine, Lawndale, Newport Beach, Paramount, Palmdale, Rialto, Rancho Palos Verdes, Temecula, Upland, and Walnut to administer or assist in the administration of CDBG, HOME and/or ESG Programs. Twelve (12) of these cities are HUD entitlement cities and six (6) are participating cities under the Los Angeles County Community Development Commission. In addition, LDM and its affiliate MDG provide services to the cities of Baldwin Park and Riverside as well as the County of Santa Barbara on specific tasks such as IDIS input, project monitoring, federal labor standards (Davis -Bacon) compliance, monitoring CDBG/HOME and ESG grants, preparation of Consolidated Plan/Action Plan, and the preparation of 11Page Consolidated Annual Performance and Evaluation Report (CAPER). Our staff is knowledgeable in a number of computer programs including all of the Microsoft Office software, Microsoft Project, Adobe programs and AutoCAD. Our staff is fully trained in the use of all required Federal, State and local online reporting databases, including but not limited to the Integrated Disbursement and Information System (IDIS), Disaster Recovery Grant Reporting System (DRGR), Homeless Management Information System (HMIS), Recovery Act Management and Performance System (RAMPS), Performance and Accountability for Grants in Energy System (PAGE), HEROS (Environmental Review Module), and FederalReporting.gov. Housing Rehabilitation: MDG along with its affiliate LDM are currently under contract with the Cities of Claremont, Carson, Fontana, Hawthorne, Hesperia, Irvine, Lawndale, La Canada Flintridge, Monrovia, Palmdale, Paramount, Upland, Walnut and Whittier for the management and implementation of their housing rehabilitation programs or inspection services for their programs. Last year, the firm processed and completed the rehabilitation of approximately 185 residential dwellings for 14 different cities. This includes the use of CDBG funds, HOME funds, State HOME funds and CalHome funds. Commercial Rehabilitation Program Administration and Implementation Experience: During the past 15 years, our firm has been assisting cities in the administration and implementation of their Commercial Rehabilitation Programs. During the past five (5) years, we have assisted eight (8) Cities with the rehabilitation of approximately 55 commercial buildings. These included the Cities of Carson, El Monte, Hawthorne, Lawndale, Paramount, Redlands, Rialto and Upland in the implementation of their Commercial Rehabilitation Programs. In addition, we are in the process of setting up two (2) new programs for the Cities of Buena Park and Hesperia. The level of service requested by each City differs, however in most cases MDG provides the administration and implementation services including inspection, design services, project management and Davis -Bacon Compliance monitoring. Section 3: Our staff is experienced in the implementation of the Section 3 employment, contracting and training requirements. Currently, MDG, along with its affiliate LDM, monitors labor compliance activities on 15 projects with a combined construction value of over $12.5 million. Of these projects, ten (10) are Section 3 -covered projects with contracts in excess of $100,000. Labor Compliance (Davis -Bacon Act): We are currently under contract to provide Labor Compliance services to the cities of Azusa, Compton, Corona, Duarte, Fontana, Irvine, Lawndale, Newport Beach, Paramount, Redlands, Rialto, Torrance, Walnut and Upland. Our typical scope of work includes preparation and review of bid documents for compliance with Federal labor standards and requirements including Davis -Bacon and Related Acts, Section 3, and DOL regulations; attend pre -construction meeting and present information on Davis -Bacon and Section 3 requirements; review submitted bid documents for compliance; establish and maintain contractor and subcontractor labor files; conduct employee field interviews and document posting compliance; reconcile weekly certified payroll reports and supporting documentation; monitor contractors for Section 3 accomplishments; compile and submit labor standards and related reports to CDC; schedule labor compliance file reviews prior to release of retention funds; and address and resolve any underpayment or deficiency issues. 21Page SECTION II. FIRM'S METHODOLOGY METHODOLOGY MDG implements a team approach for the administration of the HUD entitlement grant programs. This approach allows us to control costs to the City by having lower level staff complete tasks that do not require a senior level staff member to complete. This team approach also allows us to assign individuals with expertise in certain areas to complete those tasks. The work program for each City varies depending on the City's needs. MDG performs a majority of the tasks on-site whenever possible with tasks not requiring our presence at the City being performed from our office. MDG has established systems for the administration of CDBG and HOME Programs. The key to the systems is establishing a detailed calendar used in the implementation of the programs. The schedule includes a start date, due date, item description, reference to the established Policy and Procedure Manual section and the assigned consultant. As a result of the successful systems that we have developed for the administration of CPD Programs, we have been selected by HUD headquarters as part of a workgroup through the OneCPD Technical Assistance Program to establish systems that will assist grantees in their administration of CPD Programs. Our philosophy is that it is our responsibility to provide training and technical assistance to subrecipients receiving CDBG and HOME funds from the City to achieve their goal to implement successful programs that benefit the low- and moderate -income residents of the City. 3 jPage SECTION III. PROJECT STAFF QUALIFICATIONS MANAGEMENT AND STAFFING The members of our consulting group proposed to provide CDBG Administration services include Mr. Rudy Munoz, President who will be overseeing the contract and will be available on an as needed basis to address any contract or staffing related issues. Mr. Munoz will be assisted by N. Dean Huseby, Senior Associate, a previous HUD CPD Representative from the Los Angeles Field Office who has over 30 years of experience at the municipal as well as the federal level. And finally, Mr. Frank Perez, Associate, will be assisting in most of the day-to-day implementation of the program. Rudy Munoz, President - Mr. Rudy Munoz has been providing community development consulting services to municipal agencies with MDG Associates since 1991. Mr. Munoz has more than 30 years of overall experience in the community development field, including grants management of federal, county, and local grants including those offered by the U.S. Department of Housing and Urban Development. He is responsible for assisting municipalities with all aspects of Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME), Neighborhood Stabilization Program (NSP) and Emergency Solutions Grant (ESG) administration and implementation. Mr. Munoz focuses on strategic community investment, development of implementation tools to facilitate the management of programs, developing tools and conducting training for HUD individual and multiple grantees and in the development of Policies and Procedures for programs (HOME, CDBG, NSP) and activities funded under these programs (Housing Rehabilitation, Commercial Rehabilitation and Homebuyer Programs). His work in these areas includes 36 Consolidated Plans, over 200 Action Plans and CAPER' s, and 12 Analysis of Impediments to Fair Housing Choice. Mr. Munoz has been providing HUD grantees, through its Technical Assistance Program, Basically CDBG Program, Disaster Recovery Grant Reporting (DRGR), and CPD Monitoring training throughout the country in addition to the Commonwealth of Puerto Rico (training conducted in Spanish). Mr. Mufioz is a Certified HOME Specialist (Regulations) and is a national technical assistance provider through HUD's OneCPD initiative. Mr. Munoz worked for a number of municipalities in Southern California in the Community Development field overseeing Planning, Code Enforcement, Grants Management, and Building Departments. Mr. Munoz received a Bachelor of Architecture from California Polytechnic University in Pomona. N. Dean Huseby, Senior Associate - Mr. Dean Huseby recently joined MDG Associates, Inc., and currently serves as a Senior Associate. With more than 30 years of experience in the planning and implementation of federal grants, both as a grantee and as a HUD CPD Representative. These include all of the programs offered by the U.S. Department of Housing and Urban Development — Office of Community Planning and Development, Mr. Huseby will be assisting municipalities with all aspects of Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) management. Mr. Huseby's emphasis is on the day-to-day implementation of HUD CPD Programs and the 4IPage development of systems to facilitate in the implementation of these programs. His prior work as a HUD CPD Representative provides additional insight into the areas of focus for the HUD field office. These areas include the development of Consolidated Plans, Analysis of Impediments to Fair Housing Choice and numerous program policy and procedure documents to facilitate the implementation of the housing and community development projects resulting from these plans. His responsibilities include the management and implementation of CPD programs for cities in Southern California. Mr. Huseby is a Certified HOME Specialist (Regulations) and is a national technical assistance provider through HUD's OneCPD technical assistance initiative. Prior to joining MDG, Mr. Huseby was a HUD CPD Representative with the Los Angeles Field Office where he managed one of the heaviest workloads in the Los Angeles field office. Oversaw one urban county and eight metropolitan cities, including the City of San Diego in the areas of CDBG, HOME, ESG and HOPWA totaling approximately $30 million in grant funds. In addition, responsibilities included the oversight of 20 Continuum of Care (CoC) grants totaling approximately $10 million and assisted in the oversight of the early phases of the NSP Program. Frank Perez, Associate - Mr. Frank Perez joined MDG Associates, Inc. in 2011 and currently serves as an associate on the Housing and Community Development team. With more than six (6) years of experience in the planning and implementation of federal grants including those offered by the U.S. Department of Housing and Urban Development — Office of Community Planning and Development (CPD), Mr. Perez assists municipalities with all aspects of Community Development Block Grant (CDBG) administration and implementation. Mr. Perez focuses on the day-to-day aspects of CPD program administration and compliance, including Consolidated Plan and Action Plan development and implementation, Integrated Disbursement and Information System (IDIS) functionality and management, labor standards enforcement, subrecipient management, monitoring, and capacity building, compliance with federal reporting requirements including the Consolidated Annual Performance and Evaluation Report (CAPER), and all other aspects of program administration, implementation and compliance. 51Page SECTION IV. APPROACH AND SCOPE OF WORK APPROACH MDG proposes to provide service on-site and at its home office as required by the City. We anticipate becoming an extension of City staff and would provide flexible scheduling which meets the needs of the City. In addition, we would make ourselves available to attend City Council meetings as requested by staff. We will make ourselves available during non-scheduled hours should the need arise by providing staff with our cell phone numbers. MDG proposes to provide service on-site and at its home office as required by the City. Based on prior experience, we propose to be in attendance at City Hall typically one day per week or as needed to properly administer the program. The balance of the services provided will be performed at our corporate office in the City of Rancho Cucamonga. We anticipate becoming an extension of City staff and would provide flexible scheduling which meets the needs of the Community Development Department. We will make ourselves available to attend meetings as requested by staff. Additionally, we will provide accessibility during non-scheduled hours should the need arise, by providing staff with our cell phone numbers. SCOPE OF WORK In the administration and implementation of the U.S. Department of Housing and Urban Development (HUD) CDBG entitlement grant program, MDG proposes to provide staffing and other resources as required to perform the scope of work requested by the City. 1. CDBG Program implementation and Administration Provide staffing and other resources as required to perform the following for all approved City CDBG projects: a. Provide technical assistance for the administration and implementation of the City's CDBG funded Programs. Work with City staff to determine project eligibility along with monitoring of programs to assure compliance with all Federal, State, and Local reporting requirements. b. Prepare reports, as required by HUD, including, but not limited to, a One -Year Action Plan and Annual Funding application, annual performance report (CAPER), Quarterly Cash Transaction Reports, etc. c. Setup and maintenance of IDIS records, including preparation of requested reports. Prepare draw down requests for reimbursement of expended funds on a quarterly basis or as directed. d. Coordinate with HUD field office staff and other City representatives on CDBG related issues as needed and provide assistance for all program monitoring and audit preparation. e. Work with City staff to prepare funding plans for CDBG funded activities. f. Prepare and maintain files and contracts for CDBG funded activities. g. Coordinate with City staff in the identification, management, and completion of all CDBG funded projects, including preparation and review of federal funding requirements as part of construction bid packages, requests for proposals, monitoring reports, public notices, etc. h. Review and process all CDBG funded Capital Improvement project invoices. i. Monitor all Capital Improvement projects during construction for Davis -Bacon labor compliance and Section 3 compliance. 6IPage j. Review completed projects for all necessary compliance issues. k. Preparation of necessary Environmental Review forms and documents for CDBG projects. 1. Provide regularly scheduled office hours at City Hall, on days and hours as determined by City staff. Additionally, remain available on-site, as needed, during HUD monitoring visits and external City audits. m. Any such other activities as required to properly administer the program. n. Attend City Council meetings as required. 2. Administration of Sub -Recipient Contracts a. Prepare of NOFA on an annual basis for social services funding. Work with City staff to prepare a funding plan for the recommended social service providers. b. Prepare files and contracts for each of the funded social service and fair housing administration providers. c. Process all sub -recipients invoices. d. Monitor all sub -recipients on an annual basis or sooner as necessary. 7IPage SECTION V. REFERENCES HUD Entitlement Cities: Cit of Corona — Ms. C nthia Lara Administrative Services Maria =er III Services Provided: CDBG Program Administration and HOME Technical Assistance including all aspects of the CDBG Program as well as assistance with affordable housing projects and Davis -Bacon Compliance Monitoring. Consolidated Plan/Action Plan/CAPER preparation. Analysis of Impediments to Fair Housing (AI) preparation Date of Contract: 2010 to Present Phone Number: (951) 739-4963; email address: Cynthia.Lara�a7ci.corona.ca.us City of Fontana — Mr. David Edgar, Deputy City Manager Services Provided: CDBG/HOME/CDBG-R/NSP Program TA; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation; Davis-Bacon/Section 3 Compliance; Policies and Procedures for FTHB and Hosing Rehabilitation Programs. Date of Contract: 2009 to Present Contact Person: Phone Number: (909) 350-6739; email address: ded_gargfontana.oig City of Hawthorne — Ms. Mari Guerrero, CDBG/HOME Coordinator Services Provided: CDBG/HOME Program Administration and Technical Assistance; CDBG and HOME funded Housing Rehabilitation Program Implementation; RDA funded Commercial Rehabilitation Program Implementation; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation. Date of Contract: 2002 to 2010 and 2014 to Present Phone Number: (310) 349-2976; email address: mguerrero a cityofhawthorn :.oriz City of Hesperia — Rod Yahnke, Economic Development Manager Services Provided: CDBG Program Administration and Technical Assistance; CDBG funded Housing Rehabilitation Program Implementation; Davis -Bacon and Section 3 Compliance; Consolidated Plan/Action Plan/CAPER preparation. Analysis of Impediments to Fair Housing (AI) preparation. NSP Program Technical Assistance. Date of Contract: 2003 to 2008 and 2013 to Present Phone Number: (760) 970-1907; email address: ryahnke@u cityofhesperia.us City of Irvine - Mr. Steve Holtz, Housing Administrator Services Provided: CDBG/HOME/CDBG-R/HPRP Program Administration and Technical Assistance; Redevelopment Consultation; CDBG and HOME funded Housing Rehabilitation Program Implementation; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation; Davis -Bacon and Section 3 Compliance. Date of Contract: 2001 to Present Phone Number: (949) 724-7452; email address: sholtz@ci.irvine.ca.us 81Page City of Newport Beach - James Campbell, Principal Planner Services Provided: CDBG Program Technical Assistance; Davis -Bacon and Section 3 Compliance; Analysis of Impediments; Consolidated Plan/Action Plan/CAPER preparation; affordable housing monitoring. Date of Contract: 2000 to Present Phone Number: (949) 644-3210; email address: jcamp be11€ newport beach c a. gov City of Palmdale - Mr. Mike Miller, Housing Manager Services Provided: CDBG/HOME/CDBG-R/NSP Program Administration and Technical Assistance; Redevelopment Consultation; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation; 5 Year Implementation Plan (Redevelopment); Davis -Bacon and Section 3 Compliance; affordable housing monitoring, Housing Rehabilitation Program administration Date of Contract: 2000 to Present Phone Number: (661) 267-5126; email address: MikeM r[pcityofpalmdale.org City of Paramount — Karina Lam. Finance Director Services Provided: CDBG/CDBG-R/NSP/HOME Program Administration; Redevelopment Consultation; CDBG and HOME funded Housing Rehabilitation and Commercial Rehabilitation Program Implementation; Homebuyer Assistance Program; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation; 5 Year Implementation Plan (Redevelopment); Davis -Bacon Compliance; and affordable housing monitoring. Dates of Contract: 2003 to Present Phone Number: (562) 220-2210; email address: Klam@ParamouritCity.com ParamountCity.conn City of Rialto — Mike Story, City Administrator 150 S. Palm Avenue, Rialto, CA 92376 Services Provided: CDBG Program Administration; CDBG-R Program Administration; NSP1 and NSP3 Program Administration; Homelessness Prevention and Rapid Rehousing (HPRP) Program Administration; Commercial Rehabilitation Program Implementation; Project/Construction Management; Davis -Bacon; Consolidated Plan/Action Plan/Analysis of Impediments/CAPER preparation. Date of Contract: 2000 to Present Phone Number (909) 820-2689; e-mail address: Administration@rialtoca.I:ov City of Upland — Jeff Zwack, Director of Development Services Services Provided: CDBG Program Technical Assistance; CalHome and RDA funded Housing Rehabilitation Program Implementation (4 separate programs); RDA funded Commercial Rehabilitation Program Implementation; CalHome and RDA funded Homebuyer Assistance Program; Project/Construction Management; Davis -Bacon and Section 3 Compliance; Analysis of Impediments; Planning Services; Analysis of Impediments to Fair Housing (AI); Consolidated Plan/Action Plan/CAPER preparation; affordable housing monitoring. Date of Contract: 2004 to Present Phone Number: (909) 931-4148; email address: jzwack@ci.upland.ca.us 9IPage SECTION VL FEE PROPOSAL We propose to perform the services related to the general administration of the CDBG program, administration of sub -recipient contracts and Davis -Bacon compliance on an hourly basis in accordance with the rate schedule below. Based on our experience, we anticipate having one Senior Associate (Dean Huseby) provide 10 hours of service weekly with an Associate (Frank Perez) provide an additional 10 hours of service weekly. We proposed to have Mr. Perez in attendance on-site one day per week to complete all of the file management, reporting and invoice processing functions. Mr. Huseby would be in attendance as necessary (typically 2 times per month) to go over all the higher level administrative needs. Additional subject matter expert staff members would be available to the City as requested. This would include Labor Compliance, Section 3, IDIS, and environmental experts that would assist as necessary. SCHEDULE OF HOURLY BILLING RATES Rates effective as offanuary 1, 2015 STAFF PERSON: HOURLY RATE: President $110.00/Hr. Senior Vice -President $105.00/Hr. Vice -President $100.00/Hr. Manager $ 95.00/Hr. Senior Associate $ 85.00/Hr. Associate $ 70.00/Hr. Senior Project Assistant $ 55.00/Hr. Project Assistant $ 50.00/Hr. Secretary $ 40.00/Hr. REIMBURSABLE ITEMS: Project Supplies At Cost plus 10% surcharge Prints/Reproductions At Cost plus 10% surcharge The hourly rates and not to exceed price is inclusive of travel expenses and reproductions of typical program documents. Specialty prints, reproductions or supplies will be billed at cost plus 10%. CONFLICT OF INTEREST MDG Associates, Inc. is not aware of any possible conflict of interest that might limit the projects on which our firm could work. 101Page Item No. 9 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Approve the Fourth Amendment to the Agreement for Consultant Services with Willdan Engineering for On -Call Traffic Engineering Services PREPARED BY: Jerry Gonzalez, Associate Engineer 11 - Traffic RECOMMENDATION: That the City Council approve the Fourth Amendment to the Agreement for Consultant Services with Willdan Engineering, in the amount of $75,000, for On -Call Traffic Engineering Services. BACKGROUND: Willdan Engineering serves as the City's Traffic Engineer and provides on-call traffic engineering services as a supplement to City Staff. Due to the increase in work efforts related to the installation of new traffic signals and bike lane program, staff recommends an increase to the Agreement in the amount of $75,000. At their meeting of June 27, 2017, the City Council approved the Third Amendment to the Agreement with Willdan Engineering which extended the term of the Agreement to June 30, 2018 (the Agreement terms provide for additional one year terms not to extend beyond June 30, 2018). The Third Amendment also increased the Agreement in the amount of $30,000, for a total Agreement amount of $120,000. FISCAL IMPACT: The recommendation to increase the Agreement by $75,000 will bring the total Agreement amount to $195,000. Adequate funds are available in the Public Works Department, Traffic Engineering Division's Budget Account No. 001.164.602.5248. ATTACHMENT: Fourth Amendment FOURTH AMENDMENT TO AGREEMENT BETWEEN CITY OF TEMECULA AND WILLDAN ENGINEERING ON-CALL TRAFFIC ENGINEERING SERVICES THIS FOURTH AMENDMENT is made and entered into as of November 14, 2017, by and between the City of Temecula, a municipal corporation (hereinafter referred to as "City"), and Willdan Engineering, a Corporation (hereinafter referred to as "Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. This Amendment is made with the respect to the following facts and purposes: a. On July 1, 2015, the City and Consultant entered into that certain Agreement entitled "Agreement for Consultant Services," in the amount of $30,000. b. On July 1, 2016, the City and Consultant entered into the First Amendment to that certain Agreement entitled "Agreement for Consultant Services," to extend the term of the agreement to June 30, 2017, and increase the payment in the amount of $30,000. c. On April 11, 2017, the City and Consultant entered into the Second Amendment to that certain Agreement entitled "Agreement for Consultant Services," to increase the payment in the amount of $30,000. d. On June 27, 2017, the City and Consultant entered into the Third Amendment to that certain Agreement entitled "Agreement for Consultant Services," to extend the term of the agreement to June 30, 2018, and increase the payment in the amount of $30,000. e. The parties now desire to increase the payment in the amount of $75,000, and to amend the Agreement as set forth in this Amendment. 2. Section 6 of the Agreement entitled "PAYMENT" at paragraph "a" is hereby amended to read as follows: The City agrees to pay Consultant monthly, in accordance with the payment rates and schedules and terms set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B, other than the payment rates and schedule of payment, are null and void. The Fourth Amendment amount shall not exceed Seventy -Five Thousand Dollars ($75,000), for a total Agreement amount of One Hundred Ninety -Five Thousand Dollars ($195,000). 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. 1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF TEMECULA WILLDAN ENGINEERING (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) By: By: Maryann Edwards, Mayor David L. Hunt, Senior Vice President ATTEST: By: By: Randi Johl, City Clerk APPROVED AS TO FORM: By: Peter M. Thorson, City Attorney CONSULTANT William C. Pagett, Senior Vice President Willdan Engineering Attn: Vanessa Munoz, Director of Engineering 13191 Crossroads Parkway N., Suite 405 Industry, CA 91746 562-908-6200 562-695-2120 Fax Number vmunoz@willdan.com 2 PM Initials:. Date: L Item No. 10 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park), PW17-04 PREPARED BY: Kendra Hannah-Meistrell, Senior Civil Engineer Chris White, Associate Engineer! RECOMMENDATION: That the City Council: 1. Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park), PW17-04; 2. Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. BACKGROUND: The Sidewalks - Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park) will provide walking surfaces for pedestrians. The project consists of installing a sidewalk along the east side of Mercedes Street, from Fourth Street to Sam Hicks Park. The improvements also include constructing ADA ramps, retaining walls, street lights, and planting street trees. This project satisfies the City's Core Values of Transportation Mobility and Connectivity. This project is exempt from the CEQA requirements pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. Section 15301 states that the repair, maintenance, and minor alteration of existing highways and streets are Class 1 activities, which is exempt from CEQA. Project plans and specifications are complete and the project is ready to be advertised for construction bids. The contract documents are available for review in the office of the Director of Public Works. The Engineer's Estimate is $247,061, and the number of allowable working days is forty-five, which is approximately nine weeks. FISCAL IMPACT: The Sidewalks - Old Town Improvement Project (Mercedes Street from Fourth Street to Sam Hicks Park) is identified in the City's Capital Improvement Program (CI P) budget for Fiscal Years 2018-22, and is funded with Community Development Block Grant and Measure A Funds. Adequate funds are available in the project accounts to construct the project. ATTACHMENTS: 1. Project Description 2 Project Location Map 2018-19 2020-21 Capital Improvement Program Fiscal Years 2018-22 SIDEWALKS - OLD TOWN IMPROVEMENT PROJECT Infrastructure / Other Project Project Description: This project is composed of two phases. The first phase, part of the Fiscal Year 2015-16 Community Development Block Grant (CDBG) funding Action Plan include adding new sidewalks on (1) east side of Old Town Front Street from Moreno (Penfold) to Moreno (Post Office), and (2) south side of Fifth Street from Mercedes Street to Old Town Front Street. The second phase, CDBG Action Plan for Fiscal Year 2016-17 include new sidewalks on the east side of Mercedes Street from Sam Hicks Park to Fourth Street. Benefit / Core Value: This project will provide walking surfaces for pedestrians. In addition, this project satisfies the City's Core Values of Transportation Mobility and Connectivity. Project Status: This project is expected to be completed in Fiscal Year 2017-18. Department: Public Works - Account No. 210.165.766 PW 15-06 & PW 17-04 Level: I Project Cost: Prior Years Actual Expenditures FYE 2017 Carryover Budget 2021-22 2017-18 Projected Adopted 2018-19 2019-20 2020-21 and Future Total Project Appropriation Projected Projected Projected Years Cost Administration $ 59,407 $ 87,596 $ 147,003 Construction $ 342,114 $ 110,000 $ 452,114 Construction Engineering $ 23,400 $ 110,000 $ 23,400 Design $ 35,559 $ 32,444 $ 110,000 $ - $ - $ - $ - $ 68,003 Totals $ 94,966 $ 485,554 $ 110,000 $ - $ - $ - $ - $ 690,520 Source of Funds: Prior Years FYE 2017 2017-18 Actual Carryover Adopted 2018-19 2019-20 2020-21 2021-22 Total Project Expenditures Budget Appropriation Projected Projected Projected Projected Cost CDBG(1) $ 94,966 $ 265,034 $ 360,000 CDBG(2) $ 220,520 $ 220,520 Measure A $ 110,000 $ 110,000 Total Funding: $ 94,966 $ 485,554 $ 110,000 $ - $ - $ - $ - $ 690,520 Future Operation & Maintenance Costs 2017-18 (1) Community Development Block Grant -Action Plan approved Fiscal Year 2015-16 (2) Community Development Block Grant - Action Plan approved Fiscal Year 2016-17 2019-20 2021-22 Fiscal Years 2018-22 Capital Improvement Program 133 TILE CITY OF 4....._41 TEMECULA ma, Mow pumaaL.- Mercedes Street (Fourth Street to Sam Hicks Park) 376.0 0 188.00 376.0 Feet WGS_1984_ Web_ Mercator_ Auxiliary_ Sphere © Latitude Geographics Group Ltd. This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION • 74, {moi • • 1 a+ i r+ Legend City of Temecula Boundary Notes Item No. 11 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Sixth Street Improvements, PW17-05 PREPARED BY: Kendra Hannah-Meistrell, Senior Civil Engineer Chris White, Associate Engineer! RECOMMENDATION: That the City Council: 1. Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Sixth Street Improvements, PW17-05; 2. Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. BACKGROUND: The Sidewalks — Sixth Street Improvements project will provide walking surfaces for pedestrians. The project consists of installing a sidewalk along the north side of Sixth Street, from Mercedes Street to the Mary Phillips Senior Center. The improvements also include constructing an ADA ramp, street widening, street lights, and planting street trees. This project satisfies the City's Core Values of Transportation Mobility and Connectivity. This project is exempt from the CEQA requirements pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. Section 15301 states that the repair, maintenance, and minor alteration of existing highways and streets are Class 1 activities, which is exempt from CEQA. Project plans and specifications are complete and the project is ready to be advertised for construction bids. The contract documents are available for review in the Director of Public Works' office. The Engineer's Estimate is $118,114, and the number of allowable working days is forty-five, which is approximately nine weeks. FISCAL IMPACT: The Sidewalks — Sixth Street Improvements project is identified in the City's Capital Improvement Program (CIP) budget for Fiscal Years 2018-22, and is funded with General Fund, BEYOND Framework Fund Program Round 1 and 2, and Measure S Funds. Adequate funds are available in the project accounts to construct the project. ATTACHMENTS: 1. Project Description 2 Project Location Map 2020-21 2018-19 •eur 01 Southern CaHernia Wins Country Capital Improvement Program Fiscal Years 2018-22 SIDEWALKS - SIXTH STREET IMPROVEMENTS Infrastructure / Other Project Project Description: This project includes adding new sidewalks on the north side of Sixth Street between Mercedes Street and Mary Phillips Senior Center. Benefit / Core Value: This project will provide walking surfaces for pedestrians. In addition, this project satisfies the City's Core Values of Transportation Mobility and Connectivity. Project Status: This project started in Fiscal Year 2016-17. Department: Public Works -Account No. 210.165.555 PW17-05 Level: I Project Cost: Prior Years Actual FYE 2017 Expenditure Carryover s Budget 2017-18 Adopted 2018-19 2019-20 Appropriation Projected Projected 2020-21 Projected 2021-22 Projected and Future Total Project Years Cost Administration $ 12,179 $ 18,000 $ 30,179 Construction $ 60,893 $ 29,262 $ 90,155 Construction Engineering $ 4,262 $ 5,738 $ 10,000 Design/Environmental $ 15,223 $ 15,000 $ 30,223 Totals $ - $ 92,557 $ 68,000 $ - $ - $ - $ - $ 160,557 Source of Funds: Prior Years Actual FYE 2017 Expenditure Carryover s Budget 2017-18 Adopted 2018-19 2019-20 Appropriation Projected Projected 2020-21 Projected 2021-22 Total Project Projected Cost General Fund $ 19,700 $ 19,700 BEYOND Framework Fund Program Round I $ 72,857 $ 72,857 BEYOND Framework Fund Program Round 11 $ 41,736 $ 41,736 Measure S $ 26,264 $ 26,264 Total Funding: $ - $ 92,557 $ 68,000 $ - $ - $ - $ - $ 160,557 Future Operation & Maintenance Costs: 2017-18 2019-20 2021-22 Fiscal Years 2018-22 Capital Improvement Program 135 SIDEWALKS - SIXTH STREET SIDEWALK IMPROVEMENTS Infrastructure Project Location The Heart of Southern C1elilornie Wine country Aerial Data - 2015 0 100 200 Feet 400 134 Item No. 12 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Approve the Plans and Specifications, and Authorize Solicitation of Construction Bids for the Sidewalks — Ynez Road (Winchester Road to County Center Drive), PW 17-22 PREPARED BY: Kendra Hannah-Meistrell, Senior Civil Engineer Chris White, Associate Engineer! RECOMMENDATION: That the City Council: 1. Approve the Plans and Specifications, and Authorize the Department of Public Works to Solicit Construction Bids for the Sidewalks — Ynez Road (Winchester Road to County Center Drive), PW17-22; 2. Make a finding that this project is exempt from CEQA pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. BACKGROUND: The Sidewalks - Ynez Road (Winchester Road to County Center Drive) project will provide walking surfaces for pedestrians. The project consists of installing a sidewalk along the east side of Ynez Road from Winchester Road to County Center Drive. The improvements also include replacing a section of commercial driveway. This project satisfies the City's Core Values of Transportation Mobility and Connectivity. This project is exempt from the CEQA requirements pursuant to Article 19, Categorical Exemption, Section 15301, Existing Facilities, of the CEQA Guidelines. Section 15301 states that the repair, maintenance, and minor alteration of existing highways and streets are Class 1 activities, which is exempt from CEQA. Project plans and specifications are complete and the project is ready to be advertised for construction bids. The contract documents are available for review in the Director of Public Works' office. The Engineer's Estimate is $66,000, and the number of allowable working days is twenty-five, which is approximately five weeks. FISCAL IMPACT: The Sidewalks - Ynez Road (Winchester Road to County Center Drive) is identified in the City's Capital Improvement Program (CIP) budget for Fiscal Years 2018-22, and is funded with CDBG Funds. Adequate funds are available in the project accounts to construct the project. ATTACHMENTS: 1. Project Description 2 Project Location Map 2020-21 2021-22 Total Project Projected Projected Cost $ 137,537 $ 137,537 •eur 01 Southern CaHernia Wins Country Capital Improvement Program Fiscal Years 2018-22 SIDEWALKS - YNEZ ROAD Infrastructure / Other Project Project Description: This project includes new sidewalks on the east side of Ynez Road between Winchester Road and County Center Drive. Benefit / Core Value: This project will provide walking surfaces for pedestrians. In addition, this project satisfies the City's Core Value of Transportation Mobility and Connectivity. Project Status: This is a new project for Fiscal Year 2017-18. Department: Public Works -Account No. 210.165.775 Level: I Project Cost: Prior Years FYE 2017 2017-18 Actual Carryover Adopted 2018-19 Expenditures Budget Appropriation Projected 2019-20 Projected 2021-22 Projected 2020-21 and Future Total Project Projected Years Cost Administration $ 27,500 $ 27,500 Construction $ 90,037 $ 90,037 Construction Engineering $ 7,500 $ 7,500 Design/Environmental $ 12,500 $ 12,500 Totals $ - $ - $ 137,537 $ - $ - $ - $ - $ 137,537 Source of Funds: Prior Years FYE 2017 2017-18 Actual Carryover Adopted 2018-19 Expenditures Budget Appropriation Projected CDBG(') Total Funding: Future Operation & Maintenance Costs $ 137,537 $ 137,537 2019-20 Projected 2017-18 2018-19 2019-20 2020-21 2021-22 1 $ - 1 $ 71,250 1 $ 95,000 1 $ 96,900 1 (1) Community Development Block Grant - Action Plan 2017-18 Fiscal Years 2018-22 Capital Improvement Program 137 Ynez Road Sidewalk 414.4 0 207.18 414.4 Feet WGS_ 1984_We b_M a rc ato rAuxiliary_S p h e re © Latitude Geographics Group Ltd. This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION Legend Parcels Street Names City of Temecula Boundary Sphere of Influence 0 Cities Notes Item No. 13 Approvals City Attorney Director of Finance City Manager -.! CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Approve Parcel Map 33488 (Located South of Santiago Road, North of Lolita Road, approximately 800 feet East of John Warner Road) RECOMMENDATION: That the City Council: 1. Approve Parcel Map 33488 (located south of Santiago Road, north of Lolita Road, approximately 800 feet east of John Warner Road) in conformance with the Conditions of Approval; 2. Approve the Subdivision Improvement Agreement and accept the Faithful Performance Bond and Labor and Material Bond as security for the Agreement. BACKGROUND: Record Title Interest: Fred Connary Parcel Map 33488 proposes to subdivide a 5.55 gross acre, 5.00 net acre, property into two 2.5 net acre parcels. The property covered by this Parcel Map is located south of Santiago Road, north of Lolita Road, approximately 800 feet east of John Warner Road. Tentative Parcel Map 33488 (PA 06-0245) was approved by the Planning Director on November 15, 2007. Pursuant to California Senate Bill 1185, California Assembly Bill 333, California Assembly Bill 208, automatic extensions and eligible one-year time extensions pursuant to the Subdivision Map Act/Temecula Subdivision Ordinance, the Parcel Map approval is effective until December 12, 2017. The Santiago Road improvements associated with the development of this Parcel Map are required to be constructed; thus, the property owner is obligated to execute the Subdivision Improvement Agreement and post the required securities. The property owner/developer has met the terms of the Conditions of Approval for map recordation, and this Parcel Map is in conformance with the approved Tentative Parcel Map. The approval of a Subdivision Map, which substantially complies with the approved Tentative Parcel Map, is a mandatory ministerial act under State law. FISCAL IMPACT: None ATTACHMENTS: 1. Fees and Securities Report 2. Vicinity Map 3. Parcel Map 33488 (reduced copy) CITY OF TEMECULA DEPARTMENT OF PUBLIC WORKS FEES AND SECURITIES REPORT PARCEL MAP 33488 DATE: November 14, 2017 IMPROVEMENTS FAITHFUL PERFORMANCE SECURITY LABOR & MATERIALS SECURITY Street and Drainage improvements $72,000 $36,000 DEVELOPMENT FEES: RCFC&WCD (ADP) Fee $ Paid Development Impact Fee $ To be Paid SERVICE FEES: Planning Fee $ 706 Fire Fee $ 500 CSD Fee $ 342 Plan Check Fee $ 5,057 Fees Paid to Date $ 6,605 Balance of Fees Due $ 0 VICINITY MAP N.T.S. NUMBER OF PARCELS = 2 GROSS AREA : PARCEL 1- 172 AC; PARCEL 2- 2.86 AC. NET AREA : PARCEL 1= 2.52 AC.; PARCEL 2-2.51 AC. NUMBER OF LETIEREO LOTS - 2 OWNER'S STATEMENT WE HEREBY STATE THAT WE ARE THE OWNERS OF THE LAND INCLUDED WITHIN THE SUBDIVISION SHOWN HEREON; THAT WE ARE THE ONLY PERSONS WHOSE CONSENT IS NECESSARY TO PASS A CLEAR TITLE TO SAID LAND; THAT WE CONSENT TO THE MAKING AND RECORDING OF 111I5 SUBDIVISION MAP AS SHOWN WITHIN THE DISTINCTIVE BORDER UNE. WE HEREBY DEDICATE TO PUBUC USE AN EASEMENT FOR STREET AND PUBLIC UTIUTY PURPOSES OVER LOTS "A" AND 'B' AS SHOWN HEREON AS A CONDITION OF DEDICATION OF LOT 'A', LOUTA ROAD, AND LOT 'B', SANTIAGO ROAD, THE OWNERS OF PARCEL 1 & 2, ABUTTING THESE HIGHWAYS AND DURING SUCH TWE WLL HAVE NO FIGHTS OF ACCESS EXCEPT THE GENERAL EASEMENT OF TRAVEL ALSO AOGFIWG 011 ( FORTY OA -FOOT) ,ACCESS OPEN%G ILL". PARD. AND Ohl (111DI15406)) AF'AS5 DAONNG FOR PARC& 2 ANY CHARGE -" AJOOTE,1 OR NOM THAT RESULTS W THE VACATION THEREOF SHALL TERMINATE THIS CONDITION OF ACCESS RIGHTS AS TO 111E PART VACATED. WE HEREBY RETAIN A BLANKET RECIPROCAL DRAINAGE EASEMENT WITHIN THE BOUNDARY OF -THIS PARCEL MAP FOR THE SOLE BENEFIT OF OURSELVES, OUR SUCCESSORS, ASSIGNEES, AND PARCEL OWNERS MINN THIS PARCEL MAP. OWNER: S. CONN `Y HUSBAND AND WIFE AS JONT d2140 46444 JADE CONHART TENANTS. BENEFICIARY: NINA ASCHBRENNER, TRUSTEE OF TRUST A UNDER THE GENE & NINA ASCHBRENNER FAMILY TRUST DATED 3/12/90, AS BENEFICIARY UNDER DEED OF TRUST RECORDED 8/09/2005 AS INSTRUMENT N0. 05-642157 OF OFFICIAL RECORDS IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA PARCEL MAP NO. 33488 BEING A SUBDIVISION OF PARCEL 4 OF PARCEL MAP 8598, IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CAUFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 44. PAGES 43 AND 44, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA ULF Ik ASSOCIAIBS NOTARY ACKNOWLEDGEMENT A NOTARY PUBLIC OR OTHER OFFICER COMPLETING TINS CERTIFICATE YBUFIES ONLY THE IDENTITY OF THE INDIVIDUAL IND SATED THE DOCUMENT TO WHICH THS CERTIFICATE 15 ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VAUDITY OF THE DOCUMENT. STATE OF CALIFORNIA ,SS COUNTY OF RIVERSIDE ON BEFORE ME, PERSONALLY APPEARED WHO PROVED TO ME ON THE BASIS OF OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURE(S) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: SIGNATURE NAME: NINA ASCHBRENNER TITLE: BENCFICIA3RY PRINTED NAME R4.t g'7rviw{ejkZ kAM+afA I..'"VMsri it 4 '"- fIENFFICIARY: 4a +Araf..+.n.rs we_._�_ ___. T}vF�V } wT1a4SA.0 7MRTMRWy_utho FH3ee? 9F_4 i.sC'J SC [j4 FAuT.KAL R4.4..T:JwMMLI G.Nw-AKTA wusweFRR.'F431A4ww&M., MY PRINCIPAL PLACE OF BUSINESS IS IN COUNTY. RECORDED MAY 16, 2023E A5 IN TRIJMENT NO. 03-3 57 91 0 OF AL COROSJ 842.17 4oMINuAW .� 16,, 2. -___)103 - CWT WMYNnMAINTIWAVIEMd WOW 91A4A Bowl, L5540 NAME: NAMEDANCY F'61 RG SAMARA F12c'sr TITLE: W E PPG"^SPT AYFM.tIZED 514VIOR NOTARY ACKNOWLEDGEMENT A NOTARY PUBUC OR OILER OFFICER CONPLEIING TMS CERTIFICATE VERFES OILY THE IDENTITY OF THE INDMODAL WHO SEED THE DOCUMENT TO *HCH TMS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VAULTY OF THE DOCUMENT. STATE OF CAUFORNIA COUNTY OF RIVERSIDE /SS ON 5-aa-iafl BEFORE ME, AilliftEtay1iG7,.. PERSONALLY APPEARED FRED S. CONNARY AND JADE CONNARY, IN -10 PROVED TO ME ON THE BASIS OF OF rSATISFACTORY EVIDENCE TO BE THE PER50NE () WHOSE NAM01 /✓ BA SUESQ6BED TO THE WITNN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE -SIE EXECUTED THE SAME ER HIBfHER AUTHORJZED CAPACIT AND THAT BY 18GA R SGNAIU CN THE INSTRUMENT THE PERSON, OR 111E EN11T7 UPON BEHALF OF WHICH 111E PERSON(3) ACTED, EXECUTED THE INSTRUMENT. I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CAUFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: KaNATURE Shelley 4. 1biIK PRINTED NAME MY COMMISSION EXPIRES:20 9 MY PRINCIPAL PLACE OF BUSINESS IS IN COUNTY. MY COMMISSION EXPIRES: NOTARY ACKNOWLEDGEMENT A NOTARY PUBUC OR OTHER OFFICER COMPLETING THIS CERTIRCAIE VERIFIES OILY 1110 IDENTITY OF TIE IIRIINOUAL DIw SIGNED THE DOCUMENT TO DIRCH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF DE OICUME NT. STATE OF CAUFORNIA '155 COUNTY OF RIVERSIDE ' 11 .. !'11 ON BEFORE ME. (4401DL OHI LA PERSONALLY APPEARED BAQAAR$ FROST _ WHO PROVED TO ME ON THE BASIS OF OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE YATHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURE(S) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT. 1 CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CAUFORNIA THAT THE FOREGOING PARAGRAPH 15 TRUE AND CORRECT. WITNESS MY HAND: SIGNATURLL"'" PRINTED NAME MY COMMISSION EXPIRES: gits10 0 MY PRINCIPAL PLACE OF BUSINESS E5 1.113.141.6K. HA000UNTY. SIGNATURE OMISSIONS: PURSUANT TO SECTION 66436 OF THE SUBDIVISION MAP ACT, THE SIGNATURES OF THE FOLLOWING OWNERS OF EASEMENTS AND/OR OTHER INTERESTS HAVE BEEN OMITTED: 1. AN EASEMENT IN FAVOR OF SOUTHERN CALIFORNIA EDISON COMPANY RECORDED JANUARY 26,1976 AS SHOWN AS INSTRUMENT NO 10542. DSCEMBSR, 2007 TAX COLLECTOR'S CERTIFICATE I HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF THIS OFFICE, AS OF THIS DATE, THERE ARE NO LIENS AGAINST THE PROPERTY SHOWN ON THE WITHIN MAP FOR UNPAID STATE, COUNTY, MUNICIPAL, OR LOCAL TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES, EXCEPT TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES, NOW A LEEN BUT NOT YET PAYABLE, WHICH ARE ESTIMATED TO BE DATED 20 DON KENT, COUNTY TAX COLLECTOR Br DEPUTY TAX BOND CERTIFICATE I HEREBY CERTIFY THAT A BOND IN THE SUM OF $ HAS BEEN EXECUTED AND FILED WITH THE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE, CAUFORNIA, CONDITIONED UPON THE PAYMENT OF ALL TAXES, STATE, COUNTY, MUNICIPAL, OR LOCAL, AND ALL SPECIAL ASSESSMENTS COLLECTED AS TAXES, WHICH AT THE TIME OF FILING OF THIS MAP WITH THE COUNTY RECORDER ARE A LIEN AGAINST SAID PROPERTY BUT NOT YET PAYABLE AND SAID BOND HAS BEEN DULY APPROVED BY SAID BOARD OF SUPERVISORS. DATED CASH OR SURETY TAX BOND DON KENT COUNTY TAX COLLECTOR BY: DEPUTY NOTICE OF ELECTION BY LAND DIVIDER TO DEFER PAYMENT OF DRAINAGE FEES NOTICE IS HEREBY GIVEN THAT THIS PROPERTY IS LOCATED IN THE MURRIETA CREEK/TEMECULA CREEK AREA DRAINAGE PLAN VMICH WAS ADOPTED BY 1HE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE PURSUANT TO SECTION 10.25 OF ORDINANCE 460 AND SECTION 66483, ET. SEO, OF THE GOVERNMENT CODE AND THAT SAID PROPERTY IS SUBJECT TO FEES FOR SAID DRAINAGE AREA. NOTICE IS FURTHER GIVEN THAT PURSUANT TO SECTION 10.25 OF ORDINANCE 460, PAYMENT OF DRAINAGE FEES SHALL BE PAID WITH CASHIER'S CHECK OR MONEY ORDER ONLY TO THE COUNTY OF RIVERSIDE FLOOD CONTROL AND WATER CONSERVATION DISTRICT AT THE TIME OF ISSUANCE OF THE GRADING OR BUILDING PERMIT FOR SAID PARCELS, WHICHEVER OCCURS FIRST, AND THAT THE OWNER OF EACH PARCEL, AT THE TIME OF ISSUANCE OF EITHER THE GRADING OR BUILDING PERMIT, SHALL PAY THE FEE REQUIRED AT THE RATE IN EFFECT AT THE TIME OF ISSUANCE OF THE ACTUAL PERMIT. ABANDONMENT NOTE PURSUANT TO SECTION 66445(J) OF THE SUBDIVISION MAP ACT, THE FLING OF THIS MAP SHALL CONSTITUTE ABANDONMENT OF THOSE PORTIONS OF PARCEL MAP NO. 8598 FILED IN BOOK 44, PAGES 43 AND 44 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY DESCRIBED AS FOLLOWS: LOT "H' (SANTIAGO ROAD), ALL OTHER PUBUC STREETS AND EASEMENTS NOT SPECIFICALLY LISTED HEREON FOR ABANDONMENT ARE RETNNED FOR PUBUC USE. SHEET 1 OF 9 SHEETS RECORDER'S STATEMENT FILED THIS DAY OF 20 AT _ .M. IN BOOK OF PARCEL MAPS, AT PAGES AT THE REQUEST OF THE CITY CLERK, CITY OF TEMECULA. NO. FEE PETER ALDANA COUNTY ASSESSOR -CLERK -RECORDER BY: DEPUTY SUBDIVISION GUARANTEE: FIRST AMERICAN TITLE COMPANY SURVEYOR'S STATEMENT THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND 15 BASED ON A FIELD SURVEY IN CONFORMANCE W1TH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCES AT THE REQUEST OF FRED CONNARY ON DECEMBER 2007.1 HEREBY STATE THAT ALL MONUMENTS ARE OF THE CHARACTER AND OCCUPY THE POSITIONS INDICATED. OR DILL BE IN ACCORDANCE WITH THE TERMS OF THE MONUMENT AGREEMENT FOR TIE MAP, AND THAT SAO MONUMENTS ARE OR WLL BE SUFFICIENT TO ENABLE TIE 5TIRVE1 TO BE RERRAC00 I HERBY STATE THAT TMS PARCEL MAP SUBSTANTIALLY CONFORMS TO THE APPROVED OR CONDMONALLY APPROVED TENTATIVE MAP, IF ANY 1N O UE K NLLASENOR PLS N0. 8509 EXP. DATE: 1 -3L-18 DATA=00: 5 Ztf l"7 CITY ENGINEER'S STATEMENT I HEREBY STATE THAT THIS MAP CONSISTING OF THREE (3) SHEETS HAS BEEN EXAMINED BY ME OR UNDER MY SUPERVISION AND FOUND TO BE SUBSTANTIALLY THE SAME AS IT APPEARED ON THE TENTATIVE MAP OF PARCEL MAP N0. 33488 AS FILED AND APPROVED BY THE CITY OF TEMECULA ON NOVEMBER 15, 2007 THE EXPIRATION DATE BEING DECEMBER 12, 2017 THAT ALL PROVISIONS OF APPUCABLE STATE LAW AND CITY REGULATIONS HAVE BEEN COMPUED WITH, AND THAT I AM SATISFIED THIS MAP I5 TECHNICALLY CORRECT. DATED: 2017 KRIS R. VANCHAK, L.S. 6240 AS DELEGATED CITY OF TEMECULA FOR PATRICK A. THOMAS CITY ENGINEER CITY CLERK'S STATEMENT THE CITY COUNCIL OF THE CITY OF TEMECULA. STATE CF CAUFORA16, BY ITS CITY CLERK, RANO JCHL,HEREBY APPROVES THE PARCEL MAP AND ACCEPTS TIE OFFER CF DEW- ATKI N OF LOT 'A` 3 'B' FOR FI BLIC 51)55T AND PUBUC UTIUTY PURPOSES SUBJECT TO IMPROVEMENTS CONSTRUCTED IN ACCORDANCE 9)111 THE CITY OF TEMECULA STANDARDS. WE ALSO HEREBY ACCEPT THE OFFER OF DEDICATION OF ABUTTERS RIGHTS OF ACCESS ALONG SANTIAGO ROAD AND LOUTA ROAD AS DEDICATED WE ALSO HEREBY ABANDON, PURSUANT TO SECTION 66445(J) OF THE SUBDIVISION MAP ACT, THOSE PORTIONS OF PARCEL MAP NO. 8598 FILED IN BOOK 44, PAGES 43 AND 44 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY DESCRIBED AS FOLLOWS: LOT M. (SANTIAGO HOA)). DATED: BY: RANDI JOHL CITY CLERK, CITY OF TEMECULA SEC 7, TBS, R2W PROJECTED BENEFICIARY: TRUSTEE OF TRUST A UNDER THE GENE & NINA ASCHBRENNER FAMILY TRUST DATED 3/12/90, AS BENEFICIARY UNDER DEED OF TRUST RECORDED 8/09/2005 AS INSTRUMENT NO. 05-642157 OF OFFICIAL RECORDS BY UkaiWOWr *iU - -Fra S DINA E. MAXWELL, AS CO -TRUSTEE OF TRUST A UNDER THE GENE AND NINA ASCHBRENNER FAMILY TRUST, DATED MARCH 12, 1990. 9Y. -; --'1C -1I✓~F ALAN D. MAXWELL, AS CO -TRUSTEE OF TRUST A UNDER THE GENE AND NINA ASCHBRENNER FAMILY TRUST, DATED MARCH 12, 1990, RILE: BENEFICIARY NOTARY ACKNOWLEDGEMENT A NOTARY PAID OR 01162 CFTXER COHPLEING THIS CERTIFICATE %CAIFES OILY THE 1058851 IIF '114: 441910JM. IBA SIGNED 185 DO .91581 TO 4MCH THS CER1IFICAIE 15 ATTACHED, WOWS TIC iiUINFT97E55, ACCURACY, OR VALDITY OF THE DOCUMENT. STATE OF COUNTY OF ON f :('.fr14J1 14'7.01 BEFORE ME7NEIL,1! A 14Y -A.4 PERSONALLY APPEARED :?INN E, i FIXs�k- WNO PROVED TO ME Elk THE BASIS OF OF SATISFACTORY ENOENCE TO BE THE PERSON(S) WHOSE NAMES) IS/ARE SUBSCRIBED TO THE VANN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIONATURE(5) ON THE IISIRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSONS) ACTED, EXECUTED THE INSTRUMENT. I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CAUFORNIA THAT 7HE FOREGOING PARAGRAPH IS TRUE AND CORRECT. rltw+I5S 1M MY HAND: +/ SIGNATURE T1231 -E4618- 4618' 11 F MY COMMISSION EXPIRES. /. Z-1.61 PRINTED NAME MY PRINCIPAL PLACE OF BUSINESS IS IN 1111415 COUNTY. IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA PARCEL MAP NO. 33488 BEING A SUBDIVISION OF PARCEL 4 OF PARCEL MAP 8598, IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 44, PAGES 43 AND 44, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA. REF & ASSOCIATES DECEMBER, 2007 NOTARY ACKNOWLEDGEMENT A NOTARY PUNIC OR OTHER OFFICER COIWtETING 1945 CERTIFICATE VERIFIES ONLY THE LENPTY CF THE INDATDOM. VHA SIGNED THE 11T4I11: CU wruCH THIS CERTIFICATE IS ATTACHED. AIA HOT THE TRUTHFU:MSS. ACCURACY, OR VALIDITY OF THE DOCUMENT. STATE OF CAUFORNIA COUNTY OF trVr.2. SS ON rt.. - no( 's1'-1 BEFORE ME. j..;:tyn,,L jr k a w PERSONALLY APPEARED Anna ' HI -10 PROVED TO ME ON THE BASS OF OF SATHSFACTCRY EVIDENCE TO BE THE PERSON(5) *HOSE NAME(5) IS/ARE SUBSCRIBED TO THE ARYAN INSTRUMENT AND A[71NOWLEDOEO TO ME THAT NE/S'IE/7HEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURE(5) ON THE INSTRUMENT THE PERSON(5), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT. I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CAUFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: GatATURE • KM C. CE2 n4J NY COMMISSION EXPIRES:5/ LaZ4d0 'RINTED NAME MY PRINCIPAL PLACE OF BUSINESS IS IN .S0 J Tu. -,O COUNTY. SHEET 2 OF 4 SHEETS IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE. STATE OF CALIFORNIA PARCEL MAP NO. 33488 BEING A SUBDIVISION OF PARCEL 4 OF PARCEL MAP 8598. IN THE CITY OF TEMECULA COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP ON FILE IN BOOK 44, PAGES 43 AND 44, OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY. o.L '411,4T ULF & ASSOCIATES smear} R-1200.00) 1-0.06 -0.03 DETAIL'/" SI ie N.T.S. / DECEMBER. 2007 ,'y s t FD 2' IP.TAGGED LS 3160 p.+vq\it'' l eg $0 1pttri LVy DN1.5'15''A 21/61•-•87. C P ESD 7' 'CP" Pr"- % '`�'? ''�, N. 2R, is A-ti1431)'] NEth O o� // 1=/ �[4$.53) {i-210.74'}�{S. -.¢�NBb25��•*% (T-121.787 CL LOUTA 90. 11 (48.80')C poitiTA DETAIL'S' N.T.S. VICINITY MAP N.T.S. ta�' s\N"1 DETAIL'C' \ N.T.S. ENGINEERS NOTES 0 INDICATES SET 1' I... W/ TAG Ply 8509, FLUSH, UNLESS OTHERWISE 407TH. 2. • INDICATES FOUND MONUMENT AS NOTED. 3. (( )) INDICATES RECORD DATA PER TRACT NO. 23513 PM 295/54-57 4. ( ) INDICATES RECORD DATA PER PARCEL MAP N0. 6598. PM 44/43-44 AND MEASURED UNLESS OTHERWISE NOTED. 5, [ 1 INDICATES RECORD DATA PER PARCEL MAP N0. 33386, PM 220/32-33. 6. AUL MONUMENTS SET PER RIVERSIDE COUNTY ORDINANCE 461.9. 7. ALL MONUMENTS SHOWN 5E1" SHALL BE SET IN ACCORDANCE WITH THE MONUMENTATION AGREEMENT FOR THIS MAP, UNLESS OTHERWISE NOTED. 8. ,..... INDICATTS RESTRICTED ACCESS. 9. DRAINAGE EASEMENT(S) SHALL BE KEPT FREE OF ALL BUILDINGS AND OBSTRUCTIONS. THIS PARCEL INP CONTAINS 5.56 ACRES GROSS 10. 11.r,INDICATES NATURAL WATER COURSE TO BE KEPT FREE OF ALL BUILDINGS. OBSTRUCTIONS AND LANDFILLS. BASIS OF BEARINGS THE BASIS OF BEARINGS FOR THIS MAP 15 THE CENTERLINE OF SANTIAGO ROAD SHOWN AS: N6650'1TTY PER PM N0. 8598 (PM 44/43-44) EASEMENT NOTES 0 AN EASDAENT IN FAVOR OF 9IU AERN CALIFORNIA EDISON COMPANY fit=0LKLIED JNLMRY 25.1976 AS MISERUIIENT N0. 10542. Q NATURAL WATERCOURSE PER PARCEL MAP 8599 PM 403-44 pA 26' EASEMENT TO THE CITY OF TEMECULA FOR PUBUC UTILITIES ANO EMERGENCY VEHICLE ACCESS PURPOSES. Sia 6 C: 44 re DETAL rL. Enc ..i\4. -/61_8 P. , \ \\ Vkit '6\ kR6gt. 5 a \\ I Y g1L0 p}AS' Tt1 SHEET 3 OF 4 SHEETS s''�' • b;✓ 1V. R/ FD. 2' I.P. TAGGED LS 3160 PER P.M. 21/61-67 TMJ 1.5' RECORD & MEASURED 51 FD. 2' LP. TAGGED L5 3160 PER P.M. 21/61-67 ON 1.0' ENVIRONMENTAL CONSTRAINT NOTE: ENVIRONMENTAL CONSTRAINT SHEET AFFECTING THIS MAP IS ON FIX IN THE OFFICE OF THE TEIIECULA CITY DIGINS J. N ENS BOOK T , PAGE 366 THIS AFFECTS AIL PARCELS, 24.1 4'.s BOUNDARY MAP GRAPHIC SCALE 100 50 100 200 306 ( 111 ) 1 moo - 100 K DETAIL 'Cr N.T.S. yli'l�E r IN THE CITY OF TEMECULA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA PARCEL MAP NO. 33488 BEING A SUBDIVISION OF PARCEL 4 OF PARCEL YAP 8596. IN THE CITY OF TEMECULA. COUNTY OF RIVERSIDE. STALE CF CALIFORNIA, AS SHOWN BY MAP ON RLE IN BOOK 44, PAGES 43 AND 44, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY. CAUFORNIA. 9 DECEMBR. 007 44 SG op,r 71.34. P7N ?Pa SHEET 4 OF 4 SHEETS r l ieb CURVE TABLE NO OETA RADIUS LENGTH TANGENT CI 2527132` I. 1080. 48.88' 24.85' C2 2735115' 130.00' 62.59' 31.92' C3 26.49107' 130.00' 65.39' 33.40' C< 29'49'07 110-00' 55.33' 28.26' C5 8505'40' 30.00' 44.56' 27.54' C6 03'35'53' 830.00' 52.12' 26.07' 07 10'51'49" 830.00' 157.37' 78.92' 4 8686 µlip -64 S;CO- hi 5501tite' GRAPHIC SCALE 60 30 60 120 160 ( 1R 167) 1 Web 64 N. LINE TABLE NO BEARING LENGTH (.1 90715'19b 18.23 L2 N1912'23"E 51.22' 13 N57'35'5959 5.49' L4 N7755'07E 49,16' L5 N6715119'W 38.04' 18 N58'3019 -W 25.00' L7 N3173311 39.57' u N3438'421 0.41' 1-8 N5735'191 43.52' 110 N28'16'42'E 19.71' L11 926119'057 29.37' L12 537•54'54T 31.33' TEMECULA COMMUNITY SERVICES DISTRICT CONSENT Item No. 14 ACTION MINUTES October 24, 2017 City Council Chambers, 41000 Main Street, Temecula, California TEMECULA COMMUNITY SERVICES DISTRICT MEETING The Temecula Community Services District meeting convened at 7:44 PM CALL TO ORDER: President Jeff Comerchero ROLL CALL: DIRECTORS: Edwards, Naggar, Rahn, Stewart (Absent), Comerchero CSD PUBLIC COMMENTS (None) CSD CONSENT CALENDAR 9 Approve the Action Minutes of October 10, 2017 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Edwards, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 9.1 That the Board of Directors approve the action minutes of October 10, 2017. 10 Approve Financial Statements for the 4th Quarter Ended June 30, 2017 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Edwards, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 10.1 Receive and file the Financial Statements for the 4th Quarter Ended June 30, 2017; 10.2 Approve appropriations for Service Level C - Zone 14 Morrison Homes in the amount of $700; Zone 24 Harveston in the amount of $4,000 and Zone 27 Avondale in the amount of $500. 11 Approve the Concession Services Agreement with Keith Gors dba Goodtime Rentals for Concessionaire Services at Harveston Lake Park - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Edwards, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 11.1 That the Board of Directors approve the Concession Services Agreement with Keith Gors dba Goodtime Rentals for Concessionaire services at Harveston Lake Park. 1 CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGER REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT At 7:49 PM, the Community Services District meeting was formally adjourned to Tuesday, November 14, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. Jeff Comerchero, President ATTEST: Randi Johl, Secretary [SEAL] 2 Item No. 15 Approvals City Attorney Director of Finance City Manager Por- TEMECULA COMMUNITY SERVICES DISTRICT AGENDA REPORT TO: General Manager/Board of Directors FROM: Kevin Hawkins, Director of Community Services DATE: November 14, 2017 SUBJECT: Approve the Agreement for Contractor Services with Kingdom Causes DBA City Net for a City -Wide Homeless Collaborative Services Pilot Program (At the Request of the Human Services Ad Hoc Subcommittee Mayor Edwards and Councilmember Stewart) PREPARED BY: Erica Russo, Senior Management Analyst RECOMMENDATION: That the Board of Directors approve the Agreement for Contractor Services with Kingdom Causes DBA City Net, and appropriate $120,000 from available fund balance, for a City-wide homeless collaborative services pilot program. BACKGROUND: The City of Temecula, like other cities in Southern California, has been struggling to address the increasing impacts of homelessness affecting our region. As part of its commitment to Accountable and Responsive City Government as described in the Quality of Life Master Plan, the City takes the concerns of its residents seriously and has dedicated significant resources to understanding and addressing the impacts of homelessness in a manner that is compassionate and effective. The most recent step in this process is this recommendation to engage an established third -party nonprofit organization, City Net, for a one-year pilot program to lead the City's outreach in a cohesive effort informed by leading experts in the field. This agreement would contract City Net for a twelve-month pilot program to provide the following main services: 1. Aggressive case micro -management with the goal of reducing the City's chronic homeless population by 33% within one year. This will begin with a baseline census of the target population, which will be repeated after twelve months to determine performance to goal. Individuals will be assessed to establish priority for outreach. As individuals are successfully exited, the focus will remain on the rolling top -five priority cases. 2. Collaborative coordination and training of City staff, community, partner agencies, and faith -based stakeholders with the goal of creating standardized, effective outreach protocols consistent with best practices. This will improve the effectiveness of outreach efforts, create a sustainable model for continuation following the 12 -month period, and enable the City's Police Department to more effectively utilize the Homeless Outreach Team. As an outside agency, City Net will act as a facilitator for difficult issues, allowing the City to maintain positive working relationships with its partners. City Net brings substantial experience in Orange County, with an impressive track record of over 400 individuals housed and a 92% retention rate. To ensure similar success for this pilot project, City Net has committed to staffing the project with its two principals, Executive Director Brad Fieldhouse and Program Director Gigi Zanganeh, in addition to an outreach/case manager. Additionally, City Net raises funds from external sources for outreach, emergency housing, diversion activities, and relocations; City Net will not request additional funds from the City of Temecula for these purposes. FISCAL IMPACT: $120,000 for the 12 -month program, which will be appropriated from available fund balance. ATTACHMENT: Agreement AGREEMENT FOR CONTRACTOR SERVICES BETWEEN TEMECULA COMMUNITY SERVICES DISTRICT AND KINGDOM CAUSES dba CITY NET CITY-WIDE HOMELESS COLLABORATIVE SERVICES PILOT PROGRAM THIS AGREEMENT is made and effective as of November 14, 2017, between the Temecula Community Services District, a community services district (hereinafter referred to as "City"), and Kingdom Causes dba City Net, a non-profit corporation (hereinafter referred to as "Contractor"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on November 14, 2017, and shall remain and continue in effect until tasks described herein are completed, but in no event later than November 13, 2018, unless sooner terminated pursuant to the provisions of this Agreement. 2. SERVICES Contractor shall perform the services and tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. Contractor shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A. 3. PERFORMANCE Contractor shall at all times faithfully, competently and to the best of his or her ability, experience, and talent, perform all tasks described herein. Contractor shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Contractor hereunder in meeting its obligations under this Agreement. 4. PAYMENT a. The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B, Payment Rates and Schedule, attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. Any terms in Exhibit B, other than the payment rates and schedule of payment, are null and void. This amount shall not exceed One Hundred Twenty Thousand Dollars and No Cents ($120,000.00) for the total term of the agreement unless additional payment is approved as provided in this Agreement. b. Contractor shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the General Manager. Contractor shall be compensated for any additional services in the amounts and in the manner as agreed to by General Manager and Contractor at the time City's written authorization is given to Contractor for the performance of said services. 1 5. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Contractor at least ten (10) days prior written notice. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Contractor will submit an invoice to the City, pursuant to Section entitled "PAYMENT" herein. 6. DEFAULT OF CONTRACTOR a. The Contractor's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Contractor is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Contractor. If such failure by the Contractor to make progress in the performance of work hereunder arises out of causes beyond the Contractor's control, and without fault or negligence of the Contractor, it shall not be considered a default. b. If the General Manager or his delegate determines that the Contractor is in default in the performance of any of the terms or conditions of this Agreement, it shall serve the Contractor with written notice of the default. The Contractor shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Contractor fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. 7. OWNERSHIP OF DOCUMENTS a. Contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information required by City that relate to the performance of services under this Agreement. Contractor shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the representatives of City or its designees at reasonable times to such books and records, shall give City the right to examine and audit said books and records, shall permit City to make transcripts there from as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused or otherwise disposed of by the City without the 2 permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. INDEMNIFICATION The Contractor agrees to defend, indemnify, protect and hold harmless the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, including attorney fees and expert witness fees, or liability of any kind or nature which the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Contractor's negligent or wrongful acts or omissions arising out of or in any way related to the performance or non-performance of this Agreement, excepting only liability arising out of the negligence of the City of Temecula, Temecula Community Services District, and/or the Successor Agency to the Temecula Redevelopment Agency. 9. INSURANCE REQUIREMENTS Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees. a. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1) Insurance Services Office Commercial General Liability form No. CG 00 01 11 85 or 88. 2) Insurance Services Office Business Auto Coverage form CA 00 01 06 92 covering Automobile Liability, code 1 (any auto). If the Contractor owns no automobiles, a non -owned auto endorsement to the General Liability policy described above is acceptable. 3) Worker's Compensation insurance as required by the State of California and Employer's Liability Insurance. 4) Professional Liability Insurance shall be written on a policy form providing professional liability for the Contractor's profession. b. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1) General Liability: One million ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: One million ($1,000,000) per accident for bodily injury and property damage. 3 3) Worker's Compensation as required by the State of California; Employer's Liability: One million dollars ($1,000,000) per accident for bodily injury or disease. 4) Professional Liability Coverage: One Million Dollars ($1,000,000) per claim and in aggregate. c. Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions shall not exceed Twenty -Five Thousand Dollars and No Cents ($25,000). d. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) The City of Temecula, the Temecula Community Services District, the Successor Agency to the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers are to be covered as insured's, as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 2) For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City of Temecula, the Temecula Community Services District, the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees and volunteers. Any insurance or self-insured maintained by the City of Temecula, Temecula Community Services District, and/or Successor Agency to the Temecula Redevelopment Agency, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City of Temecula, the Temecula Community Services District, and the Successor Agency to the Temecula Redevelopment Agency, their officers, officials, employees or volunteers. 4) The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5) Each insurance policy required by this agreement shall be endorsed to state in substantial conformance to the following: If the policy will be canceled before the expiration date the insurer will notify in writing to the City of such cancellation not less than thirty (30) days' prior to the cancellation effective date. 6) If insurance coverage is canceled or, reduced in coverage or in limits the Contractor shall within two (2) business days of notice from insurer phone, fax, and/or notify the City via certified mail, return receipt requested of the changes to or cancellation of the policy. e. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of A -:VII or better, unless otherwise acceptable to the City. Self insurance shall not be considered to comply with these insurance requirements. f. Verification of Coverage. Contractor shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements are to be on forms provided by the City. All endorsements are to be received and approved by 4 the City before work commences. As an alternative to the City's forms, the Contractor's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. 10. INDEPENDENT CONTRACTOR a. Contractor is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City. Contractor shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. b. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder. 11. LEGAL RESPONSIBILITIES The Contractor shall keep itself informed of all local, State and Federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this section. 12. RELEASE OF INFORMATION a. All information gained by Contractor in performance of this Agreement shall be considered confidential and shall not be released by Contractor without City's prior written authorization. Contractor, its officers, employees, agents or subcontractors, shall not without written authorization from the General Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. b. Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Contractor and/or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by 5 Contractor. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 13. NOTICES Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice. Notice shall be effective upon delivery to the addresses specified below or on the third business day following deposit with the document delivery service or United States Mail as provided above. Mailing Address: City of Temecula Attn: General Manager 41000 Main Street Temecula, CA 92590 To Contractor: City Net Brad Fieldhouse 4508 Atlantic Ave, Suite 292 Long Beach CA 90807 14. ASSIGNMENT The Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Upon termination of this Agreement, Contractor's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and the Contractor. 15. LICENSES At all times during the term of this Agreement, Contractor shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement. 16. GOVERNING LAW The City and Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with geographic jurisdiction over the City of Temecula. In the event such litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses for the relief granted. 17. PROHIBITED INTEREST 6 No officer, or employee of the City of Temecula that has participated in the development of this agreement or its approval shall have any financial interest, direct or indirect, in this Agreement, the proceeds thereof, the Contractor, or Contractor's sub -contractors for this project, during his/her tenure or for one year thereafter. The Contractor hereby warrants and represents to the City that no officer or employee of the City of Temecula that has participated in the development of this agreement or its approval has any interest, whether contractual, non - contractual, financial or otherwise, in this transaction, the proceeds thereof, or in the business of the Contractor or Contractor's sub -contractors on this project. Contractor further agrees to notify the City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. 18. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 19. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder. The General Manager is authorized to enter into an amendment on behalf of the City to make the following non -substantive modifications to the agreement: (a) name changes; (b) extension of time; (c) non -monetary changes in scope of work; (d) agreement termination. 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TEMECULA COMMUNITY SERVICES KINGDOM CAUSES dba CITY NET DISTRICT (Two Signatures of corporate officers required unless corporate documents authorize only one person to sign the agreement on behalf of the corporation.) By: By: Jeff Comerchero, TCSD President Brad Fieldhouse, Executive Director ATTEST: By: By: Randi Johl, Secretary APPROVED AS TO FORM: By: Peter M. Thorson, General CONTRACTOR Counsel Gigi Zanganeh, Director of Programs Kingdom Causes dba City Net Brad Fieldhouse, Executive Director PO Box 90243 Long Beach, CA 90809 562-208-0500 Brad@citynet.org 8 PM Initials: Cffi Date: EXHIBIT A Tasks to be Performed Please see Temecula Homeless Collaborative Services Pilot Project Proposal (attached). All tasks to be performed are per the proposal provided by the Contractor attached hereto and incorporated herein as though set forth in full. 9 EXHIBIT B Payment Rates and Schedule For the performance of tasks outlined in the Scope of Work (Exhibit A), contractor will be paid a flat rate of $10,000 per month. Contractor will provide an invoice including a summary of the month's activities no later than the fifth of the following month. Cost for services shall be as per Contractors attached proposal but in no event shall the total cost of services exceed $120,000 for the total term of the Agreement unless additional payment is approved as provided in the Payment section of this Agreement. 10 VISION Temecula Homeless Collaborative Services Pilot Project Proposal — 9.29.17 City Net will build upon existing efforts and lead a collaborative effort consisting of agencies from city government, law enforcement and other city first responders, advocacy and civic groups, nonprofit organizations, businesses, homeless neighbors and the faith community working together on shared goals and a common agenda. City Net will partner with the City of Temecula and the Temecula Police Department to conduct street outreach to homeless neighbors in Temecula, to engage them in case management with the goal of exiting them from the streets, with the long-term goal of dramatically reducing street -level homelessness locally. OVERARCHING GOALS 1. Exit homeless neighbors from streets of Temecula, prioritizing the most high-profile, costly cases. 2. Lead the coordination of homeless activities in Temecula as well as provide best practices trainings. 3. Reduce community costs related to homelessness. 4. Connect homeless neighbors and city agencies to housing solutions throughout the region. 5. Complete a Temecula Homeless Census on an annual basis. COSTS $10,000 per month This fee is for 160 hours per month (1 FTE* utilizing various team member skill sets) and is all-inclusive, including salary, benefits, administration, overhead and all related program costs and activities. City Net raises its own funds for housing placements, relocation fees, program fees, etc. and would not require further direct contributions from the city. *(Project Manager, Outreach Worker(s)/Case Manager(s), Police Liaison, Community Resource Mobilizer) KEY ACTIVITIES 1. Exit homeless neighbors from streets of Temecula, prioritizing the most high-profile, costly cases. > Provide ongoing case management services, prioritizing the most vulnerable and costly cases. A small percentage of chronically homeless neighbors, who are typically struggling with mental illness, addiction, and physical disabilities, disproportionately drain public resources. Utilizing data from the Homeless Census and the Temecula Police Department, City Net will prioritize these homeless neighbors during our outreach and case management efforts. City Net's collaborative case manager(s) work with our homeless neighbors to navigate housing opportunities, develop financial stability, and provide linkage to behavioral health resources and other supportive services. City Net will collaborate with the various nonprofit organizations and the various community organizations to provide effective case management services. These efforts typically would equate to a minimum of 5-6 individuals per quarter being exited from the streets. Once a homeless neighbor has been housed, City Net will continue follow up for 12 months to ensure housing retention and linkage to supportive services. Temecula Homeless Collaborative Services Pilot Project Proposal — 9.29.17 > Professional street outreach and first responder support. Mobilize teams of Collaborative Case Managers to conduct regular street outreaches to homeless neighbors in coordination with the Temecula Police Department's Homeless Liaison Officers. City Net will support first responders, as needed, through trainings, presentations, and sharing any updates related to trends in regional homeless efforts. 2. Lead the coordination of homeless activities in Temecula as well as provide best practices trainings. > Solutions, not enabling activities. Encourage stakeholders, including the faith community, civic organizations, advocacy groups, businesses and others to achieve long-term solutions to end homelessness for most homeless neighbors and discourage well -intended activities that enable neighbors to be more comfortable remaining in their homelessness. > Best practice trainings. City Net staff will provide best -practice trainings for various stakeholder groups as needed. Trainings would include Crime Prevention Through Environmental Design (CPTED) for locally impacted businesses, faith based and community asset mapping for strategic alignment of community members, law enforcement trainings at department briefings for case management practices and front line city staff equipping trainings for homeless engagement and support for accessing available resources. 3. Reduce community costs related to homelessness > City Net to leverage external funds for placements, relocation fees, program fees, etc. City Net will leverage external funds to equip city first responders in outreach, emergency housing, diversion activities and relocations. City Net will not request additional funds from the city for these purposes. > Data coordination. Data -sharing collaboration fosters an environment where resources overall are spent more efficiently. As able, we will coordinate all data with collaborative partners for multi -agency collaborative case management. 4. Connect homeless neighbors and city agencies to housing solutions throughout the region. > Provide housing navigation and placement for our homeless neighbors. City Net will explore housing opportunities such as reunification with family members, emergency shelter, treatment facilities, affordable room/apartment rentals, housing vouchers, and permanent supportive housing programs. City Net will ensure that Temecula homeless neighbors have access to these and other regional resources, and that city agencies have a conduit in City Net through which they can easily and successfully refer Temecula homeless neighbors to them. Temecula Homeless Collaborative Services Pilot Project Proposal — 9.29.17 5. Complete a Temecula Homeless Census1 on an annual basis. The goal of an annual census is to measure the progress of outreach efforts and analyze trends within the homeless population in Temecula. City Net will utilize the new data to assess the collaborative and provide recommendations to the city. TIMELEINE OF ACTIVITIES First 90 Days - Discovery Phase • Weekly hot spot outreach with Temecula PD HLO's • Identification and case management start with "Top 5" priority homeless neighbors • Site visits and asset mapping of key city stakeholders related to cause • Homeless analysis — assessment of current realities in relation to existing homeless counts Second 90 Day - Case Management Phase • Implement internal and external strategy for public meetings and trainings moving forward • Continue tracking case management and street exits towards goals • Coordinate all data with collaborative partners for multi -agency collaborative case management Ongoing Quarterly: • Quarterly reporting on key activities and results, in addition to monthly dashboards • Ongoing training & collaboration meetings (as needed) • Community engagement: community clubs, council reports, faith based partnerships, business outreach, etc We propose a "census", which we differentiate from other related activities using the following definitions: a. A "point -in -time count" is an enumeration of unsheltered and sheltered homeless neighbors in a city. It yields an estimated number and limited demographic data of the total homeless population. b. A "survey" takes a statistically representative sample of the homeless population and projects estimates of the total population based on the findings of the smaller sample population. c. A "census" collects information on every member of the population. It yields an actual number, and, in this proposed case, demographic, housing, social, economic and other information on the total homeless population. SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY CONSENT Item No. 16 ACTION MINUTES October 24, 2017 City Council Chambers, 41000 Main Street, Temecula, California SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY MEETING The Successor Agency to the Temecula Redevelopment Agency convened at 7:49 PM CALL TO ORDER: Chairperson Maryann Edwards ROLL CALL: DIRECTORS: Comerchero, Naggar, Rahn, Stewart (Absent), Edwards SARDA CONSENT CALENDAR 12 Receive and File Financial Statements for the 4th Quarter Ended June 30, 2017 - Approved Staff Recommendation (4-0, Stewart Absent); Motion by Comerchero, Second by Rahn; and electronic vote reflected approval by Comerchero, Naggar, Rahn, and Edwards with Stewart absent. RECOMMENDATION: 12.1 That the Board of Directors receive and file the Financial Statements for the 4th Quarter Ended June 30, 2017. SARDA EXECUTIVE DIRECTOR REPORT SARDA BOARD OF DIRECTORS REPORTS SARDA ADJOURNMENT At 7:49 PM, the Successor Agency to the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, November 14, 2017, at 5:30 PM, for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 41000 Main Street, Temecula, California. Maryann Edwards, Chair ATTEST: Randi Johl, Secretary [SEAL] 1 SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY BUSINESS Item No. 17 Approvals City Attorney Director of Finance City Manager THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Board of Directors FROM: Jennifer Hennessy, Finance Officer DATE: November 14, 2017 , SUBJECT: Approve the Official Statement Relating to the Issuance and Sale of Tax Allocation Bonds to Refinance Outstanding 2002, 2006, 2007, 2010 and 2011 Bonds of the Former Temecula Redevelopment Agency, and Approving Related Documents and Official Actions RECOMMENDATION: That the Board of Directors adopt a resolution entitled: RESOLUTION NO. SARDA 17- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF REFUNDING BONDS IN ORDER TO REFUND CERTAIN OUTSTANDING BONDS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING RELATED DOCUMENTS AND ACTIONS SUMMARY: The Agency has $80,210,000 in outstanding Prior Bonds. Staff is recommending that the Successor Agency refund the Prior Bonds in order to reduce the average annual bond payments by $570,000 resulting in a corresponding annual increase in property tax revenues to affected taxing entities. This will result in average annual increase of $60,000 in property tax revenues to the City. These are estimated savings based on current market conditions and subject to change. BACKGROUND: Under Assembly Bill (AB) 1484, the Redevelopment Elimination "clean up" Bill, existing bonds can be refinanced (refunded) to lower interest rates as long as the term is not extended and there is no new debt added to the financing. By refunding certain eligible bond issues, the debt service payments will be reduced and the taxing entities will receive additional revenues. Prior to the dissolution of the Redevelopment Agency, the Redevelopment Agency issued the following bonds (collectively, the "Prior Bonds") for the purpose of financing and refinancing redevelopment and housing activities: a) In May 2002, the Redevelopment Agency issued $28,055,000 in Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds) to finance redevelopment activities and refund the Project No. 1 1993 Tax Allocation Bonds, Series A. Currently the Agency has $21,185,000 outstanding 2002 Bonds available for refunding. b) In December 2006, the Redevelopment Agency issued $18,105,000 in Project No. 1 2006 Tax Allocation Bonds, Series A (the "2006A Bonds") and $3,040,000 in Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006B Bonds"). The proceeds were used to refinance redevelopment activities. Currently the Agency has $14,965,000 outstanding 2006A Bonds and $2,630,000 outstanding 2006B Bonds available for refunding. c) In October 2007, the Redevelopment Agency issued $15,790,000 in Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien) to finance redevelopment activities (the "2007 Bonds"). Currently the Agency has $13,820,000 outstanding 2007 Bonds available for refunding. d) In March 2010, the Redevelopment Agency issued $12,720,000 in Project No. 1 Tax Allocation Housing Bonds, 2010 Series B (Taxable Build America Bonds) to finance housing activities (the "2010 Bonds"). Currently the Agency has $11,850,000 outstanding 2010 Bonds available for refunding. e) In March 2011, the Redevelopment Agency issued $17,035,000 in Project No. 1 Tax Allocation Housing Bonds, 2011 Series A to finance housing activities (the "2011 Bonds"). Currently the Agency has $15,760,000 outstanding 2011 Bonds available for refunding. AB 1484 permits successor agencies to refund outstanding bonds and other obligations of a former redevelopment agency which requires the approval of the Successor Agency, Oversight Board and the California Department of Finance. It is anticipated that the refunding of the Prior Bonds will produce an average annual reduction in bond payments of $570,000. This same reduction in annual bond payments frees up additional property tax revenues for distribution to the affected taxing entities. This will result in an average annual increase of $60,000 in property tax revenues to the City. These are estimated savings based on current market conditions and subject to change. The first step in moving forward with the refunding bonds was accomplished by the Successor Agency adopting Resolution SARDA 17-05 on September 5, 2017, and the Oversight Board adopting Resolution 17-03 on September 13, 2017. These resolutions authorized the issuance of the refunding bonds and all the necessary actions relating to the proposed refinancing of the tax allocation bonds, including approval of the Indenture of Trust, Bond Purchase Agreement, and the Escrow Agreements; hiring the finance team members and directing City officials to execute related documents. The Oversight Board Resolution and the Successor Agency Resolution with all attachments were forwarded to California Department of Finance (DOF) on September 14, 2017 and were approved on October 31, 2017. The final step in the process requires Successor Agency to adopt a resolution approving the Preliminary Official Statement (bond offering document) and authorizing the issuance of bonds. It is anticipated the bonds will be sold (priced) and closed by December 14, 2017. FISCAL IMPACT: The fiscal impact of the issuance of refunding bonds will result in the average annual reduction in bond payments of approximately $570,000. This same reduction in annual bond payments frees up additional property tax revenues for distribution to affected taxing entities. This will result in an average annual increase of $60,000 in property tax revenues to the City. These are estimated savings based on current market conditions and subject to change. ATTACHMENTS: 1. Resolution 2. Preliminary Official Statement RESOLUTION NO. SARDA 17- A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF REFUNDING BONDS IN ORDER TO REFUND CERTAIN OUTSTANDING BONDS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING RELATED DOCUMENTS AND ACTIONS THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors (this "Board") of the Successor Agency to the Temecula Redevelopment Agency (the "Successor Agency") hereby finds, determines and declares that: (a) Pursuant to section 34172(a) of the California Health and Safety Code (unless otherwise noted, all section references in this Resolution being to such Code), the Redevelopment Agency of the City of Temecula (the "Former Agency") has been dissolved and no longer exists, and pursuant to section 34173, the Successor Agency has become the successor agency to the Former Agency. (b) Prior to the dissolution of the Former Agency, the Former Agency issued the following bonds (collectively, the "Prior Bonds") for the purpose of financing and refinancing redevelopment and housing activities of the Former Agency, which Prior Bonds remain outstanding: (i) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds"), (ii) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series A (the "2006A Bonds"), (iii) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006B Bonds"), (iv) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien) (the "2007 Bonds"), (v) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 Tax Allocation Housing Bonds 2010 Series B (Taxable Build America Bonds) (the "2010 Bonds"), and (vi) Redevelopment Agency of the City of Temecula Temecula Redevelopment Project No. 1 Tax Allocation Housing Bonds, 2011 Series A (the "2011 Bonds"). (c) Section 34177.5 authorizes the Successor Agency to issue refunding bonds pursuant to Article 11 (commencing with section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Refunding Law") for the purpose of achieving debt service savings within the parameters set forth in section 34177.5(a)(1) (the "Savings Parameters"). (d) On September 5, 2017, the Successor Agency adopted its Resolution No. SARDA 17-05 (the "Authorizing Resolution"), authorizing issuance by the Successor Agency of its Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A (the "Series 2017A Bonds") to refund the 2002 Bonds, the 2006A Bonds, the 2006B Bonds and the 2007 Bonds, and its Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 2017B (the "Series 2017B Bonds," and together with the Series 2017A Bonds, the "Bonds") to refund the 2010 Bonds and the 2011 Bonds, in each case so long as the Savings Parameters were satisfied, and the Authorizing Resolution also approved the form of and authorized execution of various documents prepared in connection with the issuance of the Bonds, including an Indenture of Trust, six Escrow Agreements and a Bond Purchase Agreement; and (e) On September 13, 2017, the Oversight Board of the Successor Agency to the Temecula Redevelopment Agency adopted Resolution No. 17-03 (the "Oversight Board Resolution") approving the issuance by the Successor Agency of the Bonds and making certain determinations. (f) On October 31, 2017, the Department of Finance of the State of California (the "DOF") provided a letter to the Successor Agency approving the Oversight Board Resolution, conditioned upon the Bonds satisfying the Savings Parameters. (g) To determine compliance with the Savings Parameters for purposes of the issuance by the Successor Agency of the Bonds, the Successor Agency has caused its municipal advisor, Fieldman, Rolapp & Associates, to prepare an analysis of the potential savings that will accrue to the Successor Agency and to applicable taxing entities as a result of the use of the proceeds of the Bonds to refund all or a portion of the Prior Bonds (the "Debt Service Savings Analysis"). (h) The Debt Service Savings Analysis has demonstrated that a refunding of all or a portion of the Prior Bonds will satisfy the Savings Parameters. (i) A preliminary official statement to be used in connection with the offering and sale of the Bonds has been prepared, and it is appropriate at this time for the Successor Agency to approve the form of the preliminary official statement and its distribution to prospective purchasers of the Bonds. Section 2. The Successor Agency hereby approves the preliminary official statement for the Bonds (the "Preliminary Official Statement") in the form on file with the Secretary of the Successor Agency, together with any changes therein or additions thereto deemed advisable by the Chair, the Executive Director or the Finance Officer of the Successor Agency (each, an "Authorized Officer"). The Successor Agency authorizes the Authorized Officers, each acting alone, on behalf of the Successor Agency, to deem "final" pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule") the Preliminary Official Statement prior to its distribution by Stifel, Nicolaus & Company, Incorporated, the underwriter for the Bonds (the "Underwriter"), to prospective purchasers of the Bonds. The Underwriter, on behalf of the Successor Agency, is authorized and directed to cause the Preliminary Official Statement to be distributed to such municipal bond broker-dealers, to such banking institutions and to such other persons as may be interested in purchasing the Bonds. The Authorized Officers are hereby authorized and directed to assist the Disclosure Counsel (as identified in the Authorizing Resolution) in causing the Preliminary Official Statement to be brought into the form of a final official statement (the "Final Official Statement"), and the Authorized Officers, each acting alone, are hereby authorized to execute the Final Official Statement and a statement that the facts contained in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Bonds, true and correct in all material respects and that the Final Official Statement did not, on the date of sale of the Bonds, and did not, as of the date of delivery of the Bonds, contain any untrue statement of material fact with respect to the Successor Agency, the Former Agency or the Former Agency's redevelopment project areas or omit to state material facts with respect to the Successor Agency, the Former Agency or the Former Agency's redevelopment project areas required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The execution and delivery by an Authorized Officer of the Final Official Statement, which shall include such changes and additions thereto deemed advisable by the Authorized Officers and such information permitted to be excluded from the Preliminary Official Statement pursuant to the Rule, shall be conclusive evidence of the approval of the Final Official Statement by the Successor Agency. The Final Official Statement, when prepared, is approved for distribution in connection with the offering and sale of the Bonds. Section 3. The Authorized Officers, the Board Secretary and any and all other officers of the Successor Agency are hereby authorized and directed, for and in the name and on behalf of the Successor Agency, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds and the refunding of all or a portion of the Prior Bonds. Whenever in this Resolution any officer of the Successor Agency is directed to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 4. The Board Secretary shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Successor Agency to the Temecula Redevelopment Agency this 14th day of November, 2017. Maryann Edwards, Chair ATTEST: Randi Johl, Secretary [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, Secretary of the Successor Agency to the Temecula Redevelopment Agency, do hereby certify that the foregoing Resolution No. SARDA 17 - was duly and regularly adopted by the Board of Directors of the Successor Agency to the Temecula Redevelopment Agency at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSTAIN: BOARD MEMBERS: ABSENT: BOARD MEMBERS: Randi Johl, Secretary 0 C or..� NEW ISSUE—BOOK-ENTRY ONLY To 0 -O L O a) 0= d "• 0 U 0 fj m_ In the opinion of Quint & Thimmig LLP, Larkspur, California, Bond Counsel, subject to compliance by the Successor Agency with CI) . r certain covenants, interest on the 2017A Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is -0 ° 0 not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but such interest • is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Interest o 0 0 on the 2017B Bonds is includible in gross income of the owners thereof for federal income tax purposes. In addition, in the opinion of Bond w 0 3 Counsel, interest on the Bonds is exempt from personal income taxation imposed by the State of California. See "TAX MATTERS" herein. ca a)off ° o :° ��°FTEMf� SUCCESSOR AGENCY TO THE `DL_E co ° TEMECULA REDEVELOPMENT AGENCY o $45,500,000* $31,145,000* L Tax Allocation Refunding Bonds, Taxable Tax Allocation Refunding Bonds, o CD ` ` �ssy ° �Series 2017A Series 2017B N a • 0 g .-O coo Dated: Date of Delivery Due: December 15, as shown on the inside cover E o :F The $45,500,000* Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A (the "2017A cii m • = Bonds"), and the $31,145,000" Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series E. 0 cr 2017B (the "2017B Bonds" and, with the 2017A Bonds, the "Bonds"), are being issued by the Successor Agency to the Temecula 5 ,--__, 0 Redevelopment Agency (the "Successor Agency") pursuant to the provisions of section 34177.5 of the California Health and Safety Code and w 0 o section 53580 et seq. of the California Government Code (collectively, the "Refunding Law"), a resolution adopted by the Successor Agency w • ° m on September 5, 2017 and an Indenture of Trust, dated as of December 1, 2017 (the "Indenture"), by and between the Successor Agency and a: w U.S. Bank National Association, as trustee (the "Trustee"), to (a) refund and legally defease certain outstanding bonds issued by the former H E 2 Redevelopment Agency of the City of Temecula (the "Former Agency"), the proceeds of which were used to finance redevelopment and low 0 and moderate income housing activities of the Former Agency, (b) purchase a reserve fund municipal bond insurance policy in lieu of cash a) m " funding a debt service reserve fund for the Bonds, and (c) provide for the costs of issuing the Bonds, including the purchase of municipal bond insurance policies for the Bonds. C To d E 0 The Bonds will be delivered as full registered bonds, registered in the name of Cede & Co. as nominee of The Depository Trust E � ,� Y g� g� P rY m O 3 Company, New York, New York ("DTC"), and will be available to ultimate purchasers ("Beneficial Owners") in the denomination of $5,000 co o L or any integral multiple thereof, under the book -entry system maintained by DTC. Beneficial Owners will not be entitled to receive delivery o .E , of bonds representing their ownership interest in the Bonds. Principal of, premium if any, and semiannual interest on the Bonds due on June • .E -o 15 and December 15 of each year, commencing June 15, 2018, will be payable by the Trustee to DTC for subsequent disbursement to DTC a u -° participants, so long as DTC or its nominee remains the registered owner of the Bonds. See "THE BONDS—Description of the Bonds." Ea cl ° .0 3 The Bonds are subject to optional redemption and mandatory sinking account redemption prior to maturity. See "THE BONDS - 0 E m Redemption." CD C `o The Bonds are payable from and secured by a first lien on the Tax Revenues, as defined in the Indenture, and moneys in certain funds _0— cii0 w 0 and accounts established under the Indenture, as further described in this Official Statement. See "SECURITY FOR THE BONDS." 2 0 m In addition to the Bonds, the Successor Agency may issue or incur Parity Debt that is payable from Tax Revenues on a parity with the E-,7,.5 Bonds, but only for the purpose of refunding the Bonds and any future Parity Debt. See "THE BONDS—Parity Debt" herein. .,_�0 0 The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under insurance policies to be issued concurrently .� with the delivery of the Bonds by O 0 L [insert insurer's logo] a7 NU o -o w • The Bonds and interest thereon are not a debt of the City of Temecula, California (the "City"), Riverside County, California (the 0 D 00 • "County"), the State of California (the "State") or any of their political subdivisions except the Successor Agency, and none of the City, the o r County, the State nor any of their political subdivisions except the Successor Agency is liable thereon. The Bonds and interest thereon are .� o 3 not payable out of any funds or properties other than those pledged to their payment under the Indenture. Neither the members of the E — •— Successor Agency, the Oversight Board of the Successor Agency, the County Board of Supervisors nor any persons executing the Bonds are LO 0 o liable personally on the Bonds. The Successor Agency has no taxing power. C'0 .0 C ._ a:-- 0 L O cn 0 0 • .0 co This cover page and the inside cover page contain information for quick reference only. They are not intended to be a summary of all o -� 0 factors relating to an investment in the Bonds. Investors should review the entire Official Statement before making any investment decision E with respect to the Bonds. u) E " The Bonds are offered, when, as and if issued, subject to the approval as to their legality of int & Thimmig LLP, Larkspur, California, � E g j PP g h' �� g P ma Bond Counsel to the Successor Agency. Certain legal matters will be passed on for the Successor Agency by Quint & Thimmig LLP, Larkspur, To .5 • w California, acting as Disclosure Counsel to the Successor Agency, and for the Successor Agency by Richards, Watson & Gershon, A Ow Professional Corporation, Los Angeles, California in its capacity as general counsel to the Successor Agency. Certain legal matters will be L, ..5 5 passed on for the Underwriter by Stradling, Yocca, Carlson & Rauth, a Professional Corporation, Newport Beach, California. It is anticipated co 6 `o that the Bonds will be available for delivery through the facilities of DTC on or about December 14, 2017. .E ' STIFEL d E m This Official Statement is dated November _, 2017 0 Hr _ * Preliminary, subject to change. PRELIMINARY OFFICIAL STATEMENT DATED AS OF NOVEMBER , 2017 RATINGS: S&P: " " ( -Insured) S&P: " " (Underlying) See "RATINGS" herein MATURITY SCHEDULE (see inside cover) SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY MATURITY SCHEDULES $45,500,000* Tax Allocation Refunding Bonds, Series 2017A $ Serial Bonds; CUSIP Prefix: t Maturity Principal Interest (December 15) Amount Rate Yield Price CUSIPt Suffix Term Bonds maturing December 15, 20 , Price: , to yield % CUSIPt Term Bonds maturing December 15, 20 , Price: , to yield `Jo CUSIPt $31,145,000* Taxable Tax Allocation Refunding Bonds, Series 2017E $ Serial Bonds; CUSIP Prefix: t Maturity Principal Interest (December 15) Amount Rate Yield Price CUSIPt Suffix Term Bonds maturing December 15, 20 , Price: , to yield % CUSIPt Term Bonds maturing December 15, 20 , Price: , to yield `Jo CUSIPt Preliminary, subject to change. t Copyright 2017, American Bankers Association. CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services Bureau, operated by Standard & Poor's. This data is not intended to create a database and does not serve in any way as a substitute for CUSIP Global Services. CUSIP numbers have been assigned by an independent company not affiliated with the Successor Agency or the Underwriter and are included solely for the convenience of the holders of the Bonds. Neither the Successor Agency nor the Underwriter is responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the Bonds or as included herein. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds. SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY SUCCESSOR AGENCY BOARD OF DIRECTORS* Maryann Edwards, Chairperson Matt Rahn, Vice Chair Jeff Comerchero, Member Michael S. Naggar, Member James Stewart, Member SUCCESSOR AGENCY/CITY OFFICIALS Aaron Adams, Executive Director and City Manager Greg Butler, Assistant City Manager Jennifer Hennessy, Finance Officer and City Director of Finance Luke Watson, Community Development Director Randi Johl, Authority Secretary and City Clerk PROFESSIONAL SERVICES Successor Agency General Counsel and City Attorney Richards, Watson & Gershon, A Professional Corporation Los Angeles, California Municipal Advisor Fieldman, Rolapp & Associates, Inc. Irvine, California Fiscal Consultant HDL Companies Diamond Bar, California Bond Counsel and Disclosure Counsel Quint & Thimmig LLP Larkspur, California Trustee, Escrow Bank and Dissemination Agent U.S. Bank National Association Los Angeles, California Verification Agent Grant Thornton LLP Minneapolis, Minnesota * The City Council of the City of Temecula, California, serves as the Board of Directors of the Successor Agency. -i- INTRODUCTION Authority and Purpose 1 The City, the Former Agency and the Successor Agency 2 The Redevelopment Project 3 Tax Increment Financing 3 Authority to Issue Refunding Bonds 3 Security for the Bonds 4 Municipal Bond Insurance Policies; Reserve Account Insurance Policy 5 Limited Obligation 5 Parity Debt 5 Professionals Involved in the Offering 5 Further Information 6 REFUNDING PLAN 6 Refunding of the Prior Bonds 6 Estimated Sources and Uses of Funds 8 Debt Service Schedule 9 THE BONDS 9 Authority for Issuance 9 Description of the Bonds 10 Redemption 10 THE DISSOLUTION ACT 14 Recognized Obligation Payment Schedules 15 SECURITY FOR THE BONDS 17 Pledge Under the Indenture 17 Tax Revenues 18 Flow of Funds Under the Indenture 18 Limited Obligation 22 Recognized Obligation Payment Schedules 22 County Administrative Fees 23 Pass -Through Payments 24 Negotiated Agreements 26 Parity Debt 26 MUNICIPAL BOND INSURANCE 26 PROPERTY TAXATION IN CALIFORNIA 27 Property Tax Collection Procedures 27 Unitary Property 29 Article XIIIA of the State Constitution 29 Appropriations Limitation—Article XIIIB 31 Proposition 87 31 Appeals of Assessed Values 31 Propositions 218 and 26 32 Future Initiatives 32 THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY 32 TABLE OF CONTENTS Page 1 APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F APPENDIX G APPENDIX H Page Successor Agency Powers 33 Status of Compliance with Dissolution Act 33 Plan Limits 33 THE REDEVELOPMENT PROJECT 34 Land Use 36 Historical Assessed Values 36 Largest Taxpayers 37 Historical Tax Revenues 39 Assessment Appeals 39 Transfers of Ownership and New Development 41 Historical RPTTF Deposits 42 Projected Available Tax Revenues and Estimated Debt Service Coverage 42 RISK FACTORS 43 Recognized Obligation Payment Schedule 44 Challenges to Dissolution Act 45 Reduction in Taxable Value 45 Limitations on Remedies 46 Risks to Real Estate Market 46 Concentration of Property Ownership; High Volatility Ratio 47 Reduction in Inflationary Rate 47 Development Risks 47 Future Land Use Regulations and Growth Control Initiatives 48 Assessment Appeals 48 Levy and Collection of Taxes 48 Bankruptcy and Foreclosure 49 Estimated Revenues 49 Seismic Factors and Flooding 50 Hazardous Substances 50 Changes in the Law 50 Loss of Tax -Exemption 51 Secondary Market 51 TAX MATTERS 51 VERIFICATION OF MATHEMATICAL COMPUTATIONS 55 UNDERWRITING 55 MUNICIPAL ADVISOR 56 LEGAL OPINIONS 56 LITIGATION 56 RATINGS 57 CONTINUING DISCLOSURE 57 AUDITED FINANCIAL STATEMENTS 57 MISCELLANEOUS 58 - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE - FORMS OF OPINIONS OF BOND COUNSEL - BOOK -ENTRY ONLY SYSTEM - FORM OF CONTINUING DISCLOSURE CERTIFICATE - COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF TEMECULA FOR THE FISCAL YEAR ENDED JUNE 30, 2016 - GENERAL INFORMATION ABOUT THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE - FISCAL CONSULTANT'S REPORT - SPECIMEN MUNICIPAL BOND INSURANCE POLICY GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations with respect to the Bonds other than as contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized by the Successor Agency. No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the Successor Agency or the Redevelopment Project since the date of this Official Statement. Use of this Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to in this Official Statement and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract with the purchasers of the Bonds. Preparation of this Official Statement. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Document References and Summaries. All references to and summaries of the Indenture or other documents contained in this Official Statement are subject to the provisions of those documents and do not purport to be complete statements of those documents. Stabilization of and Changes to Offering Prices. The Underwriter may over -allot or take other steps that stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. If commenced, the Underwriter may discontinue such market stabilization at any time. The Underwriter may offer and sell the Bonds to certain dealers, dealer banks and banks acting as agent at prices lower than the public offering prices stated on the cover page of this Official Statement, and those public offering prices may be changed from time to time by the Underwriter. Bonds are Exempt from Securities Laws Registration. The issuance and sale of the Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exemptions for the issuance and sale of municipal securities provided under section 3(a)(2) of the Securities Act of 1933 and section 3(a)(12) of the Securities Exchange Act of 1934. Estimates and Projections. Certain statements included or incorporated by reference in this Official Statement constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, section 21E of the United States Securities Exchange Act of 1934, as amended, and section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as "plan," "expect," "estimate," "budget" or other similar words. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE AUTHORITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN ITS EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED OCCUR. Website. The City of Temecula, California, maintains an Internet website, but the information on the website is not incorporated in this Official Statement. Municipal Bond Insurance. (the "Bond Insurer") makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, the Bond Insurer has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the Bond Insurer, supplied by the Bond Insurer and presented under the heading "MUNICIPAL BOND INSURANCE" and APPENDIX H—SPECIMEN MUNICIPAL BOND INSURANCE POLICY. -111- CITY OF TEMECULA (Riverside County, California) Regional Location Map -iv- OFFICIAL STATEMENT SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY $45,500,000* $31,145,000* Tax Allocation Refunding Bonds, Taxable Tax Allocation Refunding Bonds, Series 2017A Series 2017B INTRODUCTION This Official Statement, including the cover page, is provided to furnish information in connection with the sale by the Successor Agency to the Temecula Redevelopment Agency (the "Successor Agency") of its $45,500,000* Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A (the "2017A Bonds"), and its $31,145,000* Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 2017B (the "2017B Bonds," and together with the 2017A Bonds, the "Bonds"). Authority and Purpose The Successor Agency is issuing the Bonds pursuant to authority granted by section 34177.5(a)(1) of the Health & Safety Code of the State of California, Article 11 (commencing with section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (collectively, the "Refunding Law"), Resolution No. SARDA 17-05 adopted by the Board of Directors of the Successor Agency on September 5, 2017, and an Indenture of Trust, dated as of December 1, 2017 (the "Indenture") by and between the Successor Agency and U.S. Bank National Association, as trustee (the "Trustee"). See "THE BONDS—Authority for Issuance." The Successor Agency is issuing the 2017A Bonds to refund and defease the following bonds issued by the Redevelopment Agency of the City of Temecula (the "Former Agency"), to finance redevelopment activities within and for the benefit of the Former Agency's Temecula Redevelopment Project No. 1 (the "Redevelopment Project"): (i) the Temecula Redevelopment Project No. 1 2002 Tax Allocation Bonds (the "2002 Bonds") of which $21,185,000 principal amount is outstanding, (ii) the Temecula Redevelopment Project No. 12006 Tax Allocation Bonds, Series A (the "2006A Bonds") of which $14,965,000 principal amount is outstanding, (iii) the Temecula Redevelopment Project No. 1 2006 Tax Allocation Bonds, Series B (Subordinate Lien) (the "2006B Bonds"), of which $2,630,000 principal amount is outstanding, and (iv) the Temecula Redevelopment Project No. 1 2007 Tax Allocation Bonds (Subordinate Lien) (the "2007 Bonds") of which $13,820,000 principal amount remains outstanding. The Successor Agency is issuing the 2017B Bonds to refund and defease the following bonds issued by the Former Agency to finance low and moderate income housing activities: (i) the Temecula Redevelopment Project No. 1 Tax Allocation Housing Bonds, 2010 Series B (Taxable Build America Bonds) (the "2010B Bonds") of which $11,850,000 principal amount is outstanding, and (ii) the Temecula Redevelopment Project No. 1 Tax Allocation Housing Bonds, 2011 Series A (the "2011A Bonds," and together with the 2002 Bonds, the 2006A Bonds, the 2006B Bonds, 2007 Bonds and the 2010B Bonds, the "Prior Bonds") of which $15,760,000 principal amount is outstanding. * Preliminary, subject to change. -1- A portion of the proceeds of the Bonds will also be used to purchase a reserve fund municipal bond insurance policy in lieu of cash funding a reserve fund for the Bonds, and to pay the costs of issuing the Bonds. The City, the Former Agency and the Successor Agency City. The City of Temecula, California (the "City") is located in southwestern Riverside County, California (the "County"). The City was incorporated on December 1, 1989. The City is bordered by the City of Murrieta to the north and the Pechanga Indian Reservation and San Diego County to the south. The City is supported by high median and mean income levels as well as the City's favorable tourism and resort industries. The City is a prominent tourist destination, with the Temecula Valley Wine Country, Old Town Temecula, the Temecula Valley Balloon & Wine Festival, championship golf courses, and resort accommodations attracting a significant amount of tourists. For certain information regarding the City and the County see APPENDIX F— GENERAL INFORMATION ABOUT THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE. The City has no responsibility whatsoever for the repayment of the Bonds. See "SECURITY FOR THE BONDS—Limited Obligation." Former Agency. The Former Agency was established March 26, 1991 pursuant to the California Community Redevelopment Law (referred to in this Official Statement as the "Redevelopment Law") and Ordinance No. 91-08 adopted by the City Council. The City Council was the governing board of the Former Agency. Dissolution Act. On June 29, 2011, Assembly Bill No. 26 ("AB 1X 26") was enacted together with a companion bill, Assembly Bill No. 27 ("AB 1X 27"). The provisions of AB 1X 26 provided for the dissolution of all redevelopment agencies statewide. The provisions of AB 1X 27 permitted redevelopment agencies to avoid such dissolution by the payment of certain amounts. A lawsuit was brought in the California Supreme Court, California Redevelopment Association, et al., v. Matosantos, et al., 53 Cal. 4th 231 (2011), challenging the constitutionality of AB 1X 26 and AB 1X 27. On December 19, 2011, in its decision in that lawsuit, the California Supreme Court largely upheld AB 1X 26, invalidated AB 1X 27, and held that AB 1X 26 may be severed from AB 1X 27 and enforced independently. As a result of AB 1X 26 and the decision of the California Supreme Court in the California Redevelopment Association case, as of February 1, 2012, all redevelopment agencies in the State were dissolved, including the Former Agency, and successor agencies were designated as successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies. The primary provisions enacted by AB 1X 26 relating to the dissolution and wind down of former redevelopment agency affairs are found in Parts 1.8 (commencing with section 34161) and 1.85 (commencing with section 34170) of Division 24 of the Health and Safety Code of the State, as amended, including by Assembly Bill No. 1484 ("AB 1484"), enacted on June 27, 2012 as Chapter 26, Statutes of 2012, and on September 22, 2015 by Senate Bill 107 ("SB 107"), enacted as Chapter 325, Statutes of 2015. The provisions of Part 1.85, as amended by AB 1484 and SB 107 and other amendments are referred to in this Official Statement as the "Dissolution Act." The Redevelopment Law together with the Dissolution Act and the acts amendatory thereof and supplemental thereto are sometimes referred to in this Official Statement as, the "Law." Successor Agency. Pursuant to section 34173 of the Dissolution Act, the City Council of the City adopted Resolution No. 11-67 on September 27, 2011, pursuant to which the City made an election to serve as the Successor Agency to the Former Agency. The City Council subsequently adopted Resolution No. 12-02 on January 10, 2012 affirming the City's election to serve as the -2- Successor Agency to the Former Agency. However, subdivision (g) of section 34173 of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency is a separate legal entity from the City, that the two entities shall not merge and that the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City. See "THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY." The Redevelopment Project On July 12, 1988, prior to the incorporation of the City, the County of Riverside (the "County") adopted the County of Riverside Redevelopment Plan 1 – 1988 (the "County Redevelopment Plan") by Ordinance No. 658 of the County Board of Supervisors. On December 1, 1989, the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City. As stated above, the Former Agency was established on March 26, 1991, by the City Council by adoption of its Ordinance No. 91-08. The City Council subsequently adopted Ordinances Nos. 91-11, 91-14 and 91-15 on April 9, 1991, relating to approval of the County Redevelopment Plan as the Temecula Redevelopment Plan No. 1 (the "Redevelopment Plan") and the transfer of jurisdiction over the Redevelopment Plan to the Former Agency. This transfer was effective July 1, 1991. Thereafter, the City Council adopted Ordinance No. 94-33 on December 20, 1994, Ordinance No. 06-11 on September 26, 2006, and Ordinance No. 07-20 on January 8, 2008, amending certain provisions of the Redevelopment Plan. The Redevelopment Project, being the area encompassed by the Redevelopment Plan is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Redevelopment Project encompasses approximately 1,635 acres. The Redevelopment Project includes the Promenade Mall site, Old Town area of the City and industrial and business park areas west of Interstate 15. See "THE REDEVELOPMENT PROJECT" herein. The total assessed valuation of taxable property in the Redevelopment Project in fiscal year 2017-18 is $2,278,232,018, with $1,913,138,739 of such amount representing incremental assessed value. See "THE REDEVELOPMENT PROJECT—Historical Assessed Values" and APPENDIX G—FISCAL CONSULTANT'S REPORT. Tax Increment Financing Prior to the enactment of AB 1X 26, the Redevelopment Law authorized the financing of redevelopment projects through the use of tax increment revenues. This method provided that the taxable valuation of the property within a redevelopment project area on the property tax roll last equalized prior to the effective date of the ordinance which adopted the redevelopment plan became the base year valuation. Assuming the taxable valuation never drops below the base year level, the taxing agencies receiving property taxes thereafter received only that portion of the taxes produced by applying then current tax rates to the base year valuation, and the redevelopment agency was allocated the remaining portion of property taxes produced by applying then current tax rates to the increase in valuation over the base year. Such incremental tax revenues allocated to a redevelopment agency were authorized to be pledged to the payment of redevelopment agency obligations. Authority to Issue Refunding Bonds The Dissolution Act authorizes each successor agency to issue refunding bonds secured by a pledge of, and lien on, and repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund established and held by the County Auditor -Controller -3- for the Successor Agency by the Dissolution Act (the "Redevelopment Property Tax Trust Fund"). Section 34177.5(a)(1) of the Dissolution Act authorizes the issuance of refunding bonds, to be secured by a pledge of moneys deposited from time to time in the applicable Redevelopment Property Tax Trust Fund to provide savings to the successor agency, provided that (i) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness does not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (ii) the principal amount of the refunding bonds or other indebtedness does not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. Security for the Bonds The Dissolution Act requires the Riverside County Auditor -Controller (the "County Auditor -Controller") to determine the amount of property taxes that would have been allocated to the Former Agency from the Redevelopment Project had the Former Agency not been dissolved pursuant to the operation of AB 1X 26, using current assessed values on the last equalized roll on August 20, and to deposit that amount in the Redevelopment Property Tax Trust Fund for the Successor Agency established and held by the County Auditor -Controller pursuant to the Dissolution Act. The Dissolution Act provides that any bonds or other indebtedness authorized thereunder to be issued by the Successor Agency will be considered indebtedness incurred by the dissolved Former Agency, with the same lien priority and legal effect as if the bonds or other indebtedness had been issued prior to effective date of AB 1X 26, in full conformity with the applicable provisions of the Redevelopment Law that existed prior to that date, and will be included in the Successor Agency's Recognized Obligation Payment Schedules. See "SECURITY FOR THE BONDS—Recognized Obligation Payment Schedules." The Dissolution Act further provides that bonds or other indebtedness authorized thereunder to be issued by the Successor Agency will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund, and that property tax revenues pledged to any bonds authorized under the Dissolution Act, such as the Bonds, are taxes allocated to the Successor Agency pursuant to the provisions of the Redevelopment Law and the California State Constitution. Property tax revenues are allocated to the Successor Agency on a semi-annual basis based on a Recognized Obligation Payment Schedule submitted by the Successor Agency to an oversight board established for the Successor Agency (the "Oversight Board") and the California Department of Finance (the "DOF"). The County Auditor -Controller distributes funds from the Redevelopment Property Tax Trust Fund in the order specified in the Dissolution Act. See "SECURITY FOR THE BONDS—Recognized Obligation Payment Schedules." The Bonds and any Parity Debt are limited obligations of the Successor Agency entitled to the benefits of the Indenture and are payable solely from and secured by Tax Revenues and moneys on deposit in the Debt Service Fund, including the Reserve Account therein. See "SECURITY FOR THE BONDS—Pledge Under the Indenture." The term "Tax Revenues" is defined under the Indenture to mean the moneys deposited or available for deposit from time to time in the Redevelopment Property Tax Trust Fund established pursuant to subdivision (b) of section 34170.5 of the Dissolution Act, as provided in paragraph (2) of subdivision (a) of section 34183 of the Dissolution Act, after payment of (a) County administrative fees pursuant to section 34183(a) of the Dissolution Act, (b) the annual amount required to be deposited to a Pledge Fund under and as such term is defined in Article 6 of a Housing Loan Agreement, as defined in the Indenture (see "SECURITY FOR THE BONDS—Negotiated Agreements"), and (c) all amounts -4- required to be paid by the Successor Agency pursuant to any Pass -Through Agreement or any Statutory Pass -Through Amounts (to the extent that the payments thereunder or any such Statutory Pass -Through Amounts, respectively, are not subordinated to the Successor Agency's obligation to repay the Bonds). If, and to the extent, that the provisions of section 34172 or paragraph (2) of subdivision (a) of section 34183 of the Dissolution Act are invalidated by a final judicial decision, then Tax Revenues shall include all tax revenues allocated to the payment of indebtedness of the Successor Agency pursuant to section 33670 of the Law or such other section as may be in effect at the time providing for the allocation of tax increment revenues to the Successor Agency in accordance with Article XVI, Section 16 of the California Constitution. Successor agencies have no power to levy property taxes and must rely on the allocation of taxes as described above. See "RISK FACTORS." Municipal Bond Insurance Policies; Reserve Account Insurance Policy The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under two insurance policies, one for each series of the Bonds (collectively, the "Municipal Bond Insurance Policies") to be issued by (the "Bond Insurer"). See "MUNICIPAL BOND INSURANCE." In addition, the Bond Insurer has made a commitment to issue a municipal bond insurance policy for the Reserve Account (the "Reserve Account Insurance Policy") in an amount equal to the initial Reserve Requirement, which Reserve Account Insurance Policy will be held in the Reserve Account solely for the benefit of Bonds. See "SECURITY FOR THE BONDS—Reserve Account." See "SECURITY FOR THE BONDS—Flow of Funds Under the Indenture" and APPENDIX A—SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE. Limited Obligation The Bonds are limited obligations of the Successor Agency and are secured by an irrevocable pledge of, and are payable as to principal, interest and premium, if any, from Tax Revenues and other funds pledged therefore under the Indenture. The Bonds are not a debt of the City, the County, the State or any of their political subdivisions except the Successor Agency, and none of the City, the County, the State or any of their political subdivisions except the Successor Agency are liable thereon. The Bonds are not payable out of any funds other than those pledged to the payment of the Bonds in the Indenture. No member of the Board of Directors of the Successor Agency, officer, agent, or employee of the Successor Agency, or member of the Board of Directors of the Oversight Board or of the County Board of Supervisors, or any person executing the Bonds, is liable personally on the Bonds by reason of their issuance. Parity Debt The Indenture permits the issuance of Parity Debt secured by a pledge of Tax Revenues on a parity with the pledge of Tax Revenues to the payment of the Bonds under the Indenture, under certain circumstances. As of the date of issuance of the Bonds, there will be no outstanding obligations, other than the Bonds, secured by a pledge of the Tax Revenues. See "THE BONDS— Parity Debt." Professionals Involved in the Offering Fieldman, Rolapp & Associates, Inc., Irvine, California (the "Municipal Advisor"), has served as municipal advisor to the Successor Agency and has advised the Successor Agency with -5- respect to the financial structure of the Bonds and as to other financial aspects related to the Bonds. HDL Companies, Diamond Bar, California, has acted as fiscal consultant to the Successor Agency (the "Fiscal Consultant") and advised the Successor Agency as to the taxable values and Tax Revenues projected to be available to pay debt service on the Bonds as referenced in this Official Statement. The report prepared by the Fiscal Consultant is referred to in this Official Statement as the "Fiscal Consultant's Report." See APPENDIX G—FISCAL CONSULTANT'S REPORT. U.S. Bank National Association, Los Angeles, California, will act as Trustee for the Bonds under the Indenture, as Escrow Bank with respect to the refunding of the Prior Bonds, and as the Dissemination Agent under the Continuing Disclosure Certificate for the Bonds. Sufficiency of the deposits to redeem and defease the Prior Bonds will be verified by Grant Thornton LLP, Minneapolis, Minnesota. The proceedings in connection with the issuance of the Bonds are subject to the approval as to their legality of Quint & Thimmig LLP, Larkspur, California, Bond Counsel to the Successor Agency. Quint & Thimmig LLP is also acting as Disclosure Counsel to the Successor Agency for the Bonds. Richards, Watson & Gershon, A Professional Corporation, Los Angeles, California, acting as general counsel to the Successor Agency, will render an opinion as to certain legal matters on behalf of the Successor Agency. Certain legal matters will be passed on for the Underwriter by Stradling, Yocca, Carlson & Rauth, a Professional Corporation, Newport Beach, California, acting as Underwriter's Counsel. Further Information Brief descriptions of the Redevelopment Law, the Dissolution Act, the Refunding Law, the Bonds, the Indenture, the Escrow Agreements (defined below), the Successor Agency, the Former Agency and the Redevelopment Project are included in this Official Statement. Such descriptions do not purport to be comprehensive or definitive. All references in this Official Statement to the Redevelopment Law, the Dissolution Act, the Refunding Law, the Bonds, the Indenture, the Escrow Agreements, the Constitution and the laws of the State, as well as the proceedings of the Former Agency and the Successor Agency are qualified in their entirety by reference to such documents and laws. References in this Official Statement to the Bonds are qualified in their entirety by the form included in the Indenture and by the provisions of the Indenture. During the period of the offering of the Bonds, copies of the forms of all documents described herein are available upon written request from the City of Temecula, 41000 Main Street, Temecula, California 92589-9033, Attention: Director of Finance. The City may impose a charge for the copying, mailing and handling of documents. REFUNDING PLAN Refunding of the Prior Bonds Pursuant to six separate escrow agreements (collectively, the "Escrow Agreements"), each dated as of December 1, 2017, and each between the Successor Agency and U.S. Bank National Association, as escrow bank (the "Escrow Bank"), the Successor Agency will deliver a portion of the proceeds of the Bonds, along with certain other available amounts, to the Escrow Bank for -6- deposit in separate escrow funds established under the Escrow Agreements (each, an "Escrow Fund," and collectively, the "Escrow Funds"). Amounts deposited in the Escrow Funds will be invested in part in certain U.S. Treasury securities and will be held in part in cash, uninvested. The maturing securities, the interest thereon and the uninvested cash in the respective Escrow Funds for the 2002 Bonds and the 2006A Bonds will provide a sufficient amount to redeem the outstanding 2002 Bonds and the 2006A Bonds in full on January 1, 2018*, at a redemption price equal to 100% of the principal amount thereof, together with accrued interest to such date. The maturing securities, the interest thereon and the uninvested cash in the Escrow Fund for the 2006B Bonds and the 2007 Bonds will provide a sufficient amount to pay the debt service due on the 2006B Bonds and the 2007 Bonds on December 15, 2017, and to redeem the outstanding 2006B Bonds and 2007 Bonds that mature on or after December 15, 2018 on January 1, 2018*, at a redemption price equal to 100% of the principal amount thereof together with accrued interest thereon to such date. The maturing securities, the interest thereon and the uninvested cash in the Escrow Fund for the 2010B Bonds will provide a sufficient amount to pay the debt service due on the 2010B Bonds to and including August 1, 2020, and to redeem the outstanding 2010B Bonds that mature on or after August 1, 2021 on August 1, 2020 at a redemption price equal to 100% of the principal amount thereof together with accrued interest thereon to such date. The maturing securities, the interest thereon and the uninvested cash in the Escrow Fund for the 2011A Bonds will provide a sufficient amount to pay the debt service due on the 2011A Bonds to and including August 1, 2021, and to redeem the outstanding 2011A Bonds that mature on or after August 1, 2022 on August 1, 2021, at a redemption price equal to 100% of the principal amount thereof together with accrued interest thereon to such date. The sufficiency of the deposits in the Escrow Funds to defease the Prior Bonds will be verified by Grant Thornton LLP (the "Verification Agent"). See "VERIFICATION OF MATHEMATICAL COMPUTATIONS." Assuming the accuracy of the Verification Agent's computations, the Prior Bonds will be legally defeased on the date of issuance of the Bonds, and the Prior Bonds will no longer be outstanding under the various indentures of trust pursuant to which they were issued. The amounts held by the Escrow Bank in the Escrow Funds are pledged solely to the payment of amounts due and payable by the Successor Agency on the related Prior Bonds. The funds deposited in the Escrow Funds will not be available for the payment of debt service on the Bonds. Preliminary, subject to change. -7- Estimated Sources and Uses of Funds The estimated sources and uses of funds for the financing are summarized below. Sources: 2017A Bonds 2017B Bonds Principal Amount of Bonds $ $ Less (Plus): Original Issue Discount (Premium) Plus: Fund Related to the Prior Bonds(1) Total Sources $ $ Uses: Escrow Fund Deposits $ $ 2002 Bonds 2006A Bonds 2006B Bonds 2007 Bonds 2010B Bonds 2011A Bonds Deposit to Costs of Issuance Fund(2) Total Uses $ $ (1) Includes amounts in various funds and accounts attributable to the Prior Bonds and amounts held by the Successor Agency. (2) Costs of issuance include the Underwriter's discount, fees and expenses of Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Fiscal Consultant, the Trustee, the City, the Verification Agent, the Successor Agency administrative staff, Successor Agency counsel, printing expenses, rating fees, the premiums for the Municipal Bond Insurance Policies and the Reserve Account Insurance Policy, and other costs related to the issuance of the Bonds. In addition to the foregoing, on the date of issuance of the Bonds, the Successor Agency will cause to be deposited (a) to a Prior Bond Proceeds Account within a Program Fund established and held by the Trustee under the Indenture, $ from amounts held under the indenture of trust, as amended, pursuant to which the 2007 Bonds were issued, for subsequent transfer to the City to be deposited and used by the City as provided in a 2007 Bond Proceeds Funding Agreement, dated as of October 27, 2017, between the City and the Successor Agency; and (b) to a Housing Projects Account of the Program Fund established and held by the Trustee under the Indenture, $ from amounts held under the indenture of trust, as amended, pursuant to which the 2010B Bonds and the 2011A Bonds were issued, for subsequent transfer to the City for deposit and use by the City to a Low and Moderate Income Housing Assets Fund and pursuant to a Housing Bond Proceeds Funding Agreement, dated as of October 27, 2017, between the City and the Successor Agency. -8- Debt Service Schedule The following table shows the annual debt service schedule for the Bonds, assuming no optional redemption of the Bonds prior to their respective maturities. Bond Year Ending December 15 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2017A Bonds 2017B Bonds Principal(') Interest Total Principal(') Interest Total Total (1) Includes mandatory sinking fund payments. See "THE BONDS—Redemption—Mandatory Sinking Account Redemption." THE BONDS Authority for Issuance The Bonds were authorized to be issued, and the Indenture was authorized to be executed, by the Successor Agency pursuant to Resolution No. SARDA 17-05, adopted by the Board of Directors of the Successor Agency on September 5, 2017 (the "Successor Agency Resolution"), and the issuance of the Bonds by the Successor Agency was approved by the Oversight Board of the Successor Agency pursuant to its Resolution No. OB SARDA 17-03, adopted on September 13, 2017 (the "Oversight Board Resolution"). Pursuant to the Dissolution Act, written notice of the adoption of the Oversight Board Resolution was provided to the DOF on September 14, 2017. On October 31, 2017, the DOF provided a letter to the Successor Agency stating that based on the DOF's review and application of the law, the Oversight Board Resolution approving the issuance of the Bonds is approved by the DOF. Section 34177.5 of the Dissolution Act provides that when, as here, a successor agency issues refunding bonds with the approval of the oversight board and the DOF, the oversight board may not unilaterally approve any amendments to or early termination of the bonds, and the scheduled payments on the bonds shall be listed in the Recognized Obligation Payment -9- Schedules and are not subject to further review and approval by the DOF or the California State Controller. Description of the Bonds The Bonds will be issued and delivered in fully -registered form without coupons in the denomination of $5,000 or any integral multiple thereof for each maturity of each series of the Bonds, initially in the name of Cede & Co., as nominee for The Depository Trust Company ("DTC"), as registered owner of all of the Bonds. The initially executed and delivered Bonds will be dated the date of delivery (the "Closing Date") and will mature on December 15 in the years and in the principal amounts shown on the inside cover page of this Official Statement. Interest on the Bonds will be calculated on the basis of a 360 -day year of twelve 30 -day months at the rates shown on the inside cover page of this Official Statement, payable semiannually on June 15 and December 15 in each year, commencing on June 15, 2018, by check mailed to the registered owners thereof or upon the request of the Owners of $1,000,000 or more in principal amount of Bonds, by wire transfer to an account in the United States which shall be designated in written instructions by such Owner to the Trustee on or before the applicable Record Date. Record Date is defined in the Indenture as, with respect to any Interest Payment Date, the close of business on the first (1st) calendar day of the month in which such Interest Payment Date occurs, whether or not such first (1st) calendar day is a Business Day. One fully -registered certificate will be issued for each maturity of each series of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See APPENDIX C—BOOK-ENTRY ONLY SYSTEM. Redemption Optional Redemption. 2017A Bonds. The 2017A Bonds maturing on or before December 15, , are not subject to optional redemption prior to maturity. The 2017A Bonds maturing on and after December 15, , are subject to redemption, at the option of the Successor Agency on any date on or after December 15, , in whole or in part, among such maturities as are determined by the Successor Agency and by lot within a maturity, from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium. 2017B Bonds. The 2017B Bonds maturing on or before December 15, , are not subject to optional redemption prior to maturity. The 2017B Bonds maturing on and after December 15, , are subject to redemption, at the option of the Successor Agency on any date on or after December 15, , in whole or in part, among such maturities as are determined by the Successor Agency and by lot within a maturity, from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium. Mandatory Sinking Account Redemption. 2017A Bonds. The 2017A Bonds maturing on December 15, (the " 2017A Term Bonds"), are subject to mandatory redemption, in part by lot, from Sinking Account payments set forth in the following schedule on December 15, , and on each December -10- 15 thereafter to and including December 15, , at a redemption price equal to the principal amount thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption; provided, however, that if some but not all of the 2017A Term Bonds have been optionally redeemed, the total amount of Sinking Account payments to be made subsequent to such redemption shall be reduced in an amount equal to the principal amount of the 2017A Term Bonds so redeemed by reducing each such future Sinking Account payment on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as shall be designated pursuant to written notice filed by the Successor Agency with the Trustee. Redemption Date (December 15) Principal Amount The 2017A Bonds maturing on December 15, (the " 2017A Term Bonds"), are subject to mandatory redemption, in part by lot, from Sinking Account payments set forth in the following schedule on December 15, and on each December 15 thereafter to and including December 15, , at a redemption price equal to the principal amount thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption; provided, however, that if some but not all of the 2017A Term Bonds have been optionally redeemed, the total amount of Sinking Account payments to be made subsequent to such redemption shall be reduced in an amount equal to the principal amount of the 2017A Term Bonds so redeemed by reducing each such future Sinking Account payment on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as shall be designated pursuant to written notice filed by the Successor Agency with the Trustee. Redemption Date (December 15) Principal Amount In lieu of the Sinking Account redemption of the 2017A Term Bonds and the 2017A Term Bonds, the Trustee may apply amounts in the Sinking Account to the purchase of 2017A Term Bonds or 2017A Term Bonds at public or private sale, as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as may be directed by the Successor Agency, except that the purchase price (exclusive of accrued interest) may not exceed the then redemption price of the 2017A Term Bonds or the 2017A Terms Bonds, as applicable, as set forth in a Written Request of the Successor Agency. 2017B Bonds. The 2017B Bonds maturing on December 15, (the " 2017B Term Bonds"), are subject to mandatory redemption, in part by lot, from Sinking Account payments set forth in the following schedule on December 15, , and on each December -11- 15 thereafter to and including December 15, , at a redemption price equal to the principal amount thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption; provided, however, that if some but not all of the 2017B Term Bonds have been optionally redeemed, the total amount of Sinking Account payments to be made subsequent to such redemption shall be reduced in an amount equal to the principal amount of the 2017B Term Bonds so redeemed by reducing each such future Sinking Account payment on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as shall be designated pursuant to written notice filed by the Successor Agency with the Trustee. Redemption Date (December 15) Principal Amount The 2017B Bonds maturing on December 15, (the " 2017B Term Bonds"), are subject to mandatory redemption, in part by lot, from Sinking Account payments set forth in the following schedule on December 15, and on each December 15 thereafter to and including December 15, , at a redemption price equal to the principal amount thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption; provided, however, that if some but not all of the 2017B Term Bonds have been optionally redeemed, the total amount of Sinking Account payments to be made subsequent to such redemption shall be reduced in an amount equal to the principal amount of the 2017B Term Bonds so redeemed by reducing each such future Sinking Account payment on a pro rata basis (as nearly as practicable) in integral multiples of $5,000, as shall be designated pursuant to written notice filed by the Successor Agency with the Trustee. Redemption Date (December 15) Principal Amount In lieu of the Sinking Account redemption of the 2017B Term Bonds or the 2017B Term Bonds, the Trustee may apply amounts in the Sinking Account to the purchase of 2017B Term Bonds or the 2017B Term Bonds at public or private sale, as and when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as may be directed by the Successor Agency, except that the purchase price (exclusive of accrued interest) may not exceed the then redemption price of the 2017B Term Bonds or the 2017B Term Bonds, as applicable, as set forth in a Written Request of the Successor Agency. Notice of Redemption. The Trustee on behalf of and at the expense of the Successor Agency will send (by first class mail, postage prepaid, or by such other means as is acceptable to the recipient thereof) notice of any redemption at least twenty (20) (or, if more, such minimum number of days as may be required by the Securities Depositories) but not more than sixty (60) days prior to the redemption date, to (i) the Owners of any Bonds designated for redemption at -12- their respective addresses appearing on the Registration Books, and (ii) to the Securities Depositories and to the Information Services designated in a Written Request of the Successor Agency filed with the Trustee at the time the Successor Agency notifies the Trustee of its intention to redeem Bonds; but such sending will not be a condition precedent to such redemption and neither failure to receive any such notice nor any defect therein will affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice will state the redemption date and the redemption price, will designate the CUSIP number of the Bonds to be redeemed, state the individual number of each Bond to be redeemed or state that all Bonds between two stated numbers (both inclusive) or all of the Bonds Outstanding (or all Bonds of a maturity) are to be redeemed, and will require that such Bonds be then surrendered (except for mandatory Sinking Account redemptions) at the Principal Corporate Trust Office of the Trustee for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. Notwithstanding the foregoing, in the case of any optional redemption of the Bonds, the notice of redemption may also state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the Bonds on the anticipated redemption date, and that the optional redemption shall not occur if, by no later than the scheduled redemption date, sufficient moneys to redeem the Bonds have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the Bonds to be optionally redeemed, such event shall not constitute an Event of Default; the Trustee shall send written notice to the Owners to the effect that the redemption did not occur as anticipated, and the Bonds for which notice of optional redemption was given shall remain Outstanding for all purposes of the Indenture. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the redemption price of and interest on the Bonds so called for redemption shall have been duly deposited with the Trustee, such Bonds so called shall cease to be entitled to any benefit under the Indenture other than the right to receive payment of the redemption price and accrued interest to the redemption date, and no interest shall accrue thereon from and after the redemption date specified in such notice. Manner of Redemption. Whenever any Bonds or portions thereof are to be selected for redemption by lot, the Trustee shall make such selection, in such manner as the Trustee shall deem appropriate, and shall notify the Successor Agency thereof. All Bonds redeemed shall be canceled. Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of Bonds and less than all Bonds then currently outstanding of a series are called for redemption, the Trustee will select Bonds of a series for redemption from Bonds of such series then currently Outstanding and not previously called for redemption, at the written direction of the Successor Agency in such order of maturity as shall be designated by the Successor Agency, and in the absence of such direction, pro rata among maturities of such series and by lot within a maturity. The Trustee will promptly notify the Successor Agency in writing of the Bonds so selected for redemption. -13- THE DISSOLUTION ACT The Dissolution Act requires the County Auditor -Controller to determine the amount of property taxes that would have been allocated to the Former Agency (pursuant to subdivision (b) of section 16 of Article XVI of the State Constitution) had the Former Agency not been dissolved pursuant to the operation of AB 1X 26, using current assessed values on the last equalized roll on August 20, and to deposit that amount in the Redevelopment Property Tax Trust Fund for the Successor Agency established and held by the County Auditor -Controller pursuant to the Dissolution Act. The Dissolution Act provides that any bonds authorized thereunder to be issued by the Successor Agency will be considered indebtedness incurred by the Former Agency, with the same lien priority and legal effect as if the bonds had been issued prior to the effective date of AB 1X 26, in full conformity with the applicable provisions of the Redevelopment Law that existed prior to that date, and will be included in the Successor Agency's Recognized Obligation Payment Schedule. See "THE DISSOLUTION ACT—Recognized Obligation Payment Schedules" and "SECURITY FOR THE 2017 BONDS—Recognized Obligation Payment Schedules." The Dissolution Act further provides that bonds authorized by the Dissolution Act to be issued by the Successor Agency will be secured by a pledge of, and lien on, and will be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund, and that property tax revenues pledged to any bonds authorized to be issued by the Successor Agency under the Dissolution Act, including the Bonds, are taxes allocated to the Successor Agency pursuant to subdivision (b) of section 33670 of the Redevelopment Law and section 16 of Article XVI of the State Constitution. Pursuant to subdivision (b) of section 33670 of the Redevelopment Law and section 16 of Article XVI of the State Constitution and as provided in the Redevelopment Plan, taxes levied upon taxable property in the Redevelopment Project each year by or for the benefit of the State, any city, county, city and county, district, or other public corporation (herein sometimes collectively called "taxing agencies") after the effective date of the ordinance approving the Redevelopment Plan, or the effective dates of ordinances approving amendments to the Redevelopment Plan that added territory are to be divided as follows: (a) To Taxing Agencies: That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the Redevelopment Project as shown upon the assessment roll used in connection with the taxation of such property by such taxing agency last equalized prior to the effective date of the ordinance adopting the Redevelopment Plan, or the respective effective dates of ordinances approving amendments to the Redevelopment Plan that added territory to the Redevelopment Project, as applicable (each, a "base year valuation"), will be allocated to, and when collected will be paid into, the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid; and (b) To the Former Agency / Successor Agency: Except for that portion of the taxes in excess of the amount identified in (a) above which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989 for the acquisition or improvement of real property, which portion shall be allocated to, and when collected shall be paid into, the fund of that taxing agency, that portion of the levied taxes each year in excess of such amount, annually allocated within limitations established -14- by the applicable Redevelopment Plan, following the date of issuance of the Bonds, when collected will be paid into a special fund of the Successor Agency. Section 34172 of the Dissolution Act provides that, for purposes of section 16 of Article XVI of the State Constitution, the Redevelopment Property Tax Trust Fund shall be deemed to be a special fund of the Successor Agency to pay the debt service on indebtedness incurred by the Former Agency or the Successor Agency to finance or refinance the redevelopment projects of the Former Agency. That portion of the levied taxes described in paragraph (b) above, less amounts deducted pursuant to section 34183(a) of the Dissolution Act for permitted administrative costs of the County Auditor -Controller, constitute the amounts required under the Dissolution Act to be deposited by the County Auditor -Controller into the Redevelopment Property Tax Trust Fund. In addition, section 34183 of the Dissolution Act effectively eliminates the January 1, 1989 date from paragraph (b) above. See the discussion in Section IV.C. of the Fiscal Consultant's Report in Appendix G. In addition, pursuant to section 34187 of the Dissolution Act, funds associated with retired enforceable obligations are required to be reallocated to taxing agencies as regular property taxes and not deposited into the Redevelopment Property Tax Trust Fund for the Successor Agency at all (however, section 34187(a)(2) of the Dissolution Act provides for retention of funds by the Successor Agency to the extent needed for payment of enforceable obligations upon authorization by the DOF). Recognized Obligation Payment Schedules Submission of Recognized Obligation Payment Schedule. The Dissolution Act requires successor agencies to periodically prepare, and submit to the DOF and the County Auditor - Controller for approval, an oversight board -approved recognized obligation payment schedule (the "Recognized Obligation Payment Schedule") pursuant to which enforceable obligations (as defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Commencing on February 1, 2016, successor agencies were transitioned to an annual Recognized Obligation Payment Schedule process pursuant to which successor agencies are required to file Recognized Obligation Payment Schedules with the DOF and the County Auditor -Controller for approval on or before each February 1 for the July 1 through June 30 period immediately following such February 1. For example, on February 1, 2016, the Successor Agency was required to file a Recognized Obligation Payment Schedule for the period commencing July 1, 2016 through June 30, 2017. In addition, commencing on January 1, 2016, successor agencies that have received a Finding of Completion and the concurrence of the DOF as to the items that qualify for payment, among other conditions, may at their option, file a "Last and Final" Recognized Obligation Payment Schedule. If approved by the DOF, the Last and Final Recognized Obligation Payment Schedule will be binding on all parties, and the Successor Agency will no longer submit a Recognized Obligation Payment Schedule to the DOF or the Oversight Board. The county auditor -controller will remit the authorized funds to the Successor Agency in accordance with the approved Last and Final Recognized Obligation Payment Schedule until each remaining enforceable obligation has been fully paid. A Last and Final Recognized Obligation Payment Schedule may only be amended twice, and only with approval of the DOF and the County Auditor -Controller. The Successor Agency has no current plans to file a Last and Final Recognized Obligation Payment Schedule. -15- Payment of Amounts Listed on the Recognized Obligation Payment Schedule. As defined in the Dissolution Act, "enforceable obligation" includes bonds, including the required debt service, reserve set -asides, and any other payments required under the indenture or similar documents governing the issuance of the outstanding bonds of the former redevelopment agency or the successor agency, as well as other obligations such as loans, judgments or settlements against the former redevelopment agency or the successor agency, any legally binding and enforceable agreement that is not otherwise void as violating the debt limit or public policy, contracts necessary for the administration or operation of the successor agency, and, under certain circumstances, amounts borrowed from the successor agency's low and moderate income housing fund. A reserve may be included on the Recognized Obligation Payment Schedule and held by the successor agency when required by a bond indenture or when the next property tax allocation will be insufficient to pay all obligations due under the provisions of the bonds for the next payment due in the following half of the calendar year. Sources of Payments for Enforceable Obligations. Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on a Recognized Obligation Payment Schedule are the following: (i) the low and moderate income housing fund, (ii) bond proceeds, (iii) reserve balances, (iv) administrative cost allowance (successor agencies are entitled to receive not less than $250,000, unless that amount is reduced by the oversight board), (v) the Redevelopment Property Tax Trust Fund (but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or otherwise required under the Dissolution Act), or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the redevelopment agency, as approved by the oversight board). The Dissolution Act provides that only those payments listed in the Recognized Obligation Payment Schedule may be made by a successor agency and only from the funds specified in the Recognized Obligation Payment Schedule. Order of Priority of Distributions from Redevelopment Property Tax Trust Fund. Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the Dissolution Act, and despite the provisions of the Dissolution Act which now provide for annual submissions by successor agencies of Recognized Obligation Payment Schedules (see discussion above under "Submission of Recognized Obligation Payment Schedules"), a county auditor -controller is to distribute funds for each six-month period in the following order specified in section 34183 of the Dissolution Act: (i) first, subject to certain adjustments for subordinations to the extent permitted under the Dissolution Act, if any (as described above under "SECURITY FOR THE BONDS—Pass-Through Payments") and no later than each January 2 and June 1, amounts required for pass-through payments such entity would have received under provisions of the Redevelopment Law, as those provisions read on January 1, 2011, including negotiated pass-through agreements and statutory pass-through obligations; (ii) second, on each January 2 and June 1, to the successor agency for payments listed in its Recognized Obligation Payment Schedule, with debt service payments scheduled to be made for tax allocation bonds having the highest priority over payments scheduled for other debts and obligations listed on the Recognized Obligation Payment Schedule; -16- (iii) third, on each January 2 and June 1, to the successor agency for the administrative cost allowance, as defined in the Dissolution Act; and (iv) fourth, on each January 2 and June 1, to taxing entities any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers authorized by clauses (i) through (iii), in an amount proportionate to such taxing entity's share of property tax revenues in the tax rate area in that fiscal year (without giving effect to any pass-through obligations that were established under the Redevelopment Law). Failure to Submit a Recognized Obligation Payment Schedule. The Recognized Obligation Payment Schedule must be approved by the oversight board, and the oversight board -approved Recognized Obligation Payment Schedule must be submitted by a successor agency to the county auditor -controller and the DOF by February 1 of each year. If the successor agency does not submit a Recognized Obligation Payment Schedule by the applicable deadline, the city or county that established the former redevelopment agency will be subject to a civil penalty equal to $10,000 per day for every day the schedule is not submitted to the DOF. Additionally, if a successor agency does not submit a Recognized Obligation Payment Schedule within 10 days of the deadline, the successor agency's maximum administrative cost for the applicable period is reduced by twenty-five percent. However, the Dissolution Act provides that, if a successor agency fails to submit a Recognized Obligation Payment Schedule by the deadline, any creditor of the successor agency or any affected taxing entity shall have standing to, and may request a writ of mandate to, require the successor agency to immediately perform this duty. For additional information regarding procedures under the Dissolution Act relating to late Recognized Obligation Payment Schedules and implications thereof on the Bonds, see "RISK FACTORS—Recognized Obligation Payment Schedule." To date, the Successor Agency has timely filed all required Oversight Board -approved Recognized Obligation Payment Schedules with the County Auditor -Controller and the DOF. SECURITY FOR THE BONDS The County Auditor -Controller will deposit property tax revenues into the Redevelopment Property Tax Trust Fund pursuant to the requirements of the Health and Safety Code, including inter alia Health and Safety Code section 34183 and 34170.5(b). The Bonds are payable from and secured by the Tax Revenues to be derived from the Redevelopment Project consisting of a portion of the property tax revenues deposited in the Redevelopment Property Tax Trust Fund. Pledge Under the Indenture Except as required to compensate or indemnify the Trustee, the Bonds and any Parity Debt are equally secured by a pledge of, security interest in and lien on all of the Tax Revenues and by a first and exclusive pledge and lien upon all of the moneys in the Debt Service Fund (including the Interest Account, the Principal Account and the Redemption Account) and the Redevelopment Obligation Retirement Fund without preference or priority for series, issue, number, dated date, sale date, date of execution or date of delivery. The Bonds (exclusive of any Parity Debt) are additionally secured by an exclusive pledge of, security interest in and lien on the Reserve Account established by the Indenture. Except for the Tax Revenues and such moneys, no funds or properties of the Successor Agency are pledged to, or otherwise liable for, the payment of principal of or interest or redemption premium (if any) on the Bonds. -17- In consideration of the acceptance of the Bonds by owners of the Bonds, the Indenture is deemed to be and constitutes a contract between the Successor Agency and the Trustee for the benefit of the Owners from time to time of the Bonds, and the covenants and agreements set forth in the Indenture to be performed on behalf of the Successor Agency are for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution and delivery thereof, or otherwise for any cause whatsoever, except as expressly provided therein or in the Indenture. Tax Revenues The term "Tax Revenues" is defined in the Indenture to mean the moneys deposited or available for deposit from time to time in the Redevelopment Property Tax Trust Fund established pursuant to subdivision (b) of section 34170.5 of the Dissolution Act, as provided in paragraph (2) of subdivision (a) of section 34183 of the Dissolution Act, after payment of (a) County administrative fees pursuant to section 34183(a) of the Dissolution Act, (b) the annual amount required to be deposited to a Pledge Fund under and as such term is defined in Article 6 of a Housing Loan Agreement, as defined in the Indenture (see "SECURITY FOR THE BONDS— Negotiated Agreements"), and (c) all amounts required to be paid by the Successor Agency pursuant to any Pass -Through Agreement or any Statutory Pass -Through Amounts (to the extent that the payments thereunder or any such Statutory Pass -Through Amounts, respectively, are not subordinated to the Successor Agency's obligation to repay the Bonds). If, and to the extent, that the provisions of section 34172 or paragraph (2) of subdivision (a) of section 34183 of the Dissolution Act are invalidated by a final judicial decision, then Tax Revenues shall include all tax revenues allocated to the payment of indebtedness of the Successor Agency pursuant to section 33670 of the Law or such other section as may be in effect at the time providing for the allocation of tax increment revenues to the Successor Agency in accordance with Article XVI, Section 16 of the California Constitution. Before it was amended by the Dissolution Act, the Redevelopment Law required the Former Agency to set aside not less than 20% of all tax increment generated in the Redevelopment Project into a low and moderate income housing fund to be used for the purpose of increasing, improving and / or preserving the supply of low and moderate income housing. These tax increment revenues were commonly referred to as "Housing Set -Aside." The Dissolution Act eliminated the Housing Set -Aside requirement. Since a deduction for the Housing Set -Aside is no longer required, amounts that were previously required to be deposited in the housing fund are now included in Tax Revenues. Flow of Funds Under the Indenture General. The Successor Agency previously established the Redevelopment Obligation Retirement Fund pursuant to section 34170.5(a) of the Dissolution Act and has agreed in the Indenture to hold and maintain the Redevelopment Obligation Retirement Fund as long as any of the Bonds are Outstanding. Deposit in Redevelopment Obligation Retirement Fund; Transfer to Debt Service Fund. The Indenture provides that the Successor Agency shall deposit all of the Tax Revenues received in any Bond Year from the Redevelopment Property Tax Trust Fund in accordance with the Dissolution Act into the Redevelopment Obligation Retirement Fund promptly upon receipt thereof by the Successor Agency, and promptly thereafter shall transfer amounts therein to the Trustee for deposit in the Debt Service Fund (as described below), until such time that the aggregate amounts on deposit in such Debt Service Fund equal the aggregate amounts required to be deposited into the Interest Account, the Principal Account, the Sinking Account, the -18- Redemption Account and the Reserve Account in such Bond Year pursuant to the Indenture, and for deposit in such Bond Year in the funds and accounts (including any reserve account) established with respect to Parity Debt, as provided in any Supplemental Indenture. Deposit of Amounts by Trustee. There is established under the Indenture a trust fund to be known as the Debt Service Fund, which will be held by the Trustee under the Indenture in trust. Moneys in the Debt Service Fund will be transferred by the Trustee in the following amounts, at the following times to the following respective special accounts within the Debt Service Fund, in the following order of priority: Interest Account. On or before the fifth (5th) Business Day preceding each Interest Payment Date, commencing with the June 15, 2018 Interest Payment Date, to the extent there are moneys available, the Trustee shall transfer funds from the Debt Service Fund for deposit in the Interest Account an amount which, when added to the amount contained in the Interest Account on that date, will be equal to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds and Parity Debt on such Interest Payment Date. No such transfer and deposit need be made to the Interest Account if the amount contained therein is at least equal to the interest to become due on the next succeeding Interest Payment Date upon all of the Outstanding Bonds and Parity Debt. Subject to this Indenture, all moneys in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying the interest on the Bonds and Parity Debt as it becomes due and payable (including accrued interest on any Bonds and Parity Debt redeemed prior to maturity pursuant to this Indenture). Principal Account. On or before the fifth (5th) Business Day preceding each June 15th Interest Payment Date, commencing with the June 15, 2018 Interest Payment Date, to the extent there are monies available, the Trustee shall transfer funds from the Debt Service Fund for deposit in the Principal Account an amount equal to one-half of the principal payments coming due and payable on the Outstanding Bonds and any Parity Debt on the next December 15. On or before the fifth (5th) Business Day preceding each December 15th Interest Payment Date, commencing with the December 15, 2018 Interest Payment Date, to the extent there are monies available, the Trustee shall transfer funds from the Debt Service Fund for deposit in the Principal Account an amount equal to the difference between the amount then on deposit in the Principal Account and the amount of any principal due on the Outstanding Bonds and any Parity Debt on such December 15. In any event, no such transfer and deposit need be made to the Principal Account if the amount contained therein is at least equal to the principal to become due on the next December 15 on all Outstanding Bonds and any Parity Debt. All moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of the Bonds and any Parity Debt as it shall become due and payable. Sinking Account. On or before the fifth (5th) Business Day preceding each June 15th Interest Payment Date, commencing with the first such June 15th date which is six months prior to the date on which principal (or any mandatory sinking payment) is due on any Term Bonds, to the extent there are moneys available, the Trustee shall transfer funds from the Debt Service Fund for deposit in the Sinking Account an amount equal to one-half of the sinking account payments becoming due and payable on any Bonds and Parity Debt that constitute Term Bonds on the next December 15. On or before the fifth (5th) Business Day preceding each December 15th Interest Payment Date, commencing with the first such December 15th date on which principal (or any mandatory sinking payment) is due on any Term Bonds, to the extent there are monies available, the Trustee shall transfer funds from the Debt Service Fund for deposit in the Sinking Account an amount equal to the difference between the amount then on deposit in the Sinking -19- Account and the amount of any principal (or any mandatory sinking payment) is due on the Outstanding Term Bonds on such December 15. In any event, no such transfer and deposit need be made to the Sinking Account if the amount contained therein is at least equal to the sinking account payments to become due on the next December 15 on all Outstanding Bonds and Parity Debt that constitute Term Bonds. Subject to this Indenture, all moneys in the Sinking Account will be used and withdrawn by the Trustee solely for the purpose of paying the aggregate principal amount of the Term Bonds and term bonds relating to Parity Debt required to be redeemed on such December 15 pursuant to the provisions of the document providing for the issuance of any Parity Debt that constitutes Term Bonds. Reserve Account. The Reserve Requirement will be satisfied by the issuance of the Reserve Account Insurance Policy by the Bond Insurer and not by any deposit of cash in the Reserve Account. The Successor Agency has no obligation to replace the Reserve Account Insurance Policy or to fund the Reserve Account with cash if, at any time the Bonds are outstanding, amounts are unavailable under the Reserve Account Insurance Policy. "Reserve Requirement" means, with respect to the Bonds, as of any date of calculation, to be equal to the least of (a) Maximum Annual Debt Service (not including for such purpose debt service on any Parity Debt) for then current or every subsequent Bond Year, (b) 125% of average Annual Debt Service (not including for such purpose debt service on any Parity Debt) for then current or every subsequent Bond Year, and (c) 10% of the original principal amount of the Bonds (not including any Parity Debt). As of the Closing Date, the Reserve Requirement will be $ If, on any Interest Payment Date, the moneys available in the Interest Account, the Principal Account and the Sinking Account do not equal the amount of the principal or interest on the Bonds (not including any Parity Debt) then coming due and payable, the Trustee shall apply the moneys available in the Reserve Account to make delinquent amounts by transferring the amount necessary for this purpose to the Interest Account, the Principal Account and / or the Sinking Account or shall draw on the Reserve Policy and apply amounts received from such draw to make delinquent amounts by transferring the amount necessary for this purpose to the Interest Account, the Principal Account and / or the Sinking Account. To the extent there is cash or investments on deposit in the Reserve Account, such cash or investments shall be applied first before there is any draw on the Reserve Policy or any other credit facility credited to the Reserve Account in lieu of cash (a "Credit Facility"). Payment of any Policy Costs (hereinafter defined) shall be made prior to replenishment of any such cash amounts. Draws on all Credit Facilities (including the Reserve Policy) on which there is available coverage shall be made on a pro rata basis (calculated by reference to the coverage then available thereunder) after applying all available cash and investments in the Reserve Account. Payment of Policy Costs and reimbursement of amounts with respect to other Credit Facilities shall be made on a pro rata basis prior to replenishment of any cash drawn from the Reserve Account. For the avoidance of doubt, "available coverage" means the coverage then available for disbursement pursuant to the terms of the applicable Credit Facility without regard to the legal or financial ability or willingness of the provider thereof to honor a claim or draw thereon or the failure of such provider to honor any such claim or draw. Upon receipt of any delinquent amount with respect to which moneys have been advanced from the Reserve Account or there has been a draw on the Reserve Policy, such amount shall be deposited in the Reserve Account to the extent of such advance and first applied to reimburse a draw on the Reserve Policy and then to replenish any cash drawn therefrom. The Successor Agency will have no obligation to replace the Reserve Policy or to fund the Reserve Account with cash if, at any time the Bonds are outstanding, (i) amounts are unavailable -20- under the Reserve Policy or (ii) the rating assigned to the Municipal Bond Insurer by any rating agency is downgraded, suspended or withdrawn at any time. The Successor Agency will repay any draws under the Reserve Policy and pay all related reasonable expenses incurred by the Municipal Bond Insurer. Interest shall accrue and be payable on such draws and expenses from the date of payment by the Municipal Bond Insurer at the Late Payment Rate. Repayment of draws and payment of expenses and accrued interest thereon at the Late Payment Rate (collectively, the "Policy Costs") will commence in the first month following each draw. Amounts in respect of Policy Costs paid to the Municipal Bond Insurer shall be credited first to interest due, then to the expenses due and then to principal due. As and to the extent that payments are made to the Municipal Bond Insurer on account of principal due, the coverage under the Reserve Policy will be increased by a like amount, subject to the terms of the Reserve Policy. All cash and investments in the Reserve Account shall be transferred to the Debt Service Fund for payment of the debt service on the Bonds before any drawing may be made on the Reserve Policy or any other Reserve Fund Credit Instrument in lieu of cash. Payment of any Policy Cost shall be made prior to replenishment of any cash amounts. Draws on all Reserve Fund Credit Instruments (including the Reserve Policy) on which there is available coverage shall be made on a pro -rata basis (calculated by reference to the coverage then available thereunder) after applying all available cash and investments in the Reserve Account. Payment of Policy Costs and reimbursement of amounts with respect to other Reserve Fund Credit Instruments shall be made on a pro rata basis prior to replenishment of any cash drawn from the Reserve Account. For the avoidance of doubt, "available coverage" means the coverage then available for disbursement pursuant to the terms of the applicable alternative credit instrument without regard to the legal or financial ability or willingness of the provider of such instrument to honor a claim or draw thereon or the failure of such provider to honor any such claim or draw. Draws under the Reserve Policy may only be used to make payments on Bonds (but not Parity Debt). If the Successor Agency shall fail to pay any Policy Costs in accordance with the requirements of the Indenture, the Municipal Bond Insurer will be entitled to exercise any and all legal and equitable remedies available to it, including those provided under this Indenture other than (i) acceleration of the maturity of the Bonds, or (ii) remedies which would adversely affect owners of the Bonds. The Indenture shall not be discharged until all Policy Costs owing to the Municipal Bond Insurer shall have been paid in full. The Successor Agency's obligation to pay such amount shall expressly survive payment in full of the Bonds. In order to secure the Successor Agency's payment obligations with respect to the Policy Costs, there is granted and perfected in favor of the Municipal Bond Insurer a security interest under the Indenture (subordinate only to that of the owners of the Bonds) in all revenues and collateral pledged as security for the Bonds. -21- The Reserve Policy will expire on the earlier of the date the Bonds are no longer outstanding and the final maturity date of the Bonds. Redemption Account. On or before the fifth (5th) Business Day preceding any date on which Bonds are, or any Parity Debt is, to be optionally redeemed, the Trustee shall withdraw from the Debt Service Fund and transfer to the Redemption Account (which the Trustee shall thereupon establish and hold in trust hereunder) an amount required to pay the principal of and premium, if any, on the Bonds and any Parity Debt to be redeemed on such date, taking into account any funds then on deposit in the Redemption Account. The Trustee shall also deposit in the Redemption Account any other amounts received by it from the Successor Agency designated by the Successor Agency in writing to be deposited in the Redemption Account. All moneys in the Redemption Account shall be used and withdrawn by the Trustee solely for the purpose of paying the principal of and premium, if any, on the Bonds and any Parity Debt to be redeemed on the respective dates set for such redemption. Limited Obligation The Bonds are not a debt of the City, the County, the State or any of their political subdivisions except the Successor Agency, and none of the City, the County, the State or any of their political subdivisions except the Successor Agency are liable therefor. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. No member of the Board of Directors of the Successor Agency or of the Oversight Board, or member of the Board of Supervisors of the County, shall be individually or personally liable for the payment of the principal of or interest or redemption premium (if any) on the Bonds. Recognized Obligation Payment Schedules Dissolution Act Covenant by the Successor Agency. The Successor Agency has covenanted in the Indenture that it will comply with the requirements of the Dissolution Act necessary so as to not materially adversely affect the payment of and security for the Bonds. In the Indenture the Successor Agency covenants and agrees that it will take all actions required under the Dissolution Act to include in Recognized Obligation Payment Schedules for each ROPS Period scheduled debt service on the Bonds and any Parity Debt (including, without limitation, any mandatory redemption payments), as well as any amount required to replenish the Reserve Account of the Debt Service Fund or to pay any amounts owing to the Municipal Bond Insurer, all so as to enable the County's Auditor -Controller to distribute from the Redevelopment Property Tax Trust Fund to the Redevelopment Obligation Retirement Fund on each RPTTF Distribution Date amounts required for the Successor Agency to pay principal of, and interest on, the Bonds and any Parity Debt, and any amounts owing to the Municipal Bond Insurer coming due in the respective ROPS Payment Period corresponding to such RPTTF Distribution Date pursuant to the Dissolution Act (including but not limited to section 34177 therein). Without limiting the generality of the foregoing, the Successor Agency additionally covenants and agrees in the Indenture that, not later than February 1, 2018 and each February 1 thereafter (or at such other time as may be required by the Dissolution Act) for so long as any Bonds or any Parity Debt remain outstanding, the Successor Agency will submit to the California Department of Finance and to the County's Auditor -Controller an Oversight Board -approved ROPS that provides for the distribution of the following amounts (but only to the extent that other amounts on deposit in the Redevelopment Property Tax Trust Fund or the Redevelopment Obligation Retirement Fund reserved for payment of debt service on the Bonds or any Parity Debt -22- or on deposit in the Debt Service Fund or in the debt service fund or similar fund relating to such other Parity Debt are insufficient therefor): (i) for distribution on each June 1: (A) all interest coming due and payable on the Bonds and any Parity Debt on the next succeeding December 15, and (B) the amount of the principal coming due and payable on the Bonds and any Parity Debt on the next succeeding December 15, less the amount actually distributed to the Successor Agency on the preceding January 2 in respect of such principal; and (ii) for distribution on each January 2: (A) all interest coming due and payable on the Bonds and any Parity Debt on the next succeeding June 15, and (B) fifty percent (50%) of the principal amount coming due and payable on the Bonds and any Parity Debt on the next December 15; (iii) if the Successor Agency determines it is necessary to ensure timely payment of debt service on the Bonds or any Parity Debt, the Successor Agency may also collect on each January 2 or June 1, as necessary, a reserve to be held for debt service on the Bonds and any Parity Debt on June 15 and December 15 of the next succeeding calendar year; and (iv) any amounts required to replenish the Reserve Account, any other reserve account established under any Parity Debt instrument, and any amounts due and owing to the Municipal Bond Insurer. In addition, the Successor Agency covenants that, if the amount of Tax Revenues expected to be available with respect to a ROPS Payment Period will be insufficient to pay required debt service on the Bonds and any Parity Debt and all other required amounts payable from the Redevelopment Obligation Retirement Fund during such ROPS Payment Period, it shall, on or before the May 1 or December 1, as applicable, preceding such ROPS Payment Period (or such other date as otherwise may be specified in the Dissolution Act), file a Notice of Insufficiency with the County Auditor -Controller in accordance with the Dissolution Act (including, but not limited to, paragraph (b) of Section 34183 therein). In the event the Successor Agency fails to provide a ROPS to the Oversight Board for approval, or provide the State Department of Finance with an Oversight Board -approved ROPS, by the statutory deadlines relating to the Bonds for any period, the Successor Agency designates the Municipal Bond Insurer as its attorney in fact with the power to make such a request relating to the Bonds. The Successor Agency agrees to amend any ROPS filing for any period during which amounts owed to the Municipal Bond Insurer with respect to the Municipal Bond Insurance Policy are not included on such ROPS, to the extent possible under the Dissolution Act. The Successor Agency will not, without the prior written consent of the Municipal Bond Insurer, approve or submit for approval by the Oversight Board or the State Department of Finance the final amendment permitted for any Last and Final ROPS. County Administrative Fees Chapter 466, Statutes of 1990 (referred to as SB 2557), permits the County to withhold a portion of annual tax revenues for the recovery of County charges related to property tax administration services to cities in an amount equal to their property tax administration costs proportionately attributable to cities. SB 2557, and subsequent legislation under SB 1559 (Statutes of 1992), permitted counties to charge all jurisdictions, including redevelopment agencies, on a year-to-year basis. Section 34182(a)(3) of the California Health and Safety Code also provides for -23- recovery of county costs in connection with performing duties related to the dissolution of redevelopment agencies. The amount charged to the Successor Agency for the January 2, 2017 and June 1, 2017 RPTTF allocations was $47,054 and $12,501 respectively. The Fiscal Consultant has advised that these nominal amounts have not been factored into the Fiscal Consultant's projections of Tax Revenues. For purposes of showing debt service coverage, the Fiscal Consultant has assumed that the County administrative fees are senior to the Successor Agency's pledge of Tax Revenues to its obligation to make debt service payments on the Bonds. Pass -Through Payments The Law recognizes two basic types of pass throughs to affected taxing agencies: negotiated agreements (section 33401 of the Law) typically for project areas formed prior to January 1, 1994; and statutory pass through agreements (sections 33607.5 and 33607.7 of the Law), applicable to project areas formed on or after January 1, 1994 as well as project areas where certain amendments have been made to the redevelopment plan after January 1, 1994. Tax Sharing Agreements. The County originally adopted the Redevelopment Plan for the Redevelopment Project in 1986. At the time of adoption of the Redevelopment Plan, the County entered into tax sharing agreements with certain affected taxing entities. All agreements with school districts called for the school districts to receive 29.62% of their shares of general levy tax increment revenues. All agreements with non -school district taxing entities called for the taxing entity to receive 100% of their general levy tax increment revenues. These tax sharing agreements became obligations of the Former Agency at the time that the transfer of the Redevelopment Project to the Former Agency became effective. At the time that the Former Agency adopted the Redevelopment Plan, it entered into an agreement with the County on May 21, 1991. This agreement called for tax sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. Both the County and the Former Agency executed an Amended and Restated Agreement, dated January 22, 2002. The new agreement called for the Former Agency to make tax -sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of an administrative fee. The County General Fund share is 18.12%, the County Structural Fire Department share is 4.70% and the County Library Department share is 2.18%. In addition to the tax sharing payments, the agreement specified that the Former Agency pay the County General Fund a total of $6 million from the proceeds of the 2002 Bonds as repayment of the County General Fund tax sharing payments deferred under the May 21, 1991 agreement. The Former Agency further agreed to contribute $5 million toward the acquisition of right-of-way for a project referred to as the Date / Cherry Interchange. According to the Former Agency, the contribution of 2002 Bond proceeds occurred on July 30, 2002, and funding for the right-of-way was provided from sources other than tax increment revenues. Under both the May 21, 1991 agreement and the current agreement, the Auditor Controller was responsible for calculating the amount of the tax sharing payments and allocating these payments to the various taxing entities. The general levy shares for the various taxing entities and the amounts that are to be passed through pursuant to the various tax sharing agreements are summarized in Table 1 below. -24- TABLE 1 TAXING ENTITY GENERAL LEVY SHARES AND TAX SHARING PERCENTAGES Pass Through Taxing Entity 1% Share Share County of Riverside County Library Department County Structural Fire Department Temecula Public Cemetery District Eastern Municipal Water District Riverside County Flood Control District Rancho California Water District Temecula Valley Unified School District Mt. San Jacinto Community College District Riverside County Supt. Of Schools Source: Fiscal Consultant 18.12% 2.18 4.70 0.41 9.76 1.80 6.23 32.33 3.73 10.77 100.00% 100.00 100.00 100.00 100.00 100.00 100.00 29.62 29.62 29.62 AB 1290 Statutory Pass Through Payments. On January 8, 2008, the City Council adopted Ordinance No. 07-20 that amended the Redevelopment Plan to eliminate the time limit on establishing loans, advances and indebtedness. As a result, the Former Agency was obligated to make statutory tax sharing payments pursuant to Section 33607.7 of the Law. Tax sharing payments are made to all taxing entities that have not previously entered into tax sharing agreements in accordance with the three -tiered formulas for statutory tax sharing payments required of those redevelopment projects adopted or amended after January 1, 1994. Since the former time limit on incurrence of new debt for the Redevelopment Project was July 12, 2008, these statutory tax -sharing payments began in fiscal year 2009-10 and use the Redevelopment Project assessed valuation for 2008-09 as the adjusted base year. For the first tier of tax sharing, the annual tax sharing amount to be divided among the affected taxing entities is 25% of the revenues derived from the difference in assessed value between the adjusted base year value and the current year value net of a 20% share for the formerly -applicable housing set-aside requirement. According to the Law, these statutory tax sharing payments will continue annually through the last fiscal year within which the Redevelopment Project is able to repay indebtedness. The second tier of statutory tax sharing payments required by Section 33607.7 will be initiated in fiscal year 2019-20 and will use the Redevelopment Project assessed values for 2018-19 as a second adjusted base year value. The annual tier 2 tax sharing amount to be divided among the affected taxing entities is 21% of the revenues derived from the difference in assessed value between the second adjusted base year value and the current year value net of a 20% share for the formerly -applicable housing set-aside requirement. A third tier of statutory tax sharing will not be initiated prior to the expiration of the Redevelopment Project's ability to repay indebtedness. Because of reductions in assessed value within the Redevelopment Project after 2008-09, no statutory tax sharing payments have been made to date. Based on the Fiscal Consultant's projections, the Fiscal Consultant has estimated that tier one statutory tax sharing payments will begin to be made in fiscal year 2021-22 and that tier two statutory tax sharing payments will begin to be made in fiscal year 2031-32. The City is entitled to make an election to receive its share of the Tier 1 tax sharing payment amount. Since only the City and one other taxing entity have not entered into tax sharing agreements, the statutory tax sharing payment amounts will be made only to them. -25- Negotiated Agreements The Former Agency entered into a number of Owner Participation Agreements, Disposition and Development Agreements and Loan Agreements. The agreements called for payments to be made to the respective owner participants. Of these agreements, only two continue to be obligations of the Successor Agency. All other such agreements have either expired by their terms or have been fully performed. The Former Agency entered into a Construction and Term Loan Agreement, dated as of July 1, 1998 (the "Housing Loan Agreement") with Temecula Gardens, L.P., a California limited partnership (the "Developer") in connection with the development by the Developer of a 76 unit apartment complex. The Housing Loan Agreement obligated the Former Agency (and now obligates the Successor Agency) to deposit tax increment revenues in an annual amount of $305,000 on each July 16, to and including July 16, 2027 into a Pledge Fund, to be used to make debt service payments on a loan made to the Developer. The Successor Agency's obligations under the Housing Loan Agreement are senior to its obligations under the Indenture. An agreement between the Former Agency and Advanced Cardiovascular Systems Inc. (the "Participant") was entered into on February 12, 2002. After entering into the agreement, the Participant was purchased by Abbott Laboratories and is presently known as Abbott Cardiovascular Systems. Under the terms of this agreement, the Participant agreed to add to its facilities in the Redevelopment Project and to add certain new full-time jobs. Upon completion of these prerequisites, the Former Agency agreed to remit to the Participant 50% of the net tax increment revenue derived from the increase in assessed value that resulted from the new improvements to the Participant's facilities. Net tax increment is defined in the agreement as being the total tax increment received by the Former Agency from the new additions less twenty percent (20%) of such amount and payment amounts required by tax sharing agreements. The improvements were completed and enrolled on the County Assessor's tax roll at their full value for 2010-11. Based on the assessed value of the structures the Fiscal Consultant estimated the amount of tax revenue that will be paid to the Participant for the current fiscal year and for the remaining fiscal years in its tax revenue projections. The agreement stipulates that the payments called for are not secured by a pledge of tax increment revenues. The payments made by the Successor Agency pursuant to the agreement are, therefore, subordinate to any pledge of Tax Revenues for payment of debt service on the Bonds. See Section VII B. in the Fiscal Consultant's Report in Appendix G for additional information regarding the aforementioned agreements. Parity Debt "Parity Debt" means any loan, bonds, notes, advances or indebtedness payable from Tax Revenues on a parity with the Bonds as authorized by the Indenture. The Indenture and section 34177.5(a) of the Dissolution Act permit the issuance of Parity Debt but only to refund the Bonds. Other than the Bonds, there will be no other outstanding obligations secured by the Tax Revenues. MUNICIPAL BOND INSURANCE [to come] -26- PROPERTY TAXATION IN CALIFORNIA Property Tax Collection Procedures Classification. In the State, property which is subject to ad valorem taxes is classified as "secured" or "unsecured." Secured and unsecured property are entered on separate parts of the assessment roll maintained by the County assessor. The secured classification includes property on which any property tax levied by a county becomes a lien on that property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens on the secured property arising pursuant to State law, regardless of the time of the creation of other liens. Generally, ad valorem taxes are collected by a county (the "Taxing Authority") for the benefit of the various entities (e.g., cities, schools and special districts) that share in the ad valorem tax (each a taxing entity) and successor agencies eligible to receive distributions from the respective Redevelopment Property Tax Trust Funds. Collections. Secured and unsecured property are entered separately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. The taxing authority has four ways of collecting unsecured personal property taxes: (i) initiating a civil action against the taxpayer, (ii) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer, (iii) filing a certificate of delinquency for record in the county recorder's office to obtain a lien on certain property of the taxpayer, and (iv) seizing and selling personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured roll is the sale of the property securing the taxes to the State for the amount of taxes which are delinquent. Penalty. A 10% penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, property on the secured roll on which taxes are delinquent is declared in default by operation of law and declaration of the tax collector on or about June 30 of each fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10% penalty also applies to delinquent taxes with respect to property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning on varying dates related to the tax bill mailing date. Delinquencies. The valuation of property is determined as of the January 1 lien date as equalized in August of each year and equal installments of taxes levied upon secured property become delinquent on the following December 10 and April 10. Taxes on unsecured property are due January 1 and become delinquent August 31. Supplemental Assessments. California Revenue and Taxation Code section 75.70 provides for the reassessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Such reassessment is referred to as the Supplemental Assessment and is determined by applying the current year's tax rate to the amount of the increase or decrease in a property's value and prorating the resulting property taxes to reflect the portion of the tax year remaining as determined by the date of the change in ownership or completion of new construction. Supplemental Assessments become a lien against real property. -27- Prior to the enactment of this law, the assessment of such changes was permitted only as of the next tax lien date following the change, and this delayed the realization of increased property taxes from the new assessments for up to 14 months. Since fiscal year 1984-85, revenues derived from Supplemental Assessments have been allocated to redevelopment agencies and taxing entities in the same manner as the general property tax. The receipt of Supplemental Assessment revenues by taxing entities typically follows the change of ownership by a year or more. This statute provides increased revenue to the Redevelopment Property Tax Trust Fund to the extent that supplemental assessments of new construction or changes of ownership occur within the boundaries of redevelopment projects subsequent to the January 1 lien date. If a change in ownership results in a decrease in assessed value, a negative supplemental assessment may occur, requiring a refund of taxes paid to the property owner. To the extent such supplemental assessments occur within the Redevelopment Project, tax increment may increase or decrease. See Table G in the Fiscal Consultant's Report in Appendix G for a table showing historical Supplemental Revenue Allocations to the Successor Agency. Because of their volatility, revenues resulting from Supplemental Assessments have not been included in the Fiscal Consultant's projections of tax increment available to pay debt service on the Bonds. County Property Tax Collection and Administrative Costs. In 1990, the Legislature enacted SB 2557 (Chapter 466, Statutes of 1990) which allows counties to charge for the cost of assessing, collecting and allocating property tax revenues to local government jurisdictions in proportion to the tax -derived revenues allocated to each. SB 1559 (Chapter 697, Statutes of 1992) explicitly includes redevelopment agencies among the jurisdictions which are subject to such charges. In addition, sections 34182(e) and 34183(a) of the Dissolution Act allow administrative costs of the County Auditor -Controller for the costs of administering the provisions of the Dissolution Act. For fiscal year 2015-16, the County charges were 1.098% of gross tax increment within the Redevelopment Project. Based on the collection charges for fiscal year 2015-16, the Fiscal Consultant projects the charge for fiscal year 2016-17 and future fiscal years as a percentage of gross tax increment to remain at 1.098%. For purposes of the Fiscal Consultant's projections of tax increment available to pay debt service on the Bonds, the Fiscal Consultant assumed that the County will continue to charge the Successor Agency for property tax collection and administration and that such charge will increase proportionally with any increases in revenue. Levy and Collection of Taxes. The Successor Agency has no independent power to levy and collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the Tax Revenues, and accordingly, could have an adverse impact on the ability of the Successor Agency to repay the Bonds. Likewise, delinquencies in the payment of property taxes and the impact of bankruptcy proceedings on the legal ability of taxing agencies to collect property taxes could have an adverse effect on the Successor Agency's ability to make timely Bond payments. Notwithstanding the foregoing, the Fiscal Consultant has advised that prior to February 1, 2012, the County utilized a method for the distribution of tax revenue to redevelopment agencies that provided them with tax increment revenue and was effectively like a "Teeter Plan." Under this method, redevelopment agencies in the County received 100% of the taxes levied on the extended tax roll subject to correction, cancellation and refunds. The tax revenues of the Former Agency were not subject to revenue loss due to delinquencies or gains due to redemption of unpaid taxes. The Fiscal Consultant has represented that the County Auditor -Controller has continued to use this method for allocation of tax increment revenue after the dissolution of redevelopment agencies. The County does not publish delinquency data for redevelopment project areas or agencies and it does not publish such information on a city level either. Collections within the County for the prior five fiscal years is reflected in Table I in the Fiscal Consultant's Report. See -28- APPENDIX G—FISCAL CONSULTANT'S REPORT—Table I—Riverside County Property Tax Collection History. Substantial delinquencies in the payment of property taxes and failure by the County to continue to remit 100% of the taxes levied each year could impair the timely receipt by the Successor Agency to Tax Revenues, although the Tax Revenues provide substantial debt service coverage on the Bonds. See "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service Coverage." Unitary Property Assembly Bill ("AB") 2890 (Statutes of 1986, Chapter 1457) provides that, commencing with fiscal year 1988-89, tax revenues derived from unitary property and assessed by the SBE are accumulated in a single Tax Rate Area for the County. The tax revenues are then to be allocated to each taxing entity county -wide as follows: (i) each taxing entity will receive the same amount as in the previous year plus an increase for inflation of up to 2%; (ii) if utility tax revenues are insufficient to provide the same amount as in the previous year, each taxing entity's share would be reduced pro rata county wide; and (iii) any increase in revenue above 2% would be allocated in the same proportion as the taxing entity's local secured taxable values are to the local secured taxable values of the County. AB 454 (Statutes of 1987, Chapter 921) further modified Chapter 1457 regarding the distribution of tax revenues derived from property assessed by the State Board of Equalization. Chapter 921 provides for the consolidation of all State -assessed property, except for regulated railroad property, into a single tax rate area in each county. Chapter 921 further provides for a new method of establishing tax rates on State -assessed property and distribution of property tax revenue derived from State -assessed property to taxing jurisdictions within each county in accordance with a new formula. Railroads will continue to be assessed and revenues allocated to all tax rate areas where railroad property is sited. To administer the allocation of unitary tax revenues to redevelopment agencies, the County no longer includes the taxable value of utilities as part of the reported taxable values of a redevelopment project. Consequently, the base year values of redevelopment projects are reduced by the amount of utility value that existed originally in the base years. The Auditor - Controller reported that for fiscal year 2016-17 utility revenues of $182,492 were allocated to the Redevelopment Project. The unitary revenue amount to be allocated for fiscal year 2017-18 is not yet available. For the purposes of the Fiscal Consultant's projection of tax revenues available to pay debt service on the Bonds, the Fiscal Consultant assumed that the utility revenue allocated to the Redevelopment Project will remain the same for future fiscal years as the amount for fiscal year 2016-17 for the life of the projection. Article XIIIA of the State Constitution Article XIIIA limits the amount of ad valorem taxes on real property to 1% of "full cash value" of such property, as determined by the county assessor. Article XIIIA defines "full cash value" to mean "the County Assessor's valuation of real property as shown on the 1975-76 tax bill under 'full cash value,' or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." Furthermore, the "full cash value" of all real property may be increased to reflect the rate of inflation, as shown by the consumer price index, not to exceed 2% per year, or may be reduced. Article XIIIA has subsequently been amended to permit reduction of the "full cash value" base in the event of declining property values caused by substantial damage, destruction or other factors, and to provide that there would be no increase in the "full cash value" base in the event -29- of reconstruction of property damaged or destroyed in a disaster and in other special circumstances. Article XIIIA (i) exempts from the 1% tax limitation taxes to pay debt service on (a) indebtedness approved by the voters prior to July 1, 1978 or (b) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition; (ii) requires a vote of two-thirds of the qualified electorate to impose special taxes, or certain additional ad valorem taxes; and (iii) requires the approval of two-thirds of all members of the State Legislature to change any State tax laws resulting in increased tax revenues. The validity of Article XIIIA has been upheld by both the California Supreme Court and the United States Supreme Court. In the general election held November 4, 1986, voters of the State approved two measures, Propositions 58 and 60, which further amended Article XIIIA. Proposition 58 amended Article XIIIA to provide that the terms "purchase" and "change of ownership," for the purposes of determining full cash value of property under Article XIIIA, do not include the purchase or transfer of (1) real property between spouses and (2) the principal residence and the first $1,000,000 of other property between parents and children. This amendment to Article XIIIA may reduce the rate of growth of local property tax revenues. Proposition 60 amended Article XIIIA to permit the Legislature to allow persons over the age of 55 who sell their residence and buy or build another of equal or lesser value within two years in the same county, to transfer the old residence assessed value to the new residence. As a result of the Legislature's action, the growth of property tax revenues may decline. Legislation enacted by the Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. In conformity with this procedure, all taxable property value included in this Official Statement is shown at 100% of assessed value and all general tax rates reflect the $1 per $100 of taxable value (except as noted). Tax rates for voter -approved bonded indebtedness and pension liabilities are also applied to 100% of assessed value. Each year the Board of Equalization announces the applicable adjustment factor. Since the adoption of Proposition 13, inflation has, in most years, exceeded 2% and the announced factor has reflected the 2% cap. The changes in the California Consumer Price Index from October of one year and October of the next year are used to determine the adjustment factor for the January assessment date. Through fiscal year 2010-11 there were six occasions when the inflation factor was less than 2%. Until fiscal year 2010-11 the annual adjustment never resulted in a reduction to the base year values of individual parcels; however, the factor that was applied to real property assessed values for the January 1, 2010 assessment date was -0.237% and this resulted in reductions to the adjusted base year value of parcels. The table below reflects the inflation adjustment factors for the current fiscal year and 10 prior fiscal years. -30- Historical Inflation Adjustment Factors Fiscal Year Inflation Adj. Factor 2007-08 2.000% 2008-09 2.000 2009-10 2.000 2010-11 -0.237 2011-12 0.753 2012-13 2.000 2013-14 2.000 2014-15 0.454 2015-16 1.998 2016-17 1.525 2017-18 2.000 Appropriations Limitation—Article XIIIB Article XIIIB limits the annual appropriations of the State and its political subdivisions to the level of appropriations for the prior fiscal year, as adjusted for changes in the cost of living, population and services rendered by the government entity. The "base year" for establishing such appropriations limit is the 1978 / 79 fiscal year, and the limit is to be adjusted annually to reflect changes in population, consumer prices and certain increases in the cost of services provided by these public agencies. Section 33678 of the Redevelopment Law provides that the allocation of taxes to a redevelopment agency for the purpose of paying principal of, or interest on, loans, advances, or indebtedness shall not be deemed the receipt by a redevelopment agency of proceeds of taxes levied by or on behalf of a redevelopment agency within the meaning of Article XIIIB, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to the limitation of, any other public body within the meaning or for the purpose of the Constitution and laws of the State, including section 33678 of the Redevelopment Law. The constitutionality of section 33678 has been upheld in two California appellate court decisions. On the basis of these decisions, the Successor Agency has not adopted an appropriations limit. Proposition 87 On November 8, 1988, the voters of the State approved Proposition 87, which amended Article XVI, section 16 of the State Constitution to provide that property tax revenue attributable to the imposition of taxes on property within a redevelopment project for the purpose of paying debt service on certain bonded indebtedness issued by a taxing entity (not the Former Agency or the Successor Agency) and approved by the voters of the taxing entity after January 1, 1989 will be allocated solely to the payment of such indebtedness and not to redevelopment agencies. Appeals of Assessed Values Pursuant to California law, a property owner may apply for a reduction of the property tax assessment for such owner's property by filing a written application, in a form prescribed by the State Board of Equalization, with the appropriate county board of equalization or assessment appeals board. In the County, a property owner desiring to reduce the assessed value of such owner's property in any one year must submit an application to the County Assessment Appeals Board (the "Appeals Board"). Applications for any tax year must be submitted by September 15 of such tax year. Following a review of each application by the staff of the County Assessor's Office, the staff makes a recommendation to the Appeals Board on each application which has not been -31- rejected for incompleteness or untimeliness or withdrawn. The Appeals Board holds a hearing and either reduces the assessment or confirms the assessment. The Appeals Board generally is required to determine the outcome of appeals within two years of each appeal's filing date. Any reduction in the assessment ultimately granted applies only to the year for which application is made and during which the written application is filed. The assessed value increases to its pre- reduction level for fiscal years following the year for which the reduction application is filed. However, if the taxpayer establishes through proof of comparable values that the property continues to be overvalued (known as "ongoing hardship"), the Assessor has the power to grant a reduction not only for the year for which application was originally made, but also for then current year as well. Appeals for reduction in the "base year" value of an assessment, which generally must be made within three years of the date of change in ownership or completion of new construction that determined the base year, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. Moreover, in the case of any reduction in any one year of assessed value granted for "ongoing hardship" in the then current year, and also in any cases involving stipulated appeals for prior years relating to base year and personal property assessments, the property tax revenues from which Tax Revenues are derived attributable to such properties will be reduced in the then current year. In practice, such a reduced assessment may remain in effect beyond the year in which it is granted. See "THE REDEVELOPMENT PROJECT—Assessment Appeals" for information regarding historical and pending appeals of assessed valuations by property owners in the Redevelopment Project. Also, see APPENDIX G—FISCAL CONSULTANT'S REPORT—Table K—Historical Assessment Appeal Summary. Propositions 218 and 26 On November 5, 1996, California voters approved Proposition 218—Voter Approval for Local Government Taxes—Limitation on Fees, Assessments, and Charges—Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property -related fees and charges. On November 2, 2010, California voters approved Proposition 26, the "Supermajority Vote to Pass New Taxes and Fees Act." Proposition 26 amended Article XIIIC of the California Constitution by adding an expansive definition for the term "tax," which previously was not defined under the California Constitution. Tax Revenues securing the Bonds are derived from property taxes that are outside the scope of taxes, assessments and property -related fees and charges which are limited by Proposition 218 and Proposition 26. Future Initiatives Article XIIIA, Article XIIIB, Article XIIIC and Article XIIID and certain other propositions affecting property tax levies were each adopted as measures which qualified for the ballot pursuant to California's initiative process. From time to time other initiative measures could be adopted, further affecting Successor Agency revenues or the Successor Agency's ability to expend revenues. THE SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY As described in "INTRODUCTION," the Dissolution Act dissolved the Former Agency as of February 1, 2012. Thereafter, pursuant to section 34173 of the Dissolution Act, the City became the Successor Agency to the Former Agency. Subdivision (g) of section 34173 of the Dissolution -32- Act, added by AB 1484, expressly affirms that the Successor Agency is a separate public entity from the City, that the two entities shall not merge, and that the liabilities of the Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets of the City. Successor Agency Powers All powers of the Successor Agency are vested in its five members who are the elected members of the City Council. Pursuant to the Dissolution Act, the Successor Agency succeeds to the organizational status of the Former Agency but without any legal authority to participate in redevelopment activities, except to complete any work related to an approved enforceable obligation. The Successor Agency is tasked with expeditiously winding down the affairs of the Former Agency, pursuant to the procedures and provisions of the Dissolution Act. Under the Dissolution Act, substantially all Successor Agency actions are subject to approval by the Oversight Board, as well as review by the DOF. Status of Compliance with Dissolution Act The Dissolution Act required that a due diligence review be conducted to determine the unobligated balances of each successor agency that are available for transfer to taxing entities. The due diligence review involved separate reviews of each successor agency's low and moderate income housing fund and of all other funds and accounts. Once a successor agency completes the due diligence review and any transfers to taxing entities, the DOF would issue a finding of completion that expands the authority of each successor agency in carrying out the wind down process. A finding of completion allows a successor agency to, among other things, retain real property assets of the dissolved redevelopment agency and utilize proceeds derived from bonds issued prior to January 1, 2011. The Successor Agency has completed the due diligence process and received its Finding of Completion on April 26, 2013. Pursuant to the due diligence reviews, the DOF determined that the Successor Agency was not required to remit any obligated balance to the County Auditor -Controller. See, however, "REFUNDING PLAN—Estimated Sources and Uses of Funds" regarding the disposition of certain unspent proceeds of the 2007 Bonds, 2010B Bonds and the 2011A Bonds. After receiving a finding of completion, each successor agency is required to submit a Long Range Property Management Plan detailing what it intends to do with its inventory of properties. Permissible uses include: sale of the property, use of the property to fill an enforceable obligation, retention of the property for future redevelopment, and retention of the property for governmental use. The DOF Approved the Successor Agency's Long Range Property Management Plan on March 12, 2014. Plan Limits In accordance with the Redevelopment Law, redevelopment plans like the Redevelopment Plan were required to include certain limits on the financing of the redevelopment projects. These limits could include a time limit on the life of the redevelopment plan, a time limit on the incurrence of indebtedness, a time limit on the receipt of property tax increment and the repayment of indebtedness and a limit on the amount of bonded indebtedness outstanding at any time. SB 107 clarifies that former tax increment limits set forth in redevelopment plans such as the Redevelopment Plan no longer apply for purposes of paying approved enforceable obligations such as the Bonds. -33- Notwithstanding the foregoing, pursuant to a Settlement Agreement (the "1991 Settlement Agreement") entered on June 5, 1991, in the Superior Court of the State of California for the County, by the Former Agency and the City, as amended in 1995, various limitations were placed on the Redevelopment Plan, including that subject to certain exceptions, no more than $150,000,000 of tax increment revenues would be allotted or paid to the Former Agency during the term of the Redevelopment Plan (excluding formerly -required housing set-aside amounts, payments made to taxing entities for pass-through obligations, amounts paid to fulfill ERAF payment obligations levied by the State, costs of debt issuance, interest costs for debt obligations and $75,000 per year for administrative costs). The Fiscal Consultant has advised that the amount of revenues received by the Former Agency and Successor Agency to date that are applicable to the limit contemplated by the 1991 Settlement Agreement, as amended, is approximately $11,170,000. Based on the Fiscal Consultant's projections and accounting for interest costs of the Prior Bonds but not including any projected issuance or interest costs of the Bonds, the Fiscal Consultant has concluded that the Redevelopment Project tax increment limit imposed by the 1991 Settlement Agreement is not expected to be exceeded. See Section II B. in the Fiscal Consultant's Report in Appendix G. THE REDEVELOPMENT PROJECT On July 12, 1988, prior to the incorporation of the City, the County of Riverside (the "County") adopted the County of Riverside Redevelopment Plan 1 - 1988 (the "County Redevelopment Plan") by Ordinance No. 658 of the County Board of Supervisors. On December 1, 1989, the City was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City. The City Council subsequently adopted Ordinances Nos. 91-11, 91-14 and 91-15 on April 9, 1991, relating to approval of the County Redevelopment Plan as the Temecula Redevelopment Plan No. 1 (the "Redevelopment Plan") and the transfer of jurisdiction over the Redevelopment Plan to the Former Agency. This transfer was effective July 1, 1991. Thereafter, the City Council adopted Ordinance No. 94-33 on December 20, 1994, Ordinance No. 06-11 on September 26, 2006, and Ordinance No. 07-20 on January 8, 2008, amending certain provisions of the Redevelopment Plan. The total assessed valuation of taxable property in the Redevelopment Project in fiscal year 2017-18 is $2,278,232,018, with $1,913,138,739 of such amount representing incremental assessed value. See "THE REDEVELOPMENT PROJECT—Historical Assessed Values" and APPENDIX G—FISCAL CONSULTANT'S REPORT. Project. The following page contains a map indicating the boundaries of the Redevelopment -34- City of Temecula Redevelopment Area Legend 0 City Highways Centerline A Parcels RDA Boundary March 20,2002 -35- Land Use The aggregate designated land use in the Redevelopment Project for fiscal year 2017-18 is set forth in the following table. TABLE 2 LAND USE SUMMARY Fiscal Year 2017-18 No. of Taxable % of Category Parcels Value Value Residential 159 $ 56,834,656 2.49% Commercial 395 1,235,726,860 54.24 Industrial 255 528,290,255 23.19 Vacant 125 80,668,823 3.54 Recreational 3 5,481,771 0.24 Government Owned 8 1,243,380 0.05 Institutional 1 117,116 0.01 Exempt 139 0 0.00 Subtotals 1,085 $1,908,362,861 83.77% Cross Reference Parcels(1) $ 6,063,949 0.27% Unsecured 363,805,208 15.97 Subtotals $369,869,157 16.23% Totals: 1,085 $2,278,232,018 100.00% Source: Fiscal Consultant. (1) Includes mobile homes and several possessory interest assessments that are a result of long-term leases. The foregoing information is based on County land use designations as provided by Riverside County through tax roll data and reported in the Fiscal Consultant's Report. The Fiscal Consultant notes that the County land use designations do not necessarily parallel City land use and zoning designations. Unsecured, Cross Reference and State Board of Equalization Non - Unitary values shown in Table 2 are associated with secured County Assessor parcels that are already accounted for in other categories. Within the Redevelopment Project, parcels identified as cross reference parcels include mobile homes and several possessory interest assessments that are the result of long-term land leases. Historical Assessed Values Table 3 below summarizes year-to-year changes in the Redevelopment Project's assessed values for the past five years based upon the County Auditor -Controller's annual assessed value reports. Since the base year valuation in Fiscal Year 1987-88, the total assessed value for the Redevelopment Project has increased from $365,093,279 to $2,278,232,018. -36- Secured") Land Improvements Personal Property Exemptions Total Secured Unsecured Land Improvements Personal Property Exemptions Total Unsecured TABLE 3 HISTORICAL TAXABLE VALUES AND ANNUAL PERCENTAGE INCREASE OR DECREASE Fiscal Years 2013-14 to 2017-18 Base Year 1987-88 2013-14 2014-15 2015-16 2016-17 2017-18 $167,283,021 $521,727,478 $522,974,736 $540,927,585 $569,456,601 $602,287,515 184,324,369 1,283,173,065 1,281,308,878 1,336,314,045 1,301,560,591 1,360,411,450 11,212,042 28,476,993 19,559,095 16,694,183 6,663,449 6,073,368 (235,673) (38,968,125) (37,267,015) (41,711,792) (40,707,073) (54,345,523) $362,583,759 $1,794,409,411 $1,786,575,694 $1,852,224,021 $1,836,973,568 $1,914,426,810 $2,211 324,497 2,225,879 (43,067) $2,509,520 GRAND TOTAL $365,093,279 Incremental Value % Annual Change $61,538 $60,241 $41,343 $40,758 $40,201 241,642,199 219,285,866 201,561,769 214,567,675 199,882,688 166,378,876 148,902,599 125,431,096 177,795,739 164,678,661 (1,328,044) (853,783) (1,035,741) (930,515) (796,342) $406,754,569 $367,394,923 $325,998,467 $391,473,657 $363,805,208 $2,201,163,980 $2,153,970,617 $2,178,222,488 $2,228,447,225 $2,278,232,018 $1,836,070,701 $1,788,877,338 $1,813,129,209 $1,863,353,946 $1,913,138,739 -2.01% -2.57% 1.36% 2.77% 2.67% Source: County of Riverside, as reported by the Fiscal Consultant. (1) Secured values include State -assessed non -unitary utility property. Largest Taxpayers The ten largest taxpayers for the Redevelopment Project according to the 2017-18 assessed valuations are shown below. TABLE 4 TEN LARGEST PROPERTY TAXPAYERS Fiscal Year 2017-18 Property Owner Abbott Cardiovascular Systems(2) Temecula Towne Center Associates Inland Western Temecula Commons Kimco Palm Plaza Macy's Department Stores Inc(2) Infineon Technologies Americas Group(2) DCH Investment Inc.(2) International Rectifier Corporation(2) Costco Wholesale Corporation JPM 2004-C2-27471 Ynez Rd. LLC(2) Top Property Owner Total Value Project Area Assessed Value Project Area Incremental Value % of Assessed % of Total Incremental Valued) Value Value $264,593,707 11.61% 13.83% 156,265,816 6.86 8.17 61,998,618 2.72 3.24 51,446,100 2.26 2.69 45,983,025 2.02 2.40 38,864,480 1.71 2.03 34,459,308 1.51 1.80 32,855,470 1.44 1.72 28,948,192 1.27 1.51 21,336,149 0.94 1.12 $736,750,865 $2,278,232,018 32.34% $1,913,138,739 38.51% Primary Land Use Medical Appliances Mfg. Regional Shopping Center Commercial Shopping Center Commercial Shopping Center Retail Department Store Electronics Manufacturing Vacant Land & Autor Dealers Electronics Manufacturing Commercial Shopping Center Commercial Shopping Center Source: Fiscal Consultant. (1) For a breakout of secured and unsecured assessed values, see Table 4 in the Fiscal Consultant's Report in Appendix G. (2) These taxpayers have pending assessment appeals on parcels owned. See "THE REDEVELOPMENT PROJECT— Assessment Appeals" below for a discussion of the pending appeals of these taxpayers. -37- Abbott Cardiovascular Systems is the largest taxpayer within the Redevelopment Project. Abbott Cardiovascular Systems owns 5 parcels on the County secured tax roll that are within the Redevelopment Project. Six of the top ten taxpayers own properties occupied by commercial shopping center developments. These six taxpayers account for a total of $366 million in taxable value, or approximately 16.06% of the total assessed value within the Redevelopment Project. The Fiscal Consultant has advised that the five parcels owned by Abbott Cardiovascular Systems have a total secured assessed value of $135,300,000 for Fiscal Year 2017-18. In addition, property owned by Abbott Cardiovascular Systems has an unsecured Fiscal Year 2017-18 assessed value totaling $129,300,000. This taxpayer's assessed value grew substantially in Fiscal Year 2009-10 as the result of a major expansion of its campus improvements. Since Fiscal Year 2009-10, annual assessed values of its property were relatively flat until Fiscal Year 2015-16 when the secured value declined by 4.93% and the secured assessed value declined by another 33.45% in Fiscal Year 2016-17. Abbott Cardiovascular Systems' secured assessed values declined by another 1.28% in Fiscal Year 2017-18. Unsecured assessed values for this taxpayer have also declined steadily from $321,800,000 in Fiscal Year 2008-09 to $129,300,000 for the current Fiscal Year. Currently, the building on one of the parcels is vacant. The City has been informed by Abbott Cardiovascular Systems that it is actively seeking to sell the parcel with the vacant building along with another parcel that is unimproved except for a surface parking lot. The two parcels that it is attempting to sell have a combined assessed value of $61,000,000. The Fiscal Consultant has advised that this is approximately 45% of Abbott Cardiovascular Systems' total secured value for Fiscal Year 2017-18. City staff recently was informed by Abbott Cardiovascular Systems that is in negotiations with a non-profit entity for the potential lease or sale of the two above-described parcels. If a non-profit entity were to purchase the property, it is likely that the value of the parcels would be reassessed incident to the sale and the new owner would qualify for a property tax exemption. The possible purchasers' ability to qualify for a tax exemption would be determined by the potential new owner's non-profit status and the use by it of the property. If these properties are leased to a non-profit entity on a long-term basis the properties may be assessed based on the non -profit's possessory interest and the assessed value of the properties could be rendered tax exempt. If the lease terms were less than long term and did not rise to the level of being considered by the County Assessor as a possessory interest, the land and improvements would continue to be taxable with only any unsecured assessed values attributable to the non-profit entity being tax-exempt. The City has no way to determine whether there will be a change of ownership on these or any other properties or if the properties will, at some time, become tax- exempt. No Tax Revenues arise from tax-exempt property. The Fiscal Consultant has advised that, based on 2017-18 assessed values, if the two parcels currently being considered for sale were to be rendered tax exempt, there would be a reduction in taxable value of $61,017,753. Assuming this loss of value in 2017-18, Tax Revenue coverage on the Bonds as shown in Table 10 under the heading "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service Coverage" would be reduced from 1.36* (coverage on current taxable values) to 1.32* (coverage assuming loss of taxable value on only the two Abbott parcels being marketed). See "RISK FACTORS—Concentration of Property Ownership; High Volatility Ratio." Temecula Town Center Associates is the second largest taxpayer within the Redevelopment Project, and is the majority owner of the Promenade Mall. The Mall is anchored by Sears, JC Penny and Macy's, and includes an outdoor shopping area anchored by an Apple store, a Williams Sonoma store and a Pottery Barn store. In April of 2016, the City's Planning Commission approved major modifications to the Mall, including conversion of a portion of the existing enclosed mall to an open-air area, and the addition of two new restaurants. The Preliminary, subject to change. -38- Successor Agency understands that the current owner of Temecula Town Center Associates, Forest City Enterprises, is planning to transfer ownership of the Mall to Queensland Investment Corporation. Infineon Technologies Americas Group ("Infineon") is the sixth largest taxpayer within the Redevelopment Project, and International Rectifier Corporation is the eight largest taxpayer within the Redevelopment Project. Together, they would be the third largest taxpayer. International Rectifier Corporation was acquired by Infineon in January of 2015. Infineon engages in the design, manufacturing and marketing of power management devices, which use power semi conductors. Its products consist of power management integrated circuits, power components and power systems. Historical Tax Revenues Table 5 below reflects the Successor Agency's historical assessed values, incremental values and allocated Tax Revenues for the most recent five fiscal years. TABLE 5 HISTORICAL ASSESSED VALUES, INCREMENTAL VALUES AND TAX REVENUES Fiscal Years 2013-14 to 2017-18 Total Assessed Value Incremental Value Total Annual Increment(1) Gross RPTTF Collections(2) Less: SB 2557 Admin. Fees Less: Pass -Through Payments Less: Housing Loan(4) Tax Revenues 2013-14 2014-15 2015-16 $2,201,163,980 1,836,070,701 18,360,707 19,255,663 270,250 11,245,830 305,000 $7,434,583 $2,153,970,617 1,788,877,338 17,888,773 18,041,237 233,557 10,237,508 305,000 2016-17 $2,178,222,488 $2,228,447,225 1,813,129,209 1,863,353,946 18,131,292 18,633,539 18, 683, 444 19, 088,105 206,767 237,179 10,607,574 10,837,866 305,000 305,000 $6,960,172 $7,564,103 $7,708,060 2017-180) $2,278,232,018 1,913,138,739 19,131,387 19,313,879 222,684 10,966,229 305,000 $7,819,967 Source: Fiscal Consultant. (1) Total Annual Increment calculated at 1% of Incremental Value. (2) Includes unitary tax revenues. See "PROPERTY TAXATION IN CALIFORNIA – UNITARY PROPERTY." (3) RPTTF Collections, SB 2557 Admin. Fees, Pass -Through Payments and Tax Revenues for 2017-18 are estimated. (4) See "SECURITY FOR THE BONDS—Negotiated Agreements." Assessment Appeals Assessment appeals with respect to a property's value on the County Assessor's tax role granted under Section 51 of the Revenue and Taxation Code (also known as "Prop 8" Appeals) require that, for each subsequent annual tax roll lien date, the value of real property shall be adjusted to be the lesser of its base year value as adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Reductions made under this code section may be initiated by the County Assessor or requested by the property owner. After a roll reduction is granted under Section 51, the property is reviewed on an annual basis to determine the full cash value of the property and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases must be consistent with the full cash value of the property and, as a result, may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation it, once again, is subject to -39- the annual inflationary factor growth rate allowed under Article XIIIA. "PROPERTY TAXATION IN CALIFORNIA – Article XIIIA of the State Constitution." The Fiscal Consultant reports that, for fiscal years 2012-13 through 2016-17 and based on hearing data through July 20, 2017 there are 86 pending assessment appeals within the Project Area. The values under appeal total $504.6 million and the owners are seeking reductions totaling $191 million (-37.85%). Based on the average number of appeals allowed over the past five years and the average reduction in value achieved in those successful appeals, the Fiscal Consultant has estimated that 49 of the currently pending appeals will be allowed with a reduction of $70.8 million. The expected reduction in value has been incorporated into the Fiscal Consultant's Tax Revenue projection as a reduction in assessed value for fiscal year 2018-19. Table 6 below shows the number of appeals that are pending, and the values under appeal within the Redevelopment Project. Total Appeals Filed TABLE 6 HISTORICAL ASSESSMENT APPEAL SUMMARY Fiscal Years 2012-13 through 2016-17 No. of Resolved Appeals 197 111 Source: Fiscal Consultant. No. of Appeals Allowed No. of Value Average Appeals Under Reduction Pending Appeal 63 24.72% 86 $504,600,915 Est. Appeals to be Allowed Est. AV Loss on Pending Appeals Allowed (2018-19 AV Adj.) 49 $70,785,788 Six of the top ten taxpayers in the Redevelopment Project (see "THE REDEVELOPMENT PROJECT—Largest Taxpayers") have filed appeals of their assessed values. These appeals are included in the foregoing table 6, and are more specifically addressed in the following table. TABLE 7 PENDING APPEALS AMONG PROJECT AREA TOP TEN TAXPAYERS Taxpayer Abbott Vascular Inc. Macy's Department Stores Inc. Infineon Technologies Americas Group DCH Investments Inc. International Rectifier Corporation JPM 2004 C2 27471 Ynez RD Source: Fiscal Consultant. FY No. Appealed Parcels 2015-16 5 2016-17 5 2016-17 4 2016-17 1 2015-16 5 2016-17 6 2013-14 1 2016-17 1 2015-16 2 2016-17 2 Enrolled Value Under Appeal $205,984,313 137,090,544 43,270,732 45,514,768 21,499,450 25,327,306 107,283,588 30,988,839 20,603,596 20,917,796 Owner Opinion of Value $56,250,000 52,100,000 28,243,535 24,000,000 12,890,000 14,952,000 23,450,000 24,000,000 13,600,000 14,500,000 Max. Potential Value Loss $149,734,313 84,990,544 15,027,197 21,514,768 8,609,450 10,375,306 83,833,588 6,988,839 7,003,596 6,417,796 As shown in Table 7 above, Abbott Cardiovascular Systems has filed assessment appeals for the 2015-16 and 2016-17 valuations on each of the five parcels that it owns in the Redevelopment Project. These appeals are currently pending. Macy's Department Stores Inc. has filed assessment appeals on each of its secured parcels and on its unsecured valuations for 2016-17 and these appeals are pending. Infineon Technologies Americas Group; DCH Investment Inc.; International Rectifier Corporation and JPM 2004 C2 27471 Ynez Rd. all have pending appeals on parcels that they own within the Redevelopment Project. These six taxpayers are the -40- only ones within the top ten taxpayers for the Redevelopment Project that have pending appeals on file. These taxpayers with pending assessment appeals are seeking a combined reduction in value of 56.91% of the enrolled values under appeal. Loss of value on successful assessment appeals for multiple years is not cumulative. If an appeal in a given year is successful, that corrected value is extended forward based on valuation conditions that existed in those future years. Transfers of Ownership and New Development The Fiscal Consultant has advised that value will be added to the projected assessed values of property in the Redevelopment Project for fiscal year 2018-19 as the result of transfers of ownership that occurred after the January 1, 2017 County Assessor's lien date for the 2017-18 tax roll. These parcel transfers will add new value to the 2018-19 tax rolls as set forth in Table 8 below. Additionally, the Successor Agency has observed that a number of new developments are currently under construction within the Redevelopment Project and are projected to add assessed value to the 2018-19 and 2019-20 tax rolls. The projected amount of value to be added from these developments also is reflected in Table 8 below, and those increases in assessed values have been included in the Total RPTTF Revenues in Table 10 under the heading "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service Coverage." Brief descriptions of the new developments follow the Table below. TABLE 8 VALUE ADDED TO PROJECTED TAX ROLLS FROM TRANSFERS OF OWNERSHIP AND NEW DEVELOPMENT(1) No. of Transfers of Ownership Value Added to 2018-19 Projected Assessed Values Value Added to 2019-20 Projected Assessed Values Sales during 2017 14 $9,216,351 Hilton Home -2 -Suites Hotel $ 6,111,378 Best Western Plus Hotel 2,787,348 4th & Old Town Front Street 1,326,364 Subaru Sales & Service Facilities 4,018,664 DCH Chrysler Dealership Addition 97,932 A.I. Plastic Surgery Center Addition 74,755 DCH Honda Dealership Addition 31,071 Totals $9,247,422 $14,416,441 Source: Fiscal Consultant. (1) See Table 5 attached to the Fiscal Consultant's Report in Appendix G for additional information. Hilton Home 2 Suites Hotel – This project is a four-story, 66,552 square foot hotel consisting of 120 rooms with lounge areas, a dining room and breakfast bar, a coffee bar, an exercise room, guest laundry, and a business center. Outdoor amenities include a pool, a dining area, fire pit, and a barbecue area. Best Western Plus Hotel – This project is a three story 54 room, 31,270 square foot hotel. Amenities include an indoor swimming pool, fitness room and business center. 4th & Old Town Front street – This project is a three-story shell building totaling approximately 16,030 square feet. Subaru Sales & Service Facilities – This project involves a 5,694 square -foot, two story, expansion to the existing John Hine Subaru sales center. The project also involves the construction of a new 54,884 square -foot, two-story, automobile service and parts center. -41- DCH Chrysler Dealership Addition – This project consists of a major modification to existing DCH Chrysler /Dodge /Jeep / Ram /Fiat Dealership to add 1,200 square feet of new show room area and sales office area. A.I. Plastic Surgery Center Addition – This project consists of a minor modification to an existing facility to add approximately 516 square feet, alter the roof tile, and alter the exterior building colors for the existing building. DCH Honda Dealership Addition – This project involves a minor modification to the existing DCH Honda Dealership to update the exterior finishes, expand the drive canopy by 1,190 square feet, and update the existing entrance facade. While all of the foregoing projects are currently under construction, unexpected delays in their completion could affect the fiscal year in which their respective assessed value increase will be realized. Historical RPTTF Deposits The following table sets forth historical RPTTF deposits and the allocations of tax revenues for the Redevelopment Project. Fiscal Years 2012-13 2013-14 2014-15 2015-16 2016-17 TABLE 9 SUCCESSOR AGENCY RPTTF ALLOCATIONS ROPS Filed ROPS 3 & 13-14A 13 -14B&14 -15A 14 -15B&15 -16A 15 -16B&16 -17A 16 -17B&17 -18A County RPTTF Admin. Deposits Charges $19,538,670 $279,299 19,255,663 270,250 18,041,237 233,557 18,683,444 206,767 19,088,105 237,179 Pass Through Distributions(1) $11,161,554 11,245,830 10,237,508 10,607,574 10,837,866 Allocated for Enforceable Residual Obligations(2) Revenue $7,341,065 $ 756,752 6,323,887 1,415,696 6,646,528 923,644 6,485,483 1,383,620 7,303,396 709,664 Source: Fiscal Consultant. (1) See "SECURITY FOR THE BONDS—Pass-Through Payments. (2) Includes the scheduled debt service on the Prior Bonds, and amounts payable under certain Owner Participation Agreements. See "SECURITY FOR THE BONDS—Reimbursement Agreements." Projected Available Tax Revenues and Estimated Debt Service Coverage Table 10 below shows available net tax increment from the Redevelopment Project, which assumes a 3.2% reduction in growth from fiscal year 2017-18 to fiscal year 2018-19, a slight increase in growth from fiscal year 2018-19 to fiscal year 2019-20 and assumes 0% growth for each year thereafter, and includes projected debt service on the Bonds. Tax Revenues presented in the projection in Table 10 represent the amount available for debt service computed as gross Redevelopment Property Tax Trust Fund Revenue less (1) the County administration fees; (2) pass-through payments; and (3) amounts payable under the negotiated Housing Loan Agreement (See "SECURITY FOR THE BONDS—County Administrative Fees," "—Pass -Through Payments," and "—Negotiated Agreements"). The projection commences with the 2017-18 fiscal year and 2017-18 assessed valuations and incorporates the valuation assumptions made in the Fiscal Consultant's Report. Changes in assessed value have been reflected in the projections for fiscal years 2018-19 and 2019-20 based on transfers in ownership and new development (see "THE DEVELOPMENT PROJECT— Transfers of Ownership and New Development"); however, no increases in assessed values has -42- been assumed in respect of annual inflationary adjustments to assessed values. See "PROPERTY TAXATION IN CALIFORNIA -Article XIIIA of the State Constitution." The projections include an adjustment for pending appeals. TABLE 10 PROJECTION OF TAX REVENUES FOR DEBT SERVICE AND DEBT SERVICE COVERAGE (0% Growth in Assessed Valuations for Inflation) (dollars in thousands) Less: Year Total Less: Pass- Bond Debt Ending RPTTF County Through Housing Tax Debt Service 6/30(1) Revenues(2) Admin. Obligations Loan Revenues Service(3) Coverage(3) 2017-18 $19,314 ($223) ($10,966) ($305,000) $7,820 $5,741 1.36 2018-19 18,698 (216) (10,617) (305,000) 7,561 5,750 1.32 2019-20 18,843 (217) (10,699) (305,000) 7,622 5,753 1.32 2020-21 18,843 (217) (10,699) (305,000) 7,622 5,760 1.32 2021-22 18,843 (217) (10,699) (305,000) 7,622 5,771 1.32 2022-23 18,843 (217) (10,699) (305,000) 7,622 5,787 1.32 2023-24 18,843 (217) (10,699) (305,000) 7,622 5,786 1.32 2024-25 18,843 (217) (10,699) (305,000) 7,622 5,792 1.32 2025-26 18,843 (217) (10,699) (305,000) 7,622 5,806 1.31 2026-27 18,843 (217) (10,699) (305,000) 7,622 5,816 1.31 2027-28 18,843 (217) (10,699) 0 7,927 5,833 1.36 2028-29 18,843 (217) (10,699) 0 7,927 5,835 1.36 2029-30 18,843 (217) (10,699) 0 7,927 5,853 1.35 2030-31 18,843 (217) (10,699) 0 7,927 5,866 1.35 2031-32 18,843 (217) (10,699) 0 7,927 5,888 1.35 2032-33 18,843 (217) (10,699) 0 7,927 5,898 1.34 2033-34 18,843 (217) (10,699) 0 7,927 5,917 1.34 2034-35 18,843 (217) (10,699) 0 7,927 5,933 1.34 2035-36 18,843 (217) (10,699) 0 7,927 5,950 1.33 2036-37 18,843 (217) (10,699) 0 7,927 6,092 1.30 2037-38 18,843 (217) (10,699) 0 7,927 6,115 1.30 2038-39 18,843 (217) (10,699) 0 7,927 2,474 3.20 Source: Tax data from the Fiscal Consultant. Debt service data from the Underwriter. (1) Tax Revenues are presented for the fiscal year ending in the year; Bond debt service is presented for the calendar year as payable from that fiscal year Tax Revenues. (2) Includes Tax Revenues and $182,492 of annual unitary tax revenues. See PROPERTY TAXATION IN CALIFORNIA -Unitary Property." (3) Preliminary, subject to change. RISK FACTORS The following information should be considered by prospective investors in evaluating the Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. The various legal opinions to be delivered concurrently with the issuance of the Bonds will be qualified as to the enforceability of the various legal instruments by limitations imposed by State and federal laws, rulings and decisions affecting remedies, and by bankruptcy, reorganization or other laws of general application affecting the enforcement of creditors' rights, including equitable principles. -43- Recognized Obligation Payment Schedule The Dissolution Act provides that only those payments listed in a Recognized Obligation Payment Schedule may be made by a successor agency from the funds specified in the Recognized Obligation Payment Schedule. Pursuant to Section 34177 of the Dissolution Act, on or before each February 1 commencing February 1, 2016, the Successor Agency shall submit to the Oversight Board and the DOF, a Recognized Obligation Payment Schedule unless, at the option of the Successor Agency and subject to DOF approval and satisfaction of certain other conditions, a Last and Final Recognized Obligation Payment Schedule is filed by the Successor Agency and is approved by the DOF in which event no such periodic filing requirements apply. In instances where a Last and Final Recognized Obligation Payment Schedule is not filed, for each annual period, the Dissolution Act requires each successor agency to prepare and approve, and submit to the successor agency's oversight board and the DOF for approval, a Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the Dissolution Act) of the successor agency are listed, together with the source of funds to be used to pay for each enforceable obligation. Consequently, in instances where a Last and Final Recognized Obligation Payment Schedule is not filed, Tax Revenues will not be withdrawn from the Redevelopment Property Tax Trust Fund by the County Auditor -Controller and remitted to the Successor Agency without a duly approved and effective Recognized Obligation Payment Schedule to pay debt service on the Bonds and to pay other enforceable obligations for each applicable annual period. In the event the Successor Agency were to fail to file a Recognized Obligation Payment Schedule as required, the availability of Tax Revenues to the Successor Agency could be adversely affected for such period. See "THE DISSOLUTION ACT—Recognized Obligation Payment Schedules." In instances where a Last and Final Recognized Obligation Payment Schedule is not filed, if a successor agency does not submit a Recognized Obligation Payment Schedule within five business days of the date upon which the Recognized Obligation Payment Schedule is to be used to determine the amount of property tax allocations, the DOF may determine if any amount should be withheld by the county auditor -controller for payments for enforceable obligations from distribution to taxing entities, pending approval of a Recognized Obligation Payment Schedule. The county auditor -controller is then required to distribute the portion of any of the sums withheld as described above to the affected taxing entities in accordance with applicable provisions of the Dissolution Act upon notice by the DOF that a portion of the withheld balances are in excess of the amount of enforceable obligations. Although the Successor Agency currently has no plans to file a Last and Final Recognized Obligation Payment Schedule nothing in the Indenture prevents it from doing so in the future. For a description of the covenant made by the Successor Agency in the Indenture relating to the obligation to submit Recognized Obligation Payment Schedules on a timely basis, see "THE SECURITY FOR THE BONDS—Recognized Obligation Payment Schedules." For a history of ROPS deposits, see Table 8 under the heading "THE REDEVELOPMENT PROJECT—Historical RPTTF Deposits." AB 1484 also added provisions to the Dissolution Act implementing certain penalties in the event a successor agency does not timely submit a Recognized Obligation Payment Schedule as required. Specifically, an oversight board approved Recognized Obligation Payment Schedule must be submitted by the successor agency to the county auditor -controller and the DOF, no later than each February 1 for the subsequent annual period. If a successor agency does not submit a Recognized Obligation Payment Schedule by such deadlines, the city or county that established the redevelopment agency will be subject to a civil penalty equal to $10,000 per day for every day the schedule is not submitted to the DOF. Additionally, a successor agency's administrative cost allowance is reduced by 25% if the successor agency does not submit an oversight board- -44- approved Recognized Obligation Payment Schedule within 10 days of the February 1 deadline, with respect to the Recognized Obligation Payment Schedule for the subsequent annual period. Challenges to Dissolution Act Several successor agencies, cities and other entities have filed judicial actions challenging the legality of various provisions of the Dissolution Act. One such challenge is an action filed on August 1, 2012, by Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (collectively, "Syncora") against the State, the State Controller, the State Director of Finance, and the Auditor - Controller of San Bernardino County on his own behalf and as the representative of all other County Auditors in the State (Superior Court of the State of California, County of Sacramento, Case No. 34-2012-80001215). Syncora are monoline financial guaranty insurers domiciled in the State of New York, and as such, provide credit enhancement on bonds issued by state and local governments and do not sell other kinds of insurance such as life, health, or property insurance. Syncora provided bond insurance and other related insurance policies for bonds issued by former California redevelopment agencies. The complaint alleged that the Dissolution Act, and specifically the "Redistribution Provisions" thereof (i.e., California Health and Safety Code sections 34172(d), 34174, 34177(d), 34183(a)(4), and 34188) violate the "contract clauses" of the United States and California Constitutions (U.S. Const. art. 1, §10, c1.1; Cal. Const. art. 1, §9) because they unconstitutionally impair the contracts among the former redevelopment agencies, bondholders and Syncora. The complaint also alleged that the Redistribution Provisions violate the "Takings Clauses" of the United States and California Constitutions (U.S. Const. amend. V; Cal Const. art. 1 § 19) because they unconstitutionally take and appropriate bondholders' and Syncora's contractual right to critical security mechanisms without just compensation. After hearing by the Sacramento County Superior Court on May 3, 2013, the Superior Court ruled that Syncora's constitutional claims based on contractual impairment were premature. The Superior Court also held that Syncora's takings claims, to the extent based on the same arguments, were also premature. Pursuant to a Judgment stipulated to by the parties, the Superior Court on October 3, 2013, entered its order dismissing the action. The Judgment, however, provides that Syncora preserves its rights to reassert its challenges to the Dissolution Act in the future. The Successor Agency does not guarantee that any reassertion of challenges by Syncora or that the final results of any of the judicial actions brought by others challenging the Dissolution Act will not result in an outcome that may have a material adverse effect on the Successor Agency's ability to timely pay debt service on the Bonds. Reduction in Taxable Value Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and thereby available to pay principal of and interest on the Bonds are determined by the amount of incremental taxable value in the Redevelopment Project and the current rate or rates at which property in the Redevelopment Project is taxed. The reduction of taxable values of property in the Redevelopment Project caused by economic factors beyond the Successor Agency's control, such as relocation out of the Redevelopment Project by one or more major property owners, sale of property to a non-profit corporation exempt from property taxation, or the complete or partial destruction of such property caused by, among other eventualities or other natural disaster, could cause a reduction in the tax increment available to pay debt service on the Bonds. Such reduction of tax increment available to pay debt service on the Bonds could have an adverse effect on the Successor Agency's ability to make timely payments of principal of and interest on the Bonds; this risk could be increased by the significant concentration of property ownership in the Redevelopment Project. see "THE REDEVELOPMENT PROJECT—Largest Taxpayers." -45- As described in greater detail under the heading "PROPERTY TAXATION IN CALIFORNIA — Article XIIIA of the State Constitution," Article XIIIA provides that the full cash value base of real property used in determining taxable value may be adjusted from year to year to reflect the inflation rate, not to exceed a two percent increase for any given year, or may be reduced to reflect a reduction in the consumer price index, comparable local data or any reduction in the event of declining property value caused by damage, destruction or other factors (as described above). Such measure is computed on a calendar year basis. Any resulting reduction in the full cash value base over the term of the Bonds could reduce tax increment available to pay debt service on the Bonds. In addition to the other limitations on, and required application under the Dissolution Act of Tax Revenues on deposit in the Redevelopment Property Tax Trust Fund, the State electorate or Legislature could adopt a constitutional or legislative property tax reduction with the effect of reducing Tax Revenues allocated to the Redevelopment Property Tax Trust Fund and available to the Successor Agency. Although the federal and State Constitutions include clauses generally prohibiting the Legislature's impairment of contracts, there are also recognized exceptions to these prohibitions. There is no assurance that the State electorate or Legislature will not at some future time approve additional limitations that could reduce the tax increment available to pay debt service on the Bonds and adversely affect the source of repayment and security of the Bonds. Limitations on Remedies The enforceability of the rights and remedies of the owners of the Bonds and the obligations of the Successor Agency may become subject to the following: the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; equitable principles which may limit the specific enforcement under state law of certain remedies: the exercise by the United States of America of the powers delegated to it by the federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations of the police power inherent in the sovereignty of the State and its governmental bodies in the interest of servicing a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise and consequently may entail risks of delay, limitation, or modification of their rights. Bond Counsel has limited its opinion as to the enforceability of the Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditors' rights, by equitable principles and by the exercise of judicial discretion. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Bond Owners. Risks to Real Estate Market The Successor Agency's ability to make payments on the Bonds will be dependent upon the economic strength of the Redevelopment Project. The general economy of the Redevelopment Project will be subject to all of the risks generally associated with urban real estate markets. Real estate prices and development may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs and by other similar factors. Further, real estate development within the Redevelopment Project could be adversely affected by limitations of infrastructure or future governmental policies, including governmental policies to restrict or control development. In -46- addition, if there is a significant decline in the general economy of the Redevelopment Project, the owners of property within the Redevelopment Project may be less able or less willing to make timely payments of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of Tax Revenues by the Successor Agency from the Redevelopment Project. See "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service Coverage" for a description of the projected debt service coverage on the Bonds. Concentration of Property Ownership; High Volatility Ratio Based on fiscal year 2017-18 locally assessed taxable valuations, the top ten taxable property owners in the Redevelopment Project represent approximately 32.34% of the total fiscal year 2017-18 taxable value and 38.51% of the incremental value. The top taxpayer, Abbott Cardiovascular Systems, represents 11.61% of the total fiscal year 2017-18 taxable value and 13.83% of the incremental value. A default by such taxpayer in the payment of its property taxes could materially and adversely affect the ability of the Successor Agency to pay debt service on the Bonds. Abbott Cardiovascular Systems and five of the other top ten taxpayers have pending assessed value appeals with respect to their property in the Redevelopment Project, and Abbott Cardiovascular Systems may be disposing of certain of its property to a non-profit entity which may result in less future Tax Revenues. See "THE REDEVELOPMENT PROJECT—Largest Taxpayers" and "THE REDEVELOPMENT PROJECT—Assessment Appeals. Reduction in Inflationary Rate As described in greater detail below, Article XIIIA of the State Constitution provides that the full cash value of real property used in determining taxable value may be adjusted from year to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. See "PROPERTY TAXATION IN CALIFORNIA – Article XIIIA of the State Constitution." The Successor Agency is unable to predict if any further adjustments to the full cash value base of real property within the Redevelopment Project, whether an increase or a reduction, will be realized in the future. Development Risks The general economy of a redevelopment project will be subject to all the risks generally associated with real estate development. Projected development within a redevelopment project may be subject to unexpected delays, disruptions and changes. Real estate development operations may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in development costs and by other similar factors. Further, real estate development operations within a redevelopment project could be adversely affected by future governmental policies, including governmental policies to restrict or control development. If projected development in a redevelopment project is delayed or halted, the economy of the redevelopment project could be affected. If such events lead to a decline in assessed values they could cause a reduction in incremental property tax revenues. The Successor Agency believes that a decline in development activity in the Redevelopment Project is unlikely to adversely impact its ability to pay debt service on the Bonds in light of the debt service coverage provided by fiscal year 2017-18 Tax Revenues. See "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service -47- Coverage." It should be noted, however, that Total RPTTF Revenues shown in Table 10 under such heading includes estimated increases in assessed value due to several developments that are under construction (see Table 8 under the heading "THE REDEVELOPMENT PROJECT— Transfers of Ownership and New Development"), and no assurance can be given that those developments will be completed as expected. Future Land Use Regulations and Growth Control Initiatives In the past, citizens of a number of local communities in Southern California have placed measures on the ballot designed to limit the issuance of building permits or impose other restrictions to control the rate of future growth in those areas. It is possible that future initiatives could be enacted that could be applicable to the City and have a negative impact on the ability of developers in the Redevelopment Project to complete any existing or proposed development. Bond Owners should assume that any event that significantly affects the ability to develop land in the City could cause the land values within the Redevelopment Project to decrease substantially and could affect the willingness and ability of the owners of land within the Redevelopment Project to pay property taxes when due. There can be no assurance that land development within the City will not be adversely affected by future governmental policies, including, but not limited to, government policies to restrict or control development. Under current State law, it is generally accepted that proposed development is not exempt from future land use regulations until building permits have been issued and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on the permits prior to the adoption of such regulations. Assessment Appeals Property taxable values may be reduced as a result of a successful appeal of the taxable value determined by the County Assessor. An appeal may result in a reduction to the County Assessor's original taxable value and a tax refund to the applicant property owner. A reduction in taxable values within the Redevelopment Project and the refund of taxes which may arise out of successful appeals by property owners will affect the amount of Tax Revenues under the Indenture. The Successor Agency has in the past experienced reductions in its tax increment revenues as a result of assessment appeals. The actual impact to tax increment is dependent upon the actual revised value of assessments resulting from values determined by the County Assessment Appeals Board or through litigation and the ultimate timing of successful appeals. For a discussion of historical assessment appeals in the Redevelopment Project and summary information regarding pending and resolved assessment appeals for the Successor Agency, see "THE REDEVELOPMENT PROJECT—Assessment Appeals" and APPENDIX G—FISCAL CONSULTANT'S REPORT. Six of the top ten largest property taxpayers in the Redevelopment Project have pending property tax appeals. See "THE REDEVELOPMENT PROJECT—Assessment Appeals" and "THE REDEVELOPMENT PROJECT—Largest Taxpayers" for a description of pending appeals and the potential impact on Tax Revenues if the appeals are granted. Levy and Collection of Taxes The Successor Agency has no independent power to levy or collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the tax increment available to pay debt service on the Bonds. -48- Delinquencies in the payment of property taxes by the owners of land in the Redevelopment Project, and the impact of bankruptcy proceedings on the ability of taxing agencies to collect property taxes, could have an adverse effect on the Successor Agency's ability to make timely payments on the Bonds. Notwithstanding the foregoing, the Fiscal Consultant has advised that prior to February 1, 2012, the County utilized a method for the distribution of tax revenue to redevelopment agencies that provided them with tax increment revenue and was effectively like a "Teeter Plan." Under this method, redevelopment agencies in the County received 100% of the taxes levied on the extended tax roll subject to correction, cancellation and refunds. The tax revenues of the Former Agency were not subject to revenue loss due to delinquencies or gains due to redemption of unpaid taxes. The Fiscal Consultant has represented that County Auditor -Controller has continued to use this method for allocation of tax increment revenue after the dissolution of redevelopment agencies. The County does not publish delinquency data for redevelopment project areas or agencies and it does not publish such information on a city level either. Collections within the County for the prior five fiscal years is reflected in Table I in the FISCAL CONSULTANT'S REPORT in Appendix G. Bankruptcy and Foreclosure The payment of the property taxes from which Tax Revenues are derived and the ability of the County to foreclose the lien of a delinquent unpaid tax may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases. Although bankruptcy proceedings would not cause the liens to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings. Although such delay would increase the possibility of delinquent tax installments not being paid in full and thereby increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds, the Successor Agency believes any such adverse impact is unlikely in light of the debt service coverage provided by fiscal year 2017-18 net tax increment. See "THE REDEVELOPMENT PROJECT—Projected Available Tax Revenues and Estimated Debt Service Coverage" for a description of the debt service coverage on the Bonds. Estimated Revenues In estimating that net tax increment will be sufficient to pay debt service on the Bonds, the Fiscal Consultant has made certain assumptions with regard to present and future assessed valuation in the Redevelopment Project, future tax rates and percentage of taxes collected. The Successor Agency believes these assumptions to be reasonable, but there is no assurance these assumptions will be realized and to the extent that the assessed valuation and the tax rates are less than expected, the Tax Revenues available to pay debt service on the Bonds will be less than those projected and such reduced net tax increment may be insufficient to provide for the payment of principal of and interest on the Bonds. See "THE REDEVELOPMENT PROJECT— Projected Available Tax Revenues and Estimated Debt Service Coverage." -49- Seismic Factors and Flooding The occurrence of severe seismic activity and / or flooding in the Redevelopment Project could result in substantial damage to property located in the Redevelopment Project, and could lead to successful appeals for reduction of assessed values of such property. Such a reduction could result in a decrease in Tax Revenue available to the Successor Agency. Portions of the Redevelopment Project are within the 100 -year flood plain. The Redevelopment Project is located in an active seismic region. The Elsinore, San Jacinto, Wildomar and San Andreas Fault Zones are all in the vicinity of the City. The proximity to these faults makes the Redevelopment Project subject to the hazards associated with ground shaking and soil instability. In 1993 approximately six percent (6%) of the overall area of the Redevelopment Project (consisting of about 10 acres) flooded due to a heavy storm event. Since that time, the Army Corp of Engineers has allowed annual maintenance of a flood control channel removing vegetation overgrowth to maintain channel capacity, so as to assist with drainage in the area. The City has seven piers that supported an old bridge and obstructed the channel. Additionally, the Army Corp of Engineers in partnership with Riverside County Flood Control and Water Conservation District has completed phase 1, and is presently working on phase 2, of the Murrieta Creek Flood Control, Environmental Restoration and Recreation Project. The Murrieta Creek Flood Control, Environmental Restoration and Recreation Project is a more than $120 million effort to deepen 7.5 miles of the creek bed from the City of Murrieta through the City of Temecula. When completed, it will add among other improvements a 270 -acre flood -control basin. The third phase involves a 270 -acre flood control basin at the northerly City limits that will provide flood protection for possible 100 -year flood. The incremental completion of the project has enhanced the creek's flow capacity well beyond that of 1993. There has not been any re -occurrence of flooding in the Redevelopment Project since the 1993 floods. Hazardous Substances An environmental condition that may result in the reduction in the assessed value of parcels in the Redevelopment Project would be the discovery of a hazardous substance that would limit the beneficial use of the property. In general, the owners and operators of an assessed parcel may be required by law to remedy conditions of the parcel relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as CERCLA or the Superfund Act, is the most well known and widely applicable of these laws but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition on the property whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the assessed parcels be affected by a hazardous substance would be to reduce the marketability and value of the parcel by the costs of remedying the condition, since the purchaser, upon becoming owner, will become obligated, along with the seller, to remedy the condition. Changes in the Law There can be no assurance that the California electorate will not at some future time adopt initiatives or that the Legislature will not enact legislation that will amend the Dissolution Act, the Redevelopment Law or other laws or the Constitution of the State resulting in a reduction of tax increment available to pay debt service on the Bonds. -50- Loss of Tax -Exemption As discussed under the caption "TAX MATTERS," interest on the 2017A Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date the 2017A Bonds were issued, as a result of future acts or omissions of the Successor Agency in violation of its covenants in the Indenture. In addition, current and future legislative proposals, if enacted into law, may cause interest on the 2017A Bonds to be subject, directly or indirectly, to federal income taxation by, for example, changing the current exclusion or deduction rules to limit the aggregate amount of interest on state and local government bonds that may be treated as tax exempt by individuals. Should such an event of taxability occur, the 2017A Bonds are not subject to special redemption and will remain outstanding until maturity or until redeemed under other provisions set forth in the Indenture. Secondary Market There can be no guarantee that there will be a secondary market for the Bonds, or, if a secondary market exists, that the Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. TAX MATTERS 2017A Bonds. Federal tax law contains a number of requirements and restrictions which apply to the 2017A Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The Successor Agency has covenanted to comply with all requirements that must be satisfied in order for the interest on the 2017A Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the 2017A Bonds to become includible in gross income for federal income tax purposes retroactively to the date of issuance of the 2017A Bonds. Subject to the Successor Agency's compliance with the above referenced covenants, under present law, in the opinion of Quint & Thimmig LLP, Larkspur, California, Bond Counsel, interest on the 2017A Bonds is excludable from the gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but interest on the 2017A Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Subject to the Successor Agency's compliance with certain covenants, in the opinion of Bond Counsel, the 2017A Bonds are "qualified tax exempt obligations" under the small issuer exception provided under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code. -51- In rendering its opinion, Bond Counsel will rely upon certifications of the Successor Agency with respect to certain material facts within the Successor Agency's knowledge. Bond Counsel's opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result. The Code includes provisions for an alternative minimum tax ("AMT") for corporations in addition to the corporate regular tax in certain cases. The AMT, if any, depends upon the corporation's alternative minimum taxable income ("AMTI"), which is the corporation's taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation's "adjusted current earnings" over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). "Adjusted current earnings" would include certain tax exempt interest, including interest on the 2017A Bonds. Ownership of the 2017A Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax exempt obligations. Prospective purchasers of the 2017A Bonds should consult their tax advisors as to applicability of any such collateral consequences. The issue price (the "Issue Price") for the 2017A Bonds is the price at which a substantial amount of the 2017A Bonds is first sold to the public. The Issue Price of the 2017A Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the cover page hereof. Owners of 2017A Bonds who dispose of 2017A Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase 2017A Bonds in the initial public offering, but at a price different from the Issue Price or purchase 2017A Bonds subsequent to the initial public offering should consult their own tax advisors. If a 2017A Bond is purchased at any time for a price that is less than the 2017A Bond's stated redemption price at maturity, the purchaser will be treated as having purchased a 2017A Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a 2017A Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser's election, as it accrues. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such 2017A Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the 2017A Bonds. An investor may purchase a 2017A Bond at a price in excess of its stated principal amount. Such excess is characterized for federal income tax purposes as "bond premium" and must be amortized by an investor on a constant yield basis over the remaining term of the 2017A Bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax exempt bond. The amortized bond premium is treated as a reduction in the tax exempt interest received. As bond premium is amortized, it reduces the investor's basis in the 2017A Bonds. Investors who purchase a 2017A Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the 2017A Bond's basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the 2017A Bonds. -52- There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the 2017A Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the 2017A Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. The Internal Revenue Service (the "Service") has an ongoing program of auditing tax exempt obligations to determine whether, in the view of the Service, interest on such tax exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the 2017A Bonds. If an audit is commenced, under current procedures the Service may treat the Successor Agency as a taxpayer and the 2017A Bond owners may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the 2017A Bonds until the audit is concluded, regardless of the ultimate outcome. Payments of interest on, and proceeds of the sale, redemption or maturity of, tax exempt obligations, including the 2017A Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any 2017A Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any 2017A Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. In the further opinion of Bond Counsel, interest on the 2017A Bonds is exempt from personal income taxation imposed by the State of California. Ownership of the 2017A Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the 2017A Bonds. Prospective purchasers of the 2017A Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. The complete text of the final opinion that Bond Counsel expects to deliver upon the issuance of the 2017A Bonds is set forth in APPENDIX B—FORMS OF OPINIONS OF BOND COUNSEL -2017A Bonds. 2017B Bonds. Interest on the 2017B Bonds is includible in gross income of the owners of the 2017B Bonds for federal income tax purposes. In the opinion of Bond Counsel, interest on the 2017B Bonds is exempt from personal income taxation imposed by the State of California. The following discussion is a brief summary of the principal United States Federal income tax consequences of the acquisition, ownership and disposition of 2017B Bonds by original purchasers of the 2017B Bonds who are "U.S. Holders", as defined in the seventh succeeding paragraph. This summary (i) is based on the Code, Treasury Regulations, revenue rulings and court decisions, all as currently in effect and all subject to change at any time, possibly with retroactive effect; (ii) assumes that the 2017B Bonds will be held as "capital assets"; and (iii) does not discuss all of the United States Federal income tax consequences that may be relevant to an owner of 2017B Bonds in light of its particular circumstances or to owners of 2017B Bonds subject -53- to special rules, such as insurance companies, financial institutions, tax-exempt organizations, dealers in securities or foreign currencies, persons owning the 2017B Bonds as a position in a "hedge" or "straddle", owners of 2017B Bonds whose functional currency (as defined in Section 985 of the Code) is not the United States dollar, owners who acquire 2017B Bonds in the secondary market, or individuals, estates and trusts subject to the tax on unearned income imposed by Section 1411 of the Code. Owners of 2017B Bonds should consult with their own tax advisors concerning the United States Federal income tax and other consequences with respect to the acquisition, ownership and disposition of the 2017B Bonds as well as any tax consequences that may arise under the laws of any state, local or foreign tax jurisdiction. In general, if Original Issue Discount ("OID") is greater than a statutorily defined de minimis amount, an owner of a 2017B Bond must include in Federal gross income (for each day of the taxable year, or portion of the taxable year, in which such owner owns such 2017B Bond) the daily portion of OID, as it accrues (generally on a constant yield method) and regardless of the owner's method of accounting. "OID" is the excess of (i) the "stated redemption price at maturity" over (ii) the "issue price". For purposes of the foregoing: "issue price" means the first price at which a substantial amount of the 2017B Bond is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers); "stated redemption price at maturity" means the sum of all payments, other than "qualified stated interest", provided by such 2017B Bond; "qualified stated interest" is stated interest that is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually at a single fixed rate; and "de minimis amount" is an amount equal to 0.25 percent of the 2017B Bond's stated redemption price at maturity multiplied by the number of complete years to its maturity. An owner of a 2017B Bond may irrevocably elect to include in gross income all interest that accrues on a 2017B Bond using the constant -yield method, subject to certain modifications. In general, if a 2017B Bond is originally issued for an issue price (excluding accrued interest) that reflects a premium over the sum of all amounts payable on the 2017B Bond other than "qualified stated interest" (a "Taxable Premium Bond"), that Taxable Premium Bond will be subject to Section 171 of the Code, relating to bond premium. In general, if the owner of a Taxable Premium Bond elects to amortize the premium as "amortizable bond premium" over the remaining term of the Taxable Premium Bond, determined based on constant yield principles (in certain cases involving a Taxable Premium Bond callable prior to its stated maturity date, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the highest yield on such Taxable Premium Bond), the amortizable premium is treated as an offset to interest income; the owner will make a corresponding adjustment to the owner's basis in the Taxable Premium Bond. Any such election is generally irrevocable and applies to all debt instruments of the owner (other than tax-exempt bonds) held at the beginning of the first taxable year to which the election applies and to all such debt instruments thereafter acquired. Under certain circumstances, the owner of a Taxable Premium Bond may realize a taxable gain upon disposition of the Taxable Premium Bond even though it is sold or redeemed for an amount less than or equal to the owner's original acquisition cost. Generally, upon the sale, exchange, redemption, or other disposition (which would include a legal defeasance) of a 2017B Bond, an owner of a 2017B Bond generally will recognize taxable gain or loss in an amount equal to the difference between the amount realized (other than amounts attributable to accrued interest not previously includable in income) and such owner's adjusted tax basis in the 2017B Bond. -54- The Successor Agency may cause the deposit of moneys or securities in escrow in such amount and manner as to cause the 2017B Bonds to be deemed to be no longer outstanding under the Indenture (a "defeasance"). See APPENDIX A—SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE. For Federal income tax purposes, such defeasance could result in a deemed exchange under Section 1001 of the Code and a recognition by an owner of 2017B Bonds of taxable income or loss, without any corresponding receipt of moneys. In addition, the character and timing of receipt of payments on the 2017B Bonds subsequent to any such defeasance could also be affected. In general, information reporting requirements will apply to non -corporate owners of the 2017B Bonds with respect to payments of principal, payments of interest, and the accrual of OID on a 2017B Bond and the proceeds of the sale of a 2017B Bond before maturity within the United States. Backup withholding may apply to owners of 2017B Bonds under Section 3406 of the Code. Any amounts withheld under the backup withholding rules from a payment to a beneficial owner, and which constitutes over -withholding, would be allowed as a refund or a credit against such beneficial owner's United States Federal income tax provided the required information is furnished to the Internal Revenue Service. The term "U.S. Holder" means a beneficial owner of a 2017B Bond that is: (i) a citizen or resident of the United States, (ii) a corporation, partnership or other entity created or organized in or under the laws of the United States or of any political subdivision thereof, (iii) an estate the income of which is subject to United States Federal income taxation regardless of its source or (iv) a trust whose administration is subject to the primary jurisdiction of a United States court and which has one or more United States fiduciaries who have the authority to control all substantial decisions of the trust. Ownership of the 2017B Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the 2017B Bonds. Prospective purchasers of the 2017B Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. The complete text of the final opinion that Bond Counsel expects to deliver upon the issuance of the Series B Bonds is set forth in APPENDIX B—FORMS OF OPINIONS OF BOND COUNSEL— Series B Bonds. VERIFICATION OF MATHEMATICAL COMPUTATIONS The Verification Agent will examine the arithmetical accuracy of certain computations included in the schedules relating to the refunding of the Bonds to be Refunded. See "REFUNDING PLAN." The Verification Agent has restricted its procedures to examining the arithmetical accuracy of certain computations and has not made any study or evaluation of the assumptions and information upon which the computations are based and, accordingly, has not expressed an opinion on the data used, the reasonableness of the assumptions, or the achievability of the forecasted outcome. UNDERWRITING 2017A Bonds. The 2017A Bonds are being purchased by Stifel, Nicolaus & Company, Incorporated (the "Underwriter"). The Underwriter has agreed to purchase the 2017A Bonds at a price of $ (being the principal amount of the Bonds of $ , less an -55- Underwriter's discount of $ , and less (plus) a net original issue discount (premium) of $ ). The Underwriter will purchase all of the 2017A Bonds if any are purchased. The Underwriter may offer and sell 2017A Bonds to certain dealers and others at a price lower than the offering price stated on the inside cover page of this Official Statement. The offering prices may be changed from time to time by the Underwriter. 2017B Bonds. The 2017B Bonds are being purchased by the Underwriter. The Underwriter has agreed to purchase the 2017B Bonds at a price of $ (being the principal amount of the 2017B Bonds of $ , less an Underwriter's discount of $ , and less a net original issue discount of $ ). The Underwriter will purchase all of the 2017B Bonds if any are purchased. The Underwriter may offer and sell 2017B Bonds to certain dealers and others at a price lower than the offering price stated on the inside cover page of this Official Statement. The offering prices may be changed from time to time by the Underwriter. MUNICIPAL ADVISOR Fieldman, Rolapp & Associates, Inc., Irvine, California, has served as municipal advisor (the "Municipal Advisor") to the Successor Agency in connection with the issuance of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in the Official Statement. The fees of the Municipal Advisor are contingent upon the sale and delivery of the Bonds. LEGAL OPINIONS The proposed forms of Bond Counsel's final approving opinions with respect to the Bonds are attached hereto in APPENDIX B—FORMS OF OPINIONS OF BOND COUNSEL. In addition to those matters opined on by Bond Counsel, certain legal matters will be passed on for the Successor Agency by Quint & Thimmig LLP, as Disclosure Counsel to the Successor Agency for the Bonds and by Richards, Watson & Gershon, A Professional Corporation, Los Angeles, California, as counsel to the Successor Agency. Certain legal matters will be passed on for the Underwriter by Stradling, Yocca, Carlson & Rauth, a Professional Corporation, Newport Beach, California, acting as Underwriter's Counsel. LITIGATION There is no action, suit or proceeding known to the Successor Agency to be pending and notice of which has been served upon and received by the Successor Agency, or threatened, restraining or enjoining the execution or delivery of the Bonds or the Indenture or in any way contesting or affecting the validity of the foregoing or any proceedings of the Successor Agency taken with respect to any of the foregoing. See, however, "RISK FACTORS—Challenges to Dissolution Act." -56- RATINGS S&P is expected to assign the rating of " " to the Bonds based on the issuance of a Municipal Bond Insurance Policy by the Municipal Bond Insurer at the time of delivery of the Bonds. See "MUNICIPAL BOND INSURANCE." In addition, S&P has assigned the underlying rating of " " to the Bonds without regard to the issuance of the Municipal Bond Insurance Policy. These ratings reflect only the views of S&P and an explanation of the significance of such ratings may be obtained from S&P. There is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised downward or withdrawn entirely by S&P, if in the judgment of the S&P, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Bonds. CONTINUING DISCLOSURE The Successor Agency has covenanted for the benefit of holders and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the Successor Agency (the "Annual Report") by not later than March 1 after the end of the Successor Agency's fiscal year (the current end of the Successor Agency's fiscal year is on June 30), commencing with the report for the 2016-17 fiscal year, and to provide notices of the occurrence of certain enumerated events. The Annual Report will be filed by the Successor Agency with the Municipal Securities Rulemaking Board (the "MSRB"). The notices of enumerated events will be filed by the Successor Agency with the MSRB. The specific nature of the information to be made available and to be contained in the notices of material events is summarized below under the caption APPENDIX D—FORM OF CONTINUING DISCLOSURE CERTIFICATE. These covenants have been made in order to assist the Underwriter in complying with S.E.C. Rule 15c2 -12(b)(5) (the "Rule"). During the past five years, the Successor Agency has failed to comply in certain respects with continuing disclosure obligations related to some of the Prior Bonds. The failures to comply included failures to notify of rating changes on several occasions that arose by reason of rating changes relative to a bond insurer that insured the 2002 Bonds and the 2006A Bonds, the failure to post the continuing disclosure report for 2012 for the 2002 Bonds (however the Former Agency's financial statements for that year were filed), failure to file certain information regarding appeals by the top ten taxpayers in respect of the 2011A Bonds (which involved a table that was different from the disclosure obligations for the other Prior Bonds, and the failure to include one escrowed 2007 Bond maturity when the 2012 continuing disclosure report for the 2007 Bonds was posted). The Successor Agency made remedial filings to provide all of the previously omitted information on , .1 In order to promote compliance by the Successor Agency with its continuing disclosure obligations, the Successor Agency has retained U.S. Bank National Association to serve as the dissemination agent under the Continuing Disclosure Certificate for the Bonds. See APPENDIX D—FORM OF CONTINUING DISCLOSURE CERTIFICATE. AUDITED FINANCIAL STATEMENTS The City's Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2016 (the "City CAFR") is attached as APPENDIX E—COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF TEMECULA FOR THE FISCAL YEAR ENDED JUNE 30, 2016. The -57- City CAFR includes the Successor Agency's audited financial statements for the fiscal year ended June 30, 2016. The Successor Agency's audited financial statements were audited by Vavrinek, Trine, Day & Co., LLP, Riverside, California (the "Auditor"). The Auditor has not been asked to consent to the inclusion of the City CAFR in this Official Statement and has not reviewed this Official Statement. As described in "SECURITY FOR THE BONDS—Limited Obligation," the Bonds are payable from and secured by a pledge of Tax Revenues and the Bonds are not a debt of the City. APPENDIX E—COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF TEMECULA FOR THE FISCAL YEAR ENDED JUNE 30, 2016, is included in this Official Statement only because it includes the Successor Agency's audited financial statements. MISCELLANEOUS All of the preceding summaries of the Indenture, the Redevelopment Law, the Dissolution Act, other applicable legislation, the Redevelopment Plans, agreements and other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the Successor Agency for further information in connection therewith. This Official Statement does not constitute a contract with the purchasers of the Bonds. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement by its Executive Director has been duly authorized by the Successor Agency. SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY By Executive Director -58- APPENDIX A SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE Appendix A Page 1 APPENDIX B FORMS OF OPINIONS OF BOND COUNSEL 2017A BONDS December , 2017 Successor Agency to the Temecula Redevelopment Agency 41000 Main Street Temecula, California 92589-9033 OPINION: $ Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A Members of the Successor Agency: We have acted as bond counsel in connection with the issuance by the Successor Agency to the Temecula Redevelopment Agency, as successor to the former Contra Costa County Redevelopment Agency (the "Former Agency"), of its $ Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A (the "Bonds"), pursuant to the provisions of section 34177.5 of the California Health and Safety Code and section 53580 et seq. of the California Government Code (collectively, the "Refunding Bond Law"), Resolution No. SARDA 17-05 adopted by the Successor Agency on September 5, 2017, and an Indenture of Trust, dated as of December 1, 2017 (the "Indenture"), by and between the Successor Agency and U.S. Bank National Association, as trustee. In connection with this opinion, we have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Successor Agency contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Based upon the foregoing we are of the opinion, under existing law, as follows: 1. The Successor Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The Indenture has been duly approved by the Successor Agency and constitutes a valid and binding obligation of the Successor Agency enforceable upon the Successor Agency in accordance with its terms. 3. Pursuant to the Refunding Bond Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the pledge thereof for the security of the 2017B Bonds and any Parity Debt that may be issued pursuant to and as such capitalized terms are defined in the Indenture. Appendix B Page 1 Successor Agency to the Temecula Redevelopment Agency December , 2017 Page 2 4. The Bonds have been duly authorized, executed and delivered by the Successor Agency and are valid and binding special obligations of the Successor Agency, payable solely from the sources provided therefor in the Indenture. 5. Subject to the Successor Agency's compliance with certain covenants, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such covenants could cause interest on the Bonds to be includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. 6. The interest on the Bonds is exempt from personal income taxation imposed by the State of California. Ownership of the Bonds may result in other tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and also may be subject to the exercise of judicial discretion in accordance with general principles of equity. In rendering this opinion, we have relied upon certifications of the Successor Agency and others with respect to certain material facts. Our opinion represents our legal judgment based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Respectfully submitted, Appendix B Page 2 2017B BONDS December , 2017 Successor Agency to the Temecula Redevelopment Agency 41000 Main Street Temecula, California 92589-9033 OPINION: $ Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 2017B Members of the Successor Agency: We have acted as bond counsel in connection with the issuance by the Successor Agency to the Temecula Redevelopment Agency, as successor to the former Contra Costa County Redevelopment Agency (the "Successor Agency"), of its $ Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 2017B (the "Bonds"), pursuant to the provisions of section 34177.5 of the California Health and Safety Code and section 53580 et seq. of the California Government Code (collectively, the "Refunding Bond Law"), Resolution No. SARDA 17-05 adopted by the Successor Agency on September 5, 2017, and an Indenture of Trust, dated as of December 1, 2017 (the "Indenture"), by and between the Successor Agency and U.S. Bank National Association, as trustee. In connection with this opinion, we have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Successor Agency contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Based upon the foregoing we are of the opinion, under existing law, as follows: 1. The Successor Agency is duly created and validly existing as a public body, corporate and politic, with the power to enter into the Indenture, perform the agreements on its part contained therein and issue the Bonds. 2. The Indenture has been duly approved by the Successor Agency and constitutes a valid and binding obligation of the Successor Agency enforceable upon the Successor Agency in accordance with its terms. 3. Pursuant to the Refunding Bond Law, the Indenture creates a valid lien on the funds pledged by the Indenture for the security of the Bonds, on a parity with the pledge thereof for the security of the 2017A Bonds and any Parity Debt that may be issued pursuant to and as such capitalized terms are defined in the Indenture. 4. The Bonds have been duly authorized, executed and delivered by the Successor Agency and are valid and binding special obligations of the Successor Agency, payable solely from the sources provided therefor in the Indenture. 5. The interest on the Bonds is exempt from personal income taxation imposed by the State of California. Appendix B Page 3 Successor Agency to the Temecula Redevelopment Agency December , 2017 Page 4 Ownership of the Bonds may result in other tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and also may be subject to the exercise of judicial discretion in accordance with general principles of equity. In rendering this opinion, we have relied upon certifications of the Successor Agency and others with respect to certain material facts. Our opinion represents our legal judgment based upon such review of the law and the facts that we deem relevant to render our opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Respectfully submitted, Appendix B Page 4 APPENDIX C BOOK -ENTRY ONLY SYSTEM The information in this Appendix C concerning The Depository Trust Company ("DTC"), New York, New York, and DTC's book -entry system has been obtained from DTC and the Successor Agency takes no responsibility for the completeness or accuracy thereof. The Successor Agency cannot and does not give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC. The Depository Trust Company ("DTC" ), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information set forth on such website is not incorporated herein by reference. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name Appendix C Page 1 of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Successor Agency as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal, premium (if any), and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Successor Agency or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Trustee, or the Successor Agency, subject to any statutory or regulatory requirements as may be in effect from time to time. Principal, premium (if any), and interest payments with respect to the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Successor Agency or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Successor Agency or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, certificates representing the Bonds are required to be printed and delivered. The Successor Agency may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, representing the Bonds will be printed and delivered to DTC in accordance with the provisions of the Indenture. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Successor Agency believes to be reliable, but the Successor Agency takes no responsibility for the accuracy thereof. Appendix C Page 2 APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the "Disclosure Certificate") is executed and delivered by the SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY (the "Successor Agency") in connection with the issuance of $ Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A and Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 201713 (collectively, the "Bonds"). The Bonds are being issued pursuant to an Indenture of Trust, dated as of December 1, 2017 (the "Indenture"), by and between the Successor Agency and U.S. Bank National Association, as trustee (the "Trustee"). The Successor Agency covenants and agrees as follows: Section 1. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined in this Section 1, the following capitalized terms shall have the following meanings when used in this Disclosure Certificate: "Annual Report" shall mean any Annual Report provided by the Successor Agency pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person who (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Dissemination Agent" shall mean U.S. Bank National Association, or any successor Dissemination Agent designated in writing by the Successor Agency and which has filed with the Successor Agency a written acceptance of such designation. In the absence of such a designation, the Successor Agency shall act as the Dissemination Agent. "EMMA" or "Electronic Municipal Market Access" means the centralized on-line repository for documents to be filed with the MSRB, such as official statements and disclosure information relating to municipal bonds, notes and other securities as issued by state and local governments. "Listed Events" shall mean any of the events listed in Section 5(a) or 5(b) of this Disclosure Certificate. "MSRB" means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information which may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. "Participating Underwriter" shall mean the original underwriter of the Bonds required to comply with the Rule in connection with the offering of the Bonds. "Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. Section 2. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Successor Agency for the benefit of the owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with Securities and Exchange Commission Rule 15c2 -12(b)(5). Section 3. Provision of Annual Reports. (a) Delivery of Annual Report. The Successor Agency shall, or shall cause the Dissemination Agent to, not later than eight months after the end of the Successor Agency's fiscal year (which currently ends on Appendix D Page 1 June 30), commencing with the report for the 2016-17 Fiscal Year, which is due not later than March 1, 2018, file with EMMA, in a readable PDF or other electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Successor Agency may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. (b) Change of Fiscal Year. If the Successor Agency's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c), and subsequent Annual Report filings shall be made no later than eight months after the end of such new fiscal year end. (c) Delivery of Annual Report to Dissemination Agent. Not later than fifteen (15) Business Days prior to the date specified in subsection (a) (or, if applicable, subsection (b)) of this Section 3 for providing the Annual Report to EMMA, the Successor Agency shall provide the Annual Report to the Dissemination Agent (if other than the Successor Agency). If by such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall notify the Successor Agency. If the Dissemination Agent has not received an Annual Report and Certification by 6:00 p.m. Eastern time on annual filing date (or, if such annual filing date falls on a Saturday, Sunday or holiday, then the first business day thereafter) for the Annual Report, a failure to file event shall have occurred and the Successor Agency irrevocably directs the Dissemination Agent in a timely manner to send a notice to the MSRB in substantially the form attached as Exhibit A. (d) Report of Non -Compliance. If the Successor Agency is the Dissemination Agent and is unable to file an Annual Report by the date required in subsection (a) (or, if applicable, subsection (b)) of this Section 3, the Successor Agency shall send, in a timely manner, a notice to EMMA substantially in the form attached hereto as Exhibit A. If the Successor Agency is not the Dissemination Agent and is unable to provide an Annual Report to the Dissemination Agent by the date required in subsection (c) of this Section 3, the Dissemination Agent shall send, in a timely manner, a notice to EMMA in substantially the form attached hereto as Exhibit A. (e) Annual Compliance Certification. The Dissemination Agent shall, if the Dissemination Agent is other than the Successor Agency, file a report with the Successor Agency certifying that the Annual Report has been filed with EMMA pursuant to Section 3 of this Disclosure Certificate, stating the date it was so provided and filed. Section 4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following: (a) Financial Statements. Audited financial statements of the City of Temecula for the preceding fiscal year (which include financial information for the Successor Agency), prepared in accordance with generally accepted accounting principles. If the Successor Agency's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Other Annual Information. To the extent not included in the audited financial statements of the Successor Agency, the Annual Report for each fiscal year, commencing with the Annual Report for the Appendix D Page 2 2017-18 fiscal year, shall also include financial and operating data with respect to the Successor Agency for the current fiscal year, as follows: (1) Successor Agency RPTTF Allocations for the prior Fiscal Year (substantially in the form of Table 9 of the Official Statement). (2) Land Use Summary (substantially in the form of Table 2 of the Official Statement). (3) Ten Largest Property Taxpayers (substantially in the form of Table 4 of the Official Statement). (4) Historical Assessed Values, Incremental Values and Tax Revenues (substantially in the form of Table 5 of the Official Statement) for the current Fiscal Year. (5) Projected results of appeals (substantially in the form of Table 6 of the Official Statement, including detail for all appeals by any of the top ten taxpayers substantially in the form of Table 7). (6) Projection of Tax Revenues for Debt Service and Debt Service Coverage for the then current Fiscal Year in a format similar to Table 10, but with no requirement to project future years' values and coverage. (c) Cross References. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Successor Agency or related public entities, which are available to the public on EMMA. The Successor Agency shall clearly identify each such other document so included by reference. If the document included by reference is a final official statement, it must be available from EMMA. (d) Further Information. In addition to any of the information expressly required to be provided under paragraph (b) of this Section 4, the Successor Agency shall provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. Section 5. Reporting of Listed Events. (a) Reportable Events. The Successor Agency shall, or shall cause the Dissemination Agent (if not the Successor Agency) to, give notice of the occurrence of any of the following events with respect to the Bonds: (1) Principal and interest payment delinquencies. (2) Unscheduled draws on debt service reserves reflecting financial difficulties. (3) Unscheduled draws on credit enhancements reflecting financial difficulties. (4) Substitution of credit or liquidity providers, or their failure to perform. (5) Defeasances. (6) Rating changes. (7) Tender offers. (8) Bankruptcy, insolvency, receivership or similar event of the obligated person. (9) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) Appendix D Page 3 or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. Note: For the purposes of the event identified in subparagraph (8), the event is considered to occur when any of the following occur: the appointment of a receiver, trustee or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (b) Material Reportable Events. The Successor Agency shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: (1) Non-payment related defaults. (2) Modifications to rights of security holders. (3) Bond calls. (4) The release, substitution, or sale of property securing repayment of the securities. (5) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms. (6) Appointment of a successor or additional trustee, or the change of name of a trustee. (c) Time to Disclose. The Successor Agency shall, or shall cause the Dissemination Agent (if not the Successor Agency) to, file a notice of such occurrence with EMMA, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of any Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(5) and (b)(3) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to owners of affected Bonds under the Indenture. Section 6. Identifying Information for Filings with EMMA. All documents provided to EMMA under this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The Successor Agency's obligations under this Disclosure Certificate shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Successor Agency shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). Section 8. Dissemination Agent. (a) Appointment of Dissemination Agent. The Successor Agency may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate and may discharge any such agent, with or without appointing a successor Dissemination Agent. If the Dissemination Agent is not the Successor Agency, the Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Successor Agency pursuant to this Disclosure Certificate. It is understood and agreed that any information that the Dissemination Agent may be instructed to file with EMMA shall be prepared and provided to it by the Successor Agency. The Dissemination Agent has undertaken no responsibility with respect to the content of any reports, notices Appendix D Page 4 or disclosures provided to it under this Disclosure Certificate and has no liability to any person, including any Bond owner, with respect to any such reports, notices or disclosures. The fact that the Dissemination Agent or any affiliate thereof may have any fiduciary or banking relationship with the Successor Agency shall not be construed to mean that the Dissemination Agent has actual knowledge of any event or condition, except as may be provided by written notice from the Successor Agency. (b) Compensation of Dissemination Agent. The Dissemination Agent shall be paid compensation by the Successor Agency for its services provided hereunder in accordance with its schedule of fees as agreed to between the Dissemination Agent and the Successor Agency from time to time and all expenses, legal fees and expenses and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall not be deemed to be acting in any fiduciary capacity for the Successor Agency, owners or Beneficial Owners, or any other party. The Dissemination Agent may rely, and shall be protected in acting or refraining from acting, upon any direction from the Successor Agency or an opinion of nationally recognized bond counsel. The Dissemination Agent may at any time resign by giving written notice of such resignation to the Successor Agency. The Dissemination Agent shall not be liable hereunder except for its negligence or willful misconduct. Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Successor Agency may amend this Disclosure Certificate (and the Dissemination Agent shall agree to any amendment so requested by the Successor Agency that does not impose any greater duties or risk of liability on the Dissemination Agent), and any provision of this Disclosure Certificate may be waived, provided that all of the following conditions are satisfied: (a) Change in Circumstances. If the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a) or (b), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or the type of business conducted. (b) Compliance as of Issue Date. The undertaking, as amended or taking into account such waiver, would, in the opinion of a nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances. (c) Consent of Holders; Non -impairment Opinion. The amendment or waiver either (i) is approved by the Bond owners in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Bond owners, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Bond owners or Beneficial Owners. If this Disclosure Certificate is amended or any provision of this Disclosure Certificate is waived, the Successor Agency shall describe such amendment or waiver in the next following Annual Report and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Successor Agency. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Successor Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Successor Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Successor Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Appendix D Page 5 Section 11. Default. In the event of a failure of the Successor Agency to comply with any provision of this Disclosure Certificate, any Certificate owner or Beneficial Owner may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Successor Agency to comply with their obligations under this Disclosure Certificate. The sole remedy under this Disclosure Certificate in the event of any failure of the Successor Agency to comply with this Disclosure Certificate shall be an action to compel performance. Section 12. Duties, Immunities and Liabilities of Dissemination Agent. Article VIII of the Indenture is hereby made applicable to this Disclosure Certificate as if this Disclosure Certificate was (solely for this purpose) contained in the Indenture. The Dissemination Agent shall be entitled to the protections and limitations from liability afforded to the Trustee thereunder. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and no implied covenants or obligations shall be read into this Disclosure Certificate against the Dissemination Agent, and the Successor Agency agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys' fees and expenses) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent shall have the same rights, privileges and immunities hereunder as are afforded to the Trustee under the Indenture. The obligations of the Successor Agency under this Section 12 shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Successor Agency, the Dissemination Agent, the Participating Underwriter and the owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Date: [Closing Date] SUCCESSOR AGENCY TO THE TEMECULA REDEVELOPMENT AGENCY By Executive Director ACKNOWLEDGED: U.S. BANK NATIONAL ASSOCIATION, as Dissemination Agent By Authorized Officer Appendix D Page 6 EXHIBIT A NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Name of Obligor: Successor Agency to the Temecula Redevelopment Agency Names of Issue: Successor Agency to the Temecula Redevelopment Agency Tax Allocation Refunding Bonds, Series 2017A and Successor Agency to the Temecula Redevelopment Agency Taxable Tax Allocation Refunding Bonds, Series 201713 Date of Issuance: December , 2017 NOTICE IS HEREBY GIVEN that the Obligor has not provided an Annual Report with respect to the above- named Issue as required by the Continuing Disclosure Certificate, dated the Date of Issuance, furnished by the Obligor in connection with the Issue. The Obligor anticipates that the Annual Report will be filed by Date: U.S. BANK NATIONAL ASSOCIATION, as Dissemination Agent By Authorized Officer Appendix D Page 7 APPENDIX E COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF TEMECULA FOR THE FISCAL YEAR ENDED JUNE 30, 2016 The Auditor was not requested to consent to the inclusion of its report in this Appendix E and it has not undertaken to update financial statements included in this Appendix E. No opinion is expressed by the Auditor with respect to any event subsequent to its report. Appendix E APPENDIX F GENERAL INFORMATION ABOUT THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE The following information is provided for background purposes only. The City of Temecula and the County of Riverside have no liability or responsibility whatsoever with respect to the Bonds or the Indenture. Introduction The City. The City of Temecula, California (the "City") is located in southwestern Riverside County, California. The City was incorporated on December 1, 1989. Temecula is bordered by the City of Murrieta to the north and the Pechanga Indian Reservation and San Diego County to the south. The City forms the southwestern anchor of the Inland Empire region. Temecula is an affluent community. The City is supported by high median and mean income levels as well as the City's favorable tourism and resort industries. The City is a prominent tourist destination, with the Temecula Valley Wine Country, Old Town Temecula, the Temecula Valley Balloon & Wine Festival, championship golf courses, and resort accommodations attracting a significant amount of tourists. The City is a general law city, which operates under a council-manager form of government. The City Council consists of five members that are currently elected at large; however beginning in November of 2018 the transition to district based elections will take place with three of the five Council members running within districts. In November of 2020 the remaining two at large elected Council members will be elected from districts. Each year, the City Council elects a Mayor and a Mayor Pro Tem amongst themselves to serve for one calendar year. The Mayor, who has equal legislative power with fellow members of the City Council, serves as the ceremonial leader of the city and as the presiding officer of the bi-weekly City Council meetings. The County. Riverside County, California (the "County") is the 4th -most populous county in California and the 11th -most populous in the United States. The County name was taken from the city of Riverside, which is the county seat. Roughly rectangle -shaped, Riverside County covers 7,208 square miles (18,670 km) in Southern California, spanning from the Greater Los Angeles area to the Arizona border. Geographically, the county is mostly desert in the central and eastern portions of the county and is a Mediterranean climate in the western portion of the county. Most of Joshua Tree National Park is located in the county. The resort cities of Palm Springs, Palm Desert, Indian Wells, La Quinta, Rancho Mirage, and Desert Hot Springs are all located in the Coachella Valley region of Riverside County. Large numbers of Los Angeles area workers have moved to the county to take advantage of its relatively affordable housing. Alongside neighboring San Bernardino County, it was one of the fastest growing regions in the state prior to the recent changes in the regional economy. In addition, smaller, but significant, numbers of people have been moving into Southwest Riverside County from the San Diego -Tijuana metropolitan area. Appendix F Page 1 Population The following table contains the population of the City, the County and the State of California for the last five years. CITY OF TEMECULA, RIVERSIDE COUNTY AND STATE OF CALIFORNIA Population Data City of Riverside State of Year Temecula County California 2013 104,494 2,266,290 38,238,492 2014 105,803 2,291,699 38,572,211 2015 108,292 2,318,762 38,915,880 2016 109,635 2,348,213 39,189,035 2017 111,024 2,384,783 39,523,613 Source: California Department of Finance E-4 Population Estimates for Cities, Counties and State, 2010-2017 with 2010 Benchmark. Employment The County is part of the Riverside -San Bernardino -Ontario MSA, which covers the City and Riverside and San Bernardino Counties. The following table summarizes the historical numbers of workers by industry in the Riverside -San Bernardino -Ontario MSA for the last five years: Total, All Industries RIVERSIDE -SAN BERNARDINO-ONTARIO MSA (RIVERSIDE AND SAN BERNARDINO COUNTIES) Labor Force and Industry Employment Annual Averages by Industry 2012 2013 2014 2015 2016(1) 1,200, 200 1,247, 800 1,303, 700 1,367,900 1,415, 400 Total Farm 15,000 14,500 14,400 14,800 14,700 Mining, Logging, and Construction 63,800 71,200 78,900 86,900 93,300 Manufacturing 86,700 87,300 91,300 96,100 98,900 Wholesale Trade 52,200 56,400 58,900 61,600 62,900 Retail Trade 162,400 164,800 169,400 174,300 179,000 Transportation, Warehousing & Utilities 73,000 78,400 86,600 97,400 104,400 Information 11,700 11,500 11,300 11,400 11,600 Financial Activities 40,700 41,800 42,900 43,900 45,300 Educational & Health Services 173,600 187,600 194,800 205,100 214,300 Leisure & Hospitality 129,400 135,900 144,800 151,700 159,700 Other Services 40,100 41,100 43,000 44,000 45,100 Government 224,600 225,200 228,800 233,300 240,500 Source: California Employment Development Department, based on March 2015 benchmark. Note: Does not include proprietors, self-employed, unpaid volunteers or family workers, domestic workers in households, and persons involved in labor/management trade disputes. Employment reported by place of work. Items may not add to totals due to independent rounding. (1) Last available full year data. Appendix F Page 2 The following tables summarize historical employment and unemployment for the County, the State of California and the United States: RIVERSIDE COUNTY, CALIFORNIA, and UNITED STATES Civilian Labor Force, Employment, and Unemployment (Annual Averages) Year Area 2012 Riverside County California United States 2013 Riverside County California United States 2014 Riverside County California United States 2015 Riverside County California United States 2016(2) Riverside County California United States Labor Force Employment 988,600 873,600 18,554, 800 16,630,100 154, 975, 000 142, 469, 00 0 998,800 899,900 18, 671, 600 17, 002, 900 155,389,000 143, 929,000 1,017,000 933,800 18,811,400 17,397,100 155,922,000 146, 305, 00 0 1,035,200 965,500 18,981, 800 17, 798, 600 15 7,130, 000 148, 834, 000 1,051,800 988,000 19,102,700 18, 065, 000 159,187,000 151,436,000 Unemployment Unemployment Rated) 115,100 11.6 1,924,700 10.4 12,506,000 8.1 98,900 1,668,700 11,460,000 83,200 1,414,300 9,617,000 69,600 1,183,200 146,411,000 63,800 1,037,700 148,976,000 9.9 8.9 7.4 8.2 7.5 6.2 6.7 6.2 5.3 6.1 5.4 4.9 Source: California Employment Development Department, Monthly Labor Force Data for Counties, Annual Average 2010-2016, and US Department of Labor. (1) The unemployment rate is computed from unrounded data, therefore, it may differ from rates computed from rounded figures available in this table. (2) Latest available full -year data. Major Employers The table below sets forth the ten principal employers in the City as of June, 2017. CITY OF TEMECULA 2016 Major Employers Employer Name Temecula Valley Unified School District Abbott Laboratories (aka Guidant) Medline Temecula Valley Hospital Walmart Infineon Macy's (Robinson's May) Milgard Manufacturing Costco Wholesale Corporation EMD Millipore (aka Chemi Con International) Source: City of Temecula. Appendix F Page 3 Number of Employees 2,961 2,000 900 650 600 585 420 400 376 330 9,222 % of Total City Employment 4.45% 3.01 1.35 0.98 0.90 0.88 0.63 0.60 0.57 0.50 13.87% Construction Activity The following table reflects the five-year history of building permit valuation for the City and the County: CITY OF TEMECULA Building Permits and Valuation (Dollars in Thousands) 2012 2013 2014 2015 2016 Permit Valuation: New Single-family 58,645 62,540 54,295 34,493 37,447 New Multi -family 5,901 27,523 38,445 4,527 12,354 Res. Alterations/Additions 4,254 5,638 6,346 5,936 13,683 Total Residential 68,802 95,702 99,087 44,957 63,485 Total Nonresidential 36,241 117,203 34,094 18,206 40,652 Total All Building 105,043 212,906 133,182 63,163 104,137 New Dwelling Units: Single Family 329 316 234 135 161 Multiple Family 70 348 596 38 140 Total 399 664 830 173 301 Source: Construction Industry Research Board: "Building Permit Summary." Note: Totals may not add due to independent rounding. RIVERSIDE COUNTY Building Permits and Valuation (Dollars in Thousands) 2012 2013 2014 2015 2016 Permit Valuation: New Single-family 904,156 1,138,738 1,296,552 1,313,084 1,526,767 New Multi -family 87,878 138,636 178,116 110,458 106,291 Res. Alterations/Additions 87,370 98,219 147,081 113,199 126,474 Total Residential 1,079,405 1,375,593 1,621,750 1,536,742 1,759,534 Total Nonresidential 657,595 2,249,570 814,990 911,464 1,346,019 Total All Building 1,737,000 3,625,163 2,436,740 2,448,207 3,105,554 New Dwelling Units: Single Family 3,720 4,716 5,007 5,007 5,662 Multiple Family 909 1,427 1,931 1,189 1,039 Total 4,629 6,143 6,938 6,196 6,701 Source: Construction Industry Research Board: "Building Permit Summary." Note: Totals may not add due to independent rounding. Appendix F Page 4 Personal Income The following table sets forth the yearly total effective buying income and the median household effective buying income for the City, the County and the State for the prior five years: CITY OF TEMECULA, RIVERSIDE COUNTY AND STATE OF CALIFORNIA Effective Buying Income Year Area 2012 City of Temecula Riverside County California United States 2013 City of Temecula Riverside County California United States 2014 City of Temecula Riverside County California United States 2015 City of Temecula Riverside County California United States 2016 City of Temecula Riverside County California United States Source: Nielsen Claritas, Inc. Total Effective Buying Income (000's Omitted) 2,222,443 40,157,310 864,088,827 6,737,867,730 2,170,910 40,293,518 858,676,636 6,982,757,379 2,336,785 41,199,300 901,189,699 7,357,153,421 2,608,500 45,407,058 981,231,666 7,757,960,399 2,715,383 47,509,909 1,036,142,723 8,132,748,136 Appendix F Page 5 Median Household Effective Buying Income 56,305 43,860 47,307 41,358 55,508 44,784 48,340 43,715 60,496 45,576 50,072 45,448 66,028 48,674 53,589 46,738 67,693 50,287 55,681 48,043 APPENDIX G FISCAL CONSULTANT'S REPORT Appendix G DRAFT SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA REDEVELOPMENT PROJECT AREA #1 1988 PROJECTED TAXABLE VALUES AND ANTICIPATED TAX INCREMENT REVENUES October 13, 2017 L Introduction The Tax Allocation Refunding Bonds, Series 2017A and Taxable Tax Allocation Refunding Bonds, Series 2017B (together the "Bonds"), are being issued by the Successor Agency to the Redevelopment Agency of the City of Temecula (the "Successor Agency") to refinance certain outstanding obligations of the Successor Agency. The Bonds will be used to refund all outstanding prior tax allocation bonds of the Redevelopment Agency of the City of Temecula (the "Former RDA"), fund a reserve account for the Bonds, and pay the costs of issuing the Bonds. The intent of the refunding will be to lower the cost of repayment of the refunded bonds in accordance with Section 34177.5 of the Health and Safety Code. On June 29, 2011, the California Legislature and Governor adopted Assembly Bill xl 26 ("AB lx 26" or the" Dissolution Act"), which generally dissolved redevelopment agencies statewide as of February 1, 2012. The bill was challenged by a suit filed before the California Supreme Court, but was upheld by the Court on December 29, 2012. On June 27, 2012 Assembly Bill 1484 (AB 1484) was signed into law, modifying and supplementing ABx1 26. The Dissolution Act was further modified by Senate Bill 107 ("SB 107) that was signed into law on September 22, 2015. In accordance with Section 34177.5(g) of the California Health and Safety Code, bonds issued by the Successor Agency shall be considered indebtedness incurred by the dissolved redevelopment agency, with the same legal effect as if the bonds, indebtedness, financing agreement, or amended enforceable obligation had been issued, incurred, or entered into prior to June 29, 2011, in full conformity with the applicable provisions of the California Community Redevelopment Law (being Part 1 of Division 24 of the Health and Safety Code and is being referred to herein as the "Law") that existed prior to that date. These obligations shall be included in the successor agency's Recognized Obligation Payment Schedule (the "ROPS"), and shall be secured by a pledge of, and lien on, and shall be repaid from moneys deposited from time to time in the Redevelopment Property Tax Trust Fund (the "RPTTF"). Tax revenues generated from the incremental taxable value in a redevelopment project area were, prior to February 1, 2012, generally referred to as Tax Increment Revenues. The Law provided that the Tax Increment Revenues could be pledged by a redevelopment agency to the repayment of agency indebtedness. In this report, Tax Increment Revenues, including Unitary Tax Revenue (see Section IV.H., Allocation of State Assessed Unitary Taxes) are referred to as Gross Tax Revenues. Gross Tax Revenues less the County Property Tax Collection Fees (see Section IV G, County Property Tax Collection Reimbursement); and, Tax Sharing payments with a lien on Gross Tax Revenues that is senior to the pledge of Tax Revenues to the payment of debt service Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 2 on the Bonds (see Section VII, Tax Sharing and Other Obligations) are referred to as Tax Revenues. Allocation of tax increment revenue has been significantly altered by the passage of ABx1 26, AB 1489 and SB 107 by the California Legislature. This legislation has been designed to dissolve redevelopment agencies formed pursuant to the Law while assuring that the enforceable obligations incurred by the former redevelopment agencies are repaid (see Section VI Legislation). While tax increment revenues were previously allocated by the County Auditor - Controller based on an allocation schedule covering much of the fiscal year, beginning with fiscal year 2012-13 revenues are only allocated on January 2 and June 1 of each year. The purpose of this fiscal consultant report (the "Report") is to examine property tax information for the current fiscal year and to project the amount of tax increment revenues anticipated to be received by the Successor Agency from the Project Area for the current fiscal year and nine subsequent fiscal years. Provisions of the Law and the Redevelopment Plan for the Project Area determine the amount of Tax Revenue that the Successor Agency may utilize for purposes of making debt service payments and payments on other obligations with a superior lien on Tax Revenues (see Section VII, Tax Sharing Agreements and Other Obligations, below). As a result of our research, we project that the Tax Revenues for the Project Area will be as shown in Table A below: Table A Projected Project Area Tax Revenues (000's Omitted) Fiscal Year Gross Tax Revenues SB 2557 Admin. Charge Housing Set- Aside Loan Payment Negotiated Pass Through Payments Tax Revenues 2017-18 $19,314 ($223) ($305) ($10,966) $7,820 2018-19 19,106 ( 220) ( 305) ( 10,848) 7,732 2019-20 19,668 ( 227) ( 305) ( 11,167) 7,969 2020-21 20,096 ( 232) ( 305) ( 11,412) 8,147 2021-22 20,534 ( 237) ( 305) ( 11,666) 8,326 2022-23 20,980 ( 242) ( 305) ( 11,924) 8,509 2023-24 21,435 ( 247) ( 305) ( 12,188) 8,695 2024-25 21,899 ( 252) ( 305) ( 12,457) 8,884 2025-26 22,372 ( 258) ( 305) ( 12,731) 9,078 2026-27 22,855 ( 264) ( 305) ( 13,011) 9,275 The taxable values of property and the resulting Tax Revenues for the Project Area summarized above are reflected on Tables 1 and 2 of the projections (attached). These projections are based on assumptions determined by our review of the taxable value history of the Project Area and the property tax assessment and property tax apportionment procedures of the Riverside County Auditor -Controller. The projection illustrates the entire amount of Tax Revenues projected as being available from the Project Area. Future year assessed values and Tax Revenues are projections based on the assumptions described in this Report and are not guaranteed as to accuracy and are not to be construed as a representation of such by HdL Coren & Cone. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 3 II. The Project Area On July 12, 1988, Riverside County adopted the "County of Riverside Redevelopment Plan 1- 1988" by Ordinance No. 658. On December 1, 1989 the City of Temecula (the "City") was incorporated. All of the area within the County Redevelopment Plan was included within the boundaries of the City of Temecula. The City Council of the City of Temecula adopted Ordinance No. 91-14 on April 9, 1991 activating the Former RDA and designating the members of the City Council as the members of the Former RDA board. The City Council further adopted Ordinance No. 91-15 adopting the Project Area Redevelopment Plan and effectively transferring jurisdiction over the Project Area from Riverside County to the Redevelopment Agency of the City of Temecula. This transfer was effective July 1, 1991. The Project Area is primarily commercial and industrial in nature. It is generally located along Interstate 15 from the City's northern border with the City of Murrieta to the intersection of Highway 79 on the south. The Project Area contains approximately 1,635 acres of land. A. Land Use Tables B reflects the breakdown of land uses in the Project Area by the number of parcels and their taxable value for fiscal year 2017-18. This information is based on County land use designations as provided by Riverside County through tax roll data. It should be noted that the County land use designations do not necessarily parallel City land use and zoning designations. Unsecured, Cross Reference and State Board of Equalization Non -Unitary values are associated with secured Assessor parcels that are already accounted for in other categories. Within the Project Area, parcels identified as cross reference parcels include mobile homes and several possessory interest assessments that are the result of long-term land leases. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 4 Table B Project Area Land Use Categories Category No. Parcels Taxable Value % of Total Residential Commercial Industrial Vacant Recreational Government Owned Institutional Exempt Subtotals Cross Reference Parcels Unsecured Subtotals 159 $56,834,656 395 1,235,726,860 255 528,290,255 125 80,668,823 3 5,481,771 8 1,243,380 1 117,116 139 0 2.49% 54.24% 23.19% 3.54% 0.24% 0.05% 0.01% 0.00% 1,085 $1,908,362,861 83.77% 6,063,949 0.27% 363,805,208 15.97% $369,869,157 16.23% Totals: 1,085 $2,278,232,018 100.00% B. Redevelopment Plan Limits Chapter 942, Statutes of 1993, as codified in Section 33333.6 of the Law, limited the life of redevelopment plans adopted prior to January 1, 1994 to 40 years from the date of adoption or January 1, 2009, whichever was later. It also limited the period within which a redevelopment project area could receive tax increment revenues to the life of the redevelopment plan plus ten years beyond the termination of redevelopment activities except to accommodate certain specific low and moderate -income housing obligations or to pay debt service on bonds, indebtedness or other financial obligations authorized prior to January 1, 1994. Such redevelopment plans were further required to include a limitation on the number of tax increment dollars that could be allocated to the redevelopment agency; a time limit on the establishing of indebtedness to be repaid with tax increment revenues; and a limit on the amount of bonded indebtedness to be repaid with tax increment revenues that could be outstanding at one time. The City Council amended the Project Area Redevelopment Plan by the adoption of Ordinance No. 94-33 on December 20, 1994. This ordinance amended the Redevelopment Plan and established limits that conformed to the Law as amended by Chapter 942. Within Ordinance No. 94-33 certain limitations were incorporated as required by the case entitled: Robert Dawes, Save Historical Temecula v. Redevelopment Agency of the County of Riverside, et. al., Riverside County Superior Court Case No. 194468 MF ("Dawes"). The primary impact of this judgment on the tax increment projection is in the fact that the judgment stipulated a limit on the amount of tax increment revenues that was to be divided and allocated to the Former RDA. Section 1 of Ordinance No. 94-33 states that in accordance with the amended Redevelopment Plan, taxes as defined in Section 33670 of the Law shall not be divided and shall not be allocated to the Former RDA in excess of $1.11 billion except by amendment of the Redevelopment Plan. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 5 The judgment in Dawes stipulated that no more than $30 million in tax increment revenues could be divided and allocated to the Former RDA for use within the "Old Town" area and no more than $30 million in tax increment revenues could be divided and allocated to the Former RDA for use in those portions of the Project Area that are outside the "Old Town" area. Tax increment revenues were defined in this judgment as not including those amounts that are required to be set aside in the low and moderate -income housing fund, those amounts that are paid to other taxing entities under tax sharing agreements and amounts that were paid by the Former RDA to the County as reimbursement for costs incurred by the County for transfer of jurisdiction over the Project Area to the Former RDA. In addition, tax increment revenues were defined to exclude $75,000 annually for administration of the Project Area. Also excluded from the limitation on tax increment revenues were "all costs of debt service (excluding repayment of principal) and financing costs incurred by the Agency" connected with tax increment financing and/or refinancing. The judgment was modified on August 7, 1995. The modified judgment removes the limitation on expenditure of revenues within the "Old Town" and non -Old Town areas. The modified judgment further increases the amount of tax increment revenue that may be divided and allocated to the Former RDA from an aggregate amount of $60 million to $150 million. The definition of tax increment revenues as excluding those items discussed above was not changed. The redevelopment plan limits for the Project Area as they existed prior to the dissolution of redevelopment agencies are summarized in Table C below. On September 22, 2015, the Governor signed Senate Bill 107 ("SB 107"). This legislation implemented revisions to the Health and Safety Code as it impacts the time and tax increment limits of former redevelopment project areas. The legislation eliminated the effectiveness of tax increment limits, limits on redevelopment activities and time limits on repayment of indebtedness except for contractual agreements that had been structured to terminate based on a project area reaching its tax increment and/or time limits. Tax increment revenues will be allocated to the RPTTF from the Project Area for as long as necessary to repay enforceable obligation except to the extent that an enforceable obligation is limited in its duration by the time or tax increment limits contained in the Project Area redevelopment plan. Table C Former Redevelopment Plan Limitsl Last Date to Incur Debt Plan Expiration Last Date to Repay Bonded Debt Indebtedness Limit Tax Increment Limits Eliminated July 12, 2029 July 12, 2039 $340 million $150 million2 ' The legislature adopted Senate Bill 107 that made a number of revisions to the redevelopment law and to the dissolution legislation. Among these revisions was the elimination of the effectiveness of time and tax increment limits. The limits reflected in Table C are those limits as they existed prior to the adoption of Senate Bill 107 and are currently without effect. 2 Under the terms of the settlement agreement discussed above, Tax Increment Limit is defined as being net of a number of Successor Agency costs. See the discussion above. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 6 According to County records, a total of $321.2 million in gross tax increment revenues has been allocated to the Project Area through 2016-17. The amount of revenues received by the Former RDA and Successor Agency that is applicable to the limit as defined in the Dawes judgment is approximately $11.17 million. The Dawes judgement provides that for purposes of calculating the revenues applicable to the $150 million tax increment limit, gross revenues received by the Former RDA or Successor Agency will be reduced by the housing set-aside amount; payments made to taxing entities for pass through obligations; amounts paid to fulfill ERAF payment obligations levied by the State; costs of debt issuance; interest costs for debt obligations and $75,000 per year for agency administration. Several assumptions were made in making the calculation of revenues applicable to the Dawes judgement limit. It was assumed that interest expenses for obligations payable from the Housing Set -Aside Requirement would not be deducted from revenues since the full Housing Set -Aside Requirement was already being deducted. After the Housing Set -Aside Requirement was eliminated by the dissolution legislation, the interest expense of the housing obligations was deducted. The Housing Set - Aside amount was eliminated as a deduction from revenue after 2010-11. Beginning in 2012-13, amounts distributed to taxing entities as Residual Revenue as part of the RPTTF process were deducted from revenues because these revenues were not being received by the Successor Agency and should not be considered revenues. Using the assumptions listed above, the tax revenues allocated to the Successor Agency will not exceed the tax revenue limit established by the Dawes judgement. Given the fact that increases in tax revenue will not be retained by the Successor Agency except to satisfy the debt obligations of the Successor Agency, even increases of revenue well above the projected revenues will not be allocated to the Successor Agency but will, instead, be allocated to the taxing entities as Residual Revenue. III. Project Area Assessed Values A. Assessed Values Taxable values for all parcels are prepared by the County Assessor and reported by the County Auditor -Controller each fiscal year. These values represent the aggregation of all locally assessed properties that are part of the Project Area. The assessments are assigned to Tax Rate Areas ("TRA") that are collectively coterminous with the boundaries of the Project Area. The historic reported taxable values for the Project Area were reviewed to ascertain the rate of taxable property valuation growth over the ten most recent fiscal years beginning with 2008-09. Project Area From 2008-09 through 2017-18, Project Area values declined by $63.9 million (-2.73%). The Project Area values for 2008-09 were the highest values ever experienced in the Project Area. Values declined by small percentages in 2009-10 through 2011-12 before experiencing a small increase in 2012-13. Values dropped by a total of $84.8 million (-3.79%) from 2013-14 through 2014-15 but the Project Area has risen in value in each of the last three fiscal years. Since 2014- 15 values have risen by $124.3 million (5.77%). The largest increase in value for 2017-18 was among commercial properties. These properties make up 54.2% of all taxable value in the Project Area and they increased by $41.3 million (3.5%) over the values for 2016-17. Industrial properties added another $25.2 million (5.0%) in new value for 2017-18. These substantial increases in commercial and industrial values were, Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 7 however, mitigated by a $27.7 million (-7.1%) loss of value among unsecured values. Because most of the value in the Project Area is made up of commercial and industrial values there is more volatility in the shifting of value among secured and unsecured values. For 2017-18 the Project Area values are $1.91 billion above the base year value. The Project Area volatility ratio is .16. Abbott Cardiovascular Systems is the top taxpayer in the Former Project Area. This taxpayer owns 5 secured parcels with a total assessed value of $135.3 million for 2017-18. In addition, Abbott Cardiovascular has unsecured value totaling $129.3 million. This taxpayer's assessed value grew substantially in 2009-10 as the result of a major expansion of its campus improvements. Since 2009-10 values were relatively flat until 2015-16 when the secured values declined by 4.93% and the assessed value declined by another -33.45% in 2016-17. Abbott's values declined by another -1.28% for 2017-18. Unsecured values for this taxpayer have also declined steadily from $321.8 million in 2008-09 to $129.3 million for the current year. Currently, the building on one of the Abbott parcels is vacant. The City has been informed by Abbott that they are actively seeking to sell the parcel with the vacant building along with another parcel that is unimproved except for a surface parking lot. The two parcels that Abbott is attempting to sell have a combined value of $61 million. This is approximately 45% of Abbott's total secured value for 2017-18. The City staff was informed by Abbott that they were in negotiations with a non-profit entity for the potential lease or sale of the two parcels. If a non-profit entity were to purchase the property, it is likely that the value would be reassessed pursuant to the sale and the new owner would qualify for property tax exemption. Their ability to qualify for tax exemption would be determined by the new owner's non-profit status and the property's use. If these properties are leased to a non-profit entity on a long-term basis the properties may be deemed a possessory interest and the full value of the properties could be rendered tax exempt. If the lease terms were less than long term and did not rise to the level of being considered by the Assessor a possessory interest, the land and improvements would continue to be taxable with the unsecured values attributable to the non-profit entity being tax exempt. As of this date, the City has no way to determine whether there will be a change of ownership on these or any other properties or if the properties will, at some time, become tax exempt. B. Top Ten Taxable Property Owners A review of the top ten taxpayers in the Project Area for fiscal year 2017-18 was conducted. The assessed values of those properties controlled by the top ten taxpayers were compared to the total assessed value and incremental value of the Project Area. The following Table D summarize the attributes of the top ten taxpayers for the Project Area. A more complete outline of the top taxpayer information is contained on Table 4 of the attached tax increment projections. Table D Project Area Top Ten Taxpayers Property Owner Abbott Cardiovascular Systems (1) Temecula Towne Center Associates % of % of Combined Total Increment Value Value al Value 5264,593,707 11.61% 13.83% 156,265,816 6.86% 8.17% Primary Land Use Medical Appliances Mfg. Regional Shopping Center Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 8 Inland Western Temecula Commons Kimco Palm Plaza Macy's Department Stores Inc. (1) Infineon Technologies Americas Group (1) DCH Investment Inc. (1) International Rectifier Corporation (1) Costco Wholesale Corporation JPM 2004-C2-27471 Ynez Rd. LLC (1) Top Property Owner Total Value Project Area Assessed Value Project Area Incremental Value (1) These taxpayers have pending assessment 61,998,618 2.72% 3.24% 51,446,100 2.26% 2.69% 45,983,025 2.02% 2.40% 38,864,480 1.71% 2.03% 34,459,308 1.51% 1.80% 32,855,470 1.44% 1.72% 28,948,192 1.27% 1.51% 21,336,149 0.94% 1.12% $736,750,865 $2,278,232,018 32.34% $1,913,138,739 38.51% appeals on parcels owned (see Section IV F). Commercial Shopping Center Commercial Shopping Center Retail Department Store Electronics Manufacturing Vacant Land & Auto Dealers Electronics Manufacturing Commercial Shopping Center Commercial Shopping Center Abbott Cardiovascular Systems is the largest taxpayer within the Project Area. The 5 parcels owned by Abbott Cardiovascular Systems included several industrial and manufacturing buildings on adjacent parcels. Six of the top ten taxpayers own properties occupied by commercial shopping center developments. These six taxpayers account for a total of $366 million in taxable value that is 16.06% of the total value within the Project Area. Abbott Cardiovascular Systems has filed assessment appeals for the 2015-16 and 2016-17 valuations on each of the five parcels that it owns. These appeals are currently pending. Macy's Department Stores Inc. has filed assessment appeals on each of its secured parcels and on its unsecured valuations for 2016-17 and these appeals are pending. Infineon Technologies Americas Group; DCH Investment Inc.; International Rectifier Corporation and JPM 2004 C2 27471 Ynez Rd. all have pending appeals on parcels that they own within the Project Area. These six taxpayers are the only ones within the top ten taxpayers for the Project Area that have pending appeals on file. The top taxpayers in the Project Area with pending assessment appeals are seeking a combined reduction in value of 56.91% of the enrolled values under appeal. Table E below tabulates the pending appeals for these owners. Loss of value on successful assessment appeals for multiple years is not cumulative. If an appeal in a given year is successful, that corrected value is extended forward based on valuation conditions that existed in those future years. Table E Pending Appeals Among Project Area Top Ten Taxpayers Taxpayer Abbott Vascular Inc. Macy's Department Stores Inc. Infineon Technologies Americas Group DCH Investments Inc. International Rectifier Corporation JPM 2004 C2 27471 Ynez RD FY No. Appealed Parcels 2015-16 5 2016-17 5 2016-17 4 2016-17 1 2015-16 5 2016-17 6 2013-14 1 2016-17 1 2015-16 2 2016-17 2 Enrolled Value Under Appeal $205,984,313 137,090,544 43,270,732 45,514,768 21,499,450 25,327,306 107,283,588 30,988,839 20,603,596 20,917,796 Owner Opinion of Value $56,250,000 52,100,000 28,243,535 24,000,000 12,890,000 14,952,000 23,450,000 24,000,000 13,600,000 14,500,000 Max. Potential Value Loss $149,734,313 84,990,544 15,027,197 21,514,768 8,609,450 10,375,306 83,833,588 6,988,839 7,003,596 6,417,796 Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 9 IV. Tax Allocation and Disbursement A. Property Taxes The taxable values of property are established each year on the January 1 property tax lien date. Real property values reflect the reported assessed values for secured and unsecured land and improvements. The base year value of a parcel is the value established as the full market value upon a parcel's sale, improvement or other reason for reassessment. Article XIIIA of the California Constitution (Proposition 13) provides that a parcel's base year value is established when locally assessed real property undergoes a change in ownership or new construction occurs. Following the fiscal year that a parcel's base year value is first enrolled, the parcel's value is factored annually for inflation. The term base year value does not refer to the base year value of the Project Area. Pursuant to Article XIIIA, Section 2(b) of the State Constitution and California Revenue and Taxation Code Section 51, the percentage increase in the parcel's value cannot exceed 2% of the prior year's value. Secured property includes property on which any property tax levied by a county becomes a lien on that property. Unsecured property typically includes value for tenant improvements, fixtures, inventory and personal property. A tax levied on unsecured property does not become a lien against the taxed unsecured property, but may become a lien on certain other secured property owned by the taxpayer. The taxes levied on unsecured property are levied at the previous year's secured property tax rate. Utility property assessed by the State Board of Equalization (the Board) may be revalued annually and such assessments are not subject to the inflation limitations established by Proposition 13. The taxable value of Personal Property is also established on the lien dates and is not subject to the annual 2% limit of locally assessed real property. Each year the Board announces the applicable adjustment factor. Since the adoption of Proposition 13, inflation has, in most years, exceeded 2% and the announced factor has reflected the 2% cap. Through fiscal year 2016-17 there were ten occasions when the inflation factor has been less than 2%. Until 2010-11 the annual adjustment never resulted in a reduction to the base year values of individual parcels, however, the factor that was applied to real property assessed values for the January 1, 2010 assessment date was a -0.237% and this resulted in a reduction to the adjusted base year value of parcels. The changes in the California Consumer Price Index (CCPI) from October of one year and October of the next year are used to determine the adjustment factor for the January assessment date. The table below reflects the inflation adjustment factors for the current fiscal year, ten prior fiscal years and the estimated adjustment factor for the next fiscal year. Table F Historical Inflation Adjustment Factors Fiscal Year 2007-08 2008-09 2009-10 2010-11 2011-12 Inflation Adi. Factor 2.000% 2.000% 2.000% -0.237% 0.753% Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 10 2012-13 2.000% 2013-14 2.000% 2014-15 0.454% 2015-16 1.998% 2016-17 1.525% 2017-18 2.000% On December 13, 2016, the Board determined that the inflationary adjustment for fiscal year 2017-18 would be 2.00%. This factor was incorporated into the values published by the Assessor for the current fiscal year. For purposes of the projection we have assumed that the inflation adjustment factor for future years will be 2.00%. This assumption is based on the fact that the inflation adjustment factor has been at the maximum allowed amount of 2.00% in 33 of the 44 years since the adoption of Proposition 13. B. Supplemental Assessments Chapter 498 of the Statutes of 1983 provides for the reassessment of property upon a change of ownership or completion of new construction. Such reassessment is referred to as the Supplemental Assessment and is determined by applying the current year's tax rate to the amount of the increase or decrease in a property's value and prorating the resulting property taxes to reflect the portion of the tax year remaining as determined by the date of the change in ownership or completion of new construction. Supplemental Assessments become a lien against Real Property. Since 1984-85, revenues derived from Supplemental Assessments have been allocated to redevelopment agencies and taxing entities in the same manner as regularly collected property taxes. The receipt of Supplemental Assessment Revenues by taxing entities typically follows the change of ownership by a year or more. We have not included revenues resulting from Supplemental Assessments in the projections. Table G illustrates the amounts of Supplemental Revenues that have been received by the Successor Agency for the Project Area to date in the current fiscal year and during the previous three full fiscal years. Table G Historical Supplemental Revenue Allocations Fiscal Year 2013-14 2014-15 2015-16 2016-17 C. Tax Rates Supplemental Revenue $ 96,303 41,502 419,651 284,603 Tax rates will vary from area to area within the State, as well as within a community and within the Project Area. The tax rate for any parcel is based upon the jurisdictions levying the tax rate for the area where the parcel is located. The tax rate consists of the general levy rate of $1.00 per $100 of taxable value and the over -ride tax rate, if any. The over -ride rate is that portion of the tax rate that exceeds the general levy tax rate and is levied to pay voter approved indebtedness or contractual obligations that existed prior to the enactment of Proposition XIII Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 11 A Constitutional amendment approved in June 1983 allows the levy of over -ride tax rates to repay indebtedness for the acquisition and improvement of real property, upon approval by a two-thirds vote. A subsequent amendment of the Constitution prohibits the allocation to redevelopment agencies of tax revenues derived from over -ride tax rates levied for repayment of indebtedness approved by the voters after December 31, 1988. Tax rates that were levied to support any debt approved by voters after December 31, 1988 were not allocated to redevelopment agencies. The over -ride tax rates typically decline each year due to (1) increasing property values (which would reduce the over -ride rate that must be levied to meet debt service) and, (2) the eventual retirement of debt over time. There are two debt service over -ride tax rates levied within the Project Area that received voter approval prior to December 31, 1988. These tax rates are levied by the Metropolitan Water District East for payment of the cost of water purchases pursuant to State water contracts and another tax rate levied by the Eastern Municipal Water District. In addition, there are debt service tax rates approved by voters after December 31, 1988 that are levied by the Rancho California Water District; the Temecula Valley Unified School District; and, the Mt. San Jacinto Community College District. These tax rates that were approved by voters after December 31, 1988 and have never produced tax increment revenue that was allocated to the Project Area. ABx1 26 was adopted in late June 2011 (see Legislation, Section VI). Section 34183(a)(1) of that legislation requires the Auditor Controller to allocate all revenues attributable to tax rates levied to make annual repayments of the principal and interest on any bonded indebtedness for the acquisition or improvement of real property to the taxing entity levying the tax rate. This was initially interpreted by Riverside County to include all revenues resulting from the override tax rates that are being levied by any taxing entity within the County and that had received voter approval prior to December 31, 1988. SB 107 has amended several of the provisions of ABx1 26 and AB 1484. With regard to debt service override tax rates levied for pension fund programs and state water contracts, the revenue generated from these tax rates, including that revenue generated by the Metropolitan Water District East (the "MWD") state water contract override tax rates and the Eastern Municipal Water District debt service tax rate (see below) will no longer be allocated to the Successor Agency unless these revenues have been pledged to the payment of debt service on bonds. Any debt service override tax rate revenues that have been pledged to debt service but are not needed to make the debt service payments on the bonds will be allocated directly to the entities that have levied the override tax rate. As a result, the tax increment revenues used in this projection are derived only from the general levy tax rate. The components of the total tax rates for 2017-18 that are applied within the tax rate areas of the Project Area for 2017-18 are reflected in Table H below. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 12 Table H 2016-17 Secured Tax Rates General Levy RDA Eligible D/S Rates Total RDA Eligible Tax Rate: Non -RDA Eligible Tax Rates Temecula Valley USD Mt. San Jacinto Community College Metropolitan Water District East Rancho California Water District Eastern Municipal Water Imp. Dist. Total Tax Rate: D. Allocation of Taxes Tax Rate 1 Tax Rate 2 Tax Rate 3 Tax Rate 4 1.00000 1.00000 1.00000 1.00000 00000 .00000 .00000 .00000 1.00000 1.00000 1.00000 1.00000 03164 03164 03164 .03164 01320 00000 01320 .01320 00350 00350 00350 .00350 30000 ,30000 50000 .30000 00200 .00200 00000 .00000 1.35034 1.33714 1.54834 1.34834 Taxes are due in two equal installments. Installments of taxes levied upon secured property become delinquent on December 10 and April 10. Taxes on unsecured property are due March 1 and become delinquent August 31. Prior to February 1, 2012, the County utilized a method for the distribution of tax revenue to redevelopment agencies that provided them with tax increment revenue and was effectively like a Teeter Plan. Under this method redevelopment agencies in Riverside County received 100 percent of the taxes levied on the extended tax roll subject to correction, cancellation and refunds. The tax revenues of the Former RDA were not subject to revenue loss due to delinquencies or gains due to redemption of unpaid taxes. The Auditor - Controller has continued to use this method for allocation of tax increment revenue after the dissolution of redevelopment agencies. The County of Riverside does not publish delinquency data for redevelopment project areas or agencies and they do not publish such information on a city level either. Collections within the County for the prior five fiscal years is reflected in Table I below. Collections data for fiscal year 2016-17 is not yet available. Table 1 Riverside County Property Tax Collection History Original Charge Adj ustments Adjusted Charge Collections Collection % 2011-12 $1,910,670,862 -9,280,041 1,901,390,820 1,854,148,900 97.52% 2012-13 $1,905,666,422 -847,458 1, 904, 818, 964 1,866,014,337 97.96% 2013-14 $1,990,092,695 -2,390,036 1,987,702,659 1,955,225,438 98.37% 2014-15 $2,159,533,173 -3,203,626 2,156,329,547 2,125,700,651 98.58% 2015-16 $2,284,563,809 -4,591,583 2,279,972,226 2,249,095,703 98.65% As of February 1, 2012, the apportionment of tax increment revenue was dictated by the legislation adopted as ABx1 26 (See Legislation, Section VI). Revenue is now apportioned to Successor Agencies on January 2 and June 1 of each fiscal year. All tax increment revenue is accumulated by the County Auditor -Controller in the RPTTF for allocation on these two dates. The tax increment revenue available for allocation on January 2 consists of revenues collected after June 1 of the previous fiscal year and for collections in November and December of the Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 13 current fiscal year. The tax increment revenues available for allocation on June 1 include revenues collected from January 1 to June 1 of the current fiscal year. From the amounts accumulated in the RPTTF for each allocation date, the County Auditor - Controller is to deduct its own County administrative charges and is to calculate and deduct amounts owed, if any, to taxing entities for tax sharing agreements entered into pursuant to Section 33401 of the Law and for statutory tax sharing obligations required by Sections 33607.5 and 33607.7 of the Law. The amount remaining after these reductions, if any, is what is available for payment by the Successor Agency of debt obligations of the Former RDA. Prior to receiving revenues on January 2 and June 1, the Successor Agency must adopt a ROPS that lists the debt obligations of the Former RDA that must be paid during the upcoming six- month periods of January 1 through June 30 and July 1 through December 31. There is a provision in the legislation for a Successor Agency to request additional amounts in one ROPS payment to allow it to make payments that may be beyond the revenues available in the upcoming allocation cycle. The ROPS must be submitted at least 90 days prior to each RPTTF allocation date and approved by the Successor Agency's Oversight Board that is established in the legislation with membership consisting of representatives from various taxing entities. The ROPS must also receive approval from the State Department of Finance (the "DOF"). Filing ROPS statements is mandated by statute and penalties are incurred if they are filed late or if they are not filed at all. As the result of the recent adoption of SB 107, beginning with the ROPS submittal for the June 1, 2016 RPTTF allocation, a single ROPS will be approved for a full year of RPTTF allocations. The ROPS approved for the June 1, 2016 RPTTF allocation will also include the payment obligations for the January 2, 2017 RPTTF allocation. There is provision in the law for the approved ROPS to be amended one time after its initial approval but only to revise a payment amount to be made during the second RPTTF allocation (January 1 through June 30) and only with Oversight Board approval. The Successor Agency is entitled to receive an amount to cover the administrative costs of winding down the business of the former redevelopment agency. This amount is set by AB 1x 26 at the greater of $250,000 per year or a maximum of 3% of the amount allocated from the RPTTF. AB 1484 added language that allowed the Oversight Board to reduce the amount of the minimum administrative allowance. To the extent that revenues are insufficient to pay the approved ROPS obligations, the Successor Agency's administrative allowance will be reduced or eliminated. Successor Agency administrative allowance amounts that have been approved but cannot be paid due to a lack of RPTTF revenue will be carried over to the next RPTTF allocation for payment as funds become available. As a result of passage of SB 107, commencing July 1, 2016 the administrative cost allowance will be 3% of the actual property taxes allocated to the Successor Agency in the preceding fiscal year less the Successor Agency's administrative cost allowance and any city loan repayment amounts. If, however, 3% of the actual property taxes allocated in the preceding fiscal year is greater than 50% of the total RPTTF amounts distributed to pay enforceable obligations as reduced by the administrative allowance and any city loan repayment amounts, then the administrative cost allowance shall not exceed 50% of the total RPTTF amounts distributed to pay enforceable obligations as reduced by the administrative allowance and any city loan repayment amounts. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 14 If there are RPTTF amounts remaining after reductions for County administrative charges, amounts owed, if any, to taxing entities for tax sharing agreements and/or statutorily required tax sharing obligations, enforceable obligations and Successor Agency administrative allowance, these remainder amounts are referred to as "Residual Revenue". Residual Revenue for each allocation cycle is proportionately allocated to the taxing entities and to the Educational Revenue and Augmentation Fund (the "ERAF"). The legislation stipulates that the combination of tax sharing payments and Residual Revenue payments to tax entities may not exceed that taxing entity's full share of tax increment revenue. In circumstances where a taxing entity receives all or most of its share of tax increment revenue due to its tax sharing agreement, that taxing entity's share of the Residual Revenue distribution may be reduced and the portions of Residual Revenue allocated to the other taxing entities will be proportionately increased. (See Section VII — Tax Sharing Agreements and Other Obligations, below). The forms and procedures used by a successor agency to submit its ROPS to its Oversight Board and to the DOF are dictated by the legislation as interpreted by DOF. The following Table J reflects the actual allocation of tax revenues for fiscal years 2012-13 through 2016-17 to date. Table J Successor Agency RPTTF Allocations Fiscal Years 2012-13 2013-14 2014-15 2015-16 2016-17 ROPS Filed ROPS 3 & 13- 14A 13-14B & 14-15A 14-15B & 15-16A 15-16B & 16-17A 16-17B & 17-18A County RPTTF Admin. Deposits Charges 19,538,670 279,299 19,255,663 270,250 18,041,237 233,557 18,683,444 206,767 19,088,105 237,179 Pass Through Distributions 11,161,554 11,245,830 10,237,508 10,607,574 10,837,866 Allocated for Enforceable Obligations 7,341,065 6,323,887 6,646,528 6,485,483 7,303,396 Residual Revenue 756,752 1,415,696 923,644 1,383,620 709,664 E. Assessment Appeals Assessment appeals granted under Section 51 of the Revenue and Taxation Code (also known as Prop 8 Appeals) require that, for each subsequent lien date, the value of real property shall be adjusted to be the lesser of its base year value as adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Reductions made under this code section may be initiated by the Assessor or requested by the property owner. After a roll reduction is granted under Section 51, the property is reviewed on an annual basis to determine the full cash value of the property and the valuation is adjusted accordingly. This may result in further reductions or in value increases. Such increases shall be consistent with the full cash value of the property and, as a result, may exceed the maximum annual inflationary growth rate allowed on other properties under Article XIIIA of the State Constitution. Once the property has regained its prior value, adjusted for inflation it, once again, is subject to the annual inflationary factor growth rate allowed under Article XIIIA (See Section X). Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 15 Assessment appeals may also be requested as adjustments to a property's base year value. If such an appeal is granted with a change in value, the base year value of the property is adjusted accordingly and that value is subsequently adjusted for new construction, demolition and any other changes requiring revaluation of the parcel's land, improvement and personal property values and by the annual inflationary factor growth rate allowed under Article XIIIA For fiscal years 2012-13 through 2016-17 and based on hearing data through July 20, 2017 there are 86 pending assessment appeals within the Project Area. The values under appeal total $504.6 million and the owners are seeking reductions totaling $191 million (-37.85%). Based on the average number of appeals allowed over the past five years and the average reduction in value achieved in those successful appeals, we estimate that 49 of the currently pending appeals will be allowed with a reduction of $70.8 million. The expected reduction in value has been incorporated into the projection as a reduction in assessed value for fiscal year 2018-19. Table K below shows the number of appeals that are pending, the values under appeal within the Proj ect Area. Table K Historical Assessment Appeal Summary Fiscal Years 2012-13 through 2016-17 Est. Est. AV Loss on Total No. of No. of No. of Appeals Pending Appeals Appeals Resolved Appeals Average Appeals Value Under to be Allowed Filed Appeals Allowed Reduction Pending Appeal Allowed (2018-19 AV Adj.) 197 111 63 24.72% 86 $504,600,915 49 $70,785,788 G. County Property Tax Collection Reimbursement Chapter 466, adopted by Senate Bill 2557, allows counties to recover charges for property tax administration in an amount equal to their 1989-90 property tax administration costs, as adjusted annually. The amounts that are reimbursed are the costs connected with the collection and distribution of property taxes for the Tax Collector, the Auditor Controller and the Assessor. The portions of the reimbursement amount that are allocated to each taxing entity within the County are based on the percentage of the total assessed value in the County that each taxing entity's assessed value represents. The Project Area's Property Tax Collection Reimbursement charge for 2016-17 was $216,756. This amount is approximately 1.15% of the 2016-17 Gross Tax Revenues for the Project Area. The Property Tax Collection Charge for 2017-18 is not yet available. The estimated charge for 2017-18 and future years is based on this same percentage of Gross Tax Revenue. In addition to the amounts charged by the County for administration of property taxes under SB 2557, pursuant to ABx1 26, the County may charge an administrative fee for administration of the RPTTF. The amount charged to the Successor Agency for the January 2, 2017 and June 1, 2017 RPTTF allocations was $47,054 and $12,501 respectively. This nominal amount has not been factored into the projections. H. Allocation of State Assessed Unitary Taxes Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 16 Legislation enacted in 1986 (Chapter 1457) and 1987 (Chapter 921) provided for a modification of the distribution of tax revenues derived from utility property assessed by the State Board of Equalization, other than railroads. Prior to fiscal year 1988-89, property assessed by the SBE was assessed statewide and was allocated according to the location of individual components of a utility in a tax rate area. Commencing in 1988-89, tax revenues derived from unitary property and assessed by the SBE are accumulated in a single Tax Rate Area for the County. It is then distributed to each taxing entity in the County in the following manner: (1) each taxing entity will receive the same amount as in the previous year plus an increase for inflation of up to 2%; (2) if utility tax revenues are insufficient to provide the same amount as in the previous year, each taxing entity's share would be reduced pro -rata county wide; and (3) any increase in revenues above 2% would be allocated in the same proportion as the taxing entity's local secured taxable values are to the local secured taxable values of the County. The amount of unitary revenues allocated to the Project Area for 2016-17 is $182,492. The unitary revenue amounts to be allocated for 2017-18 are not yet available. The projection assumes that unitary revenue will continue to be allocated in the same amount as for 2016-17 for all years within the projection. V. Low and Moderate Income Housing Set -Aside Sections 33334.2 and 33334.3 of the Law required redevelopment agencies to set aside not less than 20 % of all tax increment revenues from project areas adopted after December 31, 1976 into a low and moderate -income housing fund (the "Housing Set -Aside Requirement"). Sections 33334.3, 33334.6 and 33334.7 of the Law extend this requirement to redevelopment projects adopted prior to January 1, 1977. With the adoption of ABx1 26, the Housing Set -Aside Requirement was eliminated. The housing fund into which these set-aside amounts were formerly deposited has been eliminated and any unencumbered amounts remaining in that fund have been identified through a mandated Due Diligence Review. The amounts found to be unencumbered through this Due Diligence Review have been paid to the County and these funds have been allocated to the taxing entities within the Project Area. VI. Legislation Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 17 To address State Budget deficits, the Legislature enacted SB 614, SB 844 and SB 1135 that required payments from redevelopment agencies for the 1992-93, 1993-94 and 1994-95 fiscal years into a countywide ERAF. The Former RDA could have used any funds legally available and not legally obligated for other uses, including agency reserve funds, bond proceeds, earned income, and proceeds of land sales, but not moneys in the Low and Moderate -Income Housing Fund (the "Housing Fund") to satisfy this obligation. From fiscal years 1995-96 to 2001-02, state budgets were adopted with no additional shifting of tax increment revenues from redevelopment agencies, however, the fiscal year 2002-03 State Budget required a shift of $75 million of tax increment revenues statewide from redevelopment agencies to ERAF to meet the state budget shortfall. AB 1768 (Chapter 1127, Statutes of 2002) was enacted by the Legislature and signed by the Governor and based upon the methodology provided in the fiscal year 2002-03 budget, the shift requirement for the former redevelopment agencies to make payments into the ERAF was limited to fiscal year 2002-03 only. As part of the State's fiscal year 2003-04 budget legislation, SB 1045 (Chapter 260, Statutes of 2003) required redevelopment agencies statewide to contribute $135 million to local County ERAF which reduced the amount of State funding for schools. This transfer of funds was limited to fiscal year 2003-04 only. Under the Law as amended by SB 1045, the redevelopment agencies were authorized to use a simplified methodology to amend the individual redevelopment plans to extend by one year the effectiveness of the plan and the time during which the agencies could repay debt with tax increment revenues. In addition, the amount of this payment and the ERAF payments made in prior years were to be deducted from the cumulative tax increment amounts applied to a project area's cumulative tax increment revenue limit. The passage of SB 107 has eliminated these time limits effective for all fiscal years after the adoption by the State of the legislation dissolving redevelopment agencies. After the State's budget for fiscal year 2004-05 was approved by the legislature and signed by the Governor, Senate Bill 1096 was adopted. Pursuant to SB 1096, redevelopment agencies within the State were required to pay a total of $250 million to ERAF for fiscal year 2004-05 and for fiscal year 2005-06. The payments were due on May 10 of each fiscal year. As in previous years, payments were permitted to be made from any available funds other than the Housing Fund. If an agency was unable to make a payment, it was allowed to borrow up to 50% of the current year Housing Tax Set -Aside Requirement, however, the borrowed amount was required to be repaid to the Housing Fund within 10 years of the last ERAF payment (May 10, 2006). Under SB 1096, redevelopment plans with less than ten years of effectiveness remaining from June 30, 2005, could be extended by one year for each year that an ERAF payment is made. For redevelopment plans with 10 to 20 years of effectiveness remaining after June 30, 2005, the plans may be extended by one year for each year that an ERAF payment is made if the city council could find that the former redevelopment agency was in compliance with specified state housing requirements. These requirements are: 1) that the agency is setting aside 20% of gross tax increment revenues; 2) that housing implementation plans are in place; 3) that replacement housing and inclusionary housing requirements are being met; and, 4) that no excess surplus existed. As outlined below, the method by which ERAF loans from the Housing Fund may be repaid has been modified by the adoption of AB 1484. The requirement for repayment of these loans by certain dates has been eliminated. In July 2009, the Legislature adopted AB 26 4x as a means of implementing a package of 30 bills that were adopted to close the State's budget deficit. Under this legislation the former Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 18 redevelopment agencies statewide were required to pay into their county's "Supplemental" ERAF (the "SERAF"), $1.7 billion in fiscal year 2009-10 and were required to pay another $350 million in fiscal year 2010-11. Based on a State Controller formula, the former redevelopment agencies were required to pay the required amounts by May 2010 and May 2011 respectively. Under this legislation, the former redevelopment agencies could use any available funds to make the SERAF payments. If Housing Set -Aside Requirement or Housing Fund amounts were borrowed to make the SERAF payment, the borrowed amounts were required to be repaid to the Housing Fund by June 30, 2015 and June 30, 2016 respectively. Under the requirements of Section 34191.4 amended by AB 1484, however, redevelopment agencies that borrowed from the Housing Fund to make the required SERAF payments for 2010 and for 2011 may only repay the borrowed amounts from annual amounts that are 50% of the increase in annual Residual Revenues that are above the Residual Revenue for fiscal year 2012-13. Repayment amounts are, under current legislation, to be repaid to the Successor Housing Agency established pursuant to ABx1 26 and AB 1484 (see below). Repayment of SERAF payment amounts borrowed from the Housing Fund may only be repaid from growth in Residual Revenue. As a result, the repayment of these amounts will have no impact on the Successor Agency's ability to repay indebtedness. ABx1 26 and ABx1 27 were introduced in May 2011 as placeholder bills and were substantially amended on June 14, 2011. These bills proposed to dramatically modify the Law as part of the fiscal year 2011-12 State budget legislation. ABx1 26 would dissolve redevelopment agencies statewide effective October 1, 2011 and suspend all redevelopment activities as of its effective date. ABx1 27 would allow redevelopment agencies to avoid dissolution by opting into a voluntary program requiring them to make substantial annual contributions to local school and special districts. The bills were signed by the Governor in late June 2011 and were challenged by a suit filed before the California Supreme Court by the CRA. On December 29, 2012, the Supreme Court ruled that ABx1 27 was unconstitutional and that ABx1 26 was not unconstitutional. On June 27, 2012, the legislature passed and the Governor signed Assembly Bill 1484. This legislation made certain revisions to the language of ABx1 26 based on experience after its implementation. Once the obligations of the former redevelopment agencies have been recognized as Enforceable Obligations, the Successor Agency is obliged to manage the repayment of those Enforceable Obligations through the annual adoption of ROPS by the Oversight Board that is made up of representatives of taxing entities within the former redevelopment agency. Membership of the Oversight Board is dictated by Section 34179 of the Law. Effective July 1, 2018, there will be a single Oversight Board in each county that will be responsible for adoption of ROPS for all successor agencies in the county. The ROPS establishes the amounts that may be paid by the Successor Agency on the former redevelopment agency's debts during the six-month periods following payments to the Successor Agency from the RPTTF by the County Auditor -Controller on January 2 and June 1 of each year. In 2015 the legislature approved SB 107. Among the changes to the dissolution statutes that were included in SB 107 was the affirmative elimination of the effectiveness of time and tax increment limits from the redevelopment plans of the former project areas. Section 34189(a) now provides that the elimination of these limits will not result in the restoration or continuation of funding for projects whose contractual terms specified that project funding would cease once Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 19 the limitations in the redevelopment plans had been reached. It doesn't appear that any of the obligations of the Successor Agency will be affected by this change to the law. Numerous lawsuits have been filed on various aspects of ABx1 26 and AB 1484 which could impact the dissolution of redevelopment agencies. Our projections could be impacted as a result of future court decisions. VII. Tax Sharing Agreements and Other Obligations A. Tax Sharing Agreements As discussed earlier, the County of Riverside originally adopted the Project Area. At the time of adoption, the County entered into tax sharing agreements with the affected taxing entities. All agreements with school districts called for the school districts to receive 29.62% of their shares of general levy tax increment revenues. All agreements with non -school district taxing entities called for the taxing entity to receive 100% of their general levy tax increment revenues. These tax sharing agreements became obligations of the Former RDA at the time that the Project Area was adopted by the Former RDA. At the time that the Former RDA adopted the Project Area Redevelopment Plan, it entered into an agreement with the County of Riverside on May 21, 1991. This agreement called for tax sharing payments to be made to the County General Fund, the County Structural Fire Department and the County Library Department. It also provided for a partial deferral of the payments to the County General Fund. Both the County and the Former RDA executed an Amended and Restated Agreement, dated January 22, 2002. The new agreement called for the Former RDA to make tax -sharing payments to the County General Fund, Structural Fire Department and Library Department from general levy tax increment revenues net of the SB 2557 Administrative Fee. The County General Fund share is 18.12%, the County Structural Fire Department share is 4.70% and the County Library Department share is 2.18%. In addition to the tax sharing payments, the agreement specified that the Former RDA pay the County General Fund a total of $6 million from the proceeds of the Former RDA's 2002 Bonds as repayment of the County General Fund tax sharing payments deferred under the May 21, 1991 agreement. The Former RDA further agreed to contribute $5 million toward the acquisition of right-of-way for a project referred to as the Date/Cherry Interchange. According to the Former RDA, funding for this improvement was provided from sources other than tax increment revenues. Under both the May 21, 1991 agreement and the current agreement, the Auditor Controller was responsible for calculating the amount of the tax sharing payments and allocating these payments to the various taxing entities. The general levy shares for the various taxing entities and the amounts that are to be passed through pursuant to the various tax sharing agreements are summarized in Table L below. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 20 Table L Taxing Entity General Levy Shares and Tax Sharing Percentages Taxing Entity County of Riverside County Library Department County Structural Fire Department Temecula Public Cemetery District Eastern Municipal Water District Riverside County Flood Control District Rancho California Water District Temecula Valley Unified School District Mt. San Jacinto Community College District Riverside County Supt. Of Schools B. Negotiated Agreements 1% Share 18.12% 2.18% 4.70% 0.41% 9.76% 1.80% 6.23% 32.33% 3.73% 10.77% Pass Through Share 100% 100% 100% 100% 100% 100% 100% 29.62% 29.62% 29.62% The Former RDA entered into a number of Owner Participation Agreements; Disposition and Development Agreements and Loan Agreements. Of these, two continue to be obligations of the Successor RDA. All other prior agreements have either expired or been fulfilled. An agreement between the Former RDA and Temecula Gardens LP (the "Developer") was executed on July 1, 1998. The agreement provided for the Former RDA to lease property to the Developer and for the Developer to rehabilitate 38 rental housing units and to construct an additional 38 rental housing units in order to effectuate the affordable housing objectives and obligations of the Former RDA pursuant to the Law and pursuant to the Housing Element of the Temecula General Plan. In addition, the Former RDA provided funding of $5.8 million to assist in the rehabilitation and development of these affordable housing rental units. The Former RDA provided this funding through a loan from Washington Mutual Band and the repayment of this loan was secured by a pledge of revenue from the Housing Set -Aside Requirement. The loan payments are $305,000 per year and they continue through July 16, 2027. An agreement between the Former RDA and Advanced Cardiovascular Systems Inc. (the "Participant") was executed on February 12, 2002. After entering into the agreement, the Participant was purchased by Abbott Laboratories and is presently known as Abbott Vascular Inc. Under the terms of this agreement, the Participant agreed to add not less than 90,000 square feet of gross building area to its facilities and to add not less than 150 new full-time jobs. The Participant further agreed to add another 150 new full-time jobs within five years of the issuance of the certificate of occupancy on the Phase I improvements. The Participant further agreed that within five years of the issuance of a certificate of occupancy for the Phase I improvements it would receive a certificate of occupancy for at least 90,000 additional square feet of building area (Phase II). Alternatively, the agreement specified that the Participant could increase the size of the Phase I improvements to at least 135,000 square feet and the Phase II requirement of improvements would be deemed satisfied. The Participant completed construction on the parking structure and a 383,000 square foot office building that satisfied both the Phase I and Phase II building requirements. The agreement has additional requirements for creation of new jobs. The Former RDA stipulated that requirement for creation of new jobs was met. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 21 Upon completion of these prerequisites, the Former RDA agreed to remit to the Participant 50% of the net tax increment revenue derived from the increase in assessed value that resulted from development of Phases I and II. Net tax increment is defined in the agreement as being the total tax increment received by the Former RDA from Phases I and II less 20% for housing set-aside and payment amounts required by tax sharing agreements. Improvements for Phase I and Phase II were completed and enrolled at their full value for 2010-11. Based on the assessed value of the structures we have estimated the amount of tax revenue that will be paid to the Participant for the current fiscal year and for the remaining fiscal years in the projection. The agreement stipulates that the payments called for are not a pledge of tax increment revenues. The payments made by the Successor Agency pursuant to the agreement will, therefore, be subordinate to any pledge of Tax Revenues for payment of debt service on the Bonds. C. Statutory Tax Sharing Payments On January 8, 2008, the City Council adopted Ordinance No. 07-20 that amended the Redevelopment Plan to eliminate the time limit on establishing loans, advances and indebtedness. As a result, the Former RDA was obligated to make statutory tax sharing payments pursuant to Section 33607.7 of the Law. Tax sharing payments are made to all taxing entities that have not previously entered into tax sharing agreements in accordance with the three -tiered formulas for statutory tax sharing payments required of those project areas adopted after January 1, 1994. Since the former time limit on incurrence of new debt for the Project Area was July 12, 2008, these statutory tax -sharing payments began in fiscal year 2009-10 and use the Project Area assessed valuation for 2008-09 as the adjusted base year. For the first tier of tax sharing, the annual tax sharing amount to be divided among the affected taxing entities is 25% of the revenues derived from the difference in assessed value between the adjusted base year value and the current year value net of a 20% share for the Housing Set -Aside Requirement. According to the Law, these statutory tax sharing payments will continue annually through the last fiscal year within which the Project Area is able to repay indebtedness. The second tier of statutory tax sharing payments required by Section 33607.7 will be initiated in fiscal year 2019-20 and will use the Project Area assessed values for 2018-19 as a second adjusted base year value. The annual tier 2 tax sharing amount to be divided among the affected taxing entities is 21% of the revenues derived from the difference in assessed value between the second adjusted base year value and the current year value net of a 20% share for the Housing Set -Aside requirement. A third tier of statutory tax sharing will not be initiated prior to the expiration of the Project Area's ability to repay indebtedness. Because of reductions in assessed value within the Project Area after 2008-09, no statutory tax sharing payments have been made to date. Based on the projections, we estimate that tier one statutory tax sharing payments will begin to be made in fiscal year 2021-22 and that tier two statutory tax sharing payments will begin to be made in fiscal year 2031-32. The City of Temecula is entitled to make an election to receive its share of the Tier 1 tax sharing payment amount. Since only the City and one other taxing entity have not entered into tax sharing agreements, the statutory tax sharing payment amounts will be made only to them. Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 22 VIII. Value Added by Transfers of Ownership and New Development Value will be added to the projected values for fiscal year 2018-19 as the result of transfers of ownership that occurred after the January 1, 2017 lien date for the 2017-18 tax roll. These parcel transfers will add new value to the 2018-19 tax rolls as illustrated in Table M below. Additionally, a number of new developments are currently under construction within the Project Area and are projected to add value to the 2018-19 and 2019-20 tax rolls. The projected amount of value to be added from these developments are reflected in Table M below. Table M Value Added to Projected Tax Rolls From Transfers of Ownership and New Development Sales during 2017 Hilton Home -2 -Suites Hotel Best Western Plus Hotel 4th & Old Town Front Street Subaru Sales & Service Facilities DCH Chrysler Dealership Addition A.I. Plastic Surgery Center Addition DCH Honda Dealership Addition Totals No. of Transfers of Ownership Value Added to 2018-19 Projected Values Value Added to 2019-20 Projected Values IX. Trended Taxable Value Growth 14 $9,216,351 6,111,378 2,787,348 1,326,364 4,018,664 97,932 74,755 31,071 $9,247,422 $14,416,441 In accordance with Proposition 13, growth in real property land and improvement values may reflect the year-to-year inflationary rate not to exceed 2% for any given year. A 2% growth rate is the maximum inflationary growth rate permitted by law and this rate of growth has been realized in all but ten years since 1981. The years in which less than 2% growth was realized included fiscal years 1983-84 (1.0%), 1995-96 (1.19%), 1996-97 (1.11%), 1999-00 (1.85%), 2004-05 (1.867%), 2010-11 (-0.237%), 2011-12 (0.753%), 2014-15 (0.454%), 2015-16 (1.998%) and 2016-17 (1.525%). The Board announced on December 13, 2016 that the annual inflationary adjustment for 2017-18 would be 2%. We have assumed this same adjustment in all subsequent fiscal years. Future values will also be impacted by changes of ownership and new construction not reflected in our projections. In addition, the values of property previously reduced in value due to assessment appeals based on reduced market values could increase more than 2% when real estate values increase more than 2% (see Section IV A above). Seismic activity and environmental conditions such as hazardous substances that are not anticipated in this Report might also impact taxable assessed values and Gross Revenues. HdL Coren & Cone makes no representation that taxable assessed values will actually grow at the rate projected. Anticipated revenues could be adjusted as a result of unidentified assessment appeal refunds, other Assessor corrections discussed previously, or unanticipated increases or decreases in property tax values. Estimated valuations from developments included in this analysis are based Successor Agency to the Redevelopment Agency of the City of Temecula DRAFT Fiscal Consultant's Report October 13, 2017, Page 23 upon our understanding of the general practices of the County Assessor and County Auditor - Controller's Office. General assessment practices are subject to policy changes, legislative changes, and the judgment of individual appraisers. While we believe our estimates to be reasonable, taxable values resulting from actual appraisals may vary from the amounts assumed in the projections. Temecula SA 2017 Refunding - FCR v4 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2011-12 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2009-10 1 $87,493,442 $61,000,000 $26,493,442 Lowes HIW Inc. 2010-11 1 17,786,542 14,176,258 3,610,284 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2012-13 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2009-10 1 $87,493,442 $61,000,000 $26,493,442 Lowes HIW Inc. 2010-11 1 17,786,542 14,176,258 3,610,284 Lowes HIW Inc. 2010-11 1 17,786,542 14,176,258 3,610,284 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2013-14 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2009-10 1 $87,493,442 $61,000,000 $26,493,442 DCH Investment Inc 2013-14 1 107,283,588 23,450,000 83,833,588 Lowes HIW Inc. 2010-11 1 17,786,542 14,176,258 3,610,284 Abbott Vascular 2015-16 5 205,984,313 56,250,000 149,734,313 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2014-15 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2013-14 1 $107,283,588 $23,450,000 $83,833,588 DCH Investment Inc 2015-16 5 21,499,450 12,890,000 8,609,450 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2015-16 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2013-14 1 $107,283,588 $23,450,000 $83,833,588 DCH Investment Inc 2015-16 5 21,499,450 12,890,000 8,609,450 JPM 2004-C2-27471 2015-16 2 20,603,596 13,600,000 7,003,596 Abbott Vascular 2015-16 5 205,984,313 56,250,000 149,734,313 Table 5 Temecula Redevelopment Project No. 1 Top Ten Taxpayer Assessment Appeals Fiscal Year 2016-17 Owner Fiscal Year No. of Parcels Value Under Appeal Owner's Opinion of Value Max. Potential Value Loss International Rectifier 2013-14 1 $107,283,588 $23,450,000 $83,833,588 2016-17 1 30,988,839 24,000,000 6,988,839 DCH Investment Inc 2015-16 5 21,499,450 12,890,000 8,609,450 2016-17 6 25,327,306 14,952,000 10,375,306 JPM 2004-C2-27471 2015-16 2 20,603,596 13,600,000 7,003,596 2016-17 2 20,917,796 14,500,000 6,417,796 Infineon Technologies 2016-17 1 45,514,768 24,000,000 21,514,768 Macys Department Stores 2016-17 4 43,270,732 28,243,535 15,027,197 Abbott Vascular 2015-16 5 205,984,313 56,250,000 149,734,313 2016-17 5 137,090,544 52,100,000 84,990,544 CITY COUNCIL PUBLIC HEARING Item No. 18 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Luke Watson, Director of Community Development DATE: November 14, 2017 SUBJECT: Approve Draft Substantial Amendments to the Fiscal Years 2012-2013, 2015-2016, 2016-2017 and Fiscal Year 2017-2018 Community Development Block Grant (CDBG) Annual Action Plans, and the Fiscal Year 2017-18 CDBG Annual Action Plan and Funding Recommendations PREPARED BY: Lynn Kelly -Lehner, Principal Management Analyst RECOMMENDATION: That the City Council adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING SUBSTANTIAL AMENDMENTS TO FISCAL YEARS 2012-13, 2015-16, 2016-17, AND 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLANS BACKGROUND: The U.S. Department of Housing and Urban Development (HUD) requires all entitlement communities receiving Community Development Block Grant (CDBG) funds, such as the City of Temecula, to prepare and submit a Consolidated Plan every five years to establish a unified, strategic vision for community development, housing and economic development actions. The Consolidated Plan encompasses the analysis of local community needs and coordinates appropriate responses to those needs and priorities. The Temecula City Council adopted its first Five Year Consolidated Plan for Fiscal Years 2012-16 and the Action Plan for 2012-13 on April 26, 2012. The 2015-16 Action Plan was adopted on April 14, 2015. The 2016-17 Action Plan was adopted on April 26, 2016. The City adopted its current Five Year Consolidated Plan for 2017-21 and 2017-18 Action Plan on April 25, 2017. HUD requires CDBG grantees to have no more than 1.5 times their annual allocation available under grant agreements sixty days prior to the end of the current program year. This is referred to as the timeliness standard. On May 1, 2017, HUD found the City had a balance in its line -of - credit of 1.87 times its 2016-2017 annual grant of $515,688. As such, the City developed a Workout Plan to ensure that the City's line -of -credit is no more than 1.5 times the 2017-2018 annual allocation by May 1, 2018. Failure to meet the next 60 -day test may result in a reduction of the City's 2018-19 grant by up to 100 percent of the amount in excess of 1.5 times the annual grant. Per the City's CDBG Citizen Participation Plan, a Substantial Amendment to an Annual Action Plan is required when a "substantial" change is proposed, which includes: • A CDBG activity budget will increase by $50,000 or 25% of the project's original budget. • There is a significant change in the purpose, scope, or beneficiaries of an activity. A Substantial Amendment is also required when the City proposes to add or delete an activity, except in the following cases: • The activity is on the back up list approved by City Council in the Annual Plan. • The activity is being deleted due to delays and would be included in the following year's Annual Action Plan. • There are non-performance or eligibility issues requiring activity termination. • Project deletion or funding reductions are due to facility closure or bankruptcy. • The agency becomes ineligible to receive funding. • An applicant requests that their activity be terminated. The substantial amendments to the 2012-13, 2015-16, 2016-17 and 2017-18 Action Plans are necessary because the City is proposing to delete and amend activities, some of which are necessary to meet HUD's timeliness requirement. These Substantial Amendments proposed the following changes, which are summarized in Table 1: • Per the recommendation of HUD, re -allocate remaining funds that were in the City's 2012-2013 and 2016-2017 Action Plan budgets for the completion of playground equipment in Sam Hicks Monument Park. The project is currently delayed, but will be completed at a later date. The funding will be transferred to the Old Town Boardwalk Enhancement Project (PW17-22). • The Temecula Pantry has notified the City that they will not be providing the services for which they applied. These funds will be re -programmed to Community Mission of Hope's Housing Crisis Center. • The Senior Citizens Service Center withdrew their application for 2017-18 funding. These funds will be re -allocated proportionately amongst the remaining non-profit service providers, in accordance with the City's Citizen Participation Plan. • Due to staffing changes, the Micro -Enterprise Assistance Program has been put on hold and funding has been re -programmed to the 2015-16 Old Town Sidewalk Improvement (PW15-06) project. Table 1: Substantial Amendments to 2012-13, 2015-16, 2016-17, and 2017-18 Action Plans Program Year Activity Names Original Budget Substantial Change Amendment Budget 2012-13 2016-17 2017-18 2017-18 2017-18 2017-18 2017-18 2015-16 Sam Hicks Park Playground Equipment Improvements Sam Hicks Park Playground Equipment Improvements Old Town Boardwalk Enhancement (formerly titled Old Town Sidewalks) TEAM -Temecula Pantry Community Mission of Hope - Housing Crisis Center Senior Citizens Services Center Microenterprise Assistance Program Old Town Sidewalk Improvement $608,888.00 $412,055.75 ($196,832.25) $64,684.00 $0.00 ($64,684.00) $148,922.00 $410,438.75 $261,516.25 $9,997.00 $0.00 $0 $9,997.00 $9,997.00 $4,999.00 $0.00 $(4,999.00)* $49,640.00 $0.00 ($49,640.00) $351,149.07 $400,789.07 $49,640.00 *The Senior Citizens Service Center amount will be proportionately distributed amongst the nine public services listed in the 2017-18 Action Plan. A Notice of Public Hearing and the commencement of the 30 -day public review period was published in the newspaper on October 15, 2017, informing the public of the proposed substantial amendments and inviting comments at the public hearing. The public review period began on October 15, 2017 and ends November 14, 2017. Citizens were able to review copies of the Draft Substantial Amendments at the City of Temecula Public Library, City Hall and on the City's website at temeculaca.gov/CDBG. FISCAL IMPACT: The approval of the Substantial Amendments will allow the timely expenditure of federal Community Development Grant funds. Failure to meet the next 60 -day test may result in a reduction of the City's 2018-19 grant by up to 100 percent of the amount in excess of 1.5 times the annual grant. ATTACHMENTS: 1. Resolution 2. Notice of Public Hearing RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING SUBSTANTIAL AMENDMENTS TO FISCAL YEARS 2012-13, 2015-16, 2016-17, AND 2017-18 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLANS THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Procedural Findings. The City Council of the City of Temecula does hereby find, determine and declare that: A. The City of Temecula has participated directly within the federal Department of Housing and Urban Development (HUD) as an entitlement jurisdiction for Community Development Block Grant (CDBG) funds since July 1, 2012; B. The City of Temecula has prepared all documents, notices, and forms required by HUD for participation in the CDBG Program by entitlement jurisdictions; C. On June 28, 2016, the City Council adopted the updated Citizen Participation Plan that sets forth the City's policies and procedures for citizen participation in the development of its Five -Year Consolidated Plan, Annual Action Plans, Annual Performance Reports, and any substantial amendments deemed necessary for direct administration of federal CDBG funds; D The Citizen Participation Plan included policies and procedures for amending Annual Action Plans where CDBG-funded activities may be added or deleted, and funding for activities may be increased; E. It was determined that the changes for activities listed in Exhibit A required a substantial amendment in accordance with the City's adopted Citizen Participation Plan F. The Substantial Amendment was presented to the City Council at a public hearing held on November 14, 2017. G. The City Council, at a regular meeting, considered the Substantial Amendment on November 14, 2017, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to and did testify either in support or in opposition to this matter. H. At the conclusion of the City Council hearing and after due consideration of the testimony, the City Council approved the Substantial Amendment, subject to and based upon the findings set forth hereunder. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Further Findings. The City Council, in approving the Plan hereby finds, determines and declares that: A. Pursuant to Title 24, Housing and Urban Development, of the Code of Federal Regulations, Subtitle A Office of the Secretary, Department of Housing and Urban Development, Part 91 Consolidated Submissions For Community Planning And Development Programs (24 CFR Part 91) each entitlement jurisdiction shall amend its approved Annual Action plan whenever it makes a change in the purpose, scope, location or beneficiaries of an activity and if there is an increase by $50,000 or 25% of the activity's original budget, whichever is greater. Section 3. Environmental Findings. The proposed action on the Substantial Amendment is exempt from National Environmental Policy Act (NEPA) pursuant to the provisions of the National Environmental Policy Act and specifically 24 CFR 58.34(a)(1) because the Substantial Amendment is a resource identification study and the development of plans and strategies for the prioritization and funding of proposed programs through CDBG and the proposed action involves the feasibility and planning studies to determine prioritization and CDBG funding to begin the development of certain projects. The potential projects discussed in the proposed actions that might involve physical activity have been reviewed under NEPA or the California Environmental Quality Act (CEQA) as part of the development of those projects. The proposed action is also exempt from CEQA per CEQA Guidelines Section 15262 and 15378(b)(4). Section 4. Approvals. A. The City Council hereby approves the Substantial Amendment as set forth as Exhibit A attached hereto, and any and all other documents deemed necessary by HUD to obtain the annual CDBG allocation of the federal CDBG funds and authorizes and directs the City Manager, or his designee, to serve as the Certifying Officer for all environmental review procedures associated with the various CDBG projects, and Certifying Officer for the purpose of signing correspondence, agreements, and other required documents. B. The City Council hereby approves the reprogram of the funds as set forth in Exhibit A. Section 5. Certification. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 17- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk SUBSTANTIAL AMENDMENTS TO 2012-13, 2015-16, 2016-17, AND 2017-18 ANNUAL ACTION PLANS A. EXECUTIVE SUMMARY The U.S. Department of Housing and Urban Development (HUD) requires all entitlement communities receiving Community Development Block Grant (CDBG) funds, such as the City of Temecula, to prepare and submit a Consolidated Plan every five years to establish a unified, strategic vision for community development, housing and economic development actions. The Consolidated Plan encompasses the analysis of local community needs and coordinates appropriate responses to those needs and priorities. The Temecula City Council adopted its first Five Year Consolidated Plan for Fiscal Years 2012-16 and the Action Plan for 2012-13 on April 26, 2012. The 2015-16 Action Plan was adopted on April 14, 2015. The 2016-17 Action Plan was adopted on April 26, 2016. The City adopted its current Five Year Consolidated Plan for 2017-21 and 2017-18 Action Plan on April 25, 2017. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan. Per the City's Citizen Participation Plan, a Substantial Amendment to an Annual Action Plan is required when a "substantial" change is proposed, which includes: • A CDBG activity budget will increase by $50,000 or 25% of the project's original budget, whichever is greater. • There is a significant change in the purpose, scope, location, or beneficiaries of an activity. • The City proposes to add or delete an activity, except in the following cases: • The activity is on the back up list approved by the City Council in the Annual Action Plan. • The activity is being deleted due to delays and would be included in the following year's Annual Action Plan. • There are nonperformance or eligibility issues requiring activity termination. • Project deletion or funding reductions are due to facility closure or bankruptcy. • The agency becomes disqualified or ineligible to receive funding or is unable to produce sufficient eligible billings in accordance with the provisions of the agreement. • An applicant requests that their activity be terminated. The substantial amendments to the 2012-13, 2015-16, 2016-17 and 2017-18 Action Plans are necessary because the City is proposing to delete and amend activities, as described in Section C. B. CITIZEN PARTICIPATION A Notice of Public Hearing and the commencement of the 30 -day public review period was published in the newspaper on October 15, 2017, informing the public of the proposed substantial amendments and inviting comments at the public hearing. The public review period begins on October 15, 2017 and ends November 14, 2017. Citizens were able to review copies of the Draft Substantial Amendments at the City of Temecula Public Library, City Hall and on the City's website at temeculaca.gov/CDBG. On November 14, 2017, the City Council will hear public comments regarding the Substantial Amendments. City of Temecula 2012-13, 2015-16, 2016-17 and 2017-18 Action Plans Pg. 1 Substantial Amendment — November 14, 2017 C. CHANGES TO THE 2012-13, 2016-17 AND 2017-18 ANNUAL ACTION PLAN ACTIVITIES These Substantial Amendments proposed the following changes, which are summarized in Table 1: • Re -allocates remaining funds that were in the City's 2012-2013 and 2016-2017 Action Plan budgets for the completion of playground equipment in Sam Hicks Monument Park. The project is currently delayed, but will be completed at a later date. The Amendments are necessary to meet HUD's timeliness test. The funding will be transferred to the Old Town Boardwalk Enhancement Project (PW17-22) (Formerly titled in the 2017-18 Action Plan as Old Town Sidewalk Project). No change in scope with the name change. • The Temecula Pantry has notified the City that they will not be providing the services for which they applied. These funds will be re -programmed to Community Mission of Hope's Housing Crisis Center. • The Senior Citizens Service Center withdrew their application for 2017-18 funding. These funds will be re -allocated proportionately amongst the remaining non-profit service providers, in accordance with the City's Citizen Participation Plan. • Due to staffing changes, the Micro -Enterprise Assistance Program has been put on hold and funding has been re -programmed to the 2015-16 Old Town Sidewalk Improvement (PW15-06) project. The following tables outline the activity budgets that are being modified to: • Reduce the remaining funding for one activity; • Transfer surplus funds from the Sam Hicks Park project to the Old Town Sidewalk project; • Transfer funds for one service agency to another; • Delete two activities; and • Provide additional funding to cover remaining costs for a recently completed activity. City of Temecula 2012-13, 2015-16, 2016-17 and 2017-18 Action Plans Pg. 2 Substantial Amendment — November 14, 2017 Table 1: Substantial Amendments to 2012-13, 2015-16, 2016-17, and 2017-18 Action Plans Program Year Activity Names Original Budget Substantial Change Amendment Budget 2012-13 2016-17 2017-18 2017-18 2017-18 2017-18 2017-18 2015-16 Sam Hicks Park Playground Equipment Improvements Sam Hicks Park Playground Equipment Improvements Old Town Boardwalk Enhancement (formerly titled Old Town Sidewalk) TEAM -Temecula Pantry Community Mission of Hope - Housing Crisis Center Senior Citizens Services Center Microenterprise Assistance Program Old Town Sidewalk Improvement $608,888.00 $412,055.75 ($196,832.25) $64,684.00 $0.00 ($64,684.00) $148,922.00 $410,438.75 $261,516.25 $9,997.00 $0.00 ($9,997.00) $0 $9,997.00 $9,997.00 $4,999.00 $0.00 $(4,999.00)* $49,640.00 $0.00 ($49,640.00) $351,149.07 $400,789.07 $49,640.00 *The Senior Citizens Service Center amount will be proportionately distributed amongst the nine public services listed in the 2017-18 Action Plan. D. PUBLIC COMMENTS Public comments will be inserted after 30 -day period and public hearing. City of Temecula 2012-13, 2015-16, 2016-17 and 2017-18 Action Plans Pg. 3 Substantial Amendment — November 14, 2017 NOTICE OF PUBLIC HEARING AND AVAILABILITY FOR REVIEW OF DRAFT SUBSTANTIAL AMENDMENTS TO THE 2012-2013, 2015-2016, 2016-2017 AND 2017-2018 ONE-YEAR ACTION PLANS NOTICE IS HEREBY GIVEN that the City of Temecula has prepared draft Substantial Amendments to the 2012-2013, 2015-2016, 2016- 2017 and 2017-2018 Action Plans. The publication of this notice is the beginning of the 30 -day public review period required under Federal Regulation 21 CFR 91.105 (b) (2). The public review and written comment period begins October 15, 2017 and runs through November 14, 2017. NOTICE IS HEREBY FURTHER GIVEN that the City will conduct a Public Hearing, and the Action Plan Substantial Amendments will be presented to the City Council for approval, on following date: DATE: November 14, 2017 TIME: 7:00 p.m. LOCATION: City Council Chambers 41000 Main Street, Temecula, CA 92590 DRAFT 2012-2013, 2015-16, 2016-2017, AND 2017-2018 ACTION PLAN SUBSTANTIAL AMENDMENTS The One -Year Action Plan sets forth specific activities to be funded through the Community Development Block Grant (CDBG) Program. The City proposes the following draft changes to activities included in the 2012-2013, 2015-2016, 2016-2017, and 2017-2018 Action Plans: • Reduction of the Sam Hicks Monument Park Playground Replacement by $196,832.25 (2012-2013 Action Plan) • Deletion of the Sam Hicks Monument Park Playground Replacement by $64,684 (2016-2017 Action Plan) • Increase in Old Town Boardwalk Enhancement (formerly titled Old Town Sidewalk Improvement) Project by $261,516.25 (2017-2018 Action Plan) • Deletion of the Temecula Pantry $9,997 (2017-2018 Action Plan) • Deletion of Senior Citizens Service Center Emergency Food $4,999 (2017-18 Action Plan) • Addition of Community Mission of Hope's Housing Crisis Center $10,688 (2017-2018 Action Plan) • Deletion of the Microenterprise Assistance Program $49,640 (2017-2018 Action Plan) • Increase in Old Town Sidewalk Improvement Project by $49,640 (2015-2016 Action Plan) The Sam Hicks Monument Park Playground Replacement project has been delayed and will be completed at a later date. The remaining funding from two program years will be re -programmed to the Old Town Boardwalk Enhancement project. There is no change in scope for the Old Town Boardwalk Enhancement project. The Temecula Pantry has notified the City that they will not be providing the services for which they applied. These funds will be re -programmed to Community Mission of Hope's Housing Crisis Center. The Senior Citizens Service Center withdrew their application for 2017-18 funding. These funds will be re -allocated proportionately amongst the remaining non-profit service providers. Due to staffing changes, the Micro -Enterprise Assistance Program has been put on hold and funding has been re -programmed to the Old Town Sidewalk Improvement project. PUBLIC COMMENT Copies of the Draft Substantial Amendments will be available for public review at the following locations: City Hall 41000 Main Street Temecula, CA, 92590 Ronald H. Roberts Temecula Public Library 30600 Pauba Road Temecula, CA 92592 The public is invited to submit written comments on the Draft Substantial Amendments. Questions and written comments regarding the Draft Substantial Amendments may be addressed to Lynn Kelly -Lehner, Principal Management Analyst, Community Development Department, 41000 Main Street, Temecula, California 92590. You may also call (951) 506-5172 with any questions concerning the above documents. All comments relative to the draft document should be submitted no later than 4:00 p.m. November 14, 2017. ACCESSIBILITY TO MEETINGS AND DOCUMENTS It is the objective of the City to comply with Section 504 of the Rehabilitation Act of 1973, as amended, the Americans with Disabilities Act (ADA) of 1990 and the ADA Amendment Act of 2008, the Fair Housing Act, and the Architectural Barriers Act in all respects. If you require public documents in an accessible format, the City will make reasonable efforts to accommodate your request. If you require a disability -related accommodation to attend or participate in a hearing or meeting, including auxiliary aids or services, please contact the City Clerk's Office at least 48 hours prior to the meeting at (951) 694-6444. Randi Johl, City Clerk Publish: October 15, 2017 CITY COUNCIL BUSINESS Item No. 19 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Patrick A. Thomas, Director of Public Works/City Engineer DATE: November 14, 2017 SUBJECT: Introduce Ordinance Allowing Private Traffic Control and Direction on Public Streets Subject to Certain Terms and Conditions and Adopt a Resolution Adopting the Fee Schedule PREPARED BY: Patrick A. Thomas, Director of Public Works/City Engineer RECOMMENDATION: That the City Council: 1. Introduce and read by title only an ordinance entitled: ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION, TO THE TEMECULA MUNICIPAL CODE 2. Adopt a resolution entitled: RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE FEE SCHEDULE PURSUANT TO THE TEMECULA MUNICIPAL CODE, CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION BACKGROUND: California Vehicle Code (CVC) Section 21100 allows local authorities to adopt rules and regulations regarding controlling traffic on local roads by various means; including regulating traffic by means of a person given temporary or permanent appointment for that duty under certain circumstances. Currently, the City's Municipal Code does not allow for private organizations or individuals to control traffic on public streets. By adoption of the attached ordinance adding Chapter 10.48 to the Temecula Municipal Code, private organizations or individuals may be permitted to control vehicular access to and from private property and public streets, or for controlling vehicular traffic on a portion of a public street. The City Manager will be authorized to issue a traffic control permit for the purposes of controlling traffic on public streets under the following terms and conditions: • The time shall be limited to only such period as shall be necessary to allow orderly ingress and egress; • A traffic circulation plan shall be developed and approved by the Chief of Police; • Only traffic control personnel who have been trained through an approved program and are certified and approved by the Chief of Police to perform such function may be used by the permittee; • Traffic control personnel shall wear a distinctive color vest with reflective markings, lettered with the words "TRAFFIC CONTROL" in minimum three inch letters on the front and back, as approved by the Chief of Police, while performing permitted duties; • The permittee shall procure and maintain public liability insurance in an amount of not less than $1,000,000 combined single limit, or such greater amount as the City Manager may determine to be needed to protect the City during the term of the permit; naming the City, the County of Riverside, their elected officials and employees, as additional insureds; and, • The permittee shall execute an indemnification agreement with the City indemnifying, defending and holding harmless the City and County of Riverside from any and all claims and liability arising from or during the provision of traffic control services as approved by the City Manager and City Attorney. The Public/Traffic Safety Commission considered this item on October 26, 2017 and recommended approval by the City Council. FISCAL IMPACT: The issuance of a private traffic control permit will be subject to a fee for processing and issuing of the permit and for administration of the program. The fee amount will be established by adoption of the attached Resolution and included in the City's User Fee Schedule. ATTACHMENTS: 1. Ordinance 2. Resolution ORDINANCE NO. 17 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION, TO THE TEMECULA MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES ORDAIN AS FOLLOWS: Section 1. The City Council hereby adds Chapter 10.48, Private Traffic Control and Direction, to the Temecula Municipal Code to read as follows: Chapter 10.48 Private Traffic Control and Direction 10.48.010 Except as otherwise provided in this chapter or by law, it shall be unlawful for any person who is not a police officer or a regularly detailed employee of the City to direct vehicular traffic upon a public street within the City. 10.48.020 The City Manager is authorized to issue a traffic control permit to a qualifying organization for the limited purpose of controlling vehicular access to and from private property and the public streets or for controlling vehicular traffic upon a portion of a public street, in furtherance of a lawful activity of the permittee, under the following terms and conditions: 1) The time shall be limited to only such period as shall be necessary to allow orderly ingress and egress; 2) A traffic circulation plan shall be developed and approved by the Chief of Police; 3) Only traffic control personnel who have been trained through an approved program and are certified and approved by the Chief of Police to perform such function may be used by the permittee; 4) Traffic control personnel shall wear a distinctive color vest with reflective markings, lettered with the words "TRAFFIC CONTROL" in minimum three (3) inch letters on the front and back, as approved by the Chief of Police, while performing permitted duties; 5) The permittee shall procure and maintain public liability insurance in an amount of not less than one million dollars ($1,000,000) combined single limit, or such greater amount as the City Manager may determine to be best protect the City, during the term of the permit, naming the City, the County of Riverside, their elected officials and employees, as additional insureds; 6) The permittee shall execute an indemnification agreement with the City indemnifying, defending and holding harmless the City and County of Riverside from any and all claims and liability arising from or during the provision of traffic control services as approved by the City Manager and City Attorney. 10.48.030 Permits may be issued on an annual or single event basis. The City Manager may promulgate additional rules and regulations governing the application and issuance of the permit. 10.48.040 The standards for training and certification of traffic control personnel shall be approved by the Chief of Police. 10.48.050 The City Manager may suspend or revoke any permit issued for any violation of the conditions of issuance or unsafe practices or conditions arising from the permittee's activity. 10.48.060 The City Council may by resolution establish fees for the processing and issuing traffic control permits and for the administration of this program based on the actual costs to the City. 10.48.070 The failure to obey a lawful order issued by a duly appointed traffic controller shall be punished pursuant to Vehicle Code Section 21100.3 or any successor statute. 10.48.080 City Manager and Chief of Police may designate subordinate employees to fulfill the functions required by this Chapter. Section 2. Severability. If any provision, clause, sentence or paragraph of this Ordinance or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are hereby declared to be severable. Section 3. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law. Section 4. Effective Date. This Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this day of , Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 17- was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 14th day of November, 2017, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the day of, , by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING THE FEE SCHEDULE PURSUANT TO THE TEMECULA MUNICIPAL CODE, CHAPTER 10.48, PRIVATE TRAFFIC CONTROL AND DIRECTION THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Fee Schedule, attached hereto as Exhibit A, is attached to this resolution and incorporated herein by this reference. Section 2. The Fee Schedule shall become effective upon the adoption of this resolution and may be, thereafter, amended. Section 3. All prior resolutions in conflict this this resolution are hereby rescinded. Section 4. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 14th day of November, 2017. Maryann Edwards, Mayor ATTEST: Randi Johl, City Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 17- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of November, 2017, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Randi Johl, City Clerk EXHIBIT A FEE SCHEDULE SERVICE FEE Annual Permit $530 Single Event Permit $265 DEPARTMENT REPORTS Item No. 20 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Council FROM: Aaron Adams, City Manager DATE: November 14, 2017 SUBJECT: City Council Travel/Conference Report PREPARED BY: Sue Steffen, Executive Assistant RECOMMENDATION: Receive and file. On November 8, 2017 Mayor Maryann Edwards traveled to San Luis Obispo, California with Visit Temecula Valley Board Members. ATTACHMENT: Meeting Agenda SOUTHEP"`' r o I,!rr“ +i' WINE COUNTRY VTV November 8-10 Board Field Trip Proposed Itinerary Wednesday, November 8th 4:00am Meet in City Parking Structure 4:30am Load bus & depart for SLO (5 hr drive) 11:00am Arrive in SLO & Welcome at City Hall 11:30-12:30 SLO Chamber of Commerce - Ermina Karim 12:45-1:45pm Lunch in Downtown SLO w City of SLO Tourism Manager- Molly Cano 2:00pm Walk thru downtown, Creek walk, Public Art, Visitor Center — Break into small groups Molly Cano, Tourism Manager City - Economic Development Staff Visitor Center Staff 3:00-4:00pm Meet with SLO Downtown Association — Dominic Tartaglia 4:00pm Check-in at Hampton Inn & Suites 6:OOpm Dinner in Downtown SLO — brewery — SLO BREW or the ROCK? 8:OOpm Load bus & depart for hotel 8:15pm Arrive at hotel for the evening Thursday, November 9th 6:30am — 8:30am Complimentary Breakfast at Hotel 8:00-9:00 am Meet with Visit SLO CAL at Hotel — Chuck Davison 10:OOam Leave for SLO Airport 10:30-12:00 Presentation & Tour of SLO Airport — Kevin Bumen 12:15pm Load bus & depart to Edna Valley Winery 12:30pm Arrive at Winery for Wine Tasting & Lunch plus meet w/ SLO Wine Association Open time to plug in: Tentative — working on the Cal Poly "Hop House" for new Business — Someone from the college would give us tour. - Cal Poly — HOP House Economic Development - Time to refresh at the hotel 6:OOpm Dinner at Farmers Market on your own 8:OOpm Meet back up @ Barrel House or/Luis Wine Bar 9:OOpm Load bus & depart from hotel Friday, November 10th 6:30am — 8:OOam Group Breakfast at hotel to review & Check-out 8:OOam Load bus & depart for Temecula 12:OOpm Lunch 77777 1:OOpm Arrive in Temecula (approximate based on traffic) REQUEST TO SPEAK FORMS and HANDOUTS City Council Meeting 11 /14/2017 REQUEST TO SPEAK S4, CITY OF TEMECULA Date: ` \k n I wish to speak on: VI Public Comment Circle One: CITY COON, L i CSD/SARDA/THA/TPFA Subject: 14\00k\A).k.— \TA. U0OS(t 0 Agenda Item No. For 0 Against n Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record. Address: 11 '' l ,, Email address: -K�}YYCZ 071. I�UW -^CO (")// If you are represnt@ ing an organization or groyia,pleal se give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. REQUEST TO SPEAK 4r4g,00. CITY OF TEMECULA Date: f (7 I wish to speak on: Public Comment Circle One: CITY COUNCIL 1 CSD/SARDA/THA 1 TPFA Subject: STS71'I e s4 ►'Asa- n Agenda Item No. For n Against Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record. Name: -TRACy 1+11-A4 Phone Number: Address: Email address: If you are representing an organization or group, please give the name: mtt Cf-tvittac IeSUS CirkrsT a ,t-/VY cAi"rr Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. REQUEST TO SPEAK /' 4r, CITY OF TEMECULA 9 Date: / 1 r0 !/' a 0 /7 I wish to speak on: ❑/l blit C ment Circle One: CITY COUNCIL/CSD/SARDA�/THA/TPFA I Subject: , /1/ 7 7 // c-1yi,C�' .v_ XA enda Item No. F r I�I •g o l i Against ❑ �rCCrte i' / (i Gt--0 L) Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record ! 4Q,/a‘-t--"C Name: a/'1' chi Phone Number: ? /�)Addres r1i 9 1)-251, Email address: (q h '-i'<:=.CTV. A.-7 et---i. , C .dz—, If you are representingan organization or group, please give the name: g .ZO C-e;t,6c--- /11,ri 0 ce 'ee:,e,., -77/ V (0 - Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. REQUEST TO SPEAK cl - < ._-{ 4 CITY OF TEMECULA 1989 V Date: f/ — J 1 / I wish to speak on: El Public Comment Circle One: CITY COUNCIL/CSD/SARDA/THA/TPFA J ,, Subject: p-Lfzi) L Unt��� // T4-z 's//i,n & ,J/1/)(j f T) if /)1 L ' Agenda Item No. b For Against " I Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record. 1 (.:-/ S Address: �lit - � ) -eLCJ//i C 5O���'J Email address: '1`P.-t i S 1'r �/ )71k/ ___C".0-Y-1 If you are representing an organization or group, please give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. REQUEST TO SPEAK ,. '�., CITY OF TEMECULA )(k)(6 I - -0,.._:::) Date: I i li ij I f i I wish to speak on: 0 Public Comment Circle On : CITY COUNCI / CSD /SARDA/THA/TPFA Subject: � e :1J f k 1 c 1 b 4--)__S 67 Agenda Item No. For n Against r Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record. w . Name: s-� ,e V Q0 5C k � 2- Phone Number:q-( • Email address: 30(-C('- \_o (A7- G 0 1 ' ( 0 P' If you are representing an organization or group, please give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. , „-,7-,,:.\\ REQUEST TO SPEAK ”' 44Alitth .119,01% qk iii. 4/PI .. CITY OF TEMECULA0 Date: /C7 Af 02 07 2 I wish to Peak on: z Public Co ent Circle One: CITY COUNCIL/JCSD/SARDA/THA/TPFA Subject: _. ir4/// -4/Ce // — /I Agenda Item No. rLe For n Against ../iff equest to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for thy record. / � Address:? Email address: If you are representing an organization or group, please give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. i REQUEST TO SPEAK .4> 4,, CITY OF TEMECULA imp 1989 Date: /(f /1/47/. a e/7 I wish tospeak on: Public Comment Circle One: CITY COUNCIL/CSD I SARDA/THA/TPFA SubjectCard I ()ccnCe 11- 12 Agenda Item No_ For n Against Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the )/c►ordn. 1 AVI-eaV �IName: ! a��QL Phone Numbe& Address: ma/vie cP c(2.5-w s/ Email address: If you are representing an organization or group, please give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. REQUEST TO SPEAK ;' a CITY OF TEMECULA Date: !Vc 14 / Z 17 I wish to speak on: E Public Comment Circle One: CITY COUNCIL/ CSD I SARDA/THA/TPFA Subject: Agenda Item No. 15 For Against n Request to Speak forms for Public Comments or items listed on the Consent Calendar may be submitted to the City Clerk prior to the City Council commencing the Public Comment period. For all Public Hearing or Council Business items on the Agenda, a Request to Speak form may be submitted to the City Clerk prior to the City Council addressing that item. Once the speaker is called to speak, please come forward to the podium and state your name for the record. t ) ADsc-tA Name: ,--1 1 DC-,Ps\J Phone Number: Address: Email address: e-A. , ^ NciiQU.v �@ V �1 • c0 If you are representing an organization or group, please give the name: Please note that all information presented at a City Council meeting becomes public record. All information provided is optional. Randi Johl From: Randi Johl Sent: Tuesday, November 14, 2017 1:52 PM To: 'Ira Robinson' Subject: RE: City Council Meeting of November 14, 2017 -- Items 6 and 15 Thank you Ira. Your comments were received for the record. Randi Johl,JD, MMC City Clerk, City of Temecula Legislative Director, California City Clerks Association randi.iohl@temecu laca.ciov 41000 Main St, Temecula, CA 92590 o4 b • gertir:da4 Community Pride Please note that email correspondence with the City of Temecula, along with attachments, may be subject to the Califomia Public Records Act, and therefore may be subject to disclosure unless otherwise exempt. From: Ira Robinson [mailto:ilresq@verizon.net] Sent:Tuesday, November 14, 2017 10:17 AM To: Randi Johl<randi.johl@temeculaca.gov> Subject: RE:City Council Meeting of November 14, 2017 -- Items 6 and 15 Dear Madam City Clerk, I am again forwarding the below October 23 message to you for the record. In addition (and with apologies for my hasty draftsmanship, prompted by my having to get to another event), I would like to register my objection to the measures proposed at item #6 on tonight's agenda, primarily because, in my view, they effectively, unfairly and heavy handedly declare all-out war on the homeless — criminalizing the condition. There are already laws on the books that can be used to protect legitimate citizen health and safety concerns. The proposed measures are objectionable primarily because they target and are directed specifically against the homeless, attempting (among other things) to make otherwise lawful activity unlawful, and inappropriately extending the city's police power to private property. I seem to recall that the City started enforcing the speed limit at Promenade Mall only after having been specifically asked by Promenade to do so. 1 I believe, recommend and ask that further action on item 6 be taken off calendar or deferred until the proposed measures have been carefully reviewed by all interested stakeholders, including the homeless (or their representatives), advocacy groups like the ACLU, and others. While agenda item #15 seems headed in the right direction, it's a one-year, $150,000 pilot project, which seems to be partly focused on getting the City out of the business of helping the homeless (with City financed programs , or otherwise). It is my belief that item #15, together with whatever other programs the City claims to have, should be subjected to detailed and careful review (and extension or revision, if necessary) by interested individuals, stakeholders, advocacy groups, faith based groups and others — with the goal of coming up with a fully comprehensive program. Sorry for the poor presentation. Thank you. Ira Robinson From: Ira Robinson [mailto:ilresq@verizon.net] Sent: Monday, October 23, 2017 11:28 PM To: Randi Johl <randi.iohl@temeculaca.gov> Cc: Martha Howard (latinaarc@gmail.com) <latinaarc@gmail.com>;Tami Sims<tamisims@gmail.com> Subject: City Council Meeting of October 24, 2017 -- Item 18 Dear Madam City Clerk, Unfortunately, I will not be able to attend the October 24, 2017 City Council meeting. However, I would like to submit the following brief comments for the record in connection with Item 18 on the agenda. That item addresses homelessness in the City and proposes administrative procedures and an Ordinance to address that concern. 1 . It is noted that the materials provided on line in connection with this item are fairly voluminous — making it difficult for anyone to conduct any meaningful review and analysis of the situation, or the measures proposed to address it. Given that the agenda materials were likely produced by or for the City and staff over many days, if not weeks, I believe requiring stakeholders or other interested persons to master them in a matter of hours would be fundamentally unfair. As you know, the Agenda Report for Item 18 covers nearly 3 pages; the proposed Administrative Procedure is 19 pages in length; and the proposed Ordinance goes on for 14 pages. 2. I believe that measures of the type proposed at Item 18 should only be considered at a public hearing after adequate prior notice (accompanied by 2 • access to the relevant materials), has been provided to the public, in general; and to stakeholders (including private agencies, churches, other organizations and homeless persons), in particular. 3. Although there has been no opportunity to review, commission or conduct legal research regarding the proposals presented, I have a strong suspicion that much that has been proposed will not easily pass Constitutional muster. At the very least, the measures proposed, if not fully and carefully vetted will likely be seen as an attempt by the City to criminalize homelessness and marginalize the homeless. 4. As we all know, there are already laws and ordinances on the books that can be used by the City to address any homeless related concern that currently needs to be addressed. Recommendation: Based on the foregoing ,(not to mention all that more time for further analysis might yield), it is respectfully recommended and requested that the Council defer action on this matter until the City, working in conjunction with stakeholders, citizens and others, has fully reviewed the matter of homelessness in Temecula, assessed the effectiveness of the measures currently taken by the City and others, determined whether and what further actions to support or assist are need -- and actually taken those actions. Perhaps a study group could help in that effort. After all of the foregoing steps have been taken, it would seem that the city would then be in a better position to responsibly determine what, if any, further measures to address the situation are required. At the moment, it does appear that the cart is before the horse. Thank you, Ira Robinson Temecula 3